Environment and Development : Environment and Development What do we want to accomplish today?
What is sustainablity?
GDP – what is it? Why is it important?
NDP – What is it? How is it useful?
Income – Hicksian concept of Income
Natural Capital - what is it? Why is it important?
Green GDP – what, why and how??? Green GDP: The Importance of Valuing the Environment : Green GDP: The Importance of Valuing the Environment Land Economics 1997
Environment and Development 2000
UNEP/World Bank 2000 GDP : GDP The market value of all final goods and services produced inside a nation within a given period of time. NDP : NDP NDP = GDP – Dm
NDP = Income INCOME : INCOME Hicksian Income – The amount that can be consumed during a week and still leave the individual as well off at the end of the week.
The main objective is to keep capital intact. NATURAL CAPITAL : NATURAL CAPITAL Forests, minerals, Marine Ecosystems, fossil fuels
1) Natural Capital
2)Environmental Services ForestsNatural Capital : ForestsNatural Capital Fiber
Fuel ForestsEnvironmental Capital : ForestsEnvironmental Capital Water quality
Aesthetics GREEN GDP : GREEN GDP The goal of Green GDP is to properly treat changes in Natural Capital so that Green GDP is truly a measure of the maximum amount that could be consumed now without reducing consumption in the future (Horan et al, 2000)
“The national income accounts of developing countries often include large credits for resource extraction, with no offsetting depletion charge. The result can be a GDP that reflects a false sense of relative income and economic prosperity” (Davis and Moore 2000).
GGDP = NDP – Dn GREEN GDPNDP - Dn : GREEN GDPNDP - Dn Zimbabwe 1980 – 1989 (2% reduction)
Brazil 1978 1993 – GDP (.7%) GDP – Dn = .3%
Indonesia 1980s GDP (7.1%) GDP – Dn = 4% WHY NOT MORE? : WHY NOT MORE? The very nature of ecosystems – their complexity in structure and function – makes understanding the consequences of ecosystem damage a daunting task even for ecologists.” (V.K. Smith 2000)
Methodological Difficulties Theoretical difficulties : Theoretical difficulties What do we count?
What is value? Methodologicaldifficulties : Methodologicaldifficulties How do we count it?
Technological innovation / uncertainty CASE STUDY British Columbia, CA : CASE STUDY British Columbia, CA Quality of timber (down)
Restoration of watersheds ($1b)
743 plants and animals threatened or endangered GGDP : GGDP 1997 – 30% is income
70% depletion of capital Policies for maintaining Natural Capital in British Columbia : Policies for maintaining Natural Capital in British Columbia Stop fragmentation
Protect old growth
Maintain species, genetic and habitat diversity