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Scarcity, Innovation and Sustainability

Author

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  • Fausta Pellizzari

Abstract

This essay proposes a reflection on some interventions aimed at supporting sustainable growth by stressing the “environmental scarcity”. Only if this scarcity is correctly perceived, it can promote sustainable production and consumption choices and enhance innovation in order to reduce the shortages activating a process of permanent progress. The proposed regulating action is based on the joint implementation of environmental taxes and refundable deposits. According to the polluter pays principle and to the precautionary principle the environmental tax should cover the “certain” environmental damage and the deposit should be calculated according to an estimate of the possible damage. These instruments help perceive the environmental scarcity both including the certain environmental cost and creating an “insurance” system for the possible environmental damage and incentives for its definition, reduction, and for a continuous assessment of the opportunities of environmental improvement and of the real costs of innovation. Assigning the environmental scarcity a correct value can enhance environmental protection and contribute to orient the production and consumption choices reconciling growth and sustainability.

Suggested Citation

  • Fausta Pellizzari, 2008. "Scarcity, Innovation and Sustainability," CRANEC - Working Papers del Centro di Ricerche in Analisi economica e sviluppo economico internazionale crn0802, Università Cattolica del Sacro Cuore, Centro di Ricerche in Analisi economica e sviluppo economico internazionale (CRANEC).
    • Handle: RePEc:crn:wpaper:crn0802
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    File URL: http://centridiricerca.unicatt.it/cranec_crn0802.pdf
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    References listed on IDEAS

    as
    1. Alberto Quadrio Curzio, 2003. "Europa: crescita, costruzione e costituzione," CRANEC - Working Papers del Centro di Ricerche in Analisi economica e sviluppo economico internazionale crn0308, Università Cattolica del Sacro Cuore, Centro di Ricerche in Analisi economica e sviluppo economico internazionale (CRANEC).
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    More about this item

    Keywords

    technology; human capital; natural and environmental capital; environment; sustainability; economic growth;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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