Australian Economy Essay

876 Words4 Pages
Explain the economic issue of environmental sustainability facing the Australian economy and evaluate the effectiveness of Australian Government economic policies in addressing the issue. “Environmental sustainability is a major issue facing the Australian economy. The extent to which the Australian Government implements economic policies to address the issue is one to be noted as it’s abundant effectiveness produces far reaching benefits for the Australian economy.” Ecological sustainable development refers to the way in which natural resources are used at present, in a way that they are also preserved for future generations. The public’s increasing concern towards the environment has been a main contributor towards influencing the Australian…show more content…
It is this difference between private costs and social costs of a private good that must be understood in order to understand the difficulties in attaining ecological sustainable development. “Private costs is the producer’s expenditure on resources to produce output, and the costs for consumers to purchase goods and services.” Social costs are the costs imposed on the Australian community, essentially the consumers, as a result of private actions. Social benefits are advantages to the community as a result of private…show more content…
This is especially the case with public goods where unlike private goods, they are non-excludable in usage and non-rival in consumption. This meaning that once provided, consumers cannot be excluded from using the public good even if they don’t pay, and their use of it does not reduce the availability of the good for other consumers. For the Australian economy and environmental sustainability, this will often lead to overuse and depletion of natural resources, as free riders benefit from a good or service without having to pay for supplying the good or service. Furthermore, this overuse of natural resources within the Australian economy can lead to countless environmental

More about Australian Economy Essay

Open Document