Engineering Economics
Engineering Economics
The subject matter of engineering economics is concerned with the use and
application of economic principles in the analysis of engineering decisions. It
deals with how engineers must seek solutions to problems, and along with
technical aspects, the economic viability of each potential solution is normally
considered from a specific viewpoint that reflects its economic utility to the
economy. Thus, engineering economics involves formulating, estimating and
evaluating the economic outcomes when alternatives to accomplish a defined
purpose are available. When we are talking about engineering economics we
need to strike a balance between how we efficiently allocate our resources
and reduce our costs so as to increase profitability by the firms as well as
improvise on its management operations and growth.
The subject matter thus, deals with the issues of What to Produce, How to
Produce and for whom to produce since we need to strike the an equilibrium.
Engineering for Economic Competitiveness -
This refers to leveraging engineering principles and innovations to enhance an
economy's economic standing in a global marketplace. Let's discuss some of
the ways in which engineering contributes to economic competitiveness -
1) Innovation and Technology - Engineering drives technological advancements
that can lead to the development of new products and processes. This fosters
innovation, improves productivity and creates competitive (comparative)
advantage for businesses and economies.
2) Efficiency and Productivity - Engineering Solutions often focus on improving
the efficiency of manufacturing processes, energy use and resource
management. Increased efficiency can reduce costs and enhance the
productivity of industries, contributing to economic growth and development.
3) Infrastructure Development - Investment in Engineering Projects such as
transportation networks, energy systems and communication technologies can
help develop the infrastructure in such a way that is economically viable as
well as environmentally friendly.
Engineering is deeply intervined with the environment, both in how it utilizes
natural resouces and impacts the world around us. The bi-environmental nature
of engineering refers to the dual interaction between engineering and the
environment: engineering both influences and is influenced by environmental
factors. This interaction encompasses the creation and implementation of
technologies, infrastructure, and processes that impact ecosystems, human
health, and natural resources, as well as the ways that environmental
considerations shape engineering practices.
Negative Impacts:
Positive Impacts:
1. Pollution Control and Remediation: Engineering has developed technologies
to reduce pollution, clean contaminated sites, and restore ecosystems.
Examples include wastewater treatment plants, air quality control devices, and
bioremediation techniques that use microbes to break down pollutants.
SUMMARY