1932
0
  1. Home
  2. A-Z Publications
  3. Annual Review of Resource Economics
  4. Volume 8, 2016
  5. Article

Annual Review of Resource Economics

Volume 8, 2016

Sustainability and Development

Abstract

Sustainable development requires that per capita welfare does not decline over time. The minimum condition is ensuring that any depletion of natural capital is compensated by reproducible and human capital, so that the value of the aggregate stock does not decrease. Meeting this condition is problematic if natural capital includes ecosystems, which not only provide unique goods and services but are also prone to irreversible conversion and abrupt collapse. Net domestic product accounting rules for the depreciation of the total stock of reproducible, human, and natural capital of an economy can be extended to incorporate the direct benefits provided by ecosystems. They also can integrate any capital revaluation that occurs through ecosystem restoration and conversion and the threat of irreversible collapse. These approaches confirm the economic interpretation of sustainability as nondeclining welfare. They can also be used to estimate the changes in the value of ecological capital due to economic activity.

Keyword(s): ecological capital, inclusive wealth, national accounts, natural capital, sustainable development
Loading

Article metrics loading...

/content/journals/10.1146/annurev-resource-100815-095227
2016-10-05
2024-04-25
Loading full text...

Full text loading...

/deliver/fulltext/resource/8/1/annurev-resource-100815-095227.html?itemId=/content/journals/10.1146/annurev-resource-100815-095227&mimeType=html&fmt=ahah

Literature Cited

  1. Arrow KJ, Dasgupta P, Goulder LH, Mumford KJ, Oleson K. 2012. Sustainability and the measurement of wealth. Environ. Dev. Econ. 17:317–53 [Google Scholar]
  2. Atkinson G, Bateman I, Mourato S. 2012. Recent advances in the valuation of ecosystem services and biodiversity. Oxf. Rev. Econ. Policy 28:22–47 [Google Scholar]
  3. Barbier EB. 2008. Ecosystems as natural assets. Found. Trends Microecon. 4:611–81 [Google Scholar]
  4. Barbier EB. 2011. Capitalizing on Nature: Ecosystems as Natural Assets. Cambridge, UK: Cambridge Univ. Press
  5. Barbier EB. 2013. Wealth accounting, ecological capital and ecosystem services. Environ. Dev. Econ. 18:133–61 [Google Scholar]
  6. Barbier EB. 2014. Account for depreciation of natural capital. Nature 515:32–33 [Google Scholar]
  7. Barbier EB. 2016. The protective value of estuarine and coastal ecosystem services in a wealth accounting framework. Environ. Resour. Econ. 6437–58
  8. Barbier EB, Hacker SD, Kennedy C, Koch EW, Stier AC, Silliman BR. 2011. The value of estuarine and coastal ecosystem services. Ecol. Mon. 81:2169–83 [Google Scholar]
  9. Beck MW, Brumbaugh RD, Airoldi L, Carranza A, Coen LD. et al. 2011. Oyster reefs at risk and recommendations for conservation, restoration, and management. BioScience 61:107–16 [Google Scholar]
  10. Bishop RC. 1993. Economic efficiency, sustainability and biodiversity. Ambio 22:2–369–73 [Google Scholar]
  11. Busing RT, White PS. 1993. Effects of area on old-growth forest attributes: implications for equilibrium landscape concept. Landsc. Ecol. 8:119–26 [Google Scholar]
  12. Cairns RD. 2013. Sustainability or the measurement of wealth?. Environ. Dev. Econ. 18:640–48 [Google Scholar]
  13. Chavas J-P. 2015. Dynamics, viability and resilience in bioeconomics. Annu. Rev. Resour. Econ. 7:209–31 [Google Scholar]
  14. Clark CW. 1976. Mathematical Bioeconomics New York: Wiley Intersci.
  15. Daily GC, Söderqvist T, Aniyar S, Arrow KJ, Dasgupta P. et al. 2000. The value of nature and the nature of value. Science 289:395–96 [Google Scholar]
  16. Dasgupta PS. 2008. Nature in economics. Environ. Resour. Econ. 39:1–7 [Google Scholar]
  17. Dasgupta PS. 2009. The welfare economic theory of green national accounts. Environ. Resour. Econ. 42:3–38 [Google Scholar]
  18. Dasgupta PS, Heal GM. 1979. Economic Theory and Exhaustible Resources Cambridge, UK: Cambridge Univ. Press
  19. Dasgupta PS, Mäler K-G. 2003. The economics of non-convex ecosystems: an introduction. Environ. Resour. Econ. 26:499–525 [Google Scholar]
  20. Dixon AP, Faber-Langendoen D, Josse C, Morrison J, Loucks CJ. 2014. Distribution mapping of world grassland types. J. Biogeogr. 41:2003–19 [Google Scholar]
  21. Dobson A, Lodge D, Alder J, Cumming GS, Keymer J. et al. 2006. Habitat loss, trophic collapse, and the decline of ecosystem services. Ecology 87:1915–24 [Google Scholar]
  22. Doney SC, Ruckelshaus M, Duffy JE, Barry JP, Chan F. et al. 2012. Climate change impacts on marine ecosystems. Annu. Rev. Mar. Sci. 4:11–37 [Google Scholar]
  23. Dudgeon D, Arthington AH, Gessner MO, Kawabata Z-I, Knowler DJ. et al. 2006. Freshwater biodiversity: importance, threats, status and conservation challenges. Biol. Rev. 31:163–82 [Google Scholar]
  24. Elmqvist T, Folke C, Nyström M, Peterson G, Bengtsson J. et al. 2003. Response diversity, ecosystem change, and resilience. Front. Ecol. Environ. 1:488–94 [Google Scholar]
  25. FAO (Food Agric. Organ.) 2007. Mangroves of Asia 1980–2005: country reports For. Resour. Assess. Work. Pap. 136, Food Agric. Organ., Rome
  26. Folke C, Carpenter S, Walker B, Scheffer M, Elmqvist T. et al. 2004. Regime shifts, resilience, and biodiversity in ecosystem management. Annu. Rev. Ecol. Evol. System. 35:557–81 [Google Scholar]
  27. Freeman AM III, Haveman RH, Kneese AV. 1973. The Economics of Environmental Policy New York: John Wiley
  28. Halpern BS, Silliman BR, Olden JD, Bruno JP, Bertness MD. 2007. Incorporating positive interactions in aquatic restoration and conservation. Front. Ecol. Environ. 5:153–60 [Google Scholar]
  29. Halpern BS, Walbridge S, Selkoe KA, Kappel CV, Micheli F. et al. 2008. A global map of human impact on marine ecosystems. Science 319:948–52 [Google Scholar]
  30. Hamilton K, Clemens M. 1999. Genuine savings rates in developing countries. World Bank Econ. Rev. 13:333–56 [Google Scholar]
  31. Hartwick JM. 1992. Deforestation and national accounting. Environ. Resour. Econ. 2:513–21 [Google Scholar]
  32. Heal GM, Millner A. 2014. Uncertainty and decision making in climate change economics. Rev. Environ. Econ. Policy 8:120–37 [Google Scholar]
  33. Herfindahl OC, Kneese AV. 1974. Economic Theory of Natural Resources Columbus, OH: Charles E. Merrill
  34. Howarth RB, Norgaard RB. 1995. Intergenerational choices under global environmental change. Handbook of Environmental Economics D Bromley 111–38 Oxford: Blackwell [Google Scholar]
  35. IPCC (Intergov. Panel Clim. Change) 2014. Climate change 2014: impacts, adaptation, and vulnerability. Rep., Intergov. Panel Clim. Change, Saunders, Phila. http://www.ipcc.ch/report/ar5/wg2/
  36. Johnson N, Revenga C, Echeverrria J. 2001. Managing water for people and nature. Science 292:1071–72 [Google Scholar]
  37. Krutilla JV. 1967. Conservation reconsidered. Am. Econ. Rev. 57:4777–86 [Google Scholar]
  38. Krutilla JV, Fisher AC. 1975. The Economics of Natural Environments: Studies in the Valuation of Commodity and Amenity Resources. Washington, DC: Res. Fut.
  39. Lambin EF, Meyfroidt P. 2011. Global land use change, economic globalization and the looming land scarcity. PNAS 108:3465–72 [Google Scholar]
  40. Léonard D. 1981. The signs of the co-state variables and sufficiency conditions in a class of optimal control problems. Econ. Lett. 8:321–25 [Google Scholar]
  41. Levin SA, Lubchenco J. 2008. Resilience, robustness, and marine ecosystem-based management. BioScience 58:27–32 [Google Scholar]
  42. Lotze HK, Lenihan HS, Bourque BJ, Bradbury RH, Cooke RG. et al. 2006. Depletion, degradation and recovery potential of estuaries and coastal seas. Science 312:1806–9 [Google Scholar]
  43. Mäler K-G. 1991. National accounts and environmental resources. Environ. Resour. Econ. 1:1–15 [Google Scholar]
  44. Mäler K-G. 2008. Sustainable development and resilience in ecosystems. Environ. Resour. Econ. 39:17–24 [Google Scholar]
  45. MEA (Millenn. Ecosyst. Assess.) 2005. Ecosystems and Human Well-Being: Synthesis Washington, DC: Island Press
  46. Neumayer E. 2003. Weak Versus Strong Sustainability: Exploring the Limits of Two Opposing Paradigms Cheltenham, UK: Edward Elgar
  47. Pearce DW, Barbier EB. 2000. Blueprint for a Sustainable Economy. London: Earthscan
  48. Pearce DW, Markandya A, Barbier EB. 1989. Blueprint for a Green Economy. London: Earthscan
  49. Perrings C. 1998. Resilience in the dynamics of economic-environmental systems. Environ. Resour. Econ. 11:503–20 [Google Scholar]
  50. Peterson G, Allen CR, Holling CS. 1998. Ecological resilience, biodiversity and scale. Ecosystems 1:6–18 [Google Scholar]
  51. Pezzey JCV. 1989. Economic analysis of sustainable growth and sustainable development Environ. Dep. Work. Paper 15, World Bank, Washington, DC
  52. Polasky S, Segerson K. 2009. Integrating ecology and economics in the study of ecosystem services: some lessons learned. Annu. Rev. Resour. Econ. 1:409–34 [Google Scholar]
  53. Rawls J. 1971. A Theory of Justice. Cambridge, MA: Belknap Press
  54. Reed WJ, Heras HE. 1992. The conservation and exploitation of vulnerable resources. Bull. Math. Biol. 54:185–207 [Google Scholar]
  55. Scheffer M, Carpenter S, Foley JA, Folke C, Walker B. 2001. Catastrophic shifts in ecosystems. Nature 413:591–96 [Google Scholar]
  56. Solow RM. 1974. Intergenerational equity and exhaustible resources. Rev. Econ. Stud. 41:29–45 [Google Scholar]
  57. Spalding M, Kainuma M, Collins L. 2010. World Atlas of Mangroves London: Earthscan
  58. Stavins RN, Wagner AF, Wagner G. 2003. Interpreting sustainability in economic terms: dynamic efficiency plus intergenerational equity. Econ. Lett. 79:339–43 [Google Scholar]
  59. Sumaila UR, Cheung WWL, Lam VWY, Pauly D, Herrick S. 2011. Climate change impacts on the biophysics and economics of world fisheries. Nat. Clim. Change 1:449–56 [Google Scholar]
  60. Suttie JM, Reynolds SG, Batello C. 2005. Grasslands of the World Rome: Food Agric. Organ.
  61. Turner MG, Romme WH, Gardner RH, O'Neill RV, Kratz TK. 1993. A revised concept of landscape equilibrium: disturbance and stability on scaled landscape. Landsc. Ecol. 8:213–27 [Google Scholar]
  62. Turner RK. 1993. Sustainability principles and practice. Sustainable Environmental Management: Principles and Practice RK Turner 3–36 London: Belhaven, 2nd ed.. [Google Scholar]
  63. UNU-IHDP (UN Univ.-Int. Human Dimens. Prog.) 2012. Inclusive Wealth Report 2012. Measuring Progress Toward Sustainability. Cambridge, UK: Cambridge Univ. Press
  64. UNU-IHDP (UN Univ.-Int. Human Dimens. Prog.) 2014. Inclusive Wealth Report 2014. Measuring Progress Toward Sustainability Cambridge, UK: Cambridge Univ. Press
  65. Vörösmarty CJ, McIntyre PB, Gessner MO, Dudgeon D, Prusevich A. et al. 2012. Global threats to human water security and river biodiversity. Nature 467:555–61 [Google Scholar]
  66. Walker B, Pearson L, Harris M, Mäler K-G, Li C-Z. et al. 2010. Incorporating resilience in the assessment of inclusive wealth: an example from south east Australia. Environ. Resour. Econ. 45:183–202 [Google Scholar]
  67. WCED (World Comm. Environ. Dev.) 1987. Our Common Future. Oxford, UK/New York: Oxford Univ. Press
  68. Weitzman ML. 2011. Fat-tailed uncertainty in the economics of catastrophic climate change. Rev. Environ. Econ. Pol. 5:275–92 [Google Scholar]
  69. Worm B, Barbier EB, Beaumont N, Duffy JE, Folke C, Halpern BS. et al. 2006. Impacts of biodiversity loss on ocean ecosystem services. Science 314:787–90 [Google Scholar]
  70. Worm B, Hilborn R, Baum JK, Branch TA, Collie JS. et al. 2009. Rebuilding global fisheries. Science 325:578–85 [Google Scholar]
  71. WWF (World Wildl. Fund) 2014. Living Planet Report 2014: Species and Spaces, People and Places R McLellan, L Iyengar, B Jeffries, N Oerlemans Gland, Switz: WWF
  72. Zilberman D. 2014. The economics of sustainable development. Am. J. Agric. Econ. 96:385–96 [Google Scholar]
/content/journals/10.1146/annurev-resource-100815-095227
Loading
Sustainability and Development
Annual Review of Resource Economics 8, 261 (2016); https://doi.org/10.1146/annurev-resource-100815-095227
/content/journals/10.1146/annurev-resource-100815-095227
/content/journals/10.1146/annurev-resource-100815-095227
Loading

Data & Media loading...

  • Article Type: Review Article

Most Cited Most Cited RSS feed

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error