Economic growth, greenhouse gas emissions, natural resources, finite resources, GDP, economic activity, climate change, sustainable development, environmental economics
This document discusses the ecological limits to economic growth, focusing on the finiteness of natural resources and the negative impact of greenhouse gas emissions.
[...] This situation is explained by the economic crisis caused by the Covid-19 pandemic. This, in fact, had significant economic consequences and, in particular, put the economies on hold during periods of confinement, more or less long. Exercise 2 Q1) The intermediate consumption to produce a desk lamp amounts to 27.50 euros (amount obtained by summing up all direct and indirect charges mentioned in the statement). The company produced 30,000 of them. The total intermediate consumption is therefore 825,000 euros. Q2) The turnover is equal to the number of goods sold (here lamps) multiplied by the unit sales price. [...]
[...] They contribute, in fact, to global warming, which leads to an increase in natural disasters, extreme weather conditions, infrastructure deterioration and destruction, and reduced agricultural productivity. As a result of all these consequences, economic growth slows down. In conclusion, we can therefore assert that there are ecological limits to economic growth. On the one hand, natural resources are rare and will not always be available to support production. On the other hand, the negative consequences of greenhouse gas emissions have a significant impact on economic activity and therefore on economic growth. [...]
[...] Reflections on the ecological limits of economic growth have multiplied since then. In the first paragraph, we will explain how the finiteness of natural resources limits economic growth. Then, in the second paragraph, we will analyze how the emissions of greenhouse gases, caused by the current economic system, generate imbalances and go against economic growth. It is first necessary to emphasize that natural resources are rare. They are available in a finite quantity, which limits economic growth. This growth, in fact, relies on the production of many goods and services, which requires many materials and energy sources. [...]
[...] Q5) We calculate the ratio 65,000 / 2,175,000 = The taxes on production therefore represent 2.99% of the added value. Q6) The company, according to the data presented in the statement, has achieved a significant turnover during the year 2023. It also generates a margin of 72.5 euros per unit sold and an added value of 2,175,000 euros. This added value will allow it to pay its employees, to the tune of 1,348,500 euros, and to repay the loan of 700,000 euros. The company's result will be slightly profitable. [...]
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