Transcript Presentation Jaime Sobrino Rotterdam GUCP 2014

Sustainable Development and Competitive
Performance in Mexican Cities: Economic and
Environmental Accounts
Jaime Sobrino
Presentation
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Objective
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To study the environmental accounts in Mexico, its disintegration
from sectoral to a spatial context, and the relationships between
local economic growth and environment protection in the largest
Mexican cities
Contents
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Main concepts about environmental accounts
Operation of the environmental accounting system in Mexico
Empirical analysis about the relationship between local economic
growth and environmental effects for Mexico’s largest cities
Final remarks about local economic growth, competitiveness, and
environmental affairs.
Three main concepts
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Sustainable / sustainability
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Used for the first time by the Club of Rome (The Limits to
Growth)
The need to ensure a better quality of life for all, and into the
future, in a just and equitable manner, while living within the
limits supporting ecosystems
Pillars: environment, economy, equity
Areas of concern: quality of life; present and future generations;
justice and equity in resource allocation; living with ecological
limits
Sustainable development
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Political and policy framework for improving the way we live, the
way we distribute goods and externalities, and the way we do
business with finite resources
Three main concepts
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Natural capital
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Stock of resources and the environmental services
involved into production
Includes the following: i) natural resources (soil,
water, minerals, fossil fuels); ii) natural environment
(natural parks, biosphere reserves, coasts, islands);
iii) water bodies (rivers, lakes, marshes); iv)
geological landscapes, and v) ecosystems
Scenarios on relationship between natural capital
and local economic growth
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The long-term rate of innovation exceeds any adverse
effect of shortage on natural capital
As a result of the shortage of natural capital, long-term
effects may either affect individual innovations or nullify
technical and social innovation
The indiscriminate depletion and degradation of natural
capital can be translated into limits to the long-term rate
of growth
Indicators for measuring sustainability
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The best known: Agenda 21 by the UN in the world
conference in Rio de Janeiro in 1992. Indexes to
measure environmental consequences of economic
growth
The most popular: the UN Millennium Development Goals
in 2000: i) eradicate extreme poverty and hunger; ii)
achieve universal primary education; iii) promote gender
equality and empower women; iv) reduce child
mortality; v) improve maternal health; vi) combat
HIV/AIDS, malaria and other diseases; vii) ensure
environmental sustainability, and viii) global partnership
for development
Another tool: environmental accounts
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Satellite account from the national accounts
Attempt to apply numerical magnitudes to environmental
factors and the use of natural capital
The key challenge is to include the Gross External
Damages into the social accounting, and the need for
adding external effects either as an input or as an output
in the accounting framework (It is, how to measure
natural capital?)
Examples in measuring natural capital
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Measure the annual expenditure on air pollution
control (USA)
Measure the physical endowment of natural
resources and their variation over time (France
and Norway)
Assign a value to natural capital changes over
time (the Netherlands)
International trends
Pressure on nature and income, 1970-2008
Distributions of components across income groups
Source: A. A. Aşici, 2013
The Mexican economic and ecological accounts
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Present information about
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Depletion of natural Resources (DNR): woods, timber forests,
hydrocarbons, and groundwater
Environmental Degradation (ED): emission levels in air (pollution), soil
(garbage and solid waste), and water (aquifer contamination)
Expenditure on Environmental Protection (EEP) from private and public
agencies
Table 1
Mexico: main values of the economic and environmental accounts, 2003-2012
(in constant 2005 million dollars)
Year
GDP
TCEDDa
EGDPb
806 214
68 372
737 843
2003
951 454
71 308
880 146
2008
1 029 603
65 175
964 427
2012
a
Total Costs for Environmental Depletion and Degradation.
b
Ecological GDP.
c
Expenditure on Environmental Protection
Source: prepared by the author with data from INEGI, 2014.
EEPc
4 694
7 535
9 466
TCEDD / GDP
8.5
7.5
6.3
EEP / TCEDD
6.9
10.6
14.5
Environmental costs on GDP
16
14
Percentages
12
10
TEC / GDP
EEP / TEC
8
6
4
2
0
2002
2004
2006
2008
2010
2012
2014
Economic and environmental costs by sector, 2008
32%
DNR
ED
68%
Billion
Dollars
25
20
15
10
36%
12%
Other
activities
Manufacturing
Other services
Mining
0
Agricultural
22%
Households
Primary
Secondary
Tertiary
Transportation
30%
5
Urban GDP and environmental costs
Table 3
Mexico: GDP and EGDP on largest metropolitan areas, 2008
(in constant 2005 million dollars)
GDP
951 454
604 400
TECa
71 308
39 332
EGDPb
880 146
565 067
TCEDD / GDP
7.5
6.5
Mexico City
Monterrey
Ciudad del Carmen
Guadalajara
Puebla
Toluca
León
Torreón
Tijuana
Querétaro
San Luis Potosí
Chihuahua
Ciudad Juárez
Saltillo
Reynosa
Veracruz
Mérida
Hermosillo
Tampico
Mexicali
226 748
66 967
50 193
46 807
24 375
18 178
14 398
14 202
14 189
13 516
12 860
12 467
12 333
12 035
11 519
11 277
11 073
10 651
10 650
9 963
11 561
3 131
10 586
2 223
1 090
872
914
881
688
794
618
428
615
519
1 271
1 035
504
526
524
554
215 187
63 836
39 607
44 584
23 285
17 306
13 484
13 321
13 502
12 722
12 242
12 039
11 718
11 516
10 248
10 242
10 569
10 126
10 125
9 409
5.1
4.7
21.1
4.7
4.5
4.8
6.3
6.2
4.8
5.9
4.8
3.4
5.0
4.3
11.0
9.2
4.6
4.9
4.9
5.6
Rest of the country
Total Environmental Costs.
b
Ecological GDP.
347 054
31 976
315 079
9.2
Metropolitan Area
Mexico
Largest MA
a
The role of environmental costs on urban
competitiveness
Model 1:
Long-term competitiveness
Index rank
Model 2:
Short-term competitiveness
Index rank
Control variables:
Ln(Pob)
Natural log of population
ECPC
Environmental costs per
capita
Sec
Share of secondary sector
on local GDP
Table 4
Regression results
Variable
Constant
Ln(Pob)
EC PC
Sec
Model 1 (Long-term)
β
se (β)
p>| t|
119.878
20.220
0.000
-6.455
-0.012
-0.193
1.440
0.005
0.109
0.000
0.016
0.088
Model 2 (Short-term)
β
se (β)
p>| t|
-38.613
27.513
0.172
3.957
-0.011
0.210
R2
0.584
0.227
P>F
0.000
0.062
Source: preparedby the author with data from INEGI (2014).
1.963
0.006
0.149
0.054
0.084
0.170
Final remarks
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Urban competitiveness refers to the ability of a city to attract
investment
Mexican cities with the best competitive performance were not the
same in each short-term economic cycle occurred since 1980
National economic growth has been slower during globalization era
There has been a significant redistribution of economic activity from
Mexico City towards other urban agglomerations
Among the largest cities in the country, a better economic
performance, a higher environmental cost
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