<p>India is a land of vibrant cultural diversity and rich heritage, but it is also a country of paradoxes. It is home to yoga, Vedic philosophies and traditional systems of medicine—yet it faces an increasing number of lifestyle diseases and mental health problems. While India is projected to be the fourth-largest economy in the world, it continues to rank poorly on key development indicators such as the Human Development Index (HDI), the Multidimensional Poverty Index (MPI) and the Global Happiness Index. Economic growth, as measured by GDP, is undoubtedly essential for development, but an unchecked obsession with growth at the expense of environmental degradation is deeply concerning. </p>.<p>One common paradox, often overlooked, is the trade-off between economic development and environmental sustainability. A vast body of literature explores the relationship between economic growth and environmental quality. The well-known Environmental Kuznets Curve (EKC) hypothesis states that environmental degradation initially worsens with rising income but improves after reaching an inflection point; further improvements in growth lead to lesser environmental degradation. However, economists remain divided on the validity of this hypothesis, with many criticising it on various grounds. The evidence on the EKC is also mixed and therefore cannot be generalised. </p>.<p>The EKC is based on the premise that growth leads to improvements in standards of living and technology, which would further lead to a reduction in environmental degradation. However, this relationship is more complex and cannot simply be explained by economics, because global climate change is largely driven by international politics rather than economics. Therefore, understanding the larger political economy which influences environmental governance and institutional mechanisms is important to explain this complex relationship. Most of the environmental challenges are an amalgamation of market failure and behavioural bias. </p>.<p>Standard economic theory suggests government interventions in the form of adopting and implementing strict and clear enforcement of laws and regulations, market-based instruments such as environmental cess and carbon pricing, and enhancing public awareness may nudge the stakeholders towards pro-environmental behaviour. But often, when it comes to environment and sustainability issues, neither the government nor private households want to change the status quo and are short-sighted, trying to maximise short-term gains at the cost of long-term loss. According to the Asian Development Bank, India might see about a 24.7% loss in GDP due to climate change. Several other estimates point to a grim and catastrophic future where long-run growth prospects and opportunities will be seriously limited and constrained if environmental degradation and resource extraction are unchecked. </p>.<p><strong>Perils of urban sprawl</strong> </p>.<p>India is the most populous country in the world, and given the Viksit Bharat goal, the country’s economic aspirations stand tall against environmental and social sustainability concerns. Cities are the epicentres of development, and with large-scale migration, urban sprawls are creating havoc in the environment through deteriorating air quality, encroachment and destruction of wetlands and other ecosystem services. The recent row against the Gachibowli deforestation in Telangana is a case in point and proves the short-sighted and politically driven decision-making of the state government. Many of these development projects fail to carry out the environmental impact assessment. </p>.<p>Indian cities are rapidly urbanising, and it is expected that by 2050 the urban population will be almost 814 million, further putting pressure on the environment and scarce resources. The repercussions of unplanned urbanisation, basically due to lack of planning, are already evident as cities across the country are turning into hotspots for extreme events such as drought, floods and heatwaves. Going forward, climate change is expected to increase the frequency of these events, putting significant economic burdens on the government and community. In the absence of climate risk insurance protection, climate proofing and resilient infrastructure, the social and environmental costs are expected to be substantially higher, particularly for the economically weaker and socially vulnerable population. </p>.<p>Climate change and environmental degradation are emerging as the biggest risks, which require immediate attention and urgent action. Sustainable development should not be a topic confined to mere discussions and as a means of short-term political gains. The government and the private sector, as well as the community, should all play a bigger role in protecting and safeguarding our planet. This is possible with the right incentives, evidence-based policies, environmental awareness, and pro-environmental governance and regulations. The clock is ticking. </p>.<p><em><br>(The writer is an assistant professor at the School of Economics and Public Policy, RV University, Bengaluru)</em></p>
<p>India is a land of vibrant cultural diversity and rich heritage, but it is also a country of paradoxes. It is home to yoga, Vedic philosophies and traditional systems of medicine—yet it faces an increasing number of lifestyle diseases and mental health problems. While India is projected to be the fourth-largest economy in the world, it continues to rank poorly on key development indicators such as the Human Development Index (HDI), the Multidimensional Poverty Index (MPI) and the Global Happiness Index. Economic growth, as measured by GDP, is undoubtedly essential for development, but an unchecked obsession with growth at the expense of environmental degradation is deeply concerning. </p>.<p>One common paradox, often overlooked, is the trade-off between economic development and environmental sustainability. A vast body of literature explores the relationship between economic growth and environmental quality. The well-known Environmental Kuznets Curve (EKC) hypothesis states that environmental degradation initially worsens with rising income but improves after reaching an inflection point; further improvements in growth lead to lesser environmental degradation. However, economists remain divided on the validity of this hypothesis, with many criticising it on various grounds. The evidence on the EKC is also mixed and therefore cannot be generalised. </p>.<p>The EKC is based on the premise that growth leads to improvements in standards of living and technology, which would further lead to a reduction in environmental degradation. However, this relationship is more complex and cannot simply be explained by economics, because global climate change is largely driven by international politics rather than economics. Therefore, understanding the larger political economy which influences environmental governance and institutional mechanisms is important to explain this complex relationship. Most of the environmental challenges are an amalgamation of market failure and behavioural bias. </p>.<p>Standard economic theory suggests government interventions in the form of adopting and implementing strict and clear enforcement of laws and regulations, market-based instruments such as environmental cess and carbon pricing, and enhancing public awareness may nudge the stakeholders towards pro-environmental behaviour. But often, when it comes to environment and sustainability issues, neither the government nor private households want to change the status quo and are short-sighted, trying to maximise short-term gains at the cost of long-term loss. According to the Asian Development Bank, India might see about a 24.7% loss in GDP due to climate change. Several other estimates point to a grim and catastrophic future where long-run growth prospects and opportunities will be seriously limited and constrained if environmental degradation and resource extraction are unchecked. </p>.<p><strong>Perils of urban sprawl</strong> </p>.<p>India is the most populous country in the world, and given the Viksit Bharat goal, the country’s economic aspirations stand tall against environmental and social sustainability concerns. Cities are the epicentres of development, and with large-scale migration, urban sprawls are creating havoc in the environment through deteriorating air quality, encroachment and destruction of wetlands and other ecosystem services. The recent row against the Gachibowli deforestation in Telangana is a case in point and proves the short-sighted and politically driven decision-making of the state government. Many of these development projects fail to carry out the environmental impact assessment. </p>.<p>Indian cities are rapidly urbanising, and it is expected that by 2050 the urban population will be almost 814 million, further putting pressure on the environment and scarce resources. The repercussions of unplanned urbanisation, basically due to lack of planning, are already evident as cities across the country are turning into hotspots for extreme events such as drought, floods and heatwaves. Going forward, climate change is expected to increase the frequency of these events, putting significant economic burdens on the government and community. In the absence of climate risk insurance protection, climate proofing and resilient infrastructure, the social and environmental costs are expected to be substantially higher, particularly for the economically weaker and socially vulnerable population. </p>.<p>Climate change and environmental degradation are emerging as the biggest risks, which require immediate attention and urgent action. Sustainable development should not be a topic confined to mere discussions and as a means of short-term political gains. The government and the private sector, as well as the community, should all play a bigger role in protecting and safeguarding our planet. This is possible with the right incentives, evidence-based policies, environmental awareness, and pro-environmental governance and regulations. The clock is ticking. </p>.<p><em><br>(The writer is an assistant professor at the School of Economics and Public Policy, RV University, Bengaluru)</em></p>
