Impact of Environment on Human Capital in High- and Low-Income Countries

Impact of Environment on Human Capital in High- and Low-income Countries
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Impact of the Environment on Health and Human Capital in High- and Low-Income Countries
Introduction
In economics, the environment refers to the external factors that influence the purchase behaviors of consumers and businesses and therefore impact the performance of an organization or nation. The environmental factors are usually beyond the company's control, but some measures can be implemented to enhance the outcomes. Health refers to the conditions that influence the efficiency, values, behavior, and effectiveness of humans in the economy, including the consumption and production of resources. Finally, human capital refers to the economic values of the worker's experience and skills. There are diverse metrics that can be used to determine the impact of the environment on health and human capital. The metrics are usually designed to evaluate the impact of activities within the environment and how they contribute to positive or negative outcomes on the health or wellbeing of individuals.
These components include health, training, intelligence, skills, education, and other aspects valued by employers. The environment has numerous impacts on the health outcomes of people as well as human capital. Notably, water pollution, air pollution, and contamination of soils are causing numerous health hazards in both developing and developed nations. The emission of greenhouse gases increases at an unprecedented rate, which has severe health challenges worldwide. These impacts direct numerous environmental changes that lead to poor health outcomes and negatively affect human capital. There are diverse metrics used to determine human capital productivity and satisfaction, such as employee satisfaction index, engagement rating, and employee health safety (PennState.Edu, n.d.). Concerning health, the significant issues considered include mortality rates and illness incidence rates among workers. These are essential components to understand how the environment impacts health and human capital in high-income and low-income countries. Some standards have been established to prevent environmental degradation and ensure positive outcomes for the environment. High-income countries have a greater tendency to comply with environmental standards. However, its positive effects on human capital and health are more likely attributable to economic resources than environmental policies.
Research Methodology: Systematic Literature Review
In order to understand the compare and contrast the impact of the environment on health and human capital in high- and low-income countries, a systematic literature review will be undertaken. Systematic literature review entails identifying and critical analysis of previous studies to respond to a formulated research question. The criterion is usually conducted following a specific procedure to give the best outcomes in the research process. Notably, the process is comprehensive and transparent, where research is undertaken in different studies and databases. Therefore, the researcher should outline a clear search strategy that focuses on the research question. Apart from transparency, the systematic literature review should also integrate diverse research components and focus on core issues related to the subject under research.
In this systematic literature review, we will search diverse databases. The main keywords that will be used to find studies include human capital in high-income countries, the impact of the environment on health, compliance to environmental standards in low-income countries, compliance to environmental standards in high-income countries, and more. After identifying different studies, a critical analysis will be developed, synthesizing the information into a coherent argument that identifies the similarities and differences of the environmental impacts on health and human capital.
Literature Review
The Impacts of Environment on Health and Human Capital
Prüss-Üstün et al. (2016) noted that about 12.6 million deaths are attributed to the environment. Further, the report also noted that many disabilities result from poor environmental conditions. Therefore, it is possible to prevent several types of diseases and injuries by improving the environment. The environmental risks identified in the report include the "physical, chemical, and biological factors external to a person, and related behaviors, but excluding those natural environments that cannot reasonably be modified” (Prüss-Üstün et al., 2016, p.x). Therefore, undertaking modifications within the environment can significantly alter the health outcomes of people. Environmental risk is the primary cause of diseases, amounting to about 24% of all deaths in the globe. Understanding what health conditions can be attributed to modifiable environmental risks can assist in identifying opportunities for preventing these conditions (Prüss-Üstün et al., 2016). Moreover, developing nations would be able to limit negative income on their human capital, thus increasing the country's economic outcomes.
The Global Labor Organization (2018) noted that "health is a fundamental object of choice and together with schooling as two most important components of the stock of human capital." Therefore, the human capital stock will be minimal or unproductive with poor health outcomes. Health impacts all the components related to workers' productivity and performance within the organization (Global Labor Organization, 2018). According to Ganda (2021), many nations desire to transition into green economies. However, there are environmental impacts on the human capital that affect the economy's overall productivity and performance. Manisalidis et al. (2020) evaluated the health impacts of air pollution. In their study, the established air pollution causes numerous diseases, whether short-term or long-term. The significant environmental aspect that causes adverse health outcomes includes chemical reactions. Exposure to these particulate matter can lead to respiratory diseases and affect the immune system (Manisalidis et al., 2020). The increased negative health patterns affect the human capital of a respective nation.
Exposure to pollution and other environmental risks directly impacts environmental degradation. With the increase in pollution, the threat is increased "respiratory symptoms, decreased lung function, chronic pulmonary and cardiovascular diseases and asthma" (Sapci & Shogren, 2017, p. 3). With an increase in these cases, many people will be hospitalized, enhancing workplace absenteeism and lower productivity. An increase in air pollution and other environmental risks have been observed frequently in many cities worldwide, including the United States (Sapci & Shogren, 2017). Therefore, it can be argued that pollution has adverse health outcomes, which directly impact human capital. Investing in environmental sustainability and other green projects can significantly enhance health outcomes and improve the productivity of an economy (Sapci & Shogren, 2017). In another study, Kim and Go (2020) noted that human capital is “an important determinant of environmental performance at the firm and province levels” (p. 1). Therefore, when the human capital performance is optimal, the state of the environment is also conducive.
Overview on Treaties, Policies, and Conventions on Environmental Protection
In order to understand the impact of the environment on health and human capital in low-income and high-income countries, it is vital to assess the different approaches or activities employed to manage the environment. This includes understanding how the high-income and low-income adhere to the established treating and the prevailing environmental conditions within these nations. The United Nations Environment Programme (UNEP) (2007) assessed the compliance mechanism employed by nations under the various multilateral environmental agreements. A comparative analysis was undertaken through the report, clearly defining the compliance mechanisms (Mitchell, 2003; CropWildRelatives.Org, n.d.). The treaties require involved parties to exchange information as an operational obligation in many instances. This ensures consistency and produces positive outcomes within the environment (UNEP, 2007). Zhao (2005) also assessed how China responds or complies with the Montreal Protocol. The study noted that China was expected to play a significant role in solving environmental problems across the globe. Its surging economy was releasing high amounts of greenhouse gases into the environment, which also affected the health outcomes of its population. Moreover, Zhao (2005) noted that China and the United States are the largest emitters of greenhouse gases globally. Therefore, it was vital to develop strict measures that would ensure these issues are addressed and any emanating challenges resulting from poor health on its population.
The United States and China are examples of high-income countries that must play a significant role in addressing environmental issues. The aim is to reduce environmental risks and ensure that people thrive in safe environments (Zhao, 2005). According to Healthy People 2030, the United States aims to reduce people's exposure to harmful chemicals and substances in water, soil, food, and other utilities within homes and workplaces. The goals are to reduce short-term and long-term health conditions that can be prevented by implementing appropriate environmental policies. This will ensure that the population is healthy and human capital and remains productive for a maximum number of hours every day. The United States has formulated policies to track pollutants and people's exposure. The action is intended to reduce severe health outcomes and safeguard people from death (Healthy People 2030, n.d.).
Concerning low-income nations, Kenya is one of the countries that has experienced challenges in environmental management. Unl...