Environmental crime simply means an illegal act which directly affects the environment negatively or harms it (Burns, 2). It can also be taken to mean any violation of environmental regulations and as a result criminal liabilities can be imposed on the violators. These crimes are currently the most profitable criminal activities and as a result they are attracting many criminal groups who are looking forward to enjoying these high profit margins. There are various examples of environmental crimes. The following are some of them; illegal trade in wildlife, smuggling of ozone-depleting substances and illegal logging and the associated trade in stolen timber (Sullivan, 4).
Illegal trade in wildlife comprises of trading of wildlife animals or their proceeds. It involves shipping of animals from one area to another for profit purposes. Many animals become endangered species as a result of these activities. Elephants and rhino for instance are in great danger in many countries due to their expensive ivory and horn respectively. (Clifford, 42) Most of them are killed with intentions of obtaining ivories in order to trade them in black market. Big cats are also in great danger. Tigers and leopards are endangered due to their highly demanded skin which are used for decorations and clothing. Their skin is also given as a form of appreciation. These animals are killed and their skin sold for profits. (Sullivan, 28) Reptiles such as snakes are also killed to obtain their skins. Beside these animal products live animals are as well traded. Exotic birds are for example sold traded across borders for profit. All these crime activities in wildlife sector have negatively affected businesses in countries where they are carried out. Tourism sector has been affected because of these activities resulting to less tourists and this has reduced the proceeds expected by the government. Loss of tourists is as a due to depletion of the attractive animals which are killed for their proceeds. Hotel businesses dealing with tourists are also affected due to low turn up hence low revenues. Low returns has forced these businesses to layoff of workers who cannot be sustained. (Clifford, 47) This affects financial markets due to avoidance of these sectors because of low returns. Low profits which are not able to meet cost of running the business means the sector will be less attractive.
Smuggling of ozone-depleting substances is another environmental crime. This has resulted from human activities of introducing or releasing high quantities chlorine and other ozone depleting substances to the atmosphere. This is much common in companies dealing with manufacturing. Most of them do not take any measures to reduce the effects of these gasses on the air and the ozone layer. There are severe effects that come as a result of this criminal activity on the environment and as a result financial markets have been affected. To start with, these activities affect human health and in turn their day to day productivity in the business they engage in fall down. (Burns, 33) The effects are more on workers of these businesses which expose these depleting substances due to contact with the same substances. The health cost meet by the affected individuals is part of the social cost which in most cases is not taken in the cost function. This can also result to unfair competition. For example, where some companies are being regulated and monitored closely in order to avoid releasing these harmful substances while others are not. This means that their costs of production are reduced hence, a higher profit margin. They can even charge lower prices on their products forcing those being monitored to quit. (Sullivan, 62). The companies which meet an extra cost with an attempt to neutralise these chemicals earns less profits as compared to those not complying to this moral obligation. As a result of realizing low profits, owners of equity withdraw their funds from these businesses which have no other option but to quit. At the same time, these sectors fail to obtain loans due to uncertainty of repayments. Hence financial markets that have a close contact with these quitting firms are affected.
Illegal logging and the associated trade in stolen timber is another form of environmental criminal activities where criminal groups are taking advantage. Besides illegal harvesting of forests, there is the illegal acquisition of logging rights, tax avoidance, illegal transportation, use of forged documents during transhipment, bribery and corruption of officials (Clifford, 73). This criminal activity has in many cases resulted to forest fires and it is usually directly related to the climate changes. (Sullivan, 38). These fires come as a result of negligence of those cutting down trees when they smoke and when they use fire to clear bushes. This has resulted to great costs to the countries involved which in many cases are the developing countries. These countries find it difficult to deal with these challenges due to the capital required to tame crime in this sector. This crime affects the genuine business activities carried out in the forest and timber sector because it has reduced revenues. It has also depleted the government’s revenue through reduction of taxations expected. Effects of this crime in the agricultural business have been severe. Most farmers in developing countries rely on the natural climate (Burns, 34). This implies that effects on the natural climate will have major effects on farmers. This is because cutting down of trees reduces the rainfall amount and this affects the farm productivity and hence the harvest reduces. As a result of this, income from this sector is reduced. This has put off potential investors and thereby, affecting the financial markets due to shifting of resources which could otherwise be channelled to this sector.
In conclusion, it is evident that environmental crimes are all over and many criminal groups are taking advantage of them to make bumper profits. This has been at the expense of majority of people in the society. Illegal trade in wildlife has affected the foreign exchange expected in a country from foreign tourists. At the same time there have been unfair competition and even closure of businesses. This has brought in affects in financial markets in these countries where businesses are being closed. Illegal logging and stolen timber has affected the agriculture sector reducing the proceeds expected. Therefore, there is a lot that need to be done to curb these environmental crimes since they have severe effects on the financial markets.
Work cited
Burns, Ronald G, and Michael J. Lynch. Environmental Crime: A Sourcebook. New York: LFB Scholarly Pub. LLC, 2004. Print
Sullivan, Thomas, F.P. Environmental Law Handbook, 16th edition. Washington, DC: Government Institutes, 2001.
Clifford, Mary. Environmental Crime: Enforcement, Policy, and Social Responsibility. New York:
