1.1. Background of the Study:
The environment and economic system are closely related to each other (Subhadarsini, 2015).
There are three basic services which are provided by the environment to the economy as well
as human beings (Gupta, 2001). To begin with, the environment provides raw materials
which are transformed into various consumer goods through a production process. Second,
the environment provides goods which are directly consumed which may include critical life-
support services such as oxygen, etc. and aesthetic or recreational services giving pleasure.
Finally, one of the most important services is that it acts as a receptacle or a sink for all the
waste products produced as a result of production and consumption. The environment is not a
passive sink. It acts upon these waste products and therefore cleans the environment and
recycles the waste into material that can be reused (Gupta, 2001). However, there is an
extreme point up to which the environment can provide resources or assimilate waste; this
limit is known as carrying capacity of the environment (Subhadarsini, 2015). All the
problems relating to the degradation of the environment is as a result of the adverse effect on
this carrying capacity by various anthropogenic activities (Gupta, 2001; Subhadarsini, 2015).
The level of production and consumption in the market is decided by the interaction through
