Managerial Economics in Global Environment

Question: Discuss about the Managerial Economics in Global Environment. Answer: Concentrated animal feeding operation (CAFO) is an animal feeding operation, in the terms of the United States Environmental Protection Agency. Most of the meat and milk that are consumed by the individuals in America comes from animals that are grown by CAFO. These large concentrations of animals lead to enormous manure in a single location that leads to air pollution that harms public health. CAFO contributes to the reduction of air quality in areas that surrounds the industrial farms. This is mostly due several types of air emissions that are caused during animal feeding operation. The major cause of air pollution is the decay of animal manure that particulates substances caused by movements of animals (Parker et al. 2013). The most typical air pollutions that surround CAFO are ammonia, hydrogen sulfide, methane and particulate matter that leads to several human health risks. CAFO also releases greenhouse gases that lead to climatic change. This has also affected the communities by increasing respiratory problems. According to reports, it has also led to depression, fatigue as well as disturbances in mood. Several remedies and techniques are effectual to reduce the effects of air pollution from CAFO. This includes advanced storage of manure as well as raised attention to the nutritional requirements of precise types of livestock. The cows should be allowed to graze on healthy meadow rather than feeding them on grains. This in turn has the probability to diminish the emissions of greenhouse gases. Raising animals on meadow also decreases the necessity for farming and transportation of feed, as well as storage and dispersal of manure. Figure: Negative Externality (Source: Created by Author) Air pollution is considered as a negative externality under which the economists demonstrate social cost of production with a demand and supply curve. The social costs include the private costs of production that are incurred by CAFO whereas; the external costs of pollution are passed on to the society (Carrel, Young and Tate 2016). References Carrel, M., Young, S.G. and Tate, E., 2016. Pigs in Space: Determining the Environmental Justice Landscape of Swine Concentrated Animal Feeding Operations (CAFOs) in Iowa. International journal of environmental research and public health, 13(9), p.849. Parker, D., Ham, J., Woodbury, B., Cai, L., Spiehs, M., Rhoades, M., Trabue, S., Casey, K., Todd, R. and Cole, A., 2013. Standardization of flux chamber and wind tunnel flux measurements for quantifying volatile organic compound and ammonia emissions from area sources at animal feeding operations. Atmospheric Environment, 66, pp.72-83.