Human Behaviors Leading to Serious Environmental and Financial Crisis in 2008



Introduction Due to human actions that led to massive indebtedness, the financial crisis of 2008 was completely responsible. Supervisors, reckless firms and homes, regulators, and politicians all took the brunt of the crisis’s criticism. They committed a series of cognitive errors that resulted in a remuneration system that was based on short-term competence rather than long-term success because of their avarice. Boardroom overconfidence and failure to seek help from other appropriate authorities are examples of cognitive mistakes. Because of their own biases, they rely only on their own thinking and obsolete educational experiences. These include humiliation, tenacity and hope, cultural causes and superstitions. The act of female chauvinism in the UK was another factor. Women’s representation on bank boards, according to Labor authorities, would help alleviate the situation. UNEP is working to integrate “green economy” into environmental economics aims, as well as to promote development and alleviate poverty as an alternative (UNEP 201). The concept has gained traction thanks to a widely accepted economic worldview influenced by a number of current concerns and failed market experiments. Human conduct that contributed to the 2008 financial and environmental crisis, as well as steps made to address it, are discussed in this article. According to Ann Sibert, the 2008 financial crisis was exacerbated by the prevalence of sexism and a culture of female complacency in the banking industry (Stiglitz 127). UK Labor cabinet member Hazel Blears once said: “Maybe we wouldn’t have seen as much risk taking behavior if we had some more women in the boardrooms.” This disparity in the boardrooms of established US and UK-based financial institutions was exacerbated by the fact that men held most senior roles. Women hold just 25% of the jobs in the US insurance and banking industries, a share that is far lower than the 20% corporate average (Sullivan and Jordan 11). Gender and the impression of masculine dominance are the subject of economic research. It is generally accepted that males are better at taking risks and making prudent financial choices than women. As a consequence of their prior successes, males are seen to have the confidence they need to deal on the financial markets.

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Check the pricing Several unique research have shown the grounds for stereotyping among women and the male dominance in the workplace. When it comes to taking risks based on the average daily profit produced by traders, a study of the behavior of male traders was critical. As a result of these behavioral implications, it might have detrimental cognitive repercussions as well (Buchanan 96). Irrational male financial decision making is a result of the hormone receptors found throughout the brain in the testes and the pituitary glands. According to research in the field of psychology, when a group has members who are risk averse, the rest of the group is more likely to follow their lead. Towards the Green Economy’s author explored the basic reasons of periodic crises, including capital misallocation. Rather of dragging the economy down, economics’ primary goal is ensuring a greening process. The elimination of the high degree of poverty may be achieved via the creation of good employment in new engine growth scenarios. It’s important, according to the author, to get policymakers fired up about making the switch to a green economy a priority. Long-term performance was not rewarded in the bankers’ remuneration scheme, which was defective. For the sake of transitioning to a green economy, the bankers’ conduct was impacted by this (Hill 675). An international organization like the UNEP is essential for the upkeep, regulation, and education of environmental systems among people across the world. Sustainable living and poverty eradication may both be achieved via the implementation of the UNEP’s “Green Economy” concept (United Nations Environment Programme 72). One of the most widely-held beliefs is that the financial and economic crisis of 2008 sparked an economic paradigm shift in the United States. However, individuals are becoming more conscious of the causes of economic and financial depressions. Nevertheless, the move to a green economy is well-founded from an economic and social standpoint. To reshape the economy, both public and commercial sectors have embraced this green economy. Greener goods will be promoted by legislative changes, and new incentives will be provided for the government to divert public funds, develop the market infrastructure, and green public procurements (Holt, Charles and Susan 1653). A green economy transition must include representatives from the private sector across a number of critical industries. The execution of policy changes from other levels of financial investment is also crucially dependent on this factor. Food, water, climate change, biodiversity, fossil fuels, and the economy as a whole have all caused many crises in the last decade. People face a dire danger from climate change as it worsens. The 2008 price spikes for food and commodities, as well as gasoline, revealed a number of structural issues and vulnerabilities that have yet to be addressed. In terms of food safety, there is a worldwide consensus on the nature of the issue (Coates and Herbert 6167). Because of these crises, we’ve been unable to maintain global progress or meet Millennium Development Goals (MDGs) such as eradicating poverty. At critical levels, the crises all have a fundamental cause: a misallocation of resources. Property, fossil fuels, and structured financial assets have taken up much of the money in the recent decade. Investing in environmentally friendly alternatives, such as renewable energy, public transportation, biodiversity, sustainable agriculture, and land and water conservation, instead of less environmentally friendly ones, would be preferable. There has been no significant attempt to solve the problem of decreasing the world’s natural renewable resource supply while simultaneously producing greater riches via the “brown economy” (Sabourian, Hamid and Anne 108). It will take time to attain sustainability, but the most crucial step is to focus on greening our economy. Green economy transition is described in the article as the construction of an enabling environment that is in accordance with national legislation, policies, incentives, and legal frameworks. Additionally, trade rules and regulatory systems were simplified. A global movement toward a green economy is now under way. Renewable energy sources like wind and solar have replaced wood and charcoal fuels as a result of lower fossil fuel pricing and subsidies (Sibert 102). Research reveals that environmental sustainability and economic development are not mutually exclusive. In order for the greening of the economy to be successful, it has to be implemented across the board. It opens doors for young people, resulting in new occupations and employment. It compensates for the loss of jobs during the changeover. The elimination of long-term poverty in society is another way that the green economy affects human behavior. The expansion of environmentally friendly industries such as agriculture, forestry, and energy is a positive step toward a green economy. Soil fertility and water availability have improved as a result of sustainable forestry operations and the protection of water sources. But this program has made it easier to develop rules that protect the environment from any hazardous actions. Correcting market flaws and taking market incentives into account have both been used to remedy faults in the market. As the tourist sector has grown, it has taken on social responsibility tasks such as assisting villages that need access to clean drinking water, and completing a number of infrastructure projects. The proponents of the green economy are tourists. Without hurting the country’s green economy goal, the sector has produced a lot of jobs and brought in a lot of money (Sullivan, Kevin and Mary 219). A green economy relies on the preservation of natural resources, such as forests, and on limiting deforestation in order to achieve this goal. Agricultural health, resilience, and other bio-driven elements all depend on forest products and services. It provides jobs and revenue when the goods are sold.

Conclusion Conclusions: The majority of financial and environmental catastrophes may be traced to human conduct. To alleviate these difficulties, the economy must be examined and all people given equal opportunity to participate in economic development. Having more women in the finance and insurance industries will allow for a more diverse approach to risk management. Green economy should be used in the environmental sector since it has more benefits than disadvantages. A general increase in fossil fuel costs and a reduction in the cost of renewable energy are used to accomplish this. The government should make it a priority to move the country toward a green economy.

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