Environmental Costs and the Importance of Environmental Impact Assessments for Projects

Abstract

Economic and social development entails significant costs that negatively impact the environment, leading to environmental issues manifested in pollution, degradation of quality, and imbalance. These environmental changes have resulted from neglecting environmental considerations in the pursuit of prosperity and increased production. The following facts demonstrate the impact of productive and consumptive activities on natural resources, resulting in their depletion and an increase in waste that needs to be disposed of, causing substantial costs. Therefore, it is necessary to adopt a concept of progress that takes environmental considerations into account and relies on environmentally friendly technology. The costs of economic development include costs related to environmental losses and damages, costs of preventing environmental depletion, and costs of planning for environmental protection. These costs are considered external because they do not appear in the accounts of enterprises or the macroeconomy, even though they lead to significant losses. Recently, countries worldwide are striving to restructure their economies to include environmental issues among their priorities, recognizing that environmental problems may undermine the development process. Thus, it is essential to achieve a balance between development and environmental considerations to ensure resource sustainability and improve quality of life.