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Asked by Vijaya Last Modified
Answer 
Shreyansh Parashar
5 years of teaching experience in commerce. A student of Chartered Accountants of India.
To solve the problem of environmental degradation global warming and one depletion etc. The government has to make extra efforts and expenditure. These expenditures are known as opportunity cost of those useful projects which had to be left because of finite resources and diversion of these resources towards resolving the above mentioned problem. This opportunity cost is very high because the development process has ignored the environment and ecological balance. The rectify this more efforts are needed involving heavy expenditures.
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Opportunity cost is the cost that is foregone when we make a choice or a decision When the rate of resource extraction is higher than that of its renewal then many resources get exhausted Therefore, we are compelled to spend huge amounts on technology and research to explore new resources. Added to these are the health costs of degraded environmental quality — decline in air and water quality have resulted in an increased incidence of respiratory and water-borne diseases. Hence, the expenditure on health is also rising. To make matters worse. global environmental issues such as global warming and ozone depletion also contribute to increased financial commitments for the government. Therefore, the opportunity costs of negative environmental impact are high.
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