F.  Sustainable Development

• Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (World Commission on Environment and Development, 1987)

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1.  Economics of sustainable development

a.  Multiple dimensions

• Need to reconcile meeting the basic needs of people, including the poor, with limits imposed by the environment to meet present and future needs

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(1)  Environmental resilience

• Ability of natural ecosystems and regenerate themselves

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(2)  Social equity

• Necessity fo meet basic human needs to that people can live a dignified life

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(3)  Economic sufficiency

• Provide sufficient economic production and employment

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b.  Implications for developed and developing countries

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(1)  Developed countries

• Large capital stocks and extensive infrastructure - power plants, highways, factories, urban and suburban business and residential construction, dams, irrigation systems, etc.

• More possible and affordable to put environmental protection systems in place 

• Technological and social lock-in - dependence on a particular technology or accepted system of production and consumption

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(2)  Developing countries

• Major social and economic goal is to increase production to raise incomes

• Also have considerable population growth momentum

• Projects to increased resource use and increased waste and pollution

• Greater choice as to development path to follow

• Have access to improved technology and knowledge of errors made

• Must compete with developed countries for resources

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2.  Reforming global institutions

a.  International economic institutions

(1)  International Monetary Fund (IMF) - focus on exchange rate stability and eliminating exchange restrictions that hinder trade

• Environmental factors not in mandate

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(2)  World Bank - provides loans, sometimes at reduced interest rates, to developing countries to reduce poverty and support development

• Supports projects in education, health, public administration, infrastructure, financial and private sector development, agriculture, environmental and natural resource management

• Some consideration to environmental issues, but development goals typically take priority

• Loans need to be repaid => emphasis on export promotion, which could lead to exploitation of natural assets

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(3)  World Trade Organization (WTO) - regulates international trade, tries to lower trade barriers

• Environmental issues controversial

Ex. - Genetically modified beef

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b.  Millennium Development Goals (U.N., 2000)

• To be achieved by 2015

(1)  Eradicate extreme poverty and hunger

• Goal - Halve proportion of people living on less than $1.25 a day; halve the proportion of people who suffer from hunger

• Result - Poverty achieved, hunger narrowly missed

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(2)  Achieve universal primary education

• Goal - All children, both boys and girls, complete primary education

• Result - Enrollment went from 83 percent to 91 percent

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(3)  Promote gender equality and empower women

• Goal - Eliminate gender disparity in education

• Result - 2/3 of developing countries have achieved

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(4)  Reduce child mortality

• Goal - Reduce under 5 mortality rate by 2/3

• Result - Rate fell from 90 per 1,000 live births to 43

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(5)  Improve maternal health

• Goal - Reduce maternal mortality ratio by 3/4

• Result - Global maternal mortality ratio fell by nearly half

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(6)  Combat HIV/AIDS, malaria, and other diseases

• Goal - Halt and reverse spread of HIV/AIDS, malaria, and other diseases

• Result - HIV infections fell by 40%, but overall target not met

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(7)  Ensure environmental sustainability

• Goal - Integrate the principles of sustainable development into country policies and programs; reverse loss of environmental resources; reduce biodiversity loss, halve the proportion of the population without sustainable access to safe drinking water and basic sanitation

• Result - Water goal met, sanitation not

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(8)  Develop a global partnership for development

• Result - Overseas development assistance increased by 66%

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c.  Sustainable Development Goals

• Replaced and extended Millennium Development Goals in 2015

• Environmental goals:

(1)  Ensure sustainable consumption and production patterns

(2)  Take urgent action to combat climate change and its impacts

(3)  Conserve and sustainably use oceans, seas, and marine resources for sustainable development

(4)  Protect, restore, and promote sustainable use of terrestial ecosystems, sustainably manage forests, combat deforestation, halt and reverse land degradation, halt biodiversity loss

• Problem with low commitment of funds and lack of strong international governance

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d.  Sustainability issues and urban areas

• 80 percent of world's population will live in cities by 2050

• 3 percent of land, but 50 percent of waste, 60 - 80 percent of greenhouse gas emissions, 75 percent consumption of natural resources

• Issues include sustainability practices in transportation, housing, waste disposal and recycling, energy efficiency, and water management

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3.  New goals and new production methods

a.  Agriculture

• Expanding population and expanding consumption per capita puts strain on soil and water

• Shift from current situation to organic soil rebuilding, integrated pest management, and efficient irrigation

• Need to limit population growth and have greater food distribution equity and efficiency

• Dietary changes might be required

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b.  Industry

• Industrial ecology - restructure industrial sectors based on reducing emissions and reusing materials at all stages of the production cycle

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c.  Energy

• Due to supply limits and environmental impacts, transition away from fossil fuels

• Less centralized, adapted to local conditions, high energy efficiency, utilize solar, wind, and sustainable biomass

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d.  Renewable resource systems

• Fisheries, forests, and water systems already overstressed

• Growing population will lead to increased demand

• Shift from exploitation to conservation and sustainable harvesting

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e.  Water resources

• Water scarcity will be a critical factor in many parts of the world

• Made worse by climate change

• Need increased water efficiency and recycling, reduced water pollution, and extended water and sanitation access to low-income communities

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4.  Redefinition of development

• Strong sustainability - natural and human-made capital are not substitutable

=> natural capital should be maintained

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• Weak sustainability - natural and human-made capital are subtitutable

=> loss or degradation of natural capital can be made up for by accumulation of manufactured capital

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• Shift from exponential growth path to logistic growth path

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• Requires constraints on material consumption

• Some activities require little or no resource consumption - services, arts, communication, education

• Could have more leisure as opposed to material consumption

• Post-growth economy - economy has completed the process of economic growth and operates with no further increase in resource and energy use (possibly a decrease)

• Doesn't have to result in decreases in employment

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5.  Policy proposals

a.  Green taxes

• Pigouvian tax on negative externalities - fossil fuel use, resource extraction, pollution generation

• Can make the policy revenue neutral by cutting other taxes (income, payroll, corporate, capital gains)

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b.  Elimination of agricultural and energy subsidies

• Currently encourages overuse of energy, fertilizer, pesticides, water

• Promote nutrient recycling, crop diversification, natural pest controls

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c.  Greater recycling of materials and use of renewable energy

• Redesign industrial systems to imitate closed-cycle patterns of nature and reuse as many materials as possible with minimal waste output

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d.  Efficient transportation systems

• Replace automotive transport with high-speed trains, public transit, increased bicycle use, redesign of cities to minimize transportation needs

• Use fuel efficient cars in countries that already have large auto infrastructure

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e.  Accelerated development of renewable energy systems

• Solar, hydroelectric, wind, geothermal, fuel cells, high-efficiency industrial systems

• Can redirect current subsides from fossil fuels to alternative energy sources