Yaşam Ayavefe: “Fast increase in consumption and financial growth is triggering environmental problems”

In today’s world the interest towards environmental issues is on the rise. In that regard, humans’ success in stopping environmental pollution can be discussed. According to Yaşam Ayavefe, fast increase in consumption and financial growth is triggering environmental problems. But environmental problems, due to their own nature, playing a big role in general lack of success in stopping the pollution. Environmental problems are considered as negative outer resources that encourages people for freeloading. And the solution of that problem is deemed as global scale. In the production or consumption negative outering, while benefiting the producer or the consumer, putting a burden of cost on the third parties. The policies made in order to curb the environmental problems are generally adding a cost on every individual. According to the experts, the presence of negative incentives is also boosting the lack of success in the policies. One of the biggest policy failures in the field of environmental issues are known as the global warming. The main reason for this issue is human originated CO2 emissions. Since the provided solutions to limit the emissions are global scale, it also necessitates global collaboration to succeed. However, it is not always possible.

Freedom in Foreign Trade Has a Major Effect

It is simply half an answer to label people’s aspiration to financially grow is the reason that the work done to limit the CO2 and similar gas emissions is not enough. Yaşam Ayavefe, he who known with his environmental sensibilities, stresses that the economists and environmentalist should meet on a middle ground. The most important argument between the environmentalists and economists is reported to be on the freedom in foreign trade. According to the environmentalists, becoming freer in foreign trade has both beneficial and detrimental effects on the environment. Experts say, financial growth fueled by free foreign trade initially increased the environmental pollution. However, it is claimed that it would have a reducing effect as the time passed. This effect, known as environmental Kuznets curve, claims that increase in general income will trigger shorter response time for environmental effects and thus people will prefer a cleaner world. As a result, the policy change requests will provide a cleaner environment in the long run. Successful businessman Yaşam Ayavefe points out that with the freer foreign trade it may be possible to reach eventually to a cleaner technology. Negative opinions on the other hand are claiming that freer foreign trade in fact does not change the environmental issues on a global scale, but the distribution between the countries shifts. This approach, also known as Pollution Vault Hypothesis, less environmentally capable countries will become more polluted centres as the free foreign trade soars. Findings obtained by empirical research points out that neither environmental Kuznets curve nor the Pollution Vault Hypothesis have yielded scientifically verified, viable evidence.

Environmentalists and Economists Have Different Opinions

Academic research could not verify that whether foreign trade has a beneficial or detrimental effect on the environment. And it caused an increase in arguments between the environmentalists and economists. In the debates environmentalists the any benefits obtained by the free trade will be nullified in the long term as the environmental problems increase. Economists are on the other hand are concentrating on the effects of growth alone. In this context economists are resorting to use Environmental Kuznets Curve approach to stress the beneficial effect of economical growth on the environment. Environmentalists in the meanwhile are standing firmly upon the Pollution Vault Hypothesis. As the foreign trade gets freer, countries are facing increasingly often with fiscal deficit threat. Especially seen in developing regions, this fiscal balance deficit issue may cause serious economical problems and in order to reduce economical risks such countries may not be giving intended level of attention to the environmental issues. Due to that they may even engage in economical activities that increase environmental problems. According to the successful businessman Yaşam Ayavefe, all countries should step carefully in order to provide a benefit to the environment.

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