Impact of Environmental Subsidies on Development

South Africa is known for its abundance of natural resources but still, the country faces various challenges including economic and environmental threats. Environmental challenges are gradually becoming inevitable for the South African government. To solve the major environmental problems and eliminate future risks, the government has initiated environmental subsidy programs.

A group of experts claim that these subsidies will damage the economy and create new challenges instead of solving problems. On the other hand, another group of experts argue that if governments do not give relief to the people who take initiatives to reduce environmental stressors, people will be unable to understand the significance of a safe environment.

Let’s discuss how the environmental subsidy can ensure sustainable development in South Africa.

A subsidy is a financial benefit given by the government to individuals or businesses. There are various purposes of a subsidy, such as eliminating inflation, providing a better lifestyle to the citizens of the country, or promoting a certain behavior. Environmental subsidy is the benefit given by the government to the people who take positive initiatives to reduce global warming and contribute to rooting out environmental threats.

What are the Significant Environmental Threats for South Africa?

Some people think that environmental subsidy is another way to damage the economy of South Africa because there are no threats. Basically, the climate effects are gradual but once the climate starts changing, no one can reverse it. Therefore, we need to take steps in order to eliminate the factors that are causing environmental damage

Pollution: One of the major environmental damage is pollution which is slowly killing us. According to studies, people living in highly polluted areas are more prone to die in the middle ages.
Climate Change: Another threatening factor that the majority of people ignore is that climate change can destroy entire South Africa. Increasing heat in the region, rising sea levels, and severe droughts can compromise millions of lives.
Mining Issues: One of the main sources of economic activity in South Africa is mining but it also damages the environment. It increases water pollution, land degradation and impacts the ecosystem.

How Environmental Subsidies Can Help Sustain Development?

The purpose of environmental subsidies is to promote renewable energy and eliminate the threats of climate change. We can understand in this way that it is a campaign to shift the use of harmful energy sources to unharmful sources. In this way, we will be able to save the future of South Africa and root out the environmental risks.

Decrease Inflation

The subsidy is a way to help the people by paying a part of their dues. When it comes to environmental subsidies, the majority of the programs focus on promoting environmentally friendly activities that can positively impact climate change. Some economists argue that subsidy is a way to control the rising prices of daily-use commodities.

How Does It Work?

When the government offers benefits to the citizens of a country, the rising prices of commodities suddenly stop. Inflation is a kind of domino effect in which an action leads to another and triggers a chain of reactions; simply put, when the price of a commodity increases, it affects the prices of other commodities, and a loop is created. But if the government offers subsidies, the chain of actions suddenly breaks and prices remain sustained.

Formation of a New Industry

Another major effect that can ensure the sustainable development of South Africa is the installation of new industries. Because the government provides subsidies to both industries and the citizens, it will help industries to grow the scale of business and craft more jobs for the citizens of South Africa.

Promotion of Eco-friendly Activities

The purpose is to reduce the usage of harmful sources of energy and promote eco-friendly sources. In this way, we will be able to combat climate change and eliminate all future threats. The subsidies offered by the government allow industries, businesses, and individuals to shift from one source of energy to another effortlessly.

How Does It Work?

The government is offering industries and businesses to purchase solar panels and wind turbines at lower prices compared to their actual prices. Additionally, it offers citizens of South Africa to get solar panels or other renewable energy sources at lower prices. A low price enables all industries, businesses, and individuals to get renewable energy sources and as a result, the entire system of harmful energy sources is discarded.

Social Impact

The last most significant factor that we neglect is the social impact of the environmental subsidy. When people are able to shift from harmful energy sources to efficient energy plants, it will reduce pollution; additionally, the sea level will be sustained and water pollution will decrease. Simply put, it will impact the quality of life of citizens, reduce illnesses, and increase life expectancy.

Environmental subsidy is one of the most positive initiatives of the government that can change the future of our country. It will bring money, and health as well as improve the overall lifestyle of the people. In my opinion, environmental subsidy is not a burden on the economy but it is an action that can change the destiny of our region.