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This paper x-rays the role of economic models, specifically the Circular Flow Model and Materials Balance Model, with supporting Laws of Thermodynamics, in understanding the perspectives and dynamics of development and the environment, environmental impacts and environmental impact assessment (EIA). The ultimate goal of EIA is to achieve a level of environmental protection, enhancement, management and sustainability. Unless there is a political will to achieve these objectives, EIA will be a pro-forma exercise of little practical utility. This is therefore the conscious need for purposeful environmental governance in the processes, procedures and enforcement of EIA.

Environmental Impact Assessment
Circular Flow Model
Materials Balance Model
Sustainable development
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