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Global Economic Sustainability Indicator: Analysis and Policy Options for the Copenhagen Process

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  • Paul J.J. Welfens

    (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))

  • Jens K. Perret

    (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))

  • Deniz Erdem

Abstract

Summary: The traditional discussion about CO2 emissions and greenhouse gases as a source of global warming has been rather static, namely in the sense that innovation dynamics have not been considered much. Given the global nature of the climate problem, it is natural to develop a more dynamic Schumpeterian perspective and to emphasize a broader international analysis, which takes innovation dynamics and green international competitiveness into account: We discuss key issues of developing a consistent global sustainability indicator, which should cover the crucial dimensions of sustainability in a simple and straightforward way. The basic elements presented here concern genuine savings rates - covering not only depreciations on capital, but on the natural capital as well -, the international competitiveness of the respective country in the field of environmental ("green") goods and the share of renewable energy generation. International benchmarking can thus be encouraged and opportunities emphasized - an approach developed here. This new EIIW-vita Global Sustainability Indicator is consistent with the recent OECD requirements on composite indicators and thus, we suggest new options for policymakers. The US and Indonesia have suffered from a decline in their performance in the period 2000-07; Germany has improved its performance as judged by the new composite indicator whose weights are determined from factor analysis. The countries covered stand for roughly 91% of world GDP, 94% of global exports, 82% of global CO2 emissions and 68% of the population.

Suggested Citation

  • Paul J.J. Welfens & Jens K. Perret & Deniz Erdem, 2010. "Global Economic Sustainability Indicator: Analysis and Policy Options for the Copenhagen Process," EIIW Discussion paper disbei174, Universitätsbibliothek Wuppertal, University Library.
  • Handle: RePEc:bwu:eiiwdp:disbei174
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    Cited by:

    1. Vladimir Udalov & Paul J.J. Welfens, 2017. "Digital and Competing Information Sources: Impact on Environmental Concern und Prospects for Cooperation," EIIW Discussion paper disbei233, Universitätsbibliothek Wuppertal, University Library.
    2. Abul Kalam Azad, 2015. "Sustainability Issue: is Business-NGO Partnership a Panacea?," Journal of Social Economics, Research Academy of Social Sciences, vol. 2(1), pages 25-30.
    3. Paul J.J Welfens, 2010. "New Open Economy Policy Perspectives: Modified Golden Rule and Hybrid Welfare," EIIW Discussion paper disbei179, Universitätsbibliothek Wuppertal, University Library.
    4. Martin Gerner, 2019. "Assessing and managing sustainability in international perspective: corporate sustainability across cultures – towards a strategic framework implementation approach," International Journal of Corporate Social Responsibility, Springer, vol. 4(1), pages 1-34, December.
    5. Paul Welfens & Christian Lutz, 2012. "Green ICT dynamics: key issues and findings for Germany," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 24(2), pages 155-163, June.
    6. Paul Welfens, 2014. "Issues of modern macroeconomics: new post-crisis perspectives on the world economy," International Economics and Economic Policy, Springer, vol. 11(4), pages 481-527, December.
    7. Abul Kalam Azad, 2014. "Cooperative State: A Model of Addressing Business Sustainability Issues," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 3(8), pages 612-615.
    8. Paul J.J. Welfens, 2011. "Atomstromkosten und -risiken: Haftpflichtfragen und Optionen rationaler Wirtschaftspolitik," EIIW Discussion paper disbei190, Universitätsbibliothek Wuppertal, University Library.

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    More about this item

    Keywords

    CO2 Emission; Global worming; Sustainability; International country competitiveness;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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