Sustainable DevelopmentGrowth, Resource Scarcity, & Negative Externalities

Today s Discussion

• Brief Review

• Sustainable Development

• Key Economic Concepts &

Theories

Sustainable DevelopmentOxymoron or Achievable Goal?

What is Sustainable Development?

“The ability of present

generations of humans to

provide for their own

needs without so harming

the natural environment

as to endanger the ability

of future generations to do

the same.”—p. 431, Laison & Skidmore definition

derived from Brundtland Commission

report Our Common Future

Is “sustainable development”

an oxymoron?

The Problem of Mass ConsumptionThe 7.7 billion people on the planet in 2019 extract 50 billion

tons from the Earth, and dump 1.9 billion tons of waste.

https://www.theworldcounts.com/themes/our_environment

The Problem of Habitat ConservationNine million tons of plastic are discarded in the ocean each

year, and the accrual of plastics dating has produced a 1.6

million km2 patch of 80k tons of garbage in the Pacific.

The Problem of Contamination

Since the 1960s, public concerns have increased about air

quality due to industrial emissions, which lead to respiratory

diseases that kill 2 million people per year.

The Problem of Mass Extinction85% of world’s fish stock are over-exploited or depleted…1/3 of 50,000 known

medicinal plants are endangered…32% of all coral reefs have been depleted.

https://www.biologicaldiversity.org/programs/population_and_

sustainability/images/ExtinctionAndPopulation_102609.jpg

The Problem of Mass Extinction85% of world’s fish stock are over-exploited or depleted…1/3 of 50,000 known

medicinal plants are endangered…32% of all coral reefs have been depleted.

Is the Greenhouse Effect Real?

http://www.combatclimatechange.ie/uploadedfiles/Climate_Change_Facts/greenhouse%20effect%20from%20safeclimate%20site.jpg

The Problem of Climate Change

http://www.globalwarmingchallenge.co.uk/dn11639-2_808.jpg

Polar Ice Caps Melting

Undeniable Evidence

http://www.globalwarmingchallenge.co.uk/dn11639-2_808.jpg

Global Carbon Emissions, 2006

http://media-2.web.britannica.com/eb-media/00/90500-004-BB7F263D.gif

Global Carbon Emissions, 2006

http://media-2.web.britannica.com/eb-media/00/90500-004-BB7F263D.gif

Key Economic ConceptsTheorizing Self Destructive Human Behaviors

Collective Action Problems

• Why can’t humans get

their act together?

• What factors contribute

to environmental

collective action

problems?

• What are some of the

solutions to collective

action problems?

The Paradox of Group Behavior

• Group cooperation

out of common

interest is frequently

assumed, but often

elusive

• Marx, for example,

assumed that the

masses would rise

up against capitalist

oppression

Public Vs. Private Goods

• By definition public

goods are not

exclusive to those

who provide them.

• Hence, there is a

strong individual

incentive to avoid

contributing to the

provision of that

collective good.

Providing a public good, like

clean air, can be difficult if the

benefits are dispersed, even if

costs are relatively low.

The Free-Rider Problem

• By definition public

goods are not

exclusive to those

who provide them.

• Hence, there is a

strong individual

incentive to avoid

contributing to that

collective good.

Why would anyone give money to NPR

when they can listen for free? Actually,

why would anyone listen at all?

The Tragedy of the Commons• When a group shares

a common resource,

individual self-

interested behavior

can lead to its

deterioration and

ultimate destruction,

despite their shared

interest in preserving

it. The destruction of common grazing areas in medieval Europe contributed to the Enclosure

movement, by which elites seized control of the

commons.

Negative Externalities

Economists often

study the costs that

are suffered by third

parties as a result of

economic

relationships between

producers and

consumers. Energy is the largest employment sector in the world, which contributes to the

pervasiveness of our current challenges.

Timescale ProblemsWhen effort and

rewards are

misaligned, voters and

politicians with short-

time horizons often fail

to invest wisely in

effective policy

solutions.

Entrenched Interests

Modern economies

rely on fossil fuels,

which have a high

energy density, and

which are controlled

by powerful, vested

interests that have a

large amount of

influence in politics. Energy is the largest employment sector

in the world, which contributes to the

pervasiveness of our current challenges.

Collective Action Solutions• Dominance (Hierarchy):

when power dynamics or

institutions establish pre-

determined outcomes.

• Reciprocity: When there is

anticipated payback

cooperation is often self

interest.

• Identity: Group affiliation

sometimes provides

benefits that redefine

individual interest.

MS-13: Mara Salvatrucha

Environmental Kuznets Curve

MS-13: Mara Salvatrucha

The Kuznets curve suggests that with development, market forces increase and then decrease economic inequality. When applied to the environment, it

suggests that more development leads to sustainable policies.

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Alternative Energy Sources?

• Solar Energy

• Hydro Power

• Hydrogen Energy

• Liquid Natural Gas

• Nuclear Power

Benefits

• More even distributed;

reduces conflict

• Low carbon footprint,

reduces global warming

Disadvantages

• Low energy density

• Intermittent, requires

storage

• Technology is costly

“It would be the worst sort of

irresponsibility to fail to plan for

a shift away from petroleum as

the primary energy resource

within the next few decades.”

—J.D. Hughes

Other Options• Establish targets for

reducing CO2 emissions

(e.g., cap & trade)

• Raise the price of CO2

emissions (e.g., tax

carbon emissions)

• Promote energy efficient

technologies and

conservation

Cap and Trade

http://climatelab.org/@api/deki/files/6/=sp05-c-tdiagram.jpg

Tax Fuel Consumption

http://1.bp.blogspot.com/_YJtJVrH3c5k/SESqr7evU_I/AAAAAAAAAY0/uzsCxFP3of4/s400/global_gas_prices.jpg

Promoting Energy Efficiency

http://www.solar-green-wind.com/archives/energy-efficiency

U.K.

rating

system

Summitry and ProgressEfforts to Promote Environmental Sustainability

Pre-Stockholm Era

• In the pre-war era,

there was limited

international

attention to

environmental

issues

• Problems existed,

but were dealt with

locally and

nationally

The great conservationist, Teddy

Roosevelt, was the first president to

bring environmental preservation to the

national forefront.

1972 Stockholm Summit

• Green Revolution

• Silent Spring by Rachel Carson

• Paved Paradise by Joni Mitchell

• United Nations

Environment

Program (UNEP)The UN Conference on Human Environment provided a context to address key environmental concerns —habitat degradation, acid rain, and toxic chemical effects— and eventually led to the formation of the UNEP.

1992 Rio Earth Summit

• 172 governments

• 108 heads of state

• 2,400 delegates

• Rio declaration

provides initial

framework for

agreement to

address climate

change

Ain t nothin but a party up in Rio! At the age of 12,

Cullis-Suzuki raised money with members of ECO,

the Environmental Children's Organization (which

she founded), to attend the Earth Summit in Rio De

Janeiro. Severn spoke from a youth perspective to

delegates at the Summit and to the United Nations

Conference on Environment and Development.

Rio Treaty Signatory Countries (Green)

1997 Kyoto Summit• 63 countries

• 1,500 scientists sign

Call to Action

• Kyoto Protocol to the UN

Framework Convention

on Climate Change

(UNFCCC) targeted

reducing emissions by

average of 5% (15% for

key developed

countries), including

carbon emission credit

off-sets

174 parties (representing 60+% of

greenhouse emissions) signed the

Kyoto Treaty. The United States and

Kazakhstan are the only two signatory

countries that have not ratified the

treaty.

Problems with Kyoto• Many countries were

unable to meet their

targets for cutting CO2

emissions

• Major polluters like

China and India did not

have to reduce

emissions significantly.

• When George Bush took

office, United States

refused to ratify Kyoto,

greatly reducing its

impact.

174 parties (representing 60+% of

greenhouse emissions) signed the Kyoto

Treaty. The United States and Kazakhstan

are the only two signatory countries that

have not ratified the treaty.

Kyoto Treaty Signatory Countries, 2009

Green = Countries that signed and ratified the treaty

Grey = Countries that had not yet decided

Red = No intention to ratify.

Kyoto Treaty Status, 2019

2002 Johannesburg Summit • Second Earth Summit

(Rio + 10)

• World Summit on

Sustainable

Development (WSSD)

• Agreement to restore

global fisheries by

2015.

• U.S. President George

Bush chose not to

attend.

2012 Rio+20 Summit

• Hosted again in Rio de

Janeiro in June 2012,

the Rio+20 was a 20-

year follow-up to the

1992 Earth Summit and

the 10th anniversary of

the Johannesburg World

Summit on Sustainable

Development.Key global leaders did not attend

the conference due to the

ongoing European Debt crisis.

The Role of the HegemonU.S. Leadership and Withdrawal

The Role of the Hegemon

The United States

is arguably the

most powerful

player on the world

stage, and U.S.

leadership plays a

significant role in

shaping

environmental

policy debates.

Views on Climate Change

Obama Administration• After years of U.S.

resistance to global

efforts to cap

emissions, many

hoped that Obama

would bring a change

of course, after

multiple pledges to

embrace emissions

standards. The Obama administration attempted to establish a cap on U.S. climate emissions

and supported the 2015 Paris Accord to

mitigate greenhouse gas emissions.

Developed and developing countries reached an agreement

to balance the costs of climate change adaptation and

mitigation with a $100 billion pledge from signing countries.

staying below 1.5c warming.

Paris Climate Accord

Signers committed to steps

to help keep below 1.5c

warming.

Leaving Paris

• In June 2017,Donald

Trump announced the

U.S. withdrawal from

the Paris Climate

agreement, providing

formal notification on

November 4, 2019 to

begin withdrawal over

the course of one

year.

Leading by Example

“The United States has reduced all

types of emissions, even as we grow

our economy and ensure our citizens’

access to affordable energy. Our

results speak for themselves: U.S.

emissions of criteria air pollutants that

impact human health and the

environment declined by 74%

between 1970 and 2018. U.S. net

greenhouse gas emissions dropped

13% from 2005-2017, even as our

economy grew over 19 percent.” Secretary of State Mike Pompeo released a

statement explaining the U.S.

withdrawal.

Identify one best practice that you

have adopted to help promote

environmental sustainability…

What can we do?

Now identify one new best practice

that you are willing to pledge to do to

help promote environmental

sustainability…

What should we do?

The End