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Welfare, Wealth, and Sustainability

Author

Listed:
  • Elena G. Irwin

    (Department of Agricultural, Environmental, and Development Economics, Ohio State University, Columbus, Ohio 43210)

  • Sathya Gopalakrishnan

    (Department of Agricultural, Environmental, and Development Economics, Ohio State University, Columbus, Ohio 43210)

  • Alan Randall

    (Department of Agricultural, Environmental, and Development Economics, Ohio State University, Columbus, Ohio 43210
    School of Economics and School of Life and Environmental Sciences, University of Sydney, Sydney, New South Wales 2006, Australia)

Abstract

Growing concerns over climate change and the potential for large damages due to nonlinear processes underscore the need for a meaningful sustainability assessment of an economy. Economists have developed rigorous approaches to conceptualizing sustainability based on the paradigm of weak sustainability, which relies on extensive substitution among reproducible capital, renewable resources, and exhaustible natural resources. In contrast, strong sustainability emphasizes physical limits to this substitution and the importance of maintaining the resilience of normally functioning biophysical processes. Recent progress in resource and environmental economics has demonstrated the feasibility of incorporating strong sustainability features, including tipping points, uncertainties, and resilience, to assess efficiency and optimal policies. Given that weak sustainability and intertemporal efficiency share a welfare theoretic foundation, we ask: To what extent can these approaches be applied to evaluate sustainability? We highlight recent work on assessing sustainability in imperfect economies and dynamic models of intertemporal welfare that embed strong sustainability features.

Suggested Citation

  • Elena G. Irwin & Sathya Gopalakrishnan & Alan Randall, 2016. "Welfare, Wealth, and Sustainability," Annual Review of Resource Economics, Annual Reviews, vol. 8(1), pages 77-98, October.
    • Handle: RePEc:anr:reseco:v:8:y:2016:p:77-98
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    File URL: http://www.annualreviews.org/doi/10.1146/annurev-resource-100815-095351
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    Citations

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    Cited by:

    1. Alan Randall, 2020. "On Intergenerational Commitment, Weak Sustainability, and Safety," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    2. Alan Randall, 2022. "Driving with Eyes on the Rear-View Mirror—Why Weak Sustainability Is Not Enough," Sustainability, MDPI, vol. 14(16), pages 1-13, August.
    3. Daniela Covino & Rosa Malgeri Manzo, 2017. "The violation of human rights and the exploitation of youth in developing countries," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1), pages 27-46.
    4. Flavio Boccia & Rosa Malgeri Manzo & Daniela Covino, 2019. "Consumer behavior and corporate social responsibility: An evaluation by a choice experiment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 97-105, January.
    5. Alan Randall, 2021. "Resource Scarcity and Sustainability—The Shapes Have Shifted but the Stakes Keep Rising," Sustainability, MDPI, vol. 13(10), pages 1-16, May.

    More about this item

    Keywords

    nonconvexities; uncertainty; resilience; coupled human-natural systems; benefit-cost analysis;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • 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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