Undervaluing environment

Joaquin Sarmiento / AFP
Undervaluing}

Home > Root causes > Undervaluing environmental costs

Undervaluing the environmental costs of development and governance decisions is particularly evident in decisions relating to land-use change, such as deforestation and damming of rivers. Often, this means that economic development is pursued in a way that ignores critical environmental impacts, which directly or indirectly increases risks.

Environmental degradation negatively affects livelihoods, food security and ecosystem functioning. As a result, it also has an impact on long-term development and social vulnerability, as well as on the ability of nature to reduce disaster risk. Normally, biodiverse habitats are resilient and can buffer the effects of various hazards, but when biodiversity is lost, so is resilience.

Related Cases

2023

A chain reaction to ecosystem collapse

On 14 August 2021, Haiti was hit by a magnitude 7.2 earthquake with an epicentre in the Canal du Sud (120 km west of the capital, Port-au-Prince). The earthquake killed over 2,200 people and injured more than 12,000.

Lagos faces increasingly severe annual flooding, exacerbated by sea level rise and subsidence. In 2021, floods again submerged vehicles and houses, displacing thousands from their homes.

In summer 2021, drought and low humidity combined with record-breaking heat of up to 48.8°C (119.8°F) led to fire outbreaks across the Mediterranean countries, killing more than 100 people and burning more than 620,000 ha of land in July and August

Southern Madagascar’s worst drought in 40 years led to severe stress on vegetation, triggering a drastic decline in rice, maize and cassava production. By December 2021, more than 1.6 million people were estimated to have been suffering high levels of food insecurity.

During the 2020-2021 typhoon season, for the first time in 56 years, no typhoon made landfall on Taiwan, leading to one of the worst droughts in the island’s history. As reservoirs fell below 5% capacity, more than one million households and businesses had to ration water.

On 15 January 2022, the Hunga-Tonga-Hunga-Ha'apai volcano eruption was felt across the Pacific Ocean and beyond, releasing energy equivalent to hundreds of Hiroshima nuclear explosions and creating supersonic air pressure waves that were observed from space.

The vaquita is a species of porpoise on the brink of extinction with less than 10 individuals estimated to be left in the wild. Although not commercially targeted, the vaquita is collateral damage in an ongoing conflict between fishers, government and international illegal trade.

From March 2020 to September 2021, a herd of approximately 15 Asian elephants left their home in Xishuangbanna National Nature Reserve. Along their journey, the herd broke into homes, damaged buildings and infrastructure, and destroyed crops, totaling estimated damage of over $1 million.

In 2020 alone, an area of the Amazon forest burnt down that was larger than Fiji. While fire is often a natural process to manage vegetation, 9 out of 10 of the Amazon fires in 2020 were intentionally set to convert tropical rainforest into commercially used land.

From October to November 2020, 9 storms in 7 weeks caused widespread flooding in central Viet Nam. As a result, a total of 7.7 million people were affected by the disruption to basic services and 291 people lost their lives.

Chinese Paddlefish have been around for an estimated 200 million years, but were declared extinct in 2020. While overfishing and pollution played an accelerating role, much of its demise can be attributed to the multiple dam constructions on the Yangtze River.

Beginning in late 2019, the SARS-CoV-2 virus spread among the world population, infecting and killing millions of people, disrupting social life, travel, business and education across the globe.

On 20 May 2020, Super Cyclone Amphan hit the Sundarbans region bordering India and Bangladesh as a Category 5 storm, with wind speeds over 260 km/h, killing over 100 people and displacing over 4.9 million.

Between 2019 and 2021, swarms of desert locusts formed and spread across 23 countries on multiple continents, including Djibouti, Eritrea, Ethiopia and Kenya. They devoured their weight in vegetation every day. One mega-swarm alone, measured in Kenya in 2020, was the size of the country of Luxembourg.

Explore more from the 2023 report