sustainable development from an economic perspective
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Sustainability from an Sustainability from an Economic PerspectiveEconomic Perspective
Dr. Joachim H. Spangenberg
Helmholtz Centre for Environmental Research UFZ, Dept. Community Ecology, Halle, Germany
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
Presentation at the Presentation at the UNDP Capacity development LabUNDP Capacity development Lab
“Integrative Capacity “Integrative Capacity CdevelopmentCdevelopment for Sustainable for Sustainable
DevelopmentDevelopment””Hotel Devin, Hotel Devin, Bratislava, October 15Bratislava, October 15thth, , 20122012
Ecology, Halle, Germany
From the policy discourse:From the policy discourse:-- Sustaining the capital stocksSustaining the capital stocks
-- Getting the prices rightGetting the prices right--Green economyGreen economy
From the sustainability conceptFrom the sustainability concept
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
From the sustainability conceptFrom the sustainability concept-- The full Brundtland definitionThe full Brundtland definition
--Production & ConsumptionProduction & Consumption--The big capacity deficitThe big capacity deficit
Sustaining the capital stocksSustaining the capital stocks
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
Human made capital Human made capital
Natural capital Natural capital
Human capital Human capital
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
Human capital Human capital Social capital Social capital
Sustaining the capital stocksSustaining the capital stocks-- to generate a constant income flowto generate a constant income flowby sustaining the sum of all stocks, by sustaining the sum of all stocks, assuming substitutability (weak SD), assuming substitutability (weak SD),
-- or by preserving each stock (no or by preserving each stock (no substitution, strong SD)substitution, strong SD)
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
substitution, strong SD)substitution, strong SD)
HOWEVER: capital stocks have a size, but HOWEVER: capital stocks have a size, but no quality no quality –– the Mafia is an important the Mafia is an important element of the social capital, but not a element of the social capital, but not a contribution to social sustainability.contribution to social sustainability.
Getting the prices rightGetting the prices right
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
EcosystemEcosystem
functionsfunctions
BiodiversityBiodiversityServicesServices
The World according to The World according to environmental environmental economistseconomists
LabourLabour
The The
EconomyEconomyServicesServices
The Production
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
functionsfunctions
SocietySociety Human well being
IncomeIncome
PressuresPressures
Nature
SourcesSources& Sinks& Sinks
ConsumptionConsumption
DemandDemand The Production
System &
The Financial
System
Ecosystem
processes
Biodiversity ServicesServices
Sources Sources
& Sinks& Sinks
EcosystemEcosystem integrity (if natural)integrity (if natural)
or health (all systems)or health (all systems)
The World according to The World according to ecological economistsecological economists
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
processes
SocietySociety Human well being
EconomyEconomy
DriversDrivers
PressurePressure
PressuresPressuresPressurePressuress
If the environment is part of the If the environment is part of the economyeconomy-- then pricing it is the solution, then the then pricing it is the solution, then the market will do the rest and internalising market will do the rest and internalising external cost leads to optimal solutions.external cost leads to optimal solutions.
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
HOWEVER: if vice versa the economy is HOWEVER: if vice versa the economy is part of nature, economic laws do not part of nature, economic laws do not necessarily apply, there is no equilibrium, necessarily apply, there is no equilibrium, supply does not match demand, and the supply does not match demand, and the economic optimum is not necessarily economic optimum is not necessarily ecologically optimal (extinction can be).ecologically optimal (extinction can be).
First step towards a solution?First step towards a solution?
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
InsteadInstead of of inefficientinefficient productionproductionand and unjustunjust distributiondistribution……
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
……wewe needneed greengreen innovationinnovationand and socialsocial justicejustice!!
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
Innovative environmental Innovative environmental
technologies technologies combining combining
emission reduction and emission reduction and
recycling are needed recycling are needed
but not really new but not really new
and insufficient.and insufficient.
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
E.g.: Metal dust recovery system, enforced by regional kings „to avoid damage to neighbouring fields and grazing grounds”.
Source: Agricola, G. (1556). De re metallica
and insufficient.and insufficient.
But a Green Economy is less But a Green Economy is less than Sustainable Developmentthan Sustainable Development
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
The full Brundtland definitionThe full Brundtland definition
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
““Sustainable Sustainable development is development is development development that that
meets the needs of the meets the needs of the present without present without compromising the compromising the ability of future ability of future generations to meet generations to meet
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
generations to meet generations to meet their own needs. Itheir own needs. It t contains within it two contains within it two key conceptskey concepts two key two key concepts: …concepts: …
(definition cont.)1. The concept of “needs”,
in particular the essential
needs of the world’s poor, to
which overriding priority
should be given, and
2. The idea of limitations
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
2. The idea of limitations
imposed by the state of
technology and social
organisation on the
environment’s ability to meet
present and future needs.”(WCED 1987, (WCED 1987, p.43p.43))
… to certain activities, in order to allow
replenishing of natural resources or
naturalcapital, justice and social equality.
The alternative is collapse (e.g. fisheries).
A Sustainable Economy A Sustainable Economy requires limitations ... requires limitations ...
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
The alternative is collapse (e.g. fisheries).
CombattingCombatting povertypovertyrequires other allocation mechanisms than
the market, as the poor have no purchsing
power: merit & public goods, entitlements.
Production & ConsumptionProduction & Consumption
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
Today,
too many people
use money they don‘t have,
to buy things they don‘t need
Unsustainable Consumption Unsustainable Consumption
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
to buy things they don‘t need
to impress people they don‘t like..
Sustainable consumption
is not about neglecting needs,
but about identifying adequate satisfiers.
Production: Efficiency plus Resilience
The most efficient solution today can be
outdated tomorrow. Innovation systems and
Sustainable Consumption & Sustainable Consumption & Production Production
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
outdated tomorrow. Innovation systems and
diversity provide resilience.
Consumption: Sufficiency plus Opulence
Living with enough is recommendable, but
quality of life requires opportunities to party,
squandering resources with friends
The real capacity deficitThe real capacity deficit
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
Standard Standard economicseconomics failsfails..
In In sustainabilitysustainability economicseconomics, ,
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
In In sustainabilitysustainability economicseconomics, , capacitycapacity buildingbuilding isis urgenturgent
ThankThank youyouforfor youryour
attentionattention
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07
attentionattentionForFor thethe presentationpresentationand and otherother paperspapers seesee
http://seri.academia.edu/JoachimHSpangenberghttp://seri.academia.edu/JoachimHSpangenberg