UPSC MainsECONOMICS-PAPER-I201715 Marks
Q25.

The trade-off between environment and development remains unresolved. Comment in view of the United States exiting from Paris Climate Agreement.

How to Approach

This question requires a nuanced understanding of the environment-development debate, specifically using the US withdrawal from the Paris Agreement as a focal point. The answer should begin by defining the trade-off, then analyze the reasons behind the US exit, its implications, and finally, discuss potential pathways to reconcile environment and development. Structure the answer into introduction, body (covering historical context, reasons for withdrawal, impacts, and alternative approaches), and conclusion. Include relevant data and examples to support arguments.

Model Answer

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Introduction

The relationship between economic development and environmental sustainability is often characterized by a perceived trade-off – the notion that prioritizing one necessitates compromising the other. This tension has been a central theme in global environmental governance, exemplified by the landmark Paris Agreement on climate change. The United States’ withdrawal from this agreement, first announced in 2017 and finalized in 2020, dramatically highlighted this unresolved conflict. The decision, framed by the US administration as prioritizing economic interests, sparked international concern and reignited the debate on balancing growth with environmental responsibility. This answer will examine this trade-off in the context of the US’s decision, analyzing its implications and exploring potential solutions.

Historical Context of the Environment-Development Debate

The debate isn’t new. Early industrialization prioritized economic growth with little regard for environmental consequences. The concept of ‘sustainable development’ emerged in the 1980s, popularized by the Brundtland Report (1987), defining it as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” This acknowledged the interconnectedness of economic progress and environmental protection. However, implementation has been uneven, often favoring short-term economic gains over long-term environmental sustainability.

Reasons for the US Withdrawal from the Paris Agreement

The US withdrawal under the Trump administration was primarily driven by economic arguments. Key reasons included:

  • Economic Competitiveness: Concerns that the agreement would disadvantage US businesses and industries, particularly those reliant on fossil fuels, compared to competitors in countries with less stringent environmental regulations.
  • Job Losses: Claims that complying with the agreement’s emission reduction targets would lead to job losses in the coal, oil, and gas sectors.
  • Sovereignty Concerns: Arguments that the agreement infringed upon US sovereignty and allowed other nations to dictate US energy policy.
  • Financial Contributions: Disagreement over the level of financial contributions the US was expected to make to the Green Climate Fund, designed to assist developing countries in mitigating and adapting to climate change.

These arguments were largely based on a short-term economic perspective, neglecting the long-term economic costs of climate change, such as increased extreme weather events and resource scarcity.

Impacts of the US Withdrawal

The US withdrawal had several significant impacts:

  • Reduced Global Mitigation Efforts: The US is a major emitter of greenhouse gases. Its absence weakened the collective global effort to limit warming to well below 2°C, as stipulated in the Paris Agreement.
  • Damage to International Cooperation: The withdrawal undermined trust and cooperation on climate change, potentially hindering future agreements.
  • Economic Implications: While intended to protect US industries, the withdrawal arguably hindered the growth of the renewable energy sector and the development of green technologies.
  • Geopolitical Shifts: It created a vacuum in climate leadership, which was partially filled by the European Union and China.

Reconciling Environment and Development: Alternative Approaches

Addressing the trade-off requires a shift in perspective and the adoption of innovative approaches:

  • Green Growth: Promoting economic growth through investments in environmentally sustainable technologies and practices. This includes renewable energy, energy efficiency, sustainable agriculture, and green infrastructure.
  • Carbon Pricing: Implementing carbon taxes or cap-and-trade systems to internalize the environmental costs of carbon emissions, incentivizing businesses to reduce their carbon footprint.
  • Circular Economy: Transitioning from a linear ‘take-make-dispose’ model to a circular economy that emphasizes resource efficiency, waste reduction, and reuse.
  • Investing in Climate Resilience: Building infrastructure and systems that can withstand the impacts of climate change, such as sea-level rise, extreme weather events, and droughts.
  • Technology Transfer and Capacity Building: Providing financial and technical assistance to developing countries to help them transition to low-carbon economies.

The Biden administration rejoined the Paris Agreement in 2021, signaling a renewed commitment to climate action. However, achieving meaningful progress requires sustained political will, international cooperation, and a fundamental rethinking of economic development models.

Approach Benefits Challenges
Green Growth Economic growth, job creation, environmental protection Requires significant investment, potential for greenwashing
Carbon Pricing Incentivizes emission reductions, generates revenue Politically challenging, potential for regressive impacts
Circular Economy Resource efficiency, waste reduction, innovation Requires systemic changes, consumer behavior shifts

Conclusion

The US withdrawal from the Paris Agreement served as a stark reminder of the persistent tension between environmental protection and economic development. While short-term economic considerations often drive policy decisions, ignoring the long-term environmental consequences is ultimately unsustainable. Reconciling this trade-off requires a paradigm shift towards green growth, carbon pricing, and a circular economy, coupled with international cooperation and a commitment to climate resilience. The future hinges on recognizing that environmental sustainability is not an impediment to development, but rather a prerequisite for it.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Sustainable Development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. (Brundtland Report, 1987)
Carbon Footprint
The total amount of greenhouse gases generated by our actions.

Key Statistics

The United States accounted for approximately 14% of global greenhouse gas emissions in 2021.

Source: Environmental Protection Agency (EPA), 2023 (Knowledge Cutoff: Dec 2023)

Global GDP is projected to decline by 11-14% by 2050 if climate change is left unchecked.

Source: The Economist Intelligence Unit, 2015

Examples

Costa Rica’s Renewable Energy Success

Costa Rica has consistently generated over 98% of its electricity from renewable sources (hydro, geothermal, wind, solar) demonstrating that economic development and environmental sustainability can coexist.

Frequently Asked Questions

Is economic growth always detrimental to the environment?

Not necessarily. ‘Green growth’ strategies demonstrate that economic growth can be decoupled from environmental degradation through investments in sustainable technologies and practices.

Topics Covered

EconomicsEnvironmentSustainabilityClimate ChangeEconomic Policy