Sustainable Development: Environment and Economic Framework Integration
Sustainable development is a multifaceted concept that has drawn on a number of disciplines including economics, ecology, ethics, sociology and political science. Sustainable development links the welfare of generations with the capacity of the biosphere to sustain life and has a policy focus. Sustainable development is not a fixed state but rather a process of change in which resource exploitation, the direction of investment, the orientation of technological development and institutional change are made consistent with the future as well as present needs. Practical policy analysis needs to be guided by specific objectives analysed within a consistent and coherent framework. In the absence of an operational framework the policy analyst is left with an indeterminate model to work with. This vacuum can lower the quality of advice, increase reliance on ad hoc decision-making and potentially impact economic growth and the welfare of current and future New Zealanders. This report does not consider the range of policy instruments that could be used in achieving sustainable development outcomes. A framework for economic-environment integration is proposed. The specific framework is shown to depend on “the problem”. It is not a mechanistic process and careful attention has to be given to grafting a rigorous model for analysis. Three case studies illustrate how economic-environment integration can be achieved. Specific frameworks can be developed for the purpose of empirical analysis and hypothesis testing. Three themes for future research are described. One theme is empirical and suggests a study of existing rules and mechanisms vis-à-vis sustainable development. Another broad theme is directed at obtaining a better understanding of sustainable development within the context of an open-economy dependent on key natural resources for economic growth. Finally, there is a need to develop a range of indicators for policy analysis.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand|
Phone: +64-4-472 2733
Fax: +64-4-473 0982
Web page: http://www.treasury.govt.nz
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kemfert, Claudia & Welsch, Heinz, 2000. "Energy-Capital-Labor Substitution and the Economic Effects of CO2 Abatement: Evidence for Germany," Journal of Policy Modeling, Elsevier, vol. 22(6), pages 641-660, November.
- Humphreys, D., 2001. "Sustainable development: can the mining industry afford it?," Resources Policy, Elsevier, vol. 27(1), pages 1-7, March.
- Reynolds, Douglas B., 1999. "Entropy and diminishing elasticity of substitution," Resources Policy, Elsevier, vol. 25(1), pages 51-58, March.
- Martin L. Weitzman, 1998.
Harvard Institute of Economic Research Working Papers
1843, Harvard - Institute of Economic Research.
- Geir B. Asheim, 1986. "Hartwick's Rule in Open Economies," Canadian Journal of Economics, Canadian Economics Association, vol. 19(3), pages 395-402, August.
- Cabeza Gutes, Maite, 1996. "The concept of weak sustainability," Ecological Economics, Elsevier, vol. 17(3), pages 147-156, June.
- Norgaard, Richard B., 1985. "Environmental economics: An evolutionary critique and a plea for pluralism," Journal of Environmental Economics and Management, Elsevier, vol. 12(4), pages 382-394, December.
- Tolmasquim, Mauricio Tiomno & Seroa da Motta, Ronaldo & La Rovere, Emilio Lebre & Barata, Martha Macedo de Lima & Monteiro, Aline Guimaraes, 2001. "Environmental valuation for long-term strategic planning -- the case of the Brazilian power sector," Ecological Economics, Elsevier, vol. 37(1), pages 39-51, April.
- Toman, Michael, 1998. "Sustainable Decisionmaking: The State of the Art from an Economics Perspective," Discussion Papers dp-98-39, Resources For the Future.
- Tisdell, Clem, 1994. "Sustainability and Sustainable Development: Are These Concepts a Help or a Hindrance to Economics?," Economic Analysis and Policy, Elsevier, vol. 24(2), pages 133-150.
- Nordhaus, William D & Yang, Zili, 1996. "A Regional Dynamic General-Equilibrium Model of Alternative Climate-Change Strategies," American Economic Review, American Economic Association, vol. 86(4), pages 741-65, September.
- Hanley, Nick & Moffatt, Ian & Faichney, Robin & Wilson, Mike, 1999. "Measuring sustainability: A time series of alternative indicators for Scotland," Ecological Economics, Elsevier, vol. 28(1), pages 55-73, January.
- Toman, Michael & Lile, Ron & King, Dennis, 1998. "Assessing Sustainability: Some Conceptual and Empirical Challenges," Discussion Papers dp-98-42, Resources For the Future.
- Patterson, Murray, 1998. "Commensuration and theories of value in ecological economics," Ecological Economics, Elsevier, vol. 25(1), pages 105-126, April.
- Pearce, David W. & Atkinson, Giles D., 1993. "Capital theory and the measurement of sustainable development: an indicator of "weak" sustainability," Ecological Economics, Elsevier, vol. 8(2), pages 103-108, October.
- Victor, Peter A., 1991. "Indicators of sustainable development: some lessons from capital theory," Ecological Economics, Elsevier, vol. 4(3), pages 191-213, December.
- John C. V. Pezzey, 1997. "Sustainability Constraints versus "Optimality" versus Intertemporal Concern, and Axioms versus Data," Land Economics, University of Wisconsin Press, vol. 73(4), pages 448-466.
- Keith Pezzoli, 1997. "Sustainable Development: A Transdisciplinary Overview of the Literature," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 40(5), pages 549-574.
- Richard T. Woodward & Richard C. Bishop, 1997. "How to Decide When Experts Disagree: Uncertainty-Based Choice Rules in Environmental Policy," Land Economics, University of Wisconsin Press, vol. 73(4), pages 492-507.
- Costanza, Robert, 1989. "What is ecological economics?," Ecological Economics, Elsevier, vol. 1(1), pages 1-7, February.
When requesting a correction, please mention this item's handle: RePEc:nzt:nztwps:01/27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Web and Publishing Team, The Treasury)
If references are entirely missing, you can add them using this form.