Jeroen C.J.M. van den Bergh

Spatial sustainability, trade and indicators: an evaluation of the ‘ecological footprint’

The search for frameworks and indicators of sustainable development has taken a prominent place in this journal. However, some specific aspects have received little or no attention, notably the spatial dimension and the role of international trade in indicator development. Moreover, many sustainable development indicators comprise implicit valuations, weighting schemes and policy objectives, which are insufficiently recognised as such. This contribution tries to highlight these issues by means of a review of a recently proposed indicator for ecological‐economic analysis, namely the ecological footprint, that has been developed by Wackernagel and Rees. Its concept and calculation procedure are criticised on a number of points, and it is concluded that the Ecological Footprint is not the comprehensive and transparent planning tool as is often assumed. In explaining our position we will argue that spatial sustainability and regional sustainable development have not been precisely discussed so far, neither in the literature on trade and environment, nor in that on sustainable development. We will defend the view that trade can contribute positively and negatively to environmental unsustainability. Consequently, indicators and models are needed that allow for analysing interactions and trade-offs between such opposite effects.

Ecological-economic analysis of wetlands; scientific integration for management and policy

Abstract Wetlands all over the world have been lost or are threatened in spite of various international agreements and national policies. This is caused by: (1) the public nature of many wetlands products and services; (2) user externalities imposed on other stakeholders; and (3) policy intervention failures that are due to a lack of consistency among government policies in different areas (economics, environment, nature protection, physical planning, etc.). All three causes are related to information failures which in turn can be linked to the complexity and ‘invisibility’ of spatial relationships among groundwater, surface water and wetland vegetation. Integrated wetland research combining social and natural sciences can help in part to solve the information failure to achieve the required consistency across various government policies. An integrated wetland research framework suggests that a combination of economic valuation, integrated modelling, stakeholder analysis, and multi-criteria evaluation can provide complementary insights into sustainable and welfare-optimising wetland management and policy. Subsequently, each of the various components of such integrated wetland research is reviewed and related to wetland management policy.

Handbook of environmental and resource economics.

Economics of natural resources economics of environmental policy international aspects of environmental economics and policy space and environmental economics environmental macroeconomics economic valuation and evaluation interdisciplinary issues methods and models in environmental and resource economics prospects.

Economic valuation of biodiversity: sense or nonsense?

This paper critically evaluates the notion and application of economic, monetary valuation of biological diversity, or biodiversity. For this purpose four levels of diversity are considered: genes, species, ecosystems and functions. Different perspectives on biodiversity value can be characterized through a number of factors: instrumental vs. intrinsic values, local vs. global diversity, life diversity vs. biological resources, etc. A classification of biodiversity values is offered, based on a system of logical relationships among biodiversity, ecosystems, species and human welfare. Suggestions are made about which economic valuation methods can address which type of biodiversity value. The resulting framework is the starting point for a survey and evaluation of empirical studies at each of the four levels of diversity. The contingent valuation method is by far the most used method. An important reason is that the other valuation methods are unable to identify and measure passive or nonuse values of biodiversity. At first sight, the resulting monetary value estimates seem to give unequivocal support to the belief that biodiversity has a significant, positive social value. Nevertheless, most studies lack a uniform, clear perspective on biodiversity as a distinct concept from biological resources. In fact, the empirical literature fails to apply economic valuation to the entire range of biodiversity benefits. Therefore, available economic valuation estimates should generally be regarded as providing a very incomplete perspective on, and at best lower bounds, to the unknown value of biodiversity changes.

An Empirical Multi-Country Analysis of the Impact of Environmental Regulations on Foreign Trade Flows

In this paper, it is argued that the inconclusiveness in previous empirical studies on the relationship between antipollution standards and foreign trade is due to inaccurate variables used to represent environmental regulations strictness. Two variables of environmental policy stringency are composed and evaluated against the polluter pays principle. In the framework of a trade flow equation, it is found that, with an environmental policy strictness variable closely connected to the polluter pays principle, the impact of stricter regulations on export and import flows is negative. This result implies the existence of government actions to impede imports. Copyright 1997 by WWZ and Helbing & Lichtenhahn Verlag AG

Alternative models of individual behaviour and implications for environmental policy

Abstract Most insights of environmental economics are in line with the standard neoclassical economic model of rational behaviour, formulated in terms of maximization of utility in general, or of profits in particular. The standard theory of environmental policy is a case in point. However, the maximization hypothesis and its methodological foundation have been criticized on many grounds related to a lack of either logical or empirical content. Moreover, over the years a great many alternative models of behaviour have been proposed. Both criticism and alternatives are surveyed here. Attention is devoted to relevant insights from the philosophy of science, the notion of methodological individualism, and other criticism. The alternative behavioural models include bounded rationality and ‘satisficing’, lexicographic preferences, habitual behaviour, incommensurability and multicriteria evaluation, and various models of behaviour under uncertainty. Major implications of the criticism and alternative models of individual behaviour for environmental policy theory are outlined.

Structural Decomposition Analysis of Physical Flows in the Economy

Many environmental problems can be attributedto the extraction and emissions of physicalsubstances. Increasing our understanding of theeconomic and technological driving forcesbehind these physical flows can contribute tosolving the environmental problems related tothem. The input-output framework is a usefulsetting in which to integrate detailedinformation about economic structure andphysical flows. In this article a specificmethod in input-output analysis is reviewed,namely Structural Decomposition Analysis (SDA).It is based on comparative static analysis,which decomposes historical changes of a policyvariable into determinant effects. SDA has beenapplied, for example, to analyze the demand andtechnological driving forces of energy use,CO2-emissions and various other pollutantsand resources. This article examines thetheoretical aspects of structuraldecomposition, in particular those concerningphysical flows and environmental issues.Furthermore, the article includes an extensivesurvey of empirical studies.

Material flows and economic models: an analytical comparison of SFA, LCA and partial equilibrium models

Abstract The growing concern for environmental problems in the current economy has spurred the study of the way materials and substances flow through the economy, resulting in many different types of analysis. Since all of these have their merits and shortcomings, much of the present theoretical research seems to be focusing on combining the best aspects of each model type into an integrated model. The aim of this paper is to make a first step in bridging the gap between the various types of analysis of material flows in the economy, by discussing the main differences and similarities of three often employed model types: substance flow analysis, life cycle assessment and partial economic equilibrium analysis. Instead of submitting each model to a lengthy theoretical discussion, we apply them to a single, hypothetical example of a pollution problem. By doing so we are able to evaluate the differences and similarities of the methods and results of the model in a practical way. It appears that the results of the three models are complementary rather than contradictory. Each of them puts an emphasis on different aspects of ‘the real world’. A sequential application of a number of limited models may therefore be an approach that provides more useful information than the tedious construction and application of an encompassing model that integrates these models.

Evolutionary policies for sustainable development: adaptive flexibility and risk minimising

Abstract An evolutionary perspective on policies to foster sustainable development is presented. It is argued that policies suggested by the traditional economic theory of environmental policy can stimulate unsustainable socio-economic structures and patterns. In addition, they are unable to remove undesired locked-in systems and technologies. Drawing on evolutionary thinking, characterised by diversity, selection, innovation, path-dependence and bounded rationality, an alternative, partly complementary theory of environmental policy is suggested. Specific attention is given to the role of strategies that are aimed at increasing diversity and adaptive flexibility, and at reducing risk.

Survival of the greenest: evolutionary economics and policies for energy innovation

Abstract This paper aims to explore the possible contribution of evolutionary economics to environmental policy-making, in particular with respect to innovations in energy technology. Evolutionary economics offers insights into the mechanisms that underlie innovations, structural changes and transitions, therefore making it of great value in framing policies aimed at stimulating environmental innovations and transitions to sustainable development. The paper identifies ‘bounded rationality’, ‘diversity’, ‘innovation’, ‘selection’, ‘path dependency and lock-in’, and ‘co-evolution’ as the main concepts in evolutionary economics. These concepts are subsequently used to formulate guidelines for designing energy innovation policies. We evaluate current Dutch policies related to energy technologies against this background and examine the development of three particular energy technologies within the adopted evolutionary economics framework, namely fuel cells, nuclear fusion, and photovoltaic cells. We conclude that in order to incorporate the core concepts of evolutionary economics, governmental technology policies should focus more on the diversity of technologies, strategies and businesses, rather than on economic efficiency as the key goal. It is further found that evolutionary concepts conflicting with traditional growth objectives are rarely incorporated in Dutch energy innovation policies.