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Tema 1. Ecological Economics
1. Economic activity and Environment
2. Constituents of human well-being
1. Economic activity and Environment
1. The concept of Ecological Economics
2. Interdependent systems
3. Sustainability
o Ecology can be defined as the study of the relations of animals and plants to their organic and inorganic environments and
o Economics as the study of how humans make their living, how they satisfy their needs and desires
o Ecological economics is the study of the relationships between human housekeeping and nature’s housekeeping … or it is about the interactions between economic systems and ecological systems.
1. Economic activity and Environment2. Constituents of human well-being
The concept of Ecological EconomicsInterdependent systemsSustainability
Interpendent systems
Recent history of the environment in economicso 70’s, renewed interest in neoclassical economics about the
natural environmento Environmental economics: focused on the economy’s
insertions into the environment.o Natural resource economics: focused on the economy’s
extractions from the environment
o Neoclassical (Environmental) economics.- Address the environment from a market-law perspective. Environment is a framework which supply inputs and a place to deposit the waste. It is a matter of valuation.
o Ecological economics.- A close interdependence between “how humans make their living” and its “organic and inorganic environment”. It is a matter of values.
1. Economic activity and Environment2. Constituents of human well-being
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
The concept of Ecological EconomicsInterdependent systemsSustainability
o Neoclassical (Environmental) economics.- o Do not ignore equity, but focus on policies to promote
efficiency (pareto). o Confidence in the ability of markets to drive
technological and behavioural changes that will enable the capacity of the economy--environment system to satisfy humans to go on increasing.
o Ecological economics.- o have less confidence in markets and technology.o that solving the problem of poverty cannot be left to
economic growth
1. Economic activity and Environment2. Constituents of human well-being
The concept of Ecological EconomicsInterdependent systemsSustainability
Ecological and neoclassical economics: Whose utility counts?
1. Economic activity and Environment2. Constituents of human well-being
Deontological
Ethical Approach
Duty
The concept of Ecological EconomicsInterdependent systemsSustainability
Lithosphere -- the solid outer shell of the earth;Hydrosphere -- the water on or near the surface of the earth;Atmosphere -- the gases surrounding the earth’s surface;Biosphere -- living organisms and their immediate environment. - “Ecosphere”
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
The Environment
1. Economic activity and Environment2. Constituents of human well-being
The carbon cycle
o The slow cycle. Geological time. 5-10000 Gt in lithosphere in fossil fuel deposit o The fast cycle.- Figure represents annual exchangeso The anthropogenic cycle.- 40% Increase in ppmv since industrial revolution (398
ppmv this is saying that CO2 comprised 0.039 per cent of the global atmosphere
The concept of Ecological EconomicsInterdependent systemsSustainability
natural human
1. Economic activity and Environment2. Constituents of human well-being
The carbon cycle
The concept of Ecological EconomicsInterdependent systemsSustainability
Las estimaciones del IPCC nos informan de que si queremos que en 2050 la temperatura no haya aumentado más de 2ºC con respecto al promedio previo al calentamiento, podemos emitir entre 870 y 1240 gigatoneladas de CO2
(Anxo Sánchez, blog Nada es gratis)
1. Economic activity and Environment2. Constituents of human well-being
The carbon cycle
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
The concept of Ecological EconomicsInterdependent systemsSustainability
Hunting and gathering
Transition to agriculture(12,000 years)
Transition to industry(200 years)
Humans long-history
1. Economic activity and Environment2. Constituents of human well-being
Humans & purposes
«…they may appear to some to be the most wretched people on earth, but in reality they are far more happier [sic] than we Europeans. They live in a Tranquillity which is not disturb’d by the Inequality of Condition: The Earth and sea of their own accord furnishes them with all things necessary for life, they covet not Magnificent Houses, Household-stuff &c’, they live in a warm and fine climate and enjoy a very wholesome Air, so that they have very little need of clothing… they think themselves provided with all the necessarys of Life and that they have no superfluities.»
Capitan James Cook on Australian aboriginals
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
Human economy system is a subsytem of the system which is the environment, which provides:o Resources to Firmso Amenities to Individualso Life support serviceso Waste sink
Basic Economic activitieso Consumption.- The use by human
individuals of goods an services to satisfy some of their needs and wants. Not all consumption is ‘consumptive’
o Production.- Commodities to be consumed by individuals or by firms
o Investment.- …in Capital Stock, which provides capital services
Humans & environment
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Reproducible or human-madeo Durable capital.- Tools, machinery, buildings,
infrastructures..o Human Capital.-Stock of learned skillso Intellectual capital.- Accumulated knowledge and skillso Social capital.- Set of institutions and customs
o Natural capital.- Stocks in the environment that deliver services to the economy.
Capital Stock
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
Environment provides
Resources to Firms Amenities to Individuals Waste sink Life support services
Source: Millennium Ecosystem AssessmentSource: Common et al (2005): Ecological economics
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Food Derived from plants, animals, and microbes.o Fiber Wood, jute, cotton, hemp, silk, and wool.o Chemical Elementes Gases, metals…o Fuel Wood, dung, oil, gas, solar…serve as sources of
energy.o Genetic resources Genes and genetic information used
for animal and plant breeding and biotechnology.o Biochemicals, natural medicines, and pharmaceuticals.
Many medicines, biocides, food additives such as alginates, and biological materials are derived from ecosystems.
o Ornamental resources Skins, shells, flowers…o Fresh water
Resources to firms / Provisioning
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Flow resources Neither accumulate nor de-cumulate (solar, wave, wind, hydro power).
o Renewable resources Considering sustainable harvestingo Non-Renewable resources Natural growth is zero (fossil
fuels)o Non-Renewable resources , but recyclable (iron, cupper).
Resources to firms / Provisioning
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
Problematic
Open access
Discount rate
Fundamental Uncertainty
Resources to firms / Provisioning
Do you think the convention of estimating net present value ignores the rights of
future generations? Why or why not?
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Amenity services from the environment can, that is, be consumed direct without being first transformed by productive activity
o It may be, and often is, a non-consumptive process.
o Environmental amenity service-consumption is different from the use of the resource-input and waste-sink services in that it does not necessarily involve any direct physiochemical impact
Amenities to individuals / Cultural
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Cultural diversity The diversity of ecosystems is one factor influencing the diversity of cultures.
o Spiritual and religious values Sometimes attached values to ecosystems or their components.
o Knowledge systems (traditional and formal) Ecosystems influence the types of knowledge of cultures.
o Educational values Ecosystems and their components and processes provide the basis for both formal and informal education in many societies.
o Inspiration Art, folklore, national symbols, architecture, advertising.
Amenities to individuals / Cultural
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Aesthetic values Parks, scenic drives, housing locations.o Social relations Ecosystems influence social relations:
fishing differs from nomadic herding or agricultural societies.o Sense of place Many people value the “sense of place”,
associated with recognized features of their environment.o Cultural heritage values Many societies place high value
on the maintenance of either historically important landscapes (“cultural landscapes”) or culturally significant species.
o Recreation and ecotourism People often choose where to spend their leisure time based in part on the characteristics of the natural or cultivated landscapes in a particular area.
Amenities to individuals / Cultural
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Pollution.- any chemical or physical change in the environment due to waste emission that is harmful to any living organism; By a waste we mean something that is an unwanted by-product of economic activity. The flow of a waste into the receiving environment will be called emissions, or discharges.
o Not all the waste discharges in the environment gives rise to pollution…
o Biomagnification involves the increasing concentration of toxic materials in animals higher up in a foodweb. Ex: DDT
Waste sink / Regulation
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Air quality regulation Contribute chemicals to and extract chemicals from the atmosphere, influencing many aspects of air quality.
o Climate regulation At a local scale can affect both temperature and precipitation. At the global scale, ecosystems play an important role in climate by either sequestering or emitting greenhouse gases.
o Water regulation The timing and magnitude of runoff, flooding, and aquifer recharge can be strongly influenced by changes in land cover, such as the conversion of wetlands or the replacement of forests with croplands or croplands with urban areas.
o Erosion regulation Vegetative cover plays an important role in soil retention and the prevention of landslides.
Waste sink / Regulation
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Water purification and waste treatment Ecosystems can be a source of impurities (for instance, in fresh water) but also can help filter out and decompose organic wastes introduced into inland waters and coastal and marine ecosystems and can assimilate and detoxify compounds through soil and subsoil processes.
o Disease regulation Changes in ecosystems can directly change the abundance of human pathogens, such as cholera, and can alter the abundance of disease vectors, such as mosquitoes.
o Pest regulationo Pollinationo Natural hazard regulation The presence of coastal
ecosystems such as mangroves and coral reefs can reduce the damage caused by hurricanes or large waves.
Waste sink / Regulation
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o They differ from provisioning, regulating, and cultural services in that their impacts on people are often indirect or occur over a very long time, whereas changes in the other categories have relatively direct and short-term impacts on people.
o Some services, like erosion regulation, can be categorized as both a supporting and a regulating service, depending on the time scale and immediacy of their impact on people.
Life support services / Supporting
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
o Soil Formation Because many provisioning services depend on soil fertility, the rate of soil formation influences human well-being in many ways.
o Photosynthesis Photosynthesis produces oxygen necessary for most living organisms.
o Primary production The assimilation or accumulation of energy and nutrients by organisms.
o Nutrient cycling Approximately 20 nutrients essential for life, including nitrogen and phosphorus, cycle through ecosystems and are maintained at different concentrations in different parts of ecosystems.
o Water cycling Water cycles through ecosystems and is essential for living organisms.
Life support services / Supporting
The concept of Ecological EconomicsInterdependent systemsSustainability
1. Economic activity and Environment2. Constituents of human well-being
Recycling
Involves the diversion of some activity away from production for consumption or investment to the interception of some of the waste stream before it crosses the economy-environment boundary
The concept of Ecological EconomicsInterdependent systemsSustainability
o Sustainability.- Maintaining the capacity of the joint economy-environment system to continue to satisfy the needs and desires of humans for a long time into the future
o Major problem.-o the current scale of global economy activity threatens
sustainabilityo It is necessary to increase the scale of economic activity to
alleviate povertyo Sustainable development.- a form of economic growth
that would meet the needs and desires of the present without compromising the economy--environment system’s capacity to meet them in the future.
1. Economic activity and Environment2. Constituents of human well-being
The concept of Ecological EconomicsInterdependent systemsSustainability
Concepts
1. Economic activity and Environment2. Constituents of human well-being
The concept of Ecological EconomicsInterdependent systemsSustainability
Major threats
o Depletion of non-renewable resourceso Waste accumulationo Loss of resilienceo Global warming
o Balancing economic targets (poverty alleviation, human well-being…) with environmental sustainability
1. Economic activity and Environment2. Constituents of human well-being
The concept of Ecological EconomicsInterdependent systemsSustainability
Sustainability from a wider perspective
Sustainable development is about dealing with economic and social development (poverty, freedom…) without undermining sustainability
Healthy environment
Prosperous Economy
Just Society
1. Economic growth and its limits
2. Human well-being
3. Governance
2. Constituents of human well-being
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
The rich and the poor
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
Historical data
o Many economic historians take the view that until around 1500 the differences were so small that all of the world’s economies should be regarded as having had the same level of per capita income.
o Given the nature of exponential, or compound, growth… growth rates do not need to differ greatly to produce large differences in levels over periods of the order of a century.
·
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
What drives economic growth
·
𝐾 𝑡=𝐾 𝑡−1+𝐼 𝑡=𝐾 𝑡−1+𝑆𝑡
𝑆=𝑠 ·𝑌
o Consensus on the basic model of economic growth while it is useful in drawing attention to the role of capital accumulation, it is not a satisfactory model of economic growth.o Mainly this is because it generates a declining rate of growth.o Why is the savings rate higher in one economy than another? Given two
economies with the same savings rate, why does one have more technical progress than another, why is it more innovative?...
o People will save and innovate more when the incentives to do so are greater. Again, this answer leads to more questions – what are the incentives to save and innovate, and why do they differ across economies?
Development and under-development
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
Why “NOT” nations fails
o The Geography hypothesis: “environmental determinism”; “Equatorial Paradox” (70% of economic development explained)
o The Culture hypothesis(*).- o Social norms matters and shapes institutions but…o … are not sufficient to explain how we got here and why the
inequalities in the world persist.o Cultural aspects are mostly an outcome of institutions, not an
independent cause.
o The ignorance hypothesis (*).-o Poor countries have a lot of market failureso Economist and policy makers do not know how to get rid of
them.
o Economic growth and prosperity are associated with inclusive economic and political institutions while extractive institutions typically lead to stagnation and poverty
o Inclusive economic institutions.- allow and encourage participation in economic activities and that enable individuals to make the choice they wish: Secure private property, unbiased system of law, provision of public services that provides a level playing filed where people can exchange and contract.
o Extractive institutions.- An small group (elite) which fight to keep their privilegis trough restrictive laws and barriers to entry. Extractive institutions cannot generate sustained technological change for two reasons: the lack of economic incentives and resistance by the elites.
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
Why “do” nations fails
o Aislamiento de Madrid de los flujos económicos e innovadores (Altiplano, sin río navegable), que llegó a ser Corte, pero nunca Villa
o Única manera de prosperar, era la de “medrar” para conseguir “regalías”
o Buques de la nueva “Armada Española” son hijas del BOE:o Ex-Monopolios (privatizaciones ad hoc)
o Constructoras (contratas obra civil).
En Versión Española… “Capitalismo Castizo”
o Fuertes interrelaciones entre la clase política y la aristocracia empresarial, con trasvase de miembros entre ellas… generadora de instituciones extractivas que tratan de capturar al regulador
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
o Neoclassical economist only relies in growth (“the rising tide lifts all the boats”) because:
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
Poverty alleviation: Economic growth vs redistribution
o The better-off tend not to like ito the amount by which the better-off collectively
are better-off than the poor collectively is not sufficiently large for it to be possible to solve the poor’s problems this
o Redistribution could act as a disincentive to behavior
o Ecological economics, does not share neoclassical enthusiasm for economic growtho the world as a whole, economic growth is not, on account of economy--
environment interdependence, a feasible long-run objective
o Economic growth is only highly desirable in the economies where there are many poor people
“The top 1 percent have the best houses, the best educations, the best doctors, and the best lifestyles, but there is one thing that money doesn’t seem to have bought: an understanding that their fate is bound up with how the other 99 percent live. Throughout history, this is something that the top 1 percent eventually do learn. Too late”
The price of inequality
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
Un cierto grado de desigualdad económica es fundamental para estimular el progreso y el crecimiento (recompensar talento y el esfuerzo de quienes tienen la ambición necesaria para innovar y asumir riesgos empresariales) pero la riqueza extrema (al igual que la pobreza extrema) es una amenaza.
The Easterlin paradox
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
the reasonable conclusion is that economic growth is very important for improving human well-being at income levels typical of the developing world today, but not very important in that respect at income levels typical of the developed world today.
What makes people happy?
1. Economic activity and Environment2. Constituents of human well-being
Why does growth not increase happiness in rich countries?
“The explanation is that an individual’s happiness depends on the match between what he aspires to and what he experiences, and that his aspirations depend on his own experience and what he observes about others’ experience. Aspirations are formed by adaptation, or habituation, and rivalry”. (Common)
"The first problem arises because people overestimate the long-term happiness they will derive from consumption goods and underestimate the satisfactions of leisure, education, friendship and other intangibles. The second problem arises because, even if people are rational in wanting to be top of the pile, the logic of positional competition dictates that not all of them can be“ (Skidelsky)
Economic growth and its limitsHuman well-beingGovernance
Less is more
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
1. Economic activity and Environment2. Constituents of human well-being
The capabilities approach
Economic growth and its limitsHuman well-beingGovernance
o Functionings.- A set of things that person may value or doingo Examples: being happy, allow to choose, being healthy,
nourished and sheltered, having self-respect, “he-freedom-to-appear-in-public-without-shame”, being involved in the community
o Capabilities.- Alternative combinations of functioning that are feasible to achieve (opportunity freedom); or the effective possibility of enjoying your full human rights. o Examples: right to vote for the illiterates; fasting or hunger
strike vs starving
o Development can be seen, it is argued here, as a process of expanding the real freedoms that people enjoy... Development requires the removal of major sources of unfreedom: poverty as well as tyranny, poor economic opportunities as well as systematic social deprivation, neglect of public facilities as well as intolerance or overactivity of repressive states.
1. Economic activity and Environment2. Constituents of human well-being
Development as freedom
Economic growth and its limitsHuman well-beingGovernance
o A new approach to development which focuseso Not in the mere economic growth (accumulation of
commoditeies)…o But in the expansion of the real freedoms which allows
persons to lead the kind of lives they value -and have reason to value (moral and intercultural).
o Juzgar el nivel de vida (desarrollo) en países pobres:o ¿Están bien alimentados? ¿Sufren de mortalidad “evitable”?
¿Esperanza de vida? ¿Saben leer y escribir? ¿Saben contar?
o Juzgar el nivel de vida (desarrollo) en países ricos:o ¿pueden participar en la comunidad? ¿pueden aparecer sin
vergüenza en público y sin sentirse desgraciados? ¿pueden encontrar trabajos que merezcan la pena? ¿pueden calentarse? ¿pueden hacer uso de su educación? ¿pueden mantener relaciones con familiares y amigos?
o No es una cuestión de “ganancias” si no de lo que las personas “pueden” o no “pueden” hacer. Lo relevante es la “libertad”, no las “mercancías”.
La acción sociocaritativaDesarrollo y subdesarrolloDesarrollo y libertadConociendo la realidad
1. Economic activity and Environment2. Constituents of human well-being
Economic growth and its limitsHuman well-beingGovernance
Assesing the “real” level of development
3. Bodily integrity.- Being able to move freely and safely from place to place.
4. Senses, Imagination, and Thought.- Being able to use the senses, to imagine, think, and reason—and to do these things in a "truly human" way, a way informed and cultivated by an adequate education.
5. Emotions.- Being able to have attachments to things and people: to love, to grieve, to experience longing, gratitude, and justified anger.
La acción sociocaritativaDesarrollo y subdesarolloDesarrollo y libertadConociendo la realidad
1. Life.- Being able to live to the end of a human life of normal length.
2. Bodily health.- To have good health, to be adequately nourished; to have adequate shelter.
1. Economic activity and Environment2. Constituents of human well-being
Nussbaum and the Decalogue of development
Economic growth and its limitsHuman well-beingGovernance
6. Practical reason.- Being able to form a conception of the good and to engage in critical reflection about the planning of one's life.
7. Affiliation.- Being able to live with and toward others; Having the social bases of self-respect and non-humiliation; non discrimination (race, sex, sexual orientation, ethnicity, caste, religion, national origin and species
8. Other species.- Being able to live with concern for and in relation to animals, plants, and the world of nature.
9. Play.- Being able to laugh, to play, to enjoy recreational activities.
10.Control over one’s Environement.- Being able to participate effectively in political choices that govern one's life; Being able to hold property; being able to work as a human.
1. Economic activity and Environment2. Constituents of human well-being
Nussbaum and the Decalogue of development
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
Economic growth and its limitsHuman well-beingGovernance
o Basic materials for a Good Life To have a secure and adequate livelihood: income and assets, enough food and water at all times, shelter, ability to have energy to keep warm and cool, and access to goods.
o Health Ability of an individual to feel well and be strong, or in other words to be adequately nourished and free from disease, to have access to adequate and clean drinking water and clean air, and to have the ability to have energy to keep warm and cool.
o Good social relations Refer to the presence of social cohesion, mutual respect, and the ability to help others and provide for children.
o Security We refer to safety of person and possessions, secure access to necessary resources, and security from natural and human-made disasters.
o Freedom of Choice and Action ability of individuals to control what happens to them and to be able to achieve what they value doing or being.
Constituents of human well-being
Determining policy objectives
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
o Two reasons to “not” left to markets alone the sustainable development:o First, market failures of various kinds mean that the actual
market outcomes are not allocatively efficient.o Second, achieving efficiency does not guarantee either
inter- or intragenerational equity, both of which are essential features of sustainable development.
o Hence, aiming for sustainable development requires more than correcting market failure
Major sustainable development events
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
Year Event Outcomes
1972 The limits to growth: a report for the Club of Rome’s project on the predicament of mankind
concerns about the over-use of natural resources
1983 The ‘Brundtland Report’ – our common future
Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs
1988 IPCC (Intergovernmental Panel on Climate Change)
IPCC Reports, which supports the United Nations Framework Convention on Climate Change (UNFCCC): (Kyoto Protocol);
1992 The United Nations Conference on Environment and Development -- Río de Janeiro
Rio Declaration; Agenda 21;Legally binding agreements: Convention on Biological Diversity; UNFCCC United Nations Convention to Combat Desertification
2000 Millenium Summit 8 Millenium Development Goals (MDGs) by 2015
2002 World Summit on Sustainable Development (Río+10) -- Johannesburg.
The Johannesburg Declaration.- multilateralism as the path forward.
2012 United Nations Conference on Sustainable Development – Río+20 -- Río de Janeiro
“The Future We Want”.- non-binding political commitment to sustainable developmentSustainable Development Goals (SDGs) by 2030;
Commitments
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
The sustainable development principle
Economic growth and its limitsHuman well-beingGovernance
1. Economic activity and Environment2. Constituents of human well-being
o A truly sustainable way of life:o Economic Growth and Equityo Conserving Natural Resources and the Environmento Social Development
o A three interconnected component dimensions of sustainable development vs short-term economic success.
o Adapted to specific circumstances: emphasiso in economic growth in poor countrieso In social and environmental objectives in rich world
o Common, M. S. and S. Stagl. (2005): Ecological economics : an introduction. Cambridge: Cambridge University Press. (Chapters 1-9)
o World Resources Institute. (2005). Ecosystems and human well-being : biodiversity synthesis. Washington, DC: World Resources Institute.