Marginal concepts can be defined as the relationship between the cost of production and the value of end result or product (Froeb & McCann 2010). For example, it is only reasonable to engage in farming if the amount produced is greater than the overall costs incurred during production. In a way, coal is the largest source of energy in the world. It is used to generate electricity and other forms of energy.
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However, coal has become outdated in the 21st century. It emits a lot of carbon dioxide, not forgetting that the mode used in the extraction of this mineral is not environmentally friendly. Many people believe that at this time and age, not a single cent should be spent on coal mining. Instead, the oil should be used in cooking, fueling, lubrication, and other functions.
However, just like coal, oil has its own limitations. One of them is the cost of production. The demand for oil is high. Considering the costs incurred in extracting this mineral, many countries are forced to import this product from other markets (Frank, Bernanke & Squalli 2012). In the current paper, the author is going to look at the various marginal concepts in relation to the destruction of rainforests and coal mining today.
Factors that may lead to the Revival of the Coal Industry
One of the most obvious reasons is the rising demand for energy in the world. In any case, most people prefer using oil to coal. The development has increased the demand for oil. The amount of money needed to produce this form of energy makes it hard to exploit oil mines fully. However, a number of nations are able to produce this mineral for domestic consumption (Froeb & McCann 2010).
To meet the demands for power, some countries may reconsider re-opening their coal mines. Oil is a non-renewable source of energy. As such, it is likely to get depleted with time. The realization creates the need for alternative sources of energy (Froeb & McCann 2010). Coal is cheaper to mine compared to oil. As such, it may serve as the default alternative to oil (Frank et al. 2012).
The exportation of coal is another factor that Britain may take into consideration. To this end, abandoned mines may need to be made operational again. The exportation of coal may serve as a source of revenue for the government (McKenzie & Lee 2010). In addition, the country has huge deposits of this mineral. As such, many people will find it cheaper to use coal compared to oil.
Compared to coal, oil is scarce in the UK. In fact, it is approximated that the volume of coal reserves in this country is ten times that of oil (McKenzie & Lee 2010). As such, re-opening the old coal mines and exploiting these deposits is a good idea. Relying on oil imports is a bad idea, given the volatilities of the world market. As far as marginal concepts are concerned, oil extraction is not advisable (Froeb & McCann 2010). The reason is that the amount of money made from one barrel of this mineral is less than that used in extraction.
It is important to note that coal mining has a major disadvantage. Extraction and use of this mineral are not friendly to the environment. The process is associated with emissions of carbon dioxide into the environment (Froeb & McCann 2010). The main method used in mining involves the removal of the top layer of earth. Explosives are used to expose the mineral below the surface. In cases where forests are present, they have to be cleared. Animals have to find new homes, and benefits coming out of these natural resources are not realized (McKenzie & Lee 2010).
The relevance of Marginal Concepts in the Destruction of Rainforests
In some situations, it is worthwhile to destroy rainforests through logging and mining in efforts to exploit these natural resources (Froeb & McCann 2010). Marginal concepts are applied in making these decisions. Rainforests record-high amounts of rainfall throughout the year. They are beneficial to the environment and to humans. A large number of trees helps in regulating the climate. Some people are engaging in the destruction of these forests (Frank et al. 2012).
Increased demand for wood has led to high rates of logging. Governments and other stakeholders involved in the protection of the environment are making efforts to address this issue (Froeb & McCann 2010). Farmers also exploit forests to increase their output. In this case, mining is our point of interest.
The availability of coal deposits in forests has led to their destruction. The development has negatively affected the environment. Animal habitats have also been destroyed. As already indicated, explosives may be used to open up the mines. However, in some cases, manual labor is used, especially considering the high cost of these explosives. The process exposes the miners to danger (Froeb & McCann 2010).
It is important to note that coal mining has a number of benefits. It will help address the increasing demand for energy. However, a critical analysis of this process from the perspective of marginal concepts reveals that the costs far outweigh the benefits (McKenzie & Lee 2010).
As such, it is not advisable to destroy the rainforests to extract coal. It is more beneficial to harness the potential of these resources than to exploit the coal deposits found in them. Experts believe that it is possible to cater for the natural resources by preserving forests (McKenzie & Lee 2010). As such, governments should put in place measures to preserve these forests. Deforestation should not be justified on the basis of meeting energy demands.
Marginal Concepts in Relation to the Conservation of Natural Resources
Marginal concepts emphasize more on the conservation of natural resources than on their destruction (Froeb & McCann 2010).
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The government and other stakeholders should increase their efforts to preserve rainforests. One way of doing this is to increase the costs associated with deforestation. People will find it expensive to clear forests. Subsequently, anyone engaging in deforestation will incur losses irrespective of the reasons behind their activities. In the past, conservation of rainforests has been associated with a number of challenges. Some of them include limited resources and economic factors arising from deforestation (McKenzie & Lee, 2010). Farmers living around these regions may cut down trees to expand their land. They view deforestation as a way of improving their economic status (Froeb & McCann 2010).
Marginal concepts in relation to coal mining and preservation of rainforests should be applied by all nations. Britain has the potential to produce large amounts of coal. There are a number of factors that should be taken into consideration before re-opening the mines. They help in decision making and in comparing the overall results and the costs incurred.
The application of this logic helps in the conservation of rainforests. Such efforts favor the nation and its economy. Deforestation has negative impacts on the natural balance and accelerates environmental degradation. In light of this, the government should increase efforts to preserve rainforests. Coal mining is not the best option with regard to addressing the demand for energy in the world. It is associated with a number of environmental hazards bearing in mind that it is an outdated source of energy.
Frank, R, Bernanke, B & Squalli, J 2012, Principles of economics- MEE, McGraw-Hill Education (UK) Ltd., London. Web.
Froeb, L & McCann, B 2010, Managerial economics: a problem-solving approach, 2nd edn, South-Western Cengage Learning, Mason, OH. Web.
McKenzie, R & Lee, D 2010, Microeconomics for MBAs: the economic way of thinking for managers, 2nd edn, Cambridge University Press, Cambridge. Web.