People Face Trade-Offs Analysis

Introduction
The first principle in “Ten principles of Economy” is that “People face Trade-offs”. And, one of the popular trade-offs in the economy is between industry and nature. Supply and Demand curves are often used to compare costs and benefits; however, these curves often do not include the costs of production on nature because it belongs to common resources, non-excludable but rival (1). Therefore, in this report, we will have an analysis of the true costs of different industries on the nature to show how the industry is damaging our nature.
It is infinite to talk about damages that industrialization has caused to Mother Nature such as pollution, extinction, etc. That’s why we will analyze 3 biggest bad effects of it: Pollution, over-exploitation

Gradually, industrial agriculture becomes more and more popular. Unfortunately, the more people use technology and science to do farming, the more problems it creates to the environment. The first thing is soil erosion. Soil which is eroded can make water sources poisonous when it pours into river, lake,... But, the biggest problem is about chemicals that farmers are using. To react to the increasing demand for food, farmers are tempted to produce more and they also want to have more profit at the same time. The invention of fertilizers, pesticides and other chemicals seems to be a perfect solution for them. At the end, their “best solution” has become a strong weapon to damage another thing they need to live: Water and many other things. When those harmful chemicals are pumped into water sources, they can kill fish and other marine animals. Also, it is definitely harmful to our health. To discourage farmers to use chemicals in farming, most governments use tax on agricultural chemicals as a tool. However, instead of decreasing farmers’ demand, that kind of tax only makes farmers poorer. Therefore, they use another way. They try to internal the positive external of organic agriculture by giving subsidies to the organic farms. The rate of organic farms in EU countries has increased since CAP (Common Agricultural Policy) gave direct supports to farms using organic method to help raise farmers’ income. Of

And, one of our important energy is oil. The popular way that we use to get oil now is to drill oil from the ocean beside underground. There is no denial of the role of oil in the industry; however, drilling offshore oil and transporting it lead to many negative impacts not only on nature but also on our health. It is noticeable that oil, unlike other materials, moves quickly through the water. And, as everyone knows, it contains poisonous which can cause death for human, animals, and oceans themselves too. Even though the process of drilling offshore oil has improved a lot now to limit oil spilling, transporting oil is still a serious problem. A recent example is a story which happened in Quy Nhon beach, Vietnam. In November of 2017, a sunken ship named FEI YUE 9 which was carrying 33 tons of oil was found to lead to oil spilling along Quy Nhon beach (8). Government is still trying to clean up spilled oil; but, they definitely cannot clean up 100% and while they are cleaning, poisonous water has already spread over this area. Local people are worrying that millions of dead fish may happen again like in