How Environmental Economics Can Save Millions of Lives

Almost all the HSC exam candidates this year are effectively 30 years old! 

Surprised? Though their age is around 18, the severe air pollution in Bangladesh has aged their lungs to about 30 years!

This isn't just a local issue, it's a global problem. The World Health Organization (WHO) says that a city's Air Quality Index (AQI) should be between 0-50 where 50 is the highest acceptable level. In 2023, Dhaka's average AQI was an alarming 171!

According to the World Bank in a press release by 2023, if this pollution continues, South Asia could see 2 million premature deaths every year. And guess what? Dhaka was a critical concern in their report.

So, is there a permanent solution? Addressing this problem requires action not only from Bangladesh but also from world leaders.

The Bangladesh government is already taking steps to combat air pollution. They are promoting clean energy, imposing carbon taxes, regulating brick kilns, banning red bricks in government projects, and encouraging electric vehicles.

Other countries like the United States, Japan, India, and Germany also aim to have at least 50% of their vehicles electric by 2035.

But to make these measures sustainable, the government needs to do more:

1. Brick kilns are a significant source of air pollution in Dhaka. We need a committee of environmental economists to make eco-friendly bricks more affordable and widely used.

2. For projects that might cause environmental harm, decisions should be made through cost-benefit analyses involving environmental economists and other stakeholders.

3. During construction projects, steps must be taken to prevent dust from polluting the air.

4. City corporations should use vacuum sweeping trucks instead of manual road sweeping.

5. The government should invest in public transport and ban unfit vehicles offering tax relief to investors in this sector. This should be overseen by a dedicated department of environmental economist experts.

6. Dhaka's city corporations need to monitor environmental pollution in waste management. Instead of burning waste, they should use advanced recycling methods like LFG or RDF to ensure cleaner air.

A degree holder in the relevant subject is required to perform the above tasks. So, we can't carry out these tasks smoothly with just economists. We need professionals who understand the environment, green energy, sustainable development, environmental opportunity cost and other related fields.

The current government has already introduced "Environmental Economics" courses for economics students in all universities. Additionally, universities like Independent and BRAC offer specialized courses in "Environment and Resource Economics."

The concept of development has evolved. People now demand sustainable development means progress that keeps natural systems resilient. This is the primary focus of Environmental and Resource Economics.

The role of an environmental economist is crucial and uphill. Let’s understand this with a simple example: If tasked with purchasing coal for the Matarbari Thermal Power Station, an environmental economist would compare the cost of high-sulfur coal with low-sulfur coal, factoring in the financial impact of environmental pollution.

If the extra cost of low-sulfur coal is less than the financial losses from pollution, they’ll opt for low-sulfur coal.

If the extra cost is more, they may still choose low-sulfur coal to minimize pollution and reduce subsidies to mitigate the extra cost.

If the costs are equal, they’ll prioritize reducing pollution.

Although simplified, this example illustrates the environmental economist’s decision-making process.

In Bangladesh, the Dhaka School of Economics offers specialized undergraduate and graduate degrees in Environmental and Resource Economics. Graduates from this program work effectively both domestically and internationally. Many have earned advanced degrees from prestigious institutions on scholarships.