Free ebooks ==> www.ebook777.com Weak versus Strong Sustainability www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd i 19/03/2013 12:10 Free ebooks ==> www.ebook777.com To my students, the past, current and future ones NEUMAYER 9781781007075 PRINT (M3100).indd ii 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Weak versus Strong Sustainability Exploring the Limits of Two Opposing Paradigms Fourth Edition Eric Neumayer Professor of Environment and Development, Department of Geography and Environment and Associate, Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science, UK Edward Elgar Cheltenham, UK • Northampton, MA, USA www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd iii 19/03/2013 12:10 Free ebooks ==> www.ebook777.com © Eric Neumayer 2013 All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc William Pratt House Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2012950431 This book is available electronically in the ElgarOnline.com Social and Political Science Subject Collection, E-ISBN 978 78100 708 ISBN 978 78100 707 (cased) 978 78100 709 (paperback) 03 Typeset by Servis Filmsetting Ltd, Stockport, Cheshire Printed by MPG PRINTGROUP, UK NEUMAYER 9781781007075 PRINT (M3100).indd iv 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Contents List of Figures List of Tables List of Variables List of Abbreviations and Acronyms Preface to the Fourth Edition viii ix x xii xiv Introduction and Overview Sustainable Development: Conceptual, Ethical and Paradigmatic Issues 2.1 Definitions, assumptions, methodology 2.2 The ethics of sustainable development 2.2.1 Reasons for committing to sustainable development 2.2.2 The time-inconsistency problem of sustainable development 2.2.3 Two misunderstandings about sustainable development resolved 2.3 Weak versus strong sustainability 2.3.1 The paradigm of weak sustainability 2.3.2 The paradigm of strong sustainability 2.4 The importance of the substitutability assumption: the case of climate change 2.4.1 The Nordhaus approach towards climate change 2.4.2 Critique of the Nordhaus approach (I): discounting the future 2.4.3 Critique of the Nordhaus approach (II): extreme outcomes 2.4.4 Critique of the Nordhaus approach (III): substitutability of natural capital 2.4.5 The real controversy 2.5 Conclusion 8 15 15 17 18 22 22 25 29 31 34 39 40 44 45 v www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd v 19/03/2013 12:10 Free ebooks ==> www.ebook777.com vi Weak versus Strong Sustainability Resources, the Environment and Economic Growth: Is Natural Capital Substitutable? 3.1 A short history of resource and environmental concern 3.2 Resource availability 3.2.1 Substitution with other resources 3.2.2 The role of prices in overcoming resource constraints 3.2.3 Substitution with man-made capital 3.2.4 Technical progress 3.3 Environmental degradation 3.3.1 Can future generations be compensated for long-term environmental degradation? 3.3.2 Economic growth and the environment 3.4 Conclusion Preserving Natural Capital in a World of Risk, Uncertainty and Ignorance 4.1 Distinctive features of natural capital 4.2 Risk, uncertainty and ignorance 4.3 Coping with risk, uncertainty and ignorance 4.3.1 Option and quasi-option values 4.3.2 The precautionary principle 4.3.3 Safe minimum standards (SMSs) 4.4 Which forms of natural capital should be preserved? 4.5 The problem of opportunity cost 4.6 Conclusion 49 50 52 53 57 67 74 78 78 81 94 102 103 104 107 107 109 110 115 124 127 Measuring Weak Sustainability 5.1 Genuine savings (GS) 5.1.1 GS in a closed economy: a dynamic optimisation model 5.1.2 GS in an open economy 5.1.3 Problems with measuring GS in practice 5.1.4 GS in practice: the World Bank’s computations 5.2 Index of Sustainable Economic Welfare (ISEW) and Genuine Progress Indicator (GPI) 5.2.1 A review of ISEW and GPI studies 5.2.2 Methodological problems 5.3 Conclusion 132 132 Measuring Strong Sustainability 6.1 Physical indicators 169 169 NEUMAYER 9781781007075 PRINT (M3100).indd vi 133 141 143 147 151 154 156 163 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Contents 6.1.1 6.2 6.3 Ecological footprints: measuring sustainability by land area 6.1.2 Material flows: measuring sustainability by weight Hybrid indicators 6.2.1 The starting point: Hueting’s pioneering work 6.2.2 Sustainability gaps 6.2.3 Greened National Statistical and Modelling Procedures 6.2.4 ‘Sustainable national income according to Hueting’ 6.2.5 Critical assessment Conclusion vii Conclusions Appendix Appendix Appendix How present-value maximisation can lead to extinction The Hotelling rule and Ramsey rule in a simple general equilibrium model The Hotelling rule and the Ramsey rule in a more complex model Bibliography Index 169 175 180 180 181 182 184 186 188 191 198 200 204 208 263 www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd vii 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Figures 2.1 3.1 3.2 3.3 3.4 3.5 4.1 4.2 4.3 4.4 5.1 5.2 5.3 Non-declining versus constant utility Price path with frequent unexpected resource discoveries Crude oil prices per barrel of oil (1946 to 2011) Energy consumption and energy intensity (1965 to 2011) Fertility rates and per capita income Environmental degradation and per capita income World oil reserves (1965 to 2011) World natural gas reserves (1970 to 2011) Exponential reserve index for major resources Per capita net food production Genuine savings rates for regions United States GDP versus GPI per capita Index of GDP, GPI and corrected GPI for the United States 21 60 64 76 84 89 120 120 122 123 150 155 163 viii NEUMAYER 9781781007075 PRINT (M3100).indd viii 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Tables 3.1 4.1 4.2 4.3 6.1 6.2 Estimates of the capital–energy Allen partial elasticity of substitution Payoff matrix for the insurance game Payoff matrix for the lottery game Regret matrix for the lottery game Ecological footprint and deficit of selected countries and the world Material flows and material flow intensity 72 112 113 114 173 177 ix www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd ix 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Variables A AC C D E F G GS H K L M ME N P R RC S SI T U X Z a b c d e f g h Pollution abatement Average resource extraction costs Consumption Cost function Resource discoveries Harvest of renewable resources Production function ‘Human induced’ growth of renewable resources ‘Genuine saving’ Hotelling rent Hamiltonian Stock of man-made capital Labour Stock of human capital Share of energy in total production costs Investment in human capital Stock of pollution Price Resource depletion Resource receipts Stock of non-renewable resources Sustainable income Time variable Utility function Stock of accumulated resource discoveries Stock of renewable resources Natural growth function (renewable resources) Natural restoration function (pollution) Exponent in production function Exponent in production function Exponent in production function Expenditure function for non-renewable resource extraction Expenditure function for resource exploration Expenditure function for renewable resource harvesting x NEUMAYER 9781781007075 PRINT (M3100).indd x 19/03/2013 12:10 Free ebooks ==> www.ebook777.com 268 Weak versus Strong Sustainability Hille, John 169 Hinterberger, Friedrich 175, 176, 178–9, 189, 190 Hoevenagel, Ruud 109 Hofkes, Marjan 186 Hohl, Andreas 111, 114 Hohmeyer, Olav 26, 55, 101 Holland, Tim G 92 Holling, C.S 111, 116 Holtz-Eakin, Douglas 88, 101 Hotelling, Harold 57, 58, 61, 138, 141, 148, 205 Hotelling rule genuine savings 138 resource constraints 57–8, 59, 61, 62, 100 in simple general equilibrium model 200–203 Howarth, Richard B 14, 34, 77, 100 Hudson, Edward 72 Huesemann, M.H 55 Hueting, Roefie 6, 25, 26, 98, 164 pioneering work 180–81 sustainable national income according to 180, 184–6, 187, 189 human capital 1, 7, 9, 167 Human Development Index (HDI) 133 human-made capital see man-made capital Hung, N.M 146 Hüttler, Walter 175 hybrid indicators, strong sustainability (SS) 6, 180–88 hydrogen 55 hyperbolic discounting 36, 37 income–expenditure cycle 50 indeterminacy see ignorance Index of Sustainable Economic Welfare (ISEW) 5, 132, 151–63, 164, 165, 166 accumulation 160 defensive expenditures 152, 156, 157–8 environmental damage, long-term 159–61 income inequality 158–9 methodological problems 156–63 resource depletion 161–3 review 154–6 threshold effect 154–5, 162 industrialisation, effects 52 interest rates, resource constraints 58, 59, 61 inter-generational equity/fairness 10, 12–13, 29, 35 Intergovernmental Panel on Climate Change see IPCC (Intergovernmental Panel on Climate Change) International Energy Agency (IEA) 90 International Society for Ecological Economics (ISEE) 25 intertemporal arbitrage 58 intra-generational fairness 12, 13, 47 IPCC (Intergovernmental Panel on Climate Change) 15, 30, 42 and natural capital 107, 110 ISEW (Index of Sustainable Economic Welfare) see Index of Sustainable Economic Welfare (ISEW) Islam, Sardar M.N 154 ideal types 12 ignorance coping with 107–15 natural capital 102, 105–15 veil of ignorance (Rawls) 16–17 Illge, L 52 IMV 173 income ‘Atkinson’ 155 inequality 155–6, 158–9 ‘psychic’ 153 sustainable national (Hueting) 180, 184–6, 187, 189 Jackson, Tim 98, 154, 155, 156, 158 Jacobs, Michael 25, 47, 109, 126, 157, 194 Jänicke, Martin 83 Jevons, William Stanley 50 jewellery 47 Jordan, Andrew 109, 130 Jorgenson, Dale 72 NEUMAYER 9781781007075 PRINT (M3100).indd 268 Kahneman, Daniel 13, 109 Kaldor, Nicholas 24 Kallis, Giorgos 98 Kammen, Daniel M 55 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Index Kanbur, Ravi 85 Kant, Immanuel 16, 17, 46, 47 Kaufmann, Robert K 76, 100 Keefer, Phil 115 Kelsey, David 130 Khalil, E.L 66 Khazzoom, J Daniel 77 Klepper, Gernot 25 Kneese, Allen V 175 Knetsch, Jack L 108–9 Knight, F 130 Koetse, Mark J 71 Kolar, Jan 183 Kopp, Raymond J 194 Kot, Hagai 154 Koubi, Vally 91, 93 Kriström, Bengt 85 Krueger, Alan B 88, 90, 93, 97 Krutilla, John V 41–2, 111 Krutilla–Fisher approach 41, 42 Kuhn, Thomas S 29 Kummel, R 66 Kuznets, S 88 Lackner, Klaus S 55 Lagrange-multiplier 59, 136 Lancaster, Kelvin J 144 Lawn, Philip A 153, 154, 160, 164, 168 LDCs (Less Developed Countries) 93 Lecomber, R 78, 95 Leggett, Jeremy 43 Lenssen, Nicholas 55, 56 Leontief production function 69 Levinson, Arik 87 lexicographic preferences 80 Li, Quan 91 Limits to Growth report, Club of Rome 51, 53 Lind, Robert C 38 Lipsey, Richard G 144 Lipton, Michael 123 List, J.A 88 Liston-Heyes, Catherine 13 Livernois, John 58, 61 Lockhart, J.E 90 Löfgren, Karl-Gustaf 146, 167 Loomes, Graham 114 Lopez, Ramon 85–6 Low, Patrick 87 Luks, Fred 178–9 269 M3ED (multi-sectoral dynamic simulation model) 183 Machina, Mark J 115, 130 Mackellar, F Landis 61, 62, 63, 65 MacLean, Douglas 130 macroeconomics 23, 50 Magnani, Elisabetta 92 Magnus, J.A 72 Malthus, Thomas Robert 50 man-made capital 1, 7, 9, 100 genuine savings 133, 146 substitution with 67–74 Manne, A.S., Richels, R.G 32 Mansfield, Carol 100 Mansson, B.A 66 marginal rate of substitution (MRS) 68 marginal revolution 50 marginal utility of consumption 32, 44 Markandya, Anil 32, 71, 82, 84 Marks, Nick 154, 155, 156 Marshall, Alfred 50 Martin, P 83 Martinet, Vincent 10 Martinez-Alier, Joan 85 Martinot, Eric 55 material flows (MF) 6, 175–80, 196 critique 178–80 evidence 176–8 Materials Policy Commission (US) 51, 56 Matthews 176–7, 179, 189 maximin rule 18, 19 Max-Neef, Manfred 154 Mayo, Ed 156 McCormick, John 52 Meadows, Dennis 51, 52, 57, 131 measure of economic welfare (MEW) 152 Mendelsohn, Robert O 37, 61 MF see material flows (MF) Mikesell, Raymond F 23, 99 Mill, John Stuart 50 Miller, Merton H 61 Miller, Steven M 75 Millner, Anthony 48 Milne, Jennifer 79, 80 Mishan, Ezra J 51, 159 Mitchell, R.C 109 Mitchell, Robert Cameron 130 Moazzami, B 100 www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 269 19/03/2013 12:10 Free ebooks ==> www.ebook777.com 270 Weak versus Strong Sustainability Moffatt, I 154, 161 Moomaw, W.R 88 Moore, David J 147 Moran, Daniel D 170 Morse, Chandler 50, 63 Mourato, Susana 80 MRS (marginal rate of substitution) 68 Myers, Norman 117, 122 Narain, Suita 47, 143, 149 natural capital 1, 102–31 basic life-support function 102, 103, 115, 117, 193 biodiversity 80, 103, 106, 116–18, 124–5, 130 and climate change 42–3 critical 2, 26, 130 defined distinctive features 103–4 food resources 122–4 forms 26, 102, 193 preservation 115–24 global environmental resources 118 ignorance 102, 105–15 coping with 107–15 irreversibility of destruction 102, 104 opportunity cost problem 4, 124–7 option/quasi-option values 107–9, 130 precautionary principle 4, 102, 109–10, 194 preservation 102–31 forms to be preserved 115–24 production, natural resources for 119–22 risk 4, 102, 104–6, 115 coping with 107–15 safe minimum standards 4, 102, 110–15, 125, 126, 194 stocks of 26 and strong sustainability 26, 80–81, 94, 128 substitutability 33, 40–44, 192 toxic pollutants, accumulating 118–19 ‘unacceptably high costs’ 129 uncertainty 4, 102, 106, 115, 125 coping with 107–15 and weak sustainability 23, 52–3, 94, 128 NEUMAYER 9781781007075 PRINT (M3100).indd 270 natural resources, for production 3, 119–22 neoclassical economics 2, 50, 107, 108 net national product (gNNP) 152 net primary productivity (NPP) 122, 170 Neumayer, Eric 13, 41, 47, 84, 87, 88, 90, 91, 93, 121, 124, 142, 143, 148, 149, 150, 156, 161, 162, 197 New Zealand 162–3 Ng, Yew-Kwang 10 nitrogen oxide 89 non-compensability 27–8 non-declining per capita utility for infinity, sustainable development as 9, 10, 12, 17–18, 20, 45 non-declining versus constant utility 21 non-identity problem (Parfit) 17 non-renewable resources 12, 25, 26, 57 depletion 139, 156 and ecological footprints 171 non-substitutability paradigm natural capital 102 strong sustainability as 2, 25, 27 Nordhaus, William D (on climate change) 2, 11, 29, 30, 51, 152, 191 critique of approach discounting the future 34–9 extreme outcomes 39–40 substitutability of natural capital 40–44 description of approach 31–4 see also discounting/discount rate Norgaard, Richard B 14, 25, 55, 65, 66, 100 North Africa 150 Norton, Bryan G 3, 98, 107, 126–7 Nourry, Myriam 154 NPP (net primary productivity) 122, 170 nuclear fusion, controlled use 54–5 Nyborg, Karine 144 Oates, Wallace E 190 O’Connor, John 183 O’Connor, Martin 109, 183, 189 Odum, H.T 169, 170 OECD countries 75, 150, 178 O’Hara, Sabine 109, 194 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Index Olewiler, Nancy D 61, 65 Olson, Mancur 82 OPEC (Organization of Petroleum Exporting Countries) 51, 63, 99, 120, 121 open economy, genuine savings in 141–3 opportunity cost problem 4, 124–7 Opschoor, Hans 117 Opschoor, J.B 100 optimism, resource 3, 24, 52–3, 94, 95 option/quasi-option values 107–9, 130 O’Riordan, Timothy 109, 130 Özatalay, Savas 72 ozone layer 103, 193 Page, Edward A (2006) 41 Page, Talbot 9, 130 Panayotou, Theodore 94, 96–7, 124 Pareto improvements 24 Parfit, Derek 17 Pasek, Joanna 129 Patterson, Murray G 76, 100, 154, 159, 163 Payne, Rodger A 90 Pearce, David W 14, 25, 27, 32, 52, 59, 74, 84, 99, 115, 116, 147, 158, 164 Pearse, Peter 56 Pedroso-Galinato, Suzette 71 Perman, Roger 61 Perrings, Charles 25, 82, 116, 117, 125 Persson, U Martin 31, 34, 41 pessimism, resources 55, 57 Pezzey, John C.V 8, 21, 47, 83, 132, 145, 153 Philibert, Cédric 41 Pigou, A.C 10, 35, 167 Pigouvian taxes 138, 139, 140, 143, 168 Pindyck, Robert S 40, 60, 72 Pliska, Stanley R 59–60 Plümper, Thomas 124 policy ramp 31 ‘polluter-pays principle’ 142 pollution 2, 11, 52, 98, 176, 181, 190, 193, 205, 206 environmental degradation 79, 81, 82, 83, 84, 85, 86, 87, 88, 90, 91–2, 93, 94 global 141, 142, 143 271 lasting 27 natural capital preservation 100, 118, 125, 126 noise 165 toxic pollutants, accumulating 118–19 transboundary 141, 142 weak sustainability, measuring 133, 134, 135, 136, 138, 139, 140, 141, 142, 143, 144, 145, 148, 151, 152, 161, 167 weak versus strong sustainability 24, 26, 27, 28 poor countries 19, 39, 82, 97, 142 Popp, David 29 population growth 12, 47, 87 Portney, Paul R 36, 194 Posner, Stephen M 154, 159 Poterba, James M 148 poverty environmental consequences 84 external, image of sustainable development locking society into 18–20 see also poor countries precautionary principle, natural capital 4, 102, 109–10, 194 precious metals 47 Prell, Mark A 54 prescriptive approach, discounting 32, 35 present and future generations see generations, present and future present-value maximisation and extinction 198–9 versus weak sustainability 24, 25 Preston, Samuel H 123 Price, Colin 34 prices, and resource constraints 57–66 private savings 23 production, natural resources for 3, 119–22 Proops, John L.R 25, 87, 147, 149 Prywes, Menahem 72 ‘psychic’ income 153 public goods 14, 47 pure utility discounting 32 Quiggin, John 130 www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 271 19/03/2013 12:10 Free ebooks ==> www.ebook777.com 272 Weak versus Strong Sustainability Rabl, Ari 41 Ramsey, F.P 10, 31, 35 Ramsey formula 10, 32, 33, 35, 38, 138 Randall, Alan 107, 116 Ravaioli, Carla 52 Rawls, John 10, 16–17, 18, 35, 46, 47 Ray, George F 54, 66 Ready, Richard C 111, 113, 130 recycling 66 Redclift, Michael 47 Redefining Progress 158, 160–61 Rees, William E 122, 174 regional integrated model of climate and the economy (RICE) 31, 32 Reich, Utz-Peter 139 Reijnders, Lucas 26 renewable resources 11, 25–6, 55, 57, 140, 173 Repetto, Robert 139, 147 replacement cost 161 resource rent 57, 58, 59, 60, 61, 64, 161 resource-augmenting technical progress 74, 75, 76 resources absolute versus relative scarcity 50 availability 52–78 constraints, role of prices in overcoming 57–66 depletion 149, 161–3 efficient allocation 28 exponential reserve index 121, 122, 131 extraction 61, 62, 63, 77 food 122–4 global environmental 118 history of resource and environmental concern 50–52 Hotelling rule 57–8, 59, 61, 62, 100 isoperimetric problem 59 man-made capital, substitution with 67–74 natural, for production 3, 119–22 non-renewable see non-renewable resources optimism 3, 24, 52–3, 94, 95 people as ‘ultimate resource’ 101 pessimism 55, 57 projections 55–6 quasi-undepletable 54 renewable 11, 25–6, 55, 57, 140 NEUMAYER 9781781007075 PRINT (M3100).indd 272 scarcity 61, 63, 66, 99 substitutability 53–7, 94 man-made capital, substitution with 67–74, 100 technical progress 74–8 Reuveny, Rafael 91 Ricardian process 62 Ricardo, David 50 rich countries 19, 82–3, 87, 149 Richter, Wolfgang 18 Riddel, Mary 92 Riera, Pere Pere 85 rights-based approach Rio Summit (1992) Rio+20 (2012) risk natural capital 4, 102, 104–6, 107–15, 115 and uncertainty 130 Roberts, Michael 77 Rogich, Don 178 Rosenberg, D 154, 161 Rueschemeyer, Dietrich 82 Ruta, Giovanni 147, 148 Ruttan, Vernon W 124 Ryan, Grant 183 Sachs, Jeffrey D 55, 142 sacrifices, voluntary 10 safe minimum standards (SMSs) 4, 102, 110–15, 125, 126, 194 insurance game example 111–13 lottery game example 113–14 Sala-i-Martin, Xavier 14, 47, 143, 167, 203 Sanders, R.D 168 Santopietro, George D 147 Sarkozy, N 167 Sauré, Philip 119 savings genuine see genuine savings (GS) private/public 23 traditional net 132 Schelling, Thomas C 38–9, 43 Schmidt-Bleek, Friedrich 175 Schütz, Helmut 99 Schwarze, R 52 Scott, Anthony 56 Scott Taylor, M 87 Scruggs, Lyle A 92 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Index Sefton, J.A 141 Selden, Thomas M 88, 90 Sen, Amartya K 11, 13, 14, 27, 47, 124 Serôa da Motta, Ronaldo 147 Shafik, Nemat 85, 88, 89 shocks 133, 145, 146, 167 ‘silent spring’ 52 Silverstein, Judith 171, 190 Simon, H.A (1982) 13 Simon, Sandrine 181, 182, 186 ‘sink’ side of economy 2, 4, 26, 28, 52, 96 strong sustainability, measuring 176, 179 Slade, Margaret E 63, 71, 77, 99, 100 Slesynski, Jerzy 154 Smil, Vaclav 55, 121, 124 Smith, James L 121 Smith, Tim R 61, 62 Smith, V Kerry 100, 111 Smulders, Sjak 12, 82 social discount rate 32 solar energy 55, 56 Söllner, Fritz 54 Solow, John L 70, 71 Solow, Robert M 1, 12, 18, 19, 22, 23, 47, 51, 67, 100 Song, Daqing 88 Sorrell, Steve 121 ‘source’ side of economy 52, 78, 176 South Asia 150 Spangenberg, Joachim 175, 176 Spash, Clive L 25, 27–8, 30, 41, 43, 79–80, 109, 125 species, undiscovered 107 Stähler, Frank 25 Stahmer, Carsten 139 stationary technology 133 Steady-state Economics (Daly) 25 steady-state economy 28, 47 Stern, David 88 Stern, David I 88 Stern, Nicholas 10, 29, 30, 32, 34, 35, 36, 37, 44 Stern Review (2007) 2, 29, 32, 36, 37, 38, 45 Sterner, Thomas 10, 30, 31, 34, 35, 36, 38, 41, 48 Stevens, Thomas H 79, 126 Stigler, George J 81 273 Stiglitz, Joseph 51, 75, 166 Stiglitz-Sen-Fitoussi Commission report (2009) 166–7 Stockhammer, Engelbert 154, 160, 161 strong sustainability (SS) and climate change 42, 43 critical assessment 186–8 ecological footprints 6, 169–75 and environmental degradation 80–81 Greened National Statistical and Modelling Procedures (GREENSTAMP) 6, 182–3, 184, 186, 187, 189 hybrid indicators 6, 180–88 material flows 6, 175–80 measuring 5–6, 169–90 and natural capital 80–81, 94, 128 as non-substitutability paradigm 2, 25, 27 paradigm of 1, 25–9, 191 physical indicators 169–80 sustainability gaps 181–2, 196 versus weak sustainability 22–9, 95–6, 98 see also weak sustainability (WS) Stymne, S 154, 161 Sub-Saharan Africa 150 substitutability natural capital 33, 40–44, 192 resources 53–7, 67–74, 94 substitutability assumptions 11 and climate change 29–45 discount rate 2–3, 32 substitutability paradigm, weak sustainability as Sugden, Robert 114 Sukhdev, Pavan 117 sulphur oxide 89 sustainability economic paradigms 14 gaps 181–2, 196 measuring by land area 169–75 measuring by weight 175–80, 196 sustainable development (SD) assumptions 2, 11–12, 14 definitions 2, 8–11 economic concept ethics of 15–22 methodology 1, 12–15 www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 273 19/03/2013 12:10 Free ebooks ==> www.ebook777.com 274 Weak versus Strong Sustainability misunderstandings 2, 18–22, 46 non-declining per capita utility for infinity, capacity to provide 9, 10, 12, 17–18, 20, 45 non-declining versus constant utility 21 reasons for committing to 14, 15–17 time-inconsistency problem 17–18 whether demanding choice of greatly inferior utility paths 20–22 whether locking society into eternal poverty 18–20 sustainable national income (SNI) 180, 184–6, 187, 189 Sustainable Net Benefit Index (SNBI) 168 sustainable population size 170 Swanson, Timothy M 116, 118, 126, 130 Swierzbinski, Joseph 61 System of National Accounts 157 Tahvonen, Olli, Kuuluvainen, Jari 12 technical progress 47, 99 resources 74–8 Theory of Justice, A (Rawls) 16–17 thermodynamics, law of 66, 81 Tiezzi, S 154, 161 Tilton, John E 98–9 time-inconsistency problem of sustainable development 17–18 Tisdell, Clement A 111, 114 Tobin, James 152 Tol, Richard S.J 34, 41, 44 Toman, Michael A 75, 132, 136, 145, 153 Torras, Mariano 92 Total Incomes System of Accounts (TISA) 152 total net investment 22 Townsend, Kenneth N 103 tractability 10 Trainer, F.E (1995) 55 Trainer, Ted (2010) 55 Turner, R Kerry 25, 27, 59, 70, 108, 116 Turnovsky, Michelle 70, 72 Ulph, David 158 uncertainty NEUMAYER 9781781007075 PRINT (M3100).indd 274 discounting 36 natural capital 4, 102, 106, 107–15, 115, 125 and risk 130 United Kingdom (UK) 155 United Nations Development Programme (UNDP) 22 United Nations Environment Programme (UNEP), 110 United Nations Framework Convention on Climate Change 45 United States Environmental Protection Agency (EPA) 92 United States (US) Endangered Species Act 110–11 Fish and Wildlife Service 111 threshold effect 154–5, 162 Unruh, G.C 88 Upton, Charles W 61 Uri, N.D 63 utilitarianism 9–10, 11, 33 utility discounting 32 utility paths (inferior), sustainable development demanding choice of 20–22 Vadnjal, Dan 109 Van den Bergh, Jeroen C.J.M 98, 172, 174, 188 van der Voet, Ester 180 van der Zwaan, B.C.C 95 Van Tongeren, Jan 147 Vatn, A 109 Veendorp, E.C.H 75 veil of ignorance (Rawls) 16–17 Veisten, Knut 80 Verbruggen, Harmen 172, 174, 188 Victor, Peter A 72, 95–6, 98 Vincent, Jeffrey R 133, 142, 146, 147 Vining, Daniel R (Jr.) 61, 62, 63, 65 Viscusi, W 115, 130 Vitousek, Peter M 122–3, 170 voluntary sacrifices 10, 20 Vornovytskyy, Marina S 92 Vorsogeprinzip, and precautionary principle 110 Wackernagel, Mathis 122, 169, 170, 171, 174, 190 Wade-Gery, Will 110 19/03/2013 12:10 Free ebooks ==> www.ebook777.com Index Waggoner, Paul E 124 Wagner, Martin 88 Walras, Léon 50 Walter, Jörg 34 Warner, Andrew M 142 weak sustainability (WS) genuine savings 132–51 Index of Sustainable Economic Welfare 151–63 measuring 5, 132–68 and natural capital 23, 52–3, 94, 128 paradigm of 1, 22–5, 191 resource optimism 3, 24, 52–3, 94, 95 versus strong sustainability 22–9, 95–6, 98 as substitutability paradigm 1, 23 see also strong sustainability (SS) Weale, Martin 141, 197 Weber, Max 12 Wegner, Gerhard 175 Weikard, Hans-Peter 44 Weiner, Robert J 141 Weitzman, Martin L 30, 34, 36, 39, 40, 41, 48 Weizsäcker, Ernst von 176 275 Weyant, John P 36 Wheeler, D 83 Willey, David 174 Willis, Ken 109 Wilson, E.O 106 Wilson, M.C 154, 161 Wood, David O 70, 72, 100 World Bank 22, 76, 92 genuine savings, calculating 5, 140, 147–51, 163, 194 World Summit on Sustainable Development, Johannesburg (2002) Wyplosz, Charles 168 Yang, Zili 44 Yohe, Gary W 37 Yom Kippur War (1973) 51 Young, Allan H 196 Yount, J David 170, 171 Zeckhauser, Richard J 115, 130 Zhu, Xuegin 44 Ziegler, Rafael 156 Zieschank, Roland 154 Zolotas, Xenophon 152 Zucker, A 56–7 www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 275 19/03/2013 12:10 Free ebooks ==> www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 276 19/03/2013 12:10 Free ebooks ==> www.ebook777.com www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 277 19/03/2013 12:10 Free ebooks ==> www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 278 19/03/2013 12:10 Free ebooks ==> www.ebook777.com www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 279 19/03/2013 12:10 Free ebooks ==> www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 280 19/03/2013 12:10 Free ebooks ==> www.ebook777.com www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 281 19/03/2013 12:10 Free ebooks ==> www.ebook777.com NEUMAYER 9781781007075 PRINT (M3100).indd 282 19/03/2013 12:10 ... about sustainable development resolved 2.3 Weak versus strong sustainability 2.3.1 The paradigm of weak sustainability 2.3.2 The paradigm of strong sustainability 2.4 The importance of the substitutability... book two economic paradigms of SD — ? ?weak sustainability? ?? and ? ?strong sustainability? ?? — will be analysed with the objective of exploring their limits ? ?Weak sustainability? ?? (henceforth: WS) is... in the measurement of strong sustainability I hope that I have written a book that is of use to everybody with an interest in the two opposing paradigms of weak and strong sustainability, be they