Environmental Protection (Edexcel IGCSE Economics)
Exam board Pearson Edexcel · IGCSEUpdated 2024-06-13
Business Activity & the Environment
Spec point —
2.1.1e
Business Activity and the Environment
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Governments are doing more and more to set macroeconomic targets based around environmental protection
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Business activity can create external costs of production *when providing a good or service
- Types of pollution that create external costs to the environment include visual, air, noise and water pollution

Negative business impacts on the environment include visual, noise, air, and water pollution
Ways in Which Business Activity Damages the Environment
| **Type of Pollution ** | Explanation | ** Example** |
|---|---|---|
| Visual Pollution | - Business activity can cause a landscape to look like an eyesore - It can take the form of litter, mine dumps or the release of chimney smoke | - Prior to plastic bag ban in Kenya, plastic bags could be seen littering streets, rivers and natural environments |
| Noise pollution | - Noise pollution refers to excessive noise that causes stress or hearing loss - Noise can come from loud machinery, factories, traffic or even bars and restaurants | - Noise from air traffic at Heathrow airport from flights arriving and departing. Impacts local residents near airport |
| Air pollution | - Greenhouse gases are released into the atmosphere from the burning of fossil fuels, leading to increased air pollution - Electricity stations (using fossil fuels), factories, transportation and agricultural activities all cause air pollution | - Up to two million air pollution deaths are recorded per year in China - Beijing and Shanghai rank among the most polluted cities in Asia - This has led to health diseases, such as respiratory and cardiovascular illnesses |
| Water pollution | - Water pollution refers to the contamination of rivers, lakes, and oceans with harmful substances - This can occur because of agriculture, mining, and industrial activities. Pesticides, fertilisers or chemicals end up in water | - In Ecuador, pesticide use in banana farming has also been linked to water pollution, posing risks to rivers quality |
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