The Environmental Economics Way - Essay Example

Theory of Sustainability and Sustainable Development Introduction Different perspectives exist on the meaning of sustainability. However, they all have a common feature; future orientation. The notion of sustainability is historically understood as environmental sustainability; where the main objective is to conserve natural resources to ensure all life is supported and there is continued development. Moldan et al (2012) says that to correctly define environmental sustainability, one has to focus on its biogeophysical aspects; that is, “maintaining or improving the integrity of the Earth’s life supporting system. Holdren et al (1995) hold a similar view of environmental sustainability. In this case, biophysical sustainability has to do with basically maintaining and improving earth’s life supporting systems (Morrow 2012).Goodland (1995) says that environmental sustainability aims at improving human welfare through the protection of sources of raw materials used for human needs as well as ensuring that the space for human waste is not depleted in order to prevent harm to humans. The concept of sustainable development emerged with the Brundtland Report after the World Commission on Environment Development. According to Kaivo-oja et al (2014) definition and measurement of sustainable development poses challenges on contemporary economic, social and environmental policies. Since the 1980s the concept of sustainable development has relied on the three main pillars of sustainability; environmental, economic and social (Moldan et al. 2012). Sustainable development means the kind of development that is able to meet the needs of the present generation without jeopardizing the ability of future generations to meet their needs (Moldan et al 2012). Describe and discuss the difference in paradigm presented by our notions of ‘environmental economics’ and those of ‘green economics’. Does this difference really matter? According to Tisdell (1993),“Environmental economics is concerned with the economic interrelations between mankind and the environment; that is, with the environs or surroundings of human beings.” (p. 3). Among other things, this approach looks at the impact of economic activity on the environment. On the other hand it is concerned with the influence the environment has on human welfare and on economic activity. The issue of environmental economics is concerned with two important issues; environmental externalities and environmental sustainability. Environmental sustainability refers to “the continuance of specific environmental circumstances through time” (Dollery & Wallis 1997, p. 301). On the other hand, environmental externalities allude to the effects economic activities have on the environment. For instance, the process of industrial production generates pollutants that damage the environment (Dollery & Wallis 1997). The economic approach uses values at present to calculate future stream of costs and benefits (Davidson 2000). Preferences may change over time which means that it is presumptuous to use present values to make calculations. At the same time, environmental despoliations at present could generate potential gains and losses for future generations. The environmental economics way of thinking demands that the environmental benefits and costs of economic activities be included in the prices of the products that result from these economic activities. If the costs of the economic activities are not incorporated in the market, then aspects like future environmental benefits are forgone which in turn means that the economic activity does not take place at an optimal rate. Dollery and Willis (1997) opine that this approach could be seen to provide a good conceptual framework that can be used in the evaluation of environmental trade-offs which are connected with economic activity and in coming up with a socially optimal outcome. However, they admit that there are a myriad of difficulties in the implementation of the framework. In this approach, the cost-benefit analysis seems to work best in identifying the advantages and disadvantages of particular economic activities. Evaluating economic activities this way is important. However, its effectiveness is limited by availability and accuracy of the environmental information. It is hard to obtain appropriate information in the cost-benefit analysis, thus, the values that are placed on the costs and benefits is bound to change within time. This means that it is hard to predict future developments. As Dollery and Willis (1997) say, as much as this economic approach is useful in providing a viable analytical framework for examining environmental issues, it should not be seen as “the only, or even as a complete system for dealing with environmental questions” (p. 303). These kind of limitations on the environmental economics led to the Rio+20 Earth Summit changing the approach to that green economy in 2012 which saw a paradigm shift in looking at environmental sustainability and sustainable development. The UNEP (2011) define green economy as an economy that brings about social equity and improved human wellbeing and at the same time reducing ecological scarcities and environmental risks. This concept has brought up a concept that has been popularized in economic development: green growth. Green growth refers to economic growth and development while preserving the environment to ensure resources are not depleted (Jacobs 2012). The concept of green economy carries with it the promise of economic development that takes care of the earth’s ecosystems. Unlike the environmental economics view, the new paradigm has its emphasis on the fact that economic growth and environmental stewardships are two strategies that are complementary. It challenges the common view that has existed that there could be tradeoffs between the two objectives, instead, green economics view opine that the synergies prevail over the tradeoffs (Ocampo and Cosbey). The paradigm shift from environmental economics to green economics matters in a big way. This is because green economics points to the broader concept of sustainable development; one that encompasses the three pillars of development – social, economic and environmental. This, as noted earlier, is seen in the definition by UNEP on what green economy entails; “one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities”. The main reason for the paradigm shift was to dispel the preconceived notion that economic productivity and progress comes at the expense of environmental sustainability and vice versa (Apadurai 2012). The limitations of the environmental economics approach lead to the paradigm shift that would see economic growth more sustainable. One of the underlying issues in this approach is that of limiting carbon emissions and job creation to alleviate poverty. However, as Apadurai (2012) notes there is seemingly “constant emphasis on nouns rather than adjectives in the catchphrases that pervade mainstream sustainability discourse” (p. 6). This means phrases like green growth, green economy, and sustainable development among other which are only frameworks and visions – but there is little action to it. Green economics have great potential in the years to come and it carries with it prospects of sustainable development especially with its target of emission reduction and job-creation focus. However, if it has to be successful, as hoped or anticipated, then it is important to examine whether this approach is a repackaging of old ideas into a new box or whether the concept is a brainwashing of our economy. Is ‘Globalisation’ a massive barrier to achieving sustainable development, or does it present much-needed opportunities? According to Kohler (2014), globalization is “the accelerating interdependence of practically all people in the world with increasing economic integration, increasing political interactions and increasing cultural contact” (p. 67) The concept of globalization lies in the notion suggested by Harvey (1989) that time-space compression is a prominent feature of the contemporary world. Thus in order to cope with the reality of globalization, social science has the imperative of changing its focus from studying human sciences to studying time-space distanciation (Olson et al 2014). This, as Olson et al (2014) notes, means that actions of a group of people or nations would impact the course of events of other parts of the world. The time and space connection is the underlying factor in the issue of sustainability. Globalization for a long time has been taken to mean economic globalization where national economies have rapidly changed to national economies. This is through foreign direct investments, trade, flows of technology, short-term capital and international movement of people and workers (Najam et al 2007). This has in a big way created opportunities for development. However, it has also meant increase use of natural resources which result on pressures on the environment and the ability of the global environment to sustain itself. According to Najam et al (2007) global environmental concerns came to being through the recognition that ecological processes can go beyond national boundaries and environmental problems of countries could spill over beyond borders. Globalization points out to increased flow of ideas, capital, goods and services among others. The movement of people across nations and continents is divisive and laden with much political debate. Food, agriculture and land use is one of areas that sustainable development will be of great concern. As globalization takes shape and the agricultural sector will have the challenge of producing food to meet the needs of the people as it reduces its environmental impact especially with climate change. Food preferences have gone global and this poses a challenge to sustainable development. There is a trend of increasing consumption of meat and milk which Brunelle, Dumas and Souty (2014) is very hard to sustain. Olsson et al (2014) point out that international transportation is another area to consider when considering globalization in relations to sustainable development. They say that the expansion of overhaul transport (deep-sea shipping and aviation) will increase economic growth through trade. But on the other hand, it is a major contributor of global inequality through popularizing western cultures. According to Martens and Raza (2010) globalization is seen to create threats to individuals, societies and countries. This is because it is seen to aggravate the gap between the rich and the poor. Thus it is seen to create threats in human security in terms of political and cultural insecurity, financial volatility and environmental degradation. International transport is an aspect of globalization that will provide an opportunity for least developed countries to participate on decision making at the global level. On the other hand, an issue like international shipping and aviation will face the challenge of policy for climate mitigation. This is because both industries exist in shared productive space, that is, the waters and the airspace. This means that if policies have to be made, they have to be agreed on by the international institutions. In this case where there are countries opposed to environmental policy, they can prevent their adoption (Kohler 2014). According to OECD (2010), both the shipping and aviation industries contribute 2-4 percent of global carbon dioxide emissions. Since globalization will necessitate an increase in demand of the services the industries offer, lack of mitigation policies will mean that there will be an increase in carbon dioxide emission (Lee et al (2010). According to Peeters et al (2006) tourism has an impact on eco-efficiency. They say that air travel over long periods have the greatest impact on the environment. On the other hand, the global trend on healthy lifestyles is an opportunity to reduce negative impacts of agriculture. Energy is an important area that is at the center of two sustainability issues. First, climate change which result from extraction and combustion of fossil fuels. Secondly, energy security, concerned with geopolitical tensions and resource exhaustion (Olsson et al 2014). Najam et al (2007) posit five propositions clearly show the linkages between globalization and the environment which in turn has ramification for sustainable development. First, the rapid acceleration in global activity and the increased demand for natural resources weaken the pursuit for sustainable economic prosperity. Secondly, globalization is directly linked to environmental degradation which poses security threats to an already insecure world. This means that ecosystems become more vulnerable. Thirdly, those who are newly prosperous as well as those who have been established wealthy should grapple with the limitations of the available ecological space in which they must both operate and must come in terms with the rights of those who have not been as lucky. Fourthly, consumption will define the future of globalization and the global environment. Lastly, the concerns about the global environment and the global market will become increasingly intertwined, totally dependent on each other. The globalization process cannot be said to be entirely a barrier to sustainable development, neither can it be said to present the much needed opportunities for sustainable development. To some extent, as discussed, it provides opportunities but on the other hand it produces threats and challenges to sustainable development. Therefore, world policy makers need to take a more integrated approach which illuminates the fact that there are developments that take place simultaneously while others do not. References Apadurai, A 2012, 'The Brown Baggage of Green Economics', Alternatives Journal, 38, 4, p. 6 Brunelle, T, Dumas, P and Souty, F 2014, ‘The impact of globalization on food and agriculture: The case of the diet convergence. Journal of Environment & Development,23, 41–65 Davidson, C 2000, 'Economic Growth and the Environment: Alternatives to the Limits Paradigm', Bioscience, 50, 5, p. 433 Dollery, B & Wallis, J, 1997, ‘A cautionary note on environmental economics’, Australian Journal of Social Issues, 32, 3, pp. 299-305 Goodland, R Ledec, G 1987, ‘Neoclassical economics and principles of sustainable development’, Ecological Modelling, 1, 2, pp. 19–46 Holdren, JP, Daily, GC and Ehrlich PR, 1995, The meaning of sustainability: biogeophysical aspects, in Munasingha, M and Shearer E (Eds), Defining and measuring sustainability, The World Bank, Washington DC. Jacobs, M 2012, ‘Green growth: economic theory and political discourse, Centre for climate change economics and policy, working paper No. 108. Kaivo-oja, J Panula-Ontto, J, Vehmas J and Luukkanen, J 2014, ‘Relationships of the dimensions of sustainability as measured by the sustainable society index framework’, International Journal of Sustainable Development & World Ecology, 21, 1, 39-45 Kohler, J 2014, ‘Globalization and sustainable development: Case study on international transport and sustainable development’, Journal of Environment Development, 23, 66, 71-86 Lee, DS, Pitari, G, Grewe, V, Gierens, K, Penner, JE, Petzold, A,...Sausen, R 2009. ‘Transport impacts on atmosphere and climate: Aviation’, Atmospheric Environment, 44, 37, 4678–4734 Martens, P &RazaMohsin, 2010, ‘Is globalization sustainable, Sustainability, 2, 280-293 Moldan B, Janouskova, S, Hak, T 2012, ‘how to understand and measure environmental sustainability: Indicators and targets’ Ecological Indicators, 17, pp. 4-13. Morrow, K 2012, 'Rio+20, the Green Economy and Re-orienting Sustainable Development', Environmental Law Review, 14, 4, pp. 279-297 Najam A, Runnalls, D and Halle, M 2010, ‘Environment and globalization: Five propositions’, International Institute of Sustainable Development, Manitoba, Canada. Ocampo JA Cosby, A and Khor, M, ‘The transition to a green economy: benefits, challenges and risks from a sustainable development perspective, Available on:http://www.uncsd2012.org/content/documents/Transition%20to%20a%20Green%20Economy_summary.pdf. Olsson, L, Hourcade, J and Kohler J 2014, ‘Sustainable development in a globalized world, The Journal of Environment Development, 23, 3, 3-14 Organization for Economic Co-operation and Development, 2010, ‘Globalization, transport and the environment, Paris, France Tisdell, C A, 1993, Environmental Economics: Policies for environmental management and sustainable development, Aldershot, Edward Elgar. Read More

This means phrases like green growth, green economy, and sustainable development among other which are only frameworks and visions – but there is little action to it. Green economics have great potential in the years to come and it carries with it prospects of sustainable development especially with its target of emission reduction and job-creation focus. However, if it has to be successful, as hoped or anticipated, then it is important to examine whether this approach is a repackaging of old ideas into a new box or whether the concept is a brainwashing of our economy.

Is ‘Globalisation’ a massive barrier to achieving sustainable development, or does it present much-needed opportunities? According to Kohler (2014), globalization is “the accelerating interdependence of practically all people in the world with increasing economic integration, increasing political interactions and increasing cultural contact” (p. 67) The concept of globalization lies in the notion suggested by Harvey (1989) that time-space compression is a prominent feature of the contemporary world.

Thus in order to cope with the reality of globalization, social science has the imperative of changing its focus from studying human sciences to studying time-space distanciation (Olson et al 2014). This, as Olson et al (2014) notes, means that actions of a group of people or nations would impact the course of events of other parts of the world. The time and space connection is the underlying factor in the issue of sustainability. Globalization for a long time has been taken to mean economic globalization where national economies have rapidly changed to national economies.

This is through foreign direct investments, trade, flows of technology, short-term capital and international movement of people and workers (Najam et al 2007). This has in a big way created opportunities for development. However, it has also meant increase use of natural resources which result on pressures on the environment and the ability of the global environment to sustain itself. According to Najam et al (2007) global environmental concerns came to being through the recognition that ecological processes can go beyond national boundaries and environmental problems of countries could spill over beyond borders.

Globalization points out to increased flow of ideas, capital, goods and services among others. The movement of people across nations and continents is divisive and laden with much political debate. Food, agriculture and land use is one of areas that sustainable development will be of great concern. As globalization takes shape and the agricultural sector will have the challenge of producing food to meet the needs of the people as it reduces its environmental impact especially with climate change.

Food preferences have gone global and this poses a challenge to sustainable development. There is a trend of increasing consumption of meat and milk which Brunelle, Dumas and Souty (2014) is very hard to sustain. Olsson et al (2014) point out that international transportation is another area to consider when considering globalization in relations to sustainable development. They say that the expansion of overhaul transport (deep-sea shipping and aviation) will increase economic growth through trade.

But on the other hand, it is a major contributor of global inequality through popularizing western cultures. According to Martens and Raza (2010) globalization is seen to create threats to individuals, societies and countries. This is because it is seen to aggravate the gap between the rich and the poor. Thus it is seen to create threats in human security in terms of political and cultural insecurity, financial volatility and environmental degradation. International transport is an aspect of globalization that will provide an opportunity for least developed countries to participate on decision making at the global level.

On the other hand, an issue like international shipping and aviation will face the challenge of policy for climate mitigation.

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