Transcript What is the nature of specific land use problems, alternative

8-b.
Sustainability & Natural Resource Management?
[Sustainable Economic Development,
Production/Consumption, & Local Communities]
Larry D. Sanders
(SPRING 2006)
Dept. of Ag Economics Oklahoma State University
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INTRODUCTION
--ch. 13-14-15 Hackett; Lectures 11, 18 Apr
 Purpose:
– to become aware of specific sustainability concepts
 Learning
Objectives. To understand/become aware
of:
1.To understand the keys to sustainable economic
development.
2. To understand key issues for production/consumption
in sustainable systems.
3. To understand key issues related to the economics of
sustainable local communities.
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Sustainable Economic Development
(ch. 13 Hackett)
 Broadens
the traditional view of economic development
to include social & environmental factors
 Traditional economic development:
–
–
–
–
focus on income growth (real per-capita income)
sometimes also addresses distributional issues
tends to favor large-scale projects
aid thru technical/financial assistance, & loans
 Sustainable
–
–
–
–
development:
income growth
education
environmental regulations
information access/empowerment
-- local needs-based
--family planning
-- ecotourism
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Alternate Theories in Sustainable
Economic Development
Weak Form
 “Technological fix”; “5
capitals”; substitution ok
 Indicators
– Green GDP
– Genuine Savings
– Index of Sustainable
Economic Welfare
(ISEW)
– GPI
 Limitations--weak
on
protecting environment
Strong Form
 Natural capital is
unique; substitution
won’t work
 Indicators
– Carrying Capacity
– Biodiversity
– Ecological Footprint
 Limitations
– ignores new
technology &
substitution concept
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Alternate Theories in Sustainable
Economic Development (continued)
Weak Form
 Arguments favoring
Strong Form
 Arguments favoring
– Less Costly in short-tomid-term
 Policy
– Uncertainty
– Irreversibility
– Scale (threshold
effects, etc.)
Implications
– counterbalancing effects
– environmental mitigation

Policy Implications
– safe minimum
standards
– preservation
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Measurement options for
Weak Form Sustainability
 Macroeconomics
(GNP, GDP)
 Green GDP (GDP less environmental expenses)
 Genuine Savings (considers capital investment less
regeneration rate & excess waste)
 Index
of Sustainable Economic Welfare (ISEW: per-
capita real consumption less social & environmental
factors, adjusted for future generations & income
inequality)
 Genuine Progress Indicator (GPI: real personal
consumption adjusted for income distribution, ecological
& social costs, household & volunteer work)
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Measurement options for
Strong Form Sustainability
 Carrying
Capacity (based
on Net Primary Product
(NPP)--vegetation
produced on given land
area)
 Ecological Footprint (EF-amount of land per capita
necessary to support
human consumption of
resources of food, energy,
timber, etc.)
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Case Studies show difficulty in comparing alternate
measurement schemes w/traditional development
 U.S. (& other rich developed countries)
– GDP continues to grow
– ISEW continues to decline
– GPI continues to decline

Less-Developed Countries (LDCs)
– many farmers become rural/urban laborers displaced
from land
– huge budgets lead to/encourage corruption
– weak oversight/penalties often result in
inefficiencies/failures/unintended consequences
– emphasis on export-oriented industry
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Sustainable Production & Consumption
(ch. 14 Hackett)
 Traditional
view:
– sustainable production is the
problem of LDCs
– sustainable consumption is the
problem of hi-income DCs
 Hackett’s
view:
– All countries are challenged
– US, Japan, Germany investing in
cleaner, more environmentallyfriendly technologies
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“Hard Path” vs. “Soft Path”
 “Hard
Path”
– dependence on nonrenewable fossil
fuels (& polluting energy/production
systems)
– regional/national energy grids
 “Soft
Path”
– government intervention to more
efficient energy, renewable & lesspolluting energy/production sources
– decentralized energy production (local
& home-based)
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Soft Path Alternative Energy Sources
 Solar
 Biomass
 Wind
 Hydrogen
 Methane
 Ocean
waves
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The Challenge for Sustainable
Production Technology
 Create
firm-level profit opportunities
 Provide similar goods/services or alternative that
fill similar needs
 Be not much more expensive than conventional
alternative
 Educate producers/consumers on need for change
 Maintain competitiveness in the market
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Product Life-cycle Analysis
 Evaluation
of environmental & natural
resource impacts of products/services
throughout lifecycle from extraction,
production, marketing/distribution, use &
disposal
 European method for waste management
policy
– responsibility for disposal of aluminum cans is
with the company that is selling the product in
aluminum cans (Coke, Pepsi, etc.)
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Government Intervention Options
 EPR
(Extended Producer
Responsibility) Programs
(life cycling)
 Tax/subsidize
 Eco-labelling
 Standards
 Fund
research/development
 Education
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Sustainable Local Communities
(ch. 15 Hackett)
 Ostrom’s
characteristics:
–
–
–
–
Inclusive
Democratic
Common vision
Efficient
monitoring/enforcement
– Adaptable to change
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Challenges for Local Communities
 Free
migration & trade lead to:
– export-based development, which leads to:
» population increases, unemployment, public financing at
risk, & exploitation of community & resources by firms
 Alternative:
– Small business (import-substitution development),
which leads to
» increased diversity of economy
» increased democracy
» decreased income leakage
» limits on public financing risk
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Other Issues for Locally Sustainble
Communities
 How
to “grow” stocks of
– natural capital
– human capital
– human-made capital
 Examples
of needs
– Education/training
– Telecommunications/new technology links
– Maintaining/enhancing noncommercial
amenities (parks, greenspace, arts, etc.)
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NGOs/CSOs as Local Community
Developers
 NGOs—Non-Governmental Organizations
– Representatives of independent citizen organizations are increasingly active in
policy making . . . NGOs are often the most effective voices for the concerns of
ordinary people in the international arena. NGOs include the most outspoken
advocates of human rights, the environment, social programs, women's rights
and more. [http://www.globalpolicy.org/ngos/]
 CSOs—Civil
Society Organizations
– The emergence and growth of Civil Society over the past two
decades has been one of the most significant trends in international
development. The World Bank recognizes that civil society plays
an especially critical role in helping to amplify the voices of the
poorest people in the decisions that affect their lives, improve
development effectiveness and sustainability, and hold
governments and policymakers publicly accountable.
– [http://wbln0018.worldbank.org/essd/essd.nsf/NGOs/home]
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Selected Economic Instruments for
Sustainble Community Development
 Microlending
– very small-scale lending for low-income people w/o
collateral
– promotes empowerment, independence, entrepreneurial
creativity
 Import-substitution small businesses
– promote local small business to encourage local
production & sale of goods/services that substitute for
imports
– promotes stability/diversity & reduces income leakages
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Selected Economic Instruments for
Sustainble Community Development (cont.)
 Ecotourism
– promote locals to host/guide tourists for neighboring
unique ecosystem
– provides financial incentives to protect environment &
alternative to exploiting the environment in harmful
ways
 Land tenure rights
– secure land tenure & property rights
– recognize Common Property Rights
– reduces adverse impacts on common ground, &
encourages long term thinking w/r/t property use
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NGO/CSO Example
 Foundation
for Women
– California nonprofit organization
– Village Banking Project
» Microcredit program for “poorest of poor globally”
» Currently focused in India
» Loans as little as $4 allow women to start home-based
businesses to support families
» 2 banks in India funded with $35,000 led to 3 more banks
w/$15,000 each (1999 to present)
» Each bank serves 2500 women & their families
– Now considering if feasible in Southern California
– [http://www.foundationforwomen.org/]
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Sustainable Community Examples
 Torbel,
Switzerland
 Japanese Village Commons
 Spanish Irrigation Commons
 Maine & Brazil self-governed Fisheries
 Panchayat (India) Community Forests
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L8b: Homework
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Read Ch. 13, Hackett (11 Apr)
Read Ch. 14, Hackett (11 Apr)
Read Ch. 15, Hackett (13 Apr)
Do # 2, p. 348 (13 Apr) – 4 points
Do #3, p. 371 (13 Apr) – 4 points
Do #1, p. 395 (13 Apr) –4 points
Refer to “Internet Links” (13 Apr) –3 points
– Select 2 links (pp. 349-351)
– Briefly review, including
» Content
» Bias or objectivity
» Likely use of material
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Refer to “Internet Links” (13 Apr) –3 points
– Select 2 links (pp. 371-372)
– Briefly review, including
» Content
» Bias or objectivity
» Likely use of material
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Alternate Homework—tba; evaluate own ecological footprint (3 pts)
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