Sustainability and Human Development

1. 1 Sustainability and Human Development Chapter 14

2. 2 Outline: Sustainability and Resources Classical Economics Neo-Classical Economics Ecological Economics Resource Accounting Trade and Development Urban Development Urban Problems in Developing Countries Smart Growth

3. 3 SUSTAINABILITY AND RESOURCES Sustainability is a critical theme of environmental science. Resources should be used in ways that do not diminish them. Sustainable Development Meeting the needs of the present without compromising the ability of future generations to meet their own needs. Must be available to all to be enduring.

4. 4 Resources in Classical Economics Resources exist in fixed amounts. As populations grow, scarcity of these resources reduces quality of life, increases competition, and eventually causes populations to fall again. In a free market, supply and demand should come into market equilibrium. Marginal Costs - Cost of producing one more unit of a product or service. Price Elasticity - Raising price does not necessarily reduce demand.

5. 5 Neoclassical Economics Developed in nineteenth century. Expanded idea of resources to include labor, knowledge, and capital. Capital - Any form of wealth that contributes to the production of more wealth. Growth is seen as a necessity. Natural resources viewed as merely factors of production rather than critical supplies of materials, services, and waste sinks.

6. 6 Neoclassical Economics

7. 7 Ecological Economics Developed in recent decades, and applies ecological ideas of system functions and recycling to the definition of resources. Acknowledges dependence on essential life-support services provided by nature. Regards some aspects of nature as irreplaceable and essential. Principle concern is equitable distribution of resources and rights.

8. 8 Ecological Economics

9. 9 Table 14.1 14_01.jpg14_01.jpg

10. 10 Table 14.2 14_02.jpg14_02.jpg

11. 11 Resource Types Resource - Anything with potential use in creating wealth or giving satisfaction. Nonrenewable resources - Materials present in fixed amounts in the environment. Renewable resources - Materials that can be replenished or replaced.

12. 12 Scarcity and Limits to Growth Many economists content human ingenuity and enterprise often allow us to respond to scarcity in ways that postpone or alleviate dire effects of resources. Dependent on Limits To Growth

13. 13 Communal Property Garret Hardin - Tragedy of the Commons: Argued commonly held resources are inevitably degraded because self-interests of individuals tend to outweigh public interests. Theorized each individual will attempt to maximize personal gain. Hardin was describing open access system with no rules to manage resource use.

14. 14 Communal Property Critics of Hardin�s concept claim Hardin was not describing a commons, but an open access system with no rules to manage resource use.

15. 15 Features of a �Commons� Communal Resource Management Systems Community members have lived on resource. Resource has clearly defined resource. Group size is known and enforced. Resource is relatively scarce and variable. Local, collective management strategies. Resource and use are actively monitored. Effective conflict resolution mechanisms. Incentives encourage rules compliance.

16. 16 NATURAL RESOURCE ACCOUNTING Cost-Benefit Analysis Assigns values to resources and social and environmental effects of an undertaking. Finds optimal efficiency where marginal cost of pollution control equals the marginal benefit. Criticisms include lack of standards, inadequate attention to alternatives, and monetary values for intangible costs and benefits.

17. 17 Accounting for Nonmonetary Resources Assigning value to ecological services. Using alternative measures of wealth and development. Accounting for resource depletion or ecosystem damage. Index of Sustainable Economic Welfare Human Development Index

18. 18 Market-Based Environmental Protection Pollution Charges - Fees assessed per unit of effluent. Encourages businesses to perform as much pollution control as possible. Tradable Permits - Allows companies or nations that can reduce pollution below target levels to sell their excess capacity.

19. 19 Table 14.3 14_03.jpg14_03.jpg

20. 20 Discount Rates Economic method of introducing a time factor into accounting. Recognition that something may be worth more today than it will be in the future. Choice of discount rates is problematic with intangible resources and long time frames.

21. 21 Internal vs. External Costs Internal Costs - Expenses borne by those using a resource. External Costs - Expenses borne by someone other than those using a resource. Internalizing Costs - Ensuring those that reap the benefit of resource use also bear all external costs.

22. 22 TRADE AND DEVELOPMENT According to economic theory and comparative advantage, each place has goods or services it can supply in better quality, or at better prices, than its neighbors. Keeps less-developed countries in a perpetual role of resource suppliers to more-developed countries.

23. 23 International Trade Comparative Advantage Theory Each place has some good or service it can sell cheaper, or better than others can. International trade allows buyers the advantage of the best or cheapest products from around the world. One problem is the internalization of costs on a grand scale. Many claim international banking system set up by and for wealthy countries.

24. 24 GREEN BUSINESS During first Industrial Revolution, raw materials were seen as inexhaustible. Recently many businesses have realized this theory is flawed. Operating in a socially responsible manner consistent with principles of sustainable development can be good for business.

25. 25 Jobs and the Environment For years, business leaders portrayed environmental protection and jobs as mutually exclusive. Ecological economists found only 0.1 % of all large-scale layoffs in the US in recent years were due to governmental regulations. Recycling requires more labor than using virgin materials.

26. 26 RESPONSIBLE CONSUMERISM CONTINUED Ask companies what they are doing about environmental protection and human rights. Consult National Green Pages form Co-Op America for a list of eco-friendly businesses. Buy Green products. High efficiency, high quality built to last that are produced in a environmentally friendly way. Subscribe to clean energy programs if they are available in your area. Buy locally grown or locally made products made under humane conditions.

27. 27 PERSONALLY RESPONSIBLE CONSUMERISM Practice living simply. Do you really need more stuff to make your life happy and fulfilled? Reduce the amount of stuff you consume by renting, instead of buying machines and equipment that you rarely use. Recycle or reuse building materials. Salvage yards. Yard sales, used baby clothes, exercise machines.

28. 28 RESPONSIBLE CONSUMERISM CONTINUED Think about the life cycle cost of things you buy, especially big items like cars. Think about environmental impacts, energy use, and disposal costs. Stop junk mail. Demand that your name be removed from mass-mailing lists. Invest in socially and environmentally responsible mutual funds or green businesses when you have money for investment.

29. 29 URBAN DEVELOPMENT Vast majority of humanity has always lived in rural areas where natural resource-based occupations provided support. Since beginning of Industrial Revolution cites have grown rapidly in size and power.

30. 30 URBAN DEVELOPMENT Urbanization - Increasing concentration of population in cites and transformation of land use and society to metropolitan patterns of organization. Nearly half world population now lives in urban areas. A megacity is an urban area with more than 10 million inhabitants.

31. 31 Table 14.4 14_04.jpg14_04.jpg

32. 32 Megacities

33. 33 World Urbanization In 1850, only 2% of world population lived in cities. By 2002, 47% of world population lived in urban areas. Only Africa and South Asia remain predominantly rural. Expected that 90% of population growth over the next 25 years will occur in less-developed countries.

34. 34 Urban and Rural Growth

35. 35 Table 14.5 14_05.jpg14_05.jpg

36. 36 Causes of Urban Growth Immigration to cities can be caused by both push factors that force people out of the country, and by pull factors that draw them into the city.

37. 37 Immigration Push Factors Overpopulation Economics Politics Racial or Religious Conflicts Land Tenure Changes in Agriculture Large Monoculture Farms

38. 38 Immigration Pull Factors Excitement and Vitality Jobs Housing Entertainment Social Mobility and Power Specialization of Professions

39. 39 Government Policies Government policies often favor urban over rural areas in push and pull factors. Developing countries often spend majority of budgets on improving urban areas. Major cities gain a monopoly on new jobs, education and general opportunities.

40. 40 URBAN PROBLEMS Developing World Many problems arise from unplanned and uncontrollable growth. Lack of Infrastructure Adequate Food Housing Jobs Basic Residential Service

41. 41 Air and Water Pollution Dense traffic, smoky factories, and use of wood or coal fires often create a tremendous amount of air pollution in Third World cities. Few cities can afford to build modern waste treatment systems. Worldwide, access to good water is a major problem.

42. 42 Housing UN estimates 1 billion people live in crowded, unsanitary slums of and shantytowns. Quickly fill unoccupied edges of town, where squatters can build shelters close to the city. House nearly half of the 20 million people in Mexico City.

43. 43 Current World Problems Developed World Rapid growth of cities that accompanied industrialization has mostly slowed or reversed. Many of the environmental problems have been reduced. Many of major polluters have moved to developing countries.

44. 44 Current World Problems Developed World Urban Sprawl In most American metropolitan areas, the bulk of new housing is in large, tract developments that leapfrog beyond city edges in search of inexpensive land. Consumes about 200,000 ha of US agricultural land annually. Planning authority is often divided among many small local jurisdictions.

45. 45 Urban Sprawl Because many Americans live far from work, they consider a private automobile essential. Average US driver spends 443 hours per year behind a steering wheel. In some metropolitan areas, it is estimated one-third of all land is devoted to automobile infrastructure. Traffic congestion costs US $78 billion annually in wasted fuel and time.

46. 46 Traffic Going to Work

47. 47 Table 14.6 14_06.jpg14_06.jpg

48. 48 Smart Growth Smart Growth makes effective use of land resources and existing infrastructure by encouraging in-fill development. Attempts to provide transportation options. Goal is not to block growth, but to channel it to areas where it can be sustained over the long term. Protects environmental quality.

49. 49 Table 14.7 14_07.jpg14_07.jpg

50. 50 Urban Sustainability Limit city size, or organize into modules of 30,000 to 50,000 people. Maintain greenbelts in and around cities. Determine in advance where development will take place. Locate everyday services more conveniently. Encourage walking and low-speed vehicles. Promote more diverse, flexible housing as an alternative to conventional housing.

51. 51 Urban Sustainability Make cities more self-sustainable by growing food locally, recycling wastes and water, etc. Invite public participation in decision-making. Plan cluster housing, or open-space zoning, which preserves at least half of a subdivision as natural areas, or other forms of open space.

52. 52 Designing For Open Space Traditional suburban development typically divides land into a checkerboard layout of nearly identical 1-5 ha parcels with no designated open space. Conservation Development - Preserves at least half of a subdivision as natural areas, farmland, or other forms of open space.

53. 53 Designing For Open Space

54. 54 Sustainable Development in the Third World Many planners argue social justice and sustainable economic development are answers to urban problems. Another important measure of progress may be institution of social welfare providing care to the sick and elderly. Others argue the best hope for developing countries may be to �delink� from established international economic systems and develop self-sustainability.

55. 55 Summary: Sustainability and Resources Classical Economics Neo-Classical Economics Ecological Economics Natural Resource Accounting Trade and Development Urban Development Urban Problems in Developing Countries Smart Growth

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