Recycling paper is often praised because it allegedly (ostensibly) helps to pres

Question

Recycling paper is often praised because it allegedly (ostensibly) helps to preserve forests. Under which assumptions is this a sound economic argument? Are these assumptions realistic? What happens if they are abandoned? An addendum: Assume there are two alternative ways of using land: growing trees and growing peanuts. What effect has recycling on the price of peanuts? Now turn to ivory. Trading ivory is prohibited. Does this help or hinder the preservation of elephants? Why does the situation differ from the argument in favor/against recycling?

Explanation / Answer

Protecting plant has economic meaning to it in the form of enviornment sustainability and development . Planting more trees is an effective way of reducing negative externality like pollution in the enviornment from various industrial units .Abandoning this would lead to enviornment degradation damaging the enviornment .Economic value is to protect trees for the externaltiy reasons . If land is used to growing trees or peanunts the opportunity cost of growth peanunts is higher because it has economic value to it .But damging the enviornment can have future impacts like enviornmnt depletion which is also an essential part of the economy for sustainability.

Ivory earns a very high amount to the traders but trading is prohibited because it posesses threats to the enviornment .Irony production involves high elephant killing which is a threat to the ecosystem .Therefore the economic value also has a very high enviornment cost and damage .Thus , it is important to curb such practises .

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