Environment and Sustainable Development

Introduction

The economic development that we have achieved so far has often come at a very heavy price, paid in the form of a decline in environmental quality. As we live through an era of globalisation that promises higher economic growth, we have to keep in mind the harmful effects of the old development path on our environment and consciously choose a path of sustainable development.

To understand the unsustainable path of development that humanity has taken, and the challenges of shifting to a sustainable one, we first have to understand the meaning of the environment and how much it contributes to economic development. You can explore this and related economics topics in more depth on the Learnacy Hub.

Environment: Definition and Functions

The environment is defined as the total planetary inheritance and the totality of all resources. It includes all the biotic (living) and abiotic (non-living) factors that influence each other. A study of the environment therefore means a study of the inter-relationship between these biotic and abiotic components.

Functions of the environment. The environment performs four vital functions:

• It supplies resources. These include both renewable and non-renewable resources. Renewable resources are those which can be used again and again without the possibility of the resource being exhausted, so a continuous supply remains available. Non-renewable resources are those which get used up with extraction and use.
• It assimilates waste, absorbing the by-products of production and consumption.
• It sustains life by providing genetic and biological diversity.
• It provides aesthetic services such as scenery and natural beauty.

As long as the demand for these functions stays within the environment's own capacity to supply them, there is no major problem. Difficulties arise when we demand more than the environment can provide or absorb.

The Environmental Crisis Today

The rising population of the developing countries, together with the high consumption and production standards of the developed world, has placed a huge stress on the environment. Many resources are close to extinction, and the wastes we generate are now beyond the absorptive capacity of the environment. Absorptive capacity means the ability of the environment to absorb degradation.

Past development has polluted and dried up rivers and other aquifers, turning clean water into an economic good that has to be paid for. The intensive extraction of both renewable and non-renewable resources has exhausted some vital resources, forcing us to spend huge amounts on technology and research to find new ones. On top of this come the health costs of a degraded environment: a decline in air and water quality has led to more respiratory and water-borne diseases such as asthma and cholera. The result is that the world stands at the threshold of an environmental crisis.

Global Warming

Global warming is a gradual increase in the average temperature of the earth's lower atmosphere as a result of the rise in greenhouse gases since the Industrial Revolution. Much of the recent and projected warming is human-induced. It is caused by man-made increases in carbon dioxide and other greenhouse gases through the burning of fossil fuels and through deforestation.

Adding carbon dioxide, methane and similar gases to the atmosphere, with no other changes, makes the planet's surface warmer. According to textbook estimates, the atmospheric concentrations of carbon dioxide and methane have risen well above their pre-industrial levels of 1750. During the past century, the atmospheric temperature rose by about 1.1 degrees Fahrenheit (0.6 degrees Celsius), and the sea level rose by several inches.

Some of the longer-term results of global warming are: the melting of polar ice with a resulting rise in sea level and coastal flooding; the disruption of drinking-water supplies that depend on snow melt; the extinction of species as their ecological niches disappear; more frequent tropical storms; and a higher incidence of tropical diseases.

Ozone Depletion

Ozone depletion refers to a reduction in the amount of ozone in the stratosphere. The problem is caused by high levels of chlorine and bromine compounds in the stratosphere. These come mainly from chlorofluorocarbons (CFCs), which were used as cooling substances in air-conditioners and refrigerators and as aerosol propellants, and from bromofluorocarbons (halons), used in fire extinguishers.

As the ozone layer thins, more ultraviolet (UV) radiation reaches the Earth and damages living organisms. UV radiation is linked to skin cancer in humans. It also lowers the production of phytoplankton, which affects other aquatic organisms, and it can harm the growth of land plants. A reduction of roughly 5 per cent in the ozone layer was detected between 1979 and 1990.

Because the ozone layer blocks most of the harmful wavelengths of ultraviolet light, the observed and projected decreases in ozone caused worldwide alarm. This led to the adoption of the Montreal Protocol, which banned the use of CFCs and other ozone-depleting chemicals such as carbon tetrachloride, methyl chloroform and the bromine compounds known as halons.

State of India's Environment

India has abundant natural resources: rich soils, hundreds of rivers and tributaries, lush forests, plenty of mineral deposits beneath the surface, a vast stretch of the Indian Ocean, and many mountain ranges. The black soil of the Deccan Plateau is particularly suited to growing cotton, which is why textile industries are concentrated there. The Indo-Gangetic plains, spread from the Arabian Sea to the Bay of Bengal, are among the most fertile, intensively cultivated and densely populated regions in the world.

Large deposits of iron ore, coal and natural gas are found across the country. India alone accounts for nearly 20 per cent of the world's total iron-ore reserves. Bauxite, copper, chromite, diamonds, gold, lead, lignite, manganese, zinc and uranium are also available in different parts of the country.

However, developmental activity in India has put pressure on its finite natural resources and has affected human health and well-being. The threat to India's environment poses a dichotomy: the threat of poverty-induced environmental degradation on one side, and the threat of pollution from affluence and a rapidly growing industrial sector on the other. Air pollution, water contamination, soil erosion, deforestation and wildlife extinction are among the country's most pressing environmental concerns.

The priority issues identified are:

1. Land degradation
2. Biodiversity loss
3. Air pollution
4. Management of fresh water
5. Solid waste management

Land in India suffers from various degrees and types of degradation, mainly because of unstable use and poor management. Some of the factors responsible for land degradation are:

1. Loss of vegetation due to deforestation
2. Unsustainable fuelwood and fodder extraction
3. Shifting cultivation
4. Encroachment into forest lands
5. Forest fires and overgrazing
6. Non-adoption of adequate soil-conservation measures
7. Improper crop rotation
8. Indiscriminate use of agro-chemicals such as fertilisers and pesticides
9. Poor planning and management of irrigation systems
10. Extraction of groundwater beyond the recharge capacity
11. Open-access resources and the poverty of agriculture-dependent people

India supports about 17 per cent of the world's human population and 20 per cent of its livestock on a mere 2.5 per cent of the world's geographical area. This high density of people and animals, along with competing uses of land for forestry, agriculture, pastures, settlements and industries, places an enormous strain on the country's finite land resources. The per capita forest land in the country is only 0.08 hectare against a requirement of 0.47 hectare to meet basic needs, resulting in the excess felling of about 15 million cubic metres of forest over the permissible limit.

Pollution Control Boards

In order to address two major environmental concerns, water and air pollution, the government set up the Central Pollution Control Board (CPCB) in 1974. This was followed by states establishing their own state-level boards to tackle a wider range of environmental concerns.

These boards investigate, collect and share information relating to water, air and land pollution, and they lay down standards for sewage, trade effluent and emissions. They provide technical help to governments in keeping streams and wells clean by preventing, controlling and reducing water pollution, and by improving air quality. They also sponsor research on pollution and its control, run mass-awareness programmes through the media, and prepare manuals, codes and guidelines for treating and disposing of sewage and trade effluents. State boards, through their district-level officials, periodically inspect every industry under their jurisdiction to check that treatment measures for effluent and gaseous emissions are adequate.

Sustainable Development

The environment and the economy are interdependent and need each other. Development that ignores its effect on the environment will end up destroying the very environment that sustains life. What is needed instead is sustainable development: development that allows all future generations to enjoy an average quality of life at least as high as the one enjoyed by the current generation.

The concept of sustainable development was emphasised by the United Nations Conference on Environment and Development (UNCED), which defined it as:

Development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs.

The present generation can promote development that improves the natural and built environment in ways that are compatible with:

1. The conservation of natural assets
2. The preservation of the regenerative capacity of the world's natural ecological systems
3. Avoiding the imposition of added costs or risks on future generations

According to Herman Daly, a leading environmental economist, achieving sustainable development requires the following:

1. Limiting the human population to a level within the carrying capacity of the environment
2. Ensuring that technological progress is input-efficient and not input-consuming
3. Extracting renewable resources only on a sustainable basis, so that harvesting does not exceed regeneration
4. Making sure that, for non-renewable resources, the rate of depletion does not exceed the rate at which renewable substitutes are created
5. Correcting the inefficiencies that arise from pollution

Strategies for Sustainable Development

Use of Non-conventional Sources of Energy

India depends heavily on thermal and hydro power plants. Both have harmful environmental effects. Thermal plants emit large quantities of carbon dioxide, a greenhouse gas, and produce fly ash which, if not handled properly, pollutes water bodies and land. Hydroelectric projects flood forests and disturb the natural flow of water in catchment areas and river basins. Wind power and solar energy are cleaner, greener alternatives, though they have not yet been used on a very large scale because of gaps in technology.

LPG and Gobar Gas in Rural Areas

Rural households often use wood, dung cake or other biomass as fuel. This causes deforestation, a loss of green cover, the wastage of cattle dung and indoor air pollution. To fix this, subsidised LPG is being provided, and gobar gas plants are being set up through easy loans and subsidies. LPG is a clean fuel that greatly reduces household pollution and wastes less energy. In a gobar gas plant, cattle dung produces gas that is used as fuel, while the leftover slurry is an excellent organic fertiliser and soil conditioner.

CNG in Urban Areas

In Delhi, using Compressed Natural Gas (CNG) in the public transport system has clearly lowered air pollution and made the air cleaner. This remains one of India's best-known examples of a policy that cut urban emissions.

Wind Power

In areas where wind speeds are usually high, windmills can generate electricity without harming the environment. The initial cost is high, but the benefits are large enough to absorb it over time.

Solar Power through Photovoltaic Cells

India is naturally blessed with plenty of solar energy in the form of sunlight. Using photovoltaic cells, solar energy can be converted directly into electricity. This is especially useful for remote areas where supplying power through a grid is difficult or very costly, and it is completely free from pollution.

Mini-hydel Plants

In mountainous regions, perennial streams are found almost everywhere. Mini-hydel plants use the energy of these streams to turn small turbines and generate electricity for local use. They are largely environment-friendly because they do not change the land-use pattern, and they remove the need for large transmission towers and cables, avoiding transmission loss.

Traditional Knowledge and Practices

Traditionally, Indian people have lived close to their environment, as a part of it rather than its controller. Older systems of agriculture, healthcare, housing and transport were mostly environment-friendly. One good example is healthcare: India has about 15,000 species of plants with medicinal properties, of which around 8,000 are in regular use in systems such as Ayurveda, Unani and folk traditions. These systems are relatively free from side effects and avoid large-scale industrial and chemical processing.

Biocomposting

In the drive to raise agricultural output over the last few decades, we almost completely switched from compost to chemical fertilisers. As a result, large tracts of land were damaged and water bodies, including groundwater, were contaminated. Farmers across the country have again started using compost made from organic waste. Earthworms can turn organic matter into compost faster than the normal process, and this vermicomposting is now widely used.

Biopest Control

With the arrival of the Green Revolution, the country rushed to use more and more chemical pesticides for higher yields. Soon food, soil, water bodies and even groundwater were polluted. To meet this challenge, safer methods of pest control are being adopted, including pesticides based on plant products. Neem trees are proving especially useful, and practices such as mixed cropping have also helped farmers.

Why it still matters

This chapter is not just history. The two big ideas in it, protecting the ozone layer and shifting to clean energy, are live stories in the world right now.

Take the Montreal Protocol that you read about in the ozone section. It is often called the most successful environmental treaty ever signed. A 2022 scientific assessment by the United Nations Environment Programme and the World Meteorological Organization found that nearly 99 per cent of banned ozone-depleting substances have been phased out. If current policies continue, the ozone layer is on track to recover to its 1980 values by about 2040 over most of the world, by 2045 over the Arctic, and by 2066 over Antarctica. As a bonus, phasing out these chemicals has already prevented roughly 0.5 degrees Celsius of extra global warming. This is a real example of sustainable development working: countries agreed on a rule, industries changed, and a global problem started to heal.

The clean-energy strategies in this chapter are moving fast in India too. At the COP26 climate summit in Glasgow in 2021, India announced a set of five pledges known as Panchamrit, including a target of 500 GW of non-fossil electricity capacity by 2030 and net-zero emissions by 2070. In June 2025, India crossed a big milestone: half of its total installed electricity capacity now comes from non-fossil sources such as solar, wind, hydro and nuclear, which is a full five years ahead of the 2030 target it had set. So the solar cells, wind turbines and CNG buses described in your notes are no longer just examples in a textbook; they are reshaping the country's power supply. You can read more current-affairs study notes on the Class 12 Economics Notes page, and browse other topics in our full resources library.

Conclusion

Economic development aims to increase the production of goods and services for a growing population, and this puts greater pressure on the environment. In the early stages of development, the demand for environmental resources was lower than their supply. Today the world faces the opposite situation: demand for environmental resources is high while their supply is limited by overuse and misuse. Sustainable development is the answer. It promotes the kind of growth that keeps environmental damage to a minimum and meets the needs of the present generation without compromising the ability of future generations to meet their own needs.

Sources

1. UN News, Ozone layer recovery is on track, due to success of Montreal Protocol (2023)
2. United Nations Environment Programme, Scientific Assessment of Ozone Layer Depletion: 2022
3. Press Information Bureau, Government of India, India reaches 50 per cent non-fossil power capacity (2025)
4. Press Information Bureau, National Statement by the Prime Minister at COP26, Glasgow (2021)

Key takeaways

• Environment encompasses all biotic and abiotic resources and their inter-relationships, forming the basis for economic development.
• The environment performs four critical functions: supplying resources, assimilating waste, sustaining life, and providing aesthetic services.
• Sustainable development is necessary because past economic growth has degraded environmental quality and exhausted resources beyond recovery.
• Global warming is primarily caused by human-induced increases in greenhouse gases like carbon dioxide and methane from burning fossil fuels and deforestation.
• Ozone depletion results from high levels of chlorine and bromine compounds, mainly from CFCs and halons, leading to thinning of the ozone layer.

Test yourself

What are the four vital functions performed by the environment?

The environment supplies resources, assimilates waste, sustains life by providing genetic and biological diversity, and provides aesthetic services like scenery.

Why is sustainable development necessary according to the note?

Sustainable development is necessary because past economic growth has led to environmental degradation, resource exhaustion, and an environmental crisis.

What is the primary cause of global warming as described in the note?

Global warming is primarily caused by human-induced increases in greenhouse gases like carbon dioxide and methane from burning fossil fuels and deforestation.

What are the main sources of ozone-depleting substances mentioned in the note?

The main sources are chlorofluorocarbons (CFCs) from air-conditioners and refrigerators, and bromofluorocarbons (halons) from fire extinguishers.

What are some consequences of global warming listed in the note?

Consequences include melting polar ice, rising sea levels, disruption of drinking-water supplies, species extinction, more frequent tropical storms, and a higher incidence of tropical diseases.