Basically, responsesare group of indicators which provides information about actions stated ormeasures taken by social institutions, organization or individuals to improvethe state of the environment or reinstate its previous balance such as theintroduction of regulations. Here the government has imposed Law on pollutionunder control (India). It states the Co2 emission should be lower than thelimit set by the government. Along with this it has also set a new law thatcranes older than 15 years won’t be used in heavy industrial projects as theyrelease more smoke in the air and pollute the environment and to avoid theaccidents. Co2 gas emissions by welding process becomes an important indicatorthrough the recognition that it transfers considerable risk and associated costto society.

The increased risk is mediated to decision makers in societythrough changes in the state of environment, economy or social fabric. The gasemissions are known for the extensive damage to environment, creating risks ofcontaminating air, with substances that pose substantial hazards to animal andplant life death to migrating birds, marine life, as much harmful to humanlife. Presuming that correlation is found between gas emission percentage andincrease of the risk, the correlation between pressure and state indicators isestablished. The linkage of increased risk to the response of socialinstitutions- in this case using an economic instrument, pollution control law-establishes a connection with the pressure indicator. The need for law onpollution control does not directly arise from carrying out the welding process;this need arises from the fact that water from local sources is contaminated.

Although here the linkage seems to be obvious, policy decisions often ignorelinkages and risk transfers, especially if there is no price attached to someof the factors, consequently, ignoring external risks may potentially lead tounsustainable outcomes.


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