Investing in Clean Technology: An Exercise in Methodology
In the last two decades, pressure on policy makers to incorporate environmental variables in project evaluation studies has been steadily increasing. As the negative externalities of industrialization processes increase with the rate of industrial growth, the environmental implications of this build up are becoming increasingly evident. The primary reason for the increasing visibility of the environmental degradation caused by industrial activity is the cumulative weakening of the cleansing and absorptive properties of the natural system — the diminishing carrying capacity of the ecological system. At the beginning of industrialization, when industrial activities spilled their undesirable wastes into the atmosphere, waters and land, the ecological system was able to absorb and neutralize the toxicity of these wastes. However, as the output of these products increased over the last few decades at exponential rates, rates which far exceeded the natural system’s rate of absorption and cleansing, the natural systems themselves were seriously damaged. This damage coupled with increased levels of waste generation, has acted to accelerate the rate of deterioration of these ecosystems.
KeywordsProject Design Final Good Intermediate Good Environmental Cost Clean Technology
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