The paper "Environmental Economics and Natural Resource Management" is a wonderful example of an assignment on macro and microeconomics. This case is important in that it informs the general public and policymakers about the prevailing situation in Australia pertaining to the use of plastic bags. While some people innocently use plastic bags due to their convenience, the article informs them about the problems caused by plastic bags. Furthermore, it explains to users of plastic bags, the increase in prices of plastic bags, and the reduced used of plastic packing bags at supermarkets. The article in one way reiterates the need for green living which has grown in popularity in recent times.
The fact that the public is informed of the detrimental effects on plastic on the environment is likely to easily convince environment-conscious individuals to reduce the usage of plastic bags and recycle them where applicable. While the article indicates that the current market practices in regards to the use of plastic bags have little regard to the environment, the article carries with it some degree of moral persuasion to plastic bag users.
This is achieved by highlighting the huge costs incurred in running landfills, recycling the bags, and the huge threat that these plastic bags pose to the environment including a threat to aquatic life. The article is very useful for academic purposes. The theory of market failure is very useful in this age of globalization and the free-market global economy as it clearly pinpoints the custodian role of the government that might be necessary despite a laissez faires policy. Taylor (2006) writes that, if an economy follows free-market policy, it does not mean that there is no role for the government but rather, it indicates that the role of the government is restricted to certain areas.
This article provides a good example of how a government can get involved in a free market economy. In this particular case, the Australian government banned plastic bags and imposed hefty fines on defaulters.
Anderson, D 2010, Environmental economics and natural resource management. Sydney: Taylor & Francis
Flores, M C2008, Plastic materials and environmental externalities: structural causes and corrective policy. Lethbridge Undergraduate Research Journal, Vol. 3 No. 2.
Taylor, J 2006, Principles of Macroeconomics, Sydney, Cengage Learning
Lancaster, S 2011, Green Australia, A Snapshot. Sydney, Wakefield Press
Sloman, J, Norris, K & Garratt, D 2010, Principles of economics, 3rd edn, Pearson Australia, Frenchs Forest NSW.
Tussest, B. (2008). Theory and practice of economic policy. tradition and change, Selected Papers from the 9th Aispe Conference. London: FrancoAngeli.