Sustainable Development

Sustainable development
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Sustainable development is a road-map, an action plan, for achieving sustainability in any
activity that uses resources and where immediate and intergenerational replication is
demanded. As such, sustainable development is the organizing principle for sustaining finite
resources necessary to provide for the needs of future generations of life on the planet. It is
a process that envisions a desirable future state for human societies in which living
conditions and resource-use continue to meet human needs without undermining the
integrity, stability and beauty of naturalbiotic systems.
!"#
Contents
!hide#
• " $ustainability and $ustainable %evelopment
• & %efinition
• ' (istory
• ) %omains
• * +cology
o *." Agriculture
o *.& +nergy
o *.' +nvironment
o *.) ,ransportation
 *.)." Improve public transit
 *.).& +ncourage walking and biking
 *.).' Increase the cost of car ownership and gas ta-es
• . +conomics
o .." /usiness
o ..& Architecture
• 0 1ulture
• 2 3olitics
• 4 ,hemes
o 4." 3rogress
o 4.& 5easurement
o 4.' 6atural capital
o 4.) /usiness as usual
• "7 $ee also
• "" Further reading
• "& 8eferences
• "' +-ternal links
Sustainability and Sustainable Development[edit]
Main article: Sustainability
As a working definition, sustainability can be defined as the practice of maintaining
processes of productivity indefinitely9natural or human made9by replacing resources used
with resources of e:ual or greater value without degrading or endangering natural biotic
systems.
!&#
According to 5. (asna, sustainability is a function of social, economic,
technological and ecological themes.
!'#
$ustainable development ties together concern for
the carrying capacity of natural systems with the social, political, and economic challenges
faced by humanity. As early as the "407s, the concept of sustainability was employed to
describe an economy in e:uilibrium with basic ecological support systems.
!)#
$cientists in
many fields have highlighted The Limits to Growth,
!*#!.#
and economists have presented
alternatives, for e-ample a ;steady state economy;<
!0#
to address concerns over the impacts of
e-panding human development on the planet.
,he term sustainable development rose to significance after it was used by the /rundtland
1ommission in its "420 report =ur 1ommon Future. In the report, the commission coined
what has become the most often-:uoted definition of sustainable development>
development that meets the needs of the present without compromising the ability of future
generations to meet their own needs.
!2#!4#
,he ?nited 6ations 5illennium
%eclaration identified principles and treaties on sustainable development,
including economic development, social development andenvironmental protection.
Definition[edit]
,he natural resource of windpowers these *5W wind turbines on this wind farm &2 km off the coast
of/elgium.
,he ?nited 6ations World 1ommission on +nvironment and %evelopment @W1+%A in its
"420 report =ur 1ommon Future defines sustainable development> %evelopment that
meets the needs of the present without compromising the ability of future generations to
meet their own needs.
!2#
?nder the principles of the ?nited 6ations 1harter the 5illennium
%eclaration identified principles and treaties on sustainable development, including
economic development, social development and environmental protection. /roadly defined,
sustainable development is a systems approach to growth and development and to manage
natural, produced, and social capital for the welfare of their own and future generations.
,he concepts of sustainable development and sustainability derive from the older forestry
term sustained yield, which, in turn, is a translation of the Berman term nachhaltiger
+rtrag dating from "0"'.
!"7#
$ustainability science is the study of the concepts of sustainable
development and environmental science. ,here is an additional focus on the present
generations; responsibility to regenerate, maintain and improve planetary resources for use
by future generations.
!""#
History[edit]
Main article: History of sustainability
,he concept of sustainable development has its roots in forest management as early as the
"&th to ".th centuries.
!"&#
(owever, over the last five decades the concept has significantly
broadened. ,he first use of the term sustainable in the contemporary sense was by the 1lub
of 8ome in "40& in its classic report on the Cimits to Browth, written by a group of scientists
led by %ennis and%onella 5eadows of the 5assachusetts Institute of ,echnology.
%escribing the desirable state of global e:uilibrium, the authors used the word
sustainable> We are searching for a model output that represents a world system that is>
@"A sustainable without sudden and uncontrolled collapse and @&A capable of satisfying the
basic material re:uirements of all of its people.
!"7#!""#
•
In "427, the International ?nion for the 1onservation of 6ature published a world
conservation strategy that included one of the first references to sustainable
development as a global priority.
!"'#
•
In "42&, the ?nited 6ations World 1harter for 6ature raised five principles
of conservation by which human conduct affecting nature is to be guided and Dudged.
!")#
• In "420, the ?nited 6ations World 1ommission on +nvironment and
%evelopment released the report Our Common Future, now commonly named the
;/rundtland 8eport; after the commission;s chairperson, the then 3rime 5inister of
6orway Bro (arlem /rundtland. ,he report included what is now one of the most widely
recognised definitions> $ustainable development is development that meets the needs
of the present without compromising the ability of future generations to meet their own
needs.
!"*#
,he /rundtland 8eport goes on to say that sustainable development also
contains within it two key concepts>
".
,he concept of needs, in particular, the essential needs of the world;s poor, to
which overriding priority should be given< and
&.
,he idea of limitations imposed by the state of technology and social organization on
the environment;s ability to meet present and future needs.
!"*#
In "44&, the ?6 1onference on +nvironment and %evelopment published in "44& the +arth
1harter, which outlines the building of a Dust, sustainable, and peaceful global society in the
&"st century. ,he action plan Agenda &" for sustainable development identified information,
integration, and participation as key building blocks to help countries achieve development
that recognizes these interdependent pillars. It emphasises that in sustainable development
everyone is a user and provider of information. It stresses the need to change from old
sector-centered ways of doing business to new approaches that involve cross-sectoral co-
ordination and the integration of environmental and social concerns into all development
processes. Furthermore, Agenda &" emphasises that broad public participation in decision
making is a fundamental prere:uisite for achieving sustainable development.
!".#
,he ?6 1ommission on $ustainable %evelopment integrated sustainable development into
the ?6 $ystem. Indigenous peoples have argued, through various international forums such
as the ?nited 6ations 3ermanent Forum on Indigenous Issues and the 1onvention on
/iological %iversity, that there are four pillars of sustainable development, the fourth being
cultural. ,he ?niversal %eclaration on 1ultural %iversity from &77" states> ... cultural
diversity is as necessary for humankind as biodiversity is for nature! it becomes "one of the
roots of development understood not simply in terms of economic growth, but also as a
means to achieve a more satisfactory intellectual, emotional, moral and spiritual e-istence.
!"0#
,he proposed changes were supported by a study in &7"', which concluded that
sustainability reporting should be reframed through the lens of four interconnected domains>
ecology, economics, politics and culture.
!"2#
Domains[edit]
See also: #lanetary boundaries and Outline of sustainability
%ifferent domains have been identified for research and analysis of sustainable
development. /roadly defined, these include ecology, economics, politics and culture 9 as
used by the ?nited 6ations and a number of other international organizations.
!"4#
Ecology[edit]
This section possibly contains original research. Pleaseimprove
it by verifying the claims made and adding inline citations.
Statements consisting only of original research should be
removed. (April 2014)
See also: $colo%ical en%ineerin%
+cological footprint for different nations compared to their (uman %evelopment Inde- @(%IA
,he ecological sustainability of human settlements is part of the relationship between
humans and their natural, social and built environments.
!&7#
Also termed human ecology, this
broadens the focus of sustainable development to include the domain of human health.
Fundamental human needs such as the availability and :uality of air, water, food and shelter
are also the ecological foundations for sustainable development<
!&"#
addressing public health
risk through investments in ecosystem servicescan be a powerful and transformative force
for sustainable development which, in this sense, e-tends to all species.
!&&#
Agriculture[edit]
See also: Sustainable a%riculture
$ustainable agriculture may be defined as consisting of environmentally-friendly methods of
farming that allow the production of crops or livestock without damage to human or natural
systems. 5ore specifically, it might be said to include preventing adverse effects to soil,
water, biodiversity, surrounding or downstream resources9as well as to those working or
living on the farm or in neighboring areas. Furthermore, the concept of sustainable
agriculture e-tends intergenerationally, relating to passing on a conserved or improved
natural resource, biotic, and economic base instead of one which has been depleted or
polluted.
!&'#
$ome important elements of sustainable agriculture
are permaculture, agroforestry, mi-ed farming, multiple cropping, andcrop rotation.
!&)#
6umerous sustainability standards and certification systems have been established in recent
years to meet development goals, thus offering consumer choices for sustainable agriculture
practices. Well-known food standards include organic, 8ainforest Alliance, Fair ,rade, ?,E
1ertified, /ird Friendly, and the Common Code for the Coffee Community@)1A.
!&*#!&.#
Energy[edit]
Main articles: Smart %rid and Sustainable ener%y
$ustainable energy is the sustainable provision of energy that is clean and lasts for a long
period of time. ?nlike the fossil fuel that most of the countries are using, renewable energy
only produces little or even no pollution.
!&0#
,he most common types of renewable energy in
?$ are solar and wind energy, solar energy are commonly used on public parking meter,
street lights and the roof of buildings.
!&2#
=n the other hand, wind energy is e-panding :uickly
in recent years, which generated "&,777 5W in &7"'. ,he largest wind power station is in
,e-as and followed up by 1alifornia.
!&4#!'7#
(ousehold energy consumption can also be
improved in a sustainable way, like using electronic with energy star
Fhttps>GGen.wikipedia.orgGwikiG+nergyH$tarI logo, conserving water and energy. 5ost of
1aliforniaJs fossil fuel infrastructures are sited in or near low-income communities, and have
traditionally suffered the most from 1aliforniaJs fossil fuel energy system. ,hese communities
are historically left out during the decision- making process, and often end up with dirty
power plants and other dirty energy proDects that poison the air and harm the area. ,hese
to-ins are maDor contributors to significant health problems in the communities. While
renewable energy becomes more common, the government begins to shut down some of
the fossil fuel infrastructures in order to consume renewable energy and provide a better
social e:uity to the specific community.
!'"#
Environment[edit]
See also: $nvironmental en%ineerin% and $nvironmental technolo%y
=nly &.*K of the +arth;s water is freshwater, and 42.2K of that water is in ice and groundwater.
Image> Apollo "0.
/eyond ecology as the intersection of humans in the environment, environmental
sustainability concerns thenatural environment and how it endures and remains diverse and
productive. $ince 6atural resources are derived from the environment, the state of air, water,
and the climate are of particular concern. ,he I311 Fifth Assessment 8eport outlines current
knowledge about scientific, technical and socio-economic information concerning climate
change, and lists options foradaptation and mitigation.
!'&#
+nvironmental sustainability
re:uires society to design activities to meet human needs while preserving the life support
systems of the planet. ,his, for e-ample, entails using water sustainably, utilizing renewable
energy, and sustainable material supplies @e.g. harvesting wood from forests at a rate that
maintains the biomass and biodiversityA.
An unsustainable situation occurs when natural capital @the sum total of nature;s resourcesA
is used up faster than it can be replenished. $ustainability re:uires that human activity only
uses nature;s resources at a rate at which they can be replenished naturally. Inherently the
concept of sustainable development is intertwined with the concept of carrying capacity.
,heoretically, the long-term result of environmental degradation is the inability to sustain
human life. $uch degradation on a global scale should imply an increase in human death
rate until population falls to what the degraded environment can support. If the degradation
continues beyond a certaintipping point or critical threshold it would lead to
eventual e-tinction for humanity.
!citation needed#
Consumption of renewable resources State of environment Sustainability
More than nature's ability to replenish Environmental degradation Not sustainable
Eual to nature's ability to replenish Environmental euilibrium Steady state economy
!ess than nature's ability to replenish Environmental rene"al Environmentally sustainable
Transportation[edit]
$ome western countries and ?nited $tates are making transportation more sustainable in
both long-term and short-term implementations.
!''#
$ince these countries are mostly highly
automobile-orientated area, the main transit that people use is personal vehicles. ,herefore,
1alifornia is one of the highest greenhouse gases emission in the country. ,he federal
government has to come up with some plans to reduce the total number of vehicle trips in
order to lower greenhouse gases emission. $uch as>
Improve public transit[edit]
- Carger coverage area in order to provide more mobility and accessibility, use new
technology to provide a more reliable and responsive public transportation network,
company providing +1= pass to employees.
!')#
Encourage walking and biking[edit]
-Wider pedestrian pathway, bike share station in commercial downtown, locate parking lot far
from the shopping center, limit on street parking, slower traffic lane in downtown area.
Increase the cost of car ownership and gas taes[edit]
-Increase parking feesG toll fees, encourage people to drive more fuel efficient vehicles.
-$ocial e:uity problem, poor people usually drive old cars that have low fuel efficiency.
(owever, government can use the e-tra revenue collected from ta-es and tolls to improve
the public transportation and benefit the poor community.
!'*#
Economics[edit]
A sewage treatment plant that uses environmentally friendly solar energy, located at $antuari de
Cluc monastery.
See also: $colo%ical economics
It has been suggested that because of rural povertyand overe-ploitation, environmental
resources should be treated as important economic assets, called natural capital.
!'.#
+conomic development has traditionally re:uired a growth in the gross domestic product.
,his model of unlimited personal and B%3 growth may be over.
!'0#
$ustainable development
may involve improvements in the :uality of life for many but may necessitate a decrease in
resource consumption.
!'2#
According to ecological economist5alte Faber, ecological
economics is defined by its focus on nature, Dustice, and time. Issues ofintergenerational
e:uity, irreversibility of environmental change, uncertainty of long-term outcomes, and
sustainable development guide ecological economic analysis and valuation.
!'4#
In "420 the economist +dward /arbier published the study The Concept of Sustainable
$conomic &evelopment, where he recognized that goals of environmental conservation and
economic development are not conflicting and can be reinforcing each other.
!)7#
A World /ank study from "444 concluded that based on the theory of genuine savings,
policymakers have many possible interventions to increase sustainability,
in macroeconomics or purely environmental.
!)"#
A study from &77" noted that efficient policies
for renewable energy and pollution are compatible with increasing human welfare, eventually
reaching a golden-rule steady state.
!)&#
,he study, 'nterpretin% Sustainability in $conomic
Terms, found three pillars of sustainable development, interlinkage, intergenerational e:uity,
and dynamic efficiency.
!)'#
A meta review in &77& looked at environmental and economic valuations and found a lack of
Lsustainability policiesM.
!))#
A study in &77) asked if we consume to much.
!)*#
A study concluded
in &770 that knowledge, manufactured and human capital@health and educationA has not
compensated for the degradation of natural capital in many parts of the world.
!).#
It has been
suggested that intergenerational e:uity can be incorporated into a sustainable development
and decision making, as has become common in economic valuations of climate economics.
!)0#
A meta review in &774 identified conditions for a strong case to act on climate change, and
called for more work to fully account of the relevant economics and how it affects human
welfare.
!)2#
According toNohn /aden
!)4#
Lthe improvement of environment :uality depends on
the market economy and the e-istence of legitimate and protected property rights.M ,hey
enable the effective practice of personal responsibility and the development of mechanisms
to protect the environment. ,he $tate can in this conte-t Lcreate conditions which encourage
the people to save the environment.M
!*7#
!usiness[edit]
See also: Corporate sustainability
,he most broadly accepted criterion for corporate sustainability constitutes a firmJs efficient
use of natural capital. ,his eco-efficiency is usually calculated as the economic value added
by a firm in relation to its aggregated ecological impact.
!*"#
,his idea has been popularised by
the World /usiness 1ouncil for $ustainable %evelopment @W/1$%A under the following
definition> +co-efficiency is achieved by the delivery of competitively priced goods and
services that satisfy human needs and bring :uality of life, while progressively reducing
ecological impacts andresource intensity throughout the life-cycle to a level at least in line
with the earthJs carrying capacity. @%e$imone and 3opoff, "440> )0A
!*&#
$imilar to the eco-efficiency concept but so far less e-plored is the second criterion for
corporate sustainability. $ocio-efficiency
!*'#
describes the relation between a firm;s value
added and its social impact. Whereas, it can be assumed that most corporate impacts on the
environment are negative @apart from rare e-ceptions such as the planting of treesA this is
not true for social impacts. ,hese can be either positive @e.g. corporate giving, creation of
employmentA or negative @e.g. work accidents, mobbing of employees, human rights
abusesA. %epending on the type of impact socio-efficiency thus either tries to minimize
negative social impacts @i.e. accidents per value addedA or ma-imise positive social impacts
@i.e. donations per value addedA in relation to the value added.
/oth eco-efficiency and socio-efficiency are concerned primarily with increasing economic
sustainability. In this process they instrumentalize both natural and social capital aiming to
benefit from win-win situations. (owever, as %yllick and (ockerts
!*'#
point out the business
case alone will not be sufficient to realise sustainable development. ,hey point towards eco-
effectiveness, socio-effectiveness, sufficiency, and eco-e:uity as four criteria that need to be
met if sustainable development is to be reached.
Architecture[edit]
See also: Sustainable architecture
In sustainable architecture the recent movements of 6ew ?rbanism and 6ew 1lassical
Architecturepromote a sustainable approach towards construction, that appreciates and
develops smart growth, architectural tradition and classical design.
!*)#!**#
,his in contrast
to modernist and globally uniform architecture, as well as opposing to solitary housing
estates and suburban sprawl, with long commuting distances and large ecological footprints.
!*.#
/oth trends started in the "427s. @It should be noted that sustainable architecture is
predominantly relevant to the economics domain while architectural landscaping pertains
more to the ecological domain.A
Culture[edit]
This section needs additional citations for verification.Please
help improve this article by adding citations to reliable sources.
#nsourced material may be challenged and removed.(June 2014)
Framing of sustainable development progress according to the 1ircles of $ustainability, used by the ?nited
6ations.
Working with a different emphasis, some researchers and institutions have pointed out that a
fourth dimension should be added to the dimensions of sustainable development, since the
triple-bottom-line dimensions of economic, environmental and social do not seem to be
enough to reflect the comple-ity of contemporary society. In this conte-t, the Agenda &" for
culture and the ?nited 1ities and Cocal Bovernments @?1CBA +-ecutive /ureau lead the
preparation of the policy statement L1ulture> Fourth 3illar of $ustainable %evelopmentM,
passed on "0 6ovember &7"7, in the framework of the World $ummit of Cocal and 8egional
Ceaders O 'rd World 1ongress of ?1CB, held in 5e-ico 1ity. although some which still
argue that economics is primary, and culture and politics should be included in ;the social;.
,his document inaugurates a new perspective and points to the relation between culture and
sustainable development through a dual approach> developing a solid cultural policy and
advocating a cultural dimension in all public policies. ,he 1ircles of $ustainability approach
distinguishes the four domains of economic, ecological, political and cultural sustainability.
!*0#
!*2#
=ther organizations have also supported the idea of a fourth domain of sustainable
development. ,he 6etwork of +-cellence $ustainable %evelopment in a %iverse World,
!*4#
sponsored by the+uropean ?nion, integrates multidisciplinary capacities and
interprets cultural diversity as a key element of a new strategy for sustainable development.
,he Fourth 3illar of $ustainable %evelopment ,heory has been referenced by e-ecutive
director of I5I Institute at ?6+$1= Pito %i /ari
!.7#
in his manifesto of art and architectural
movement 6eo-Futurism, whose name was inspired by the "420 ?nited 6ationsJ report =ur
1ommon Future. ,he 1ircles of $ustainability approach used by 5etropolis defines the
@fourthA cultural domain as practices, discourses, and material e-pressions, which, over time,
e-press continuities and discontinuities of social meaning.
!."#
Politics[edit]
See also: $nvironmental ethics( $nvironmental %overnance and Sustainability metrics and
indices
A study concluded that social indicators and, therefore, sustainable development indicators,
are scientific constructs whose principal obDective is to inform public policy-making.
!.&#
,heInternational Institute for $ustainable %evelopment has similarly developed a political
policy framework, linked to a sustainability inde- for establishing measurable entities and
metrics. ,he framework consists of si- core areas, international trade and investment,
economic policy, climate change and energy, measurement and assessment, natural
resource management, and the role of communication technologies in sustainable
development.
,he ?nited 6ations Blobal 1ompact 1ities 3rogramme has defined sustainable political
development is a way that broadens the usual definition beyond states and governance. ,he
political is defined as the domain of practices and meanings associated with basic issues of
social power as they pertain to the organisation, authorisation, legitimation and regulation of
a social life held in common. ,his definition is in accord with the view that political change is
important for responding to economic, ecological and cultural challenges. It also means that
the politics of economic change can be addressed. ,hey have listed seven subdomains of
the domain of politics>
!."#
". =rganization and governance
&. Caw and Dustice
'. 1ommunication and criti:ue
). 8epresentation and negotiation
*. $ecurity and accord
.. %ialogue and reconciliation
0. +thics and accountability
,his accords with the /rundtland 1ommission emphasis on development that is guided by
human rights principles @see aboveA.
Themes[edit]
This section possibly contains original research. Pleaseimprove
it by verifying the claims made and adding inline citations.
Statements consisting only of original research should be
removed. (April 2014)
"rogress[edit]
See also: Sustainable development %oals
,he ?nited 6ations 1onference on $ustainable %evelopment @?61$%A, also known as 8io
&7"&, 8ioQ&7, or +arth $ummit &7"&, was the third international conference on sustainable
development, which aimed at reconciling the economic and environmental goals of the
global community. Few nations met the World Wide Fund for 6ature;s definition of
sustainable development criteria established in &77..
!.'#
#easurement[edit]
Main articles: $colo%ical footprint and Sustainability measurement
%eforestation and increased road-building in the Amazon 8ainforest are a significant concern because of
increased human encroachment upon wildernessareas, increased resource e-traction and further threats
to biodiversity.
In &770 a report for the ?.$. +nvironmental 3rotection Agency stated> LWhile much
discussion and effort has gone into sustainability indicators, none of the resulting systems
clearly tells us whether our society is sustainable. At best, they can tell us that we are
heading in the wrong direction, or that our current activities are not sustainable. 5ore often,
they simply draw our attention to the e-istence of problems, doing little to tell us the origin of
those problems and nothing to tell us how to solve them.M
!.)#
6evertheless a maDority of
authors assume that a set of well defined and harmonised indicators is the only way to make
sustainability tangible. ,hose indicators are e-pected to be identified and adDusted through
empirical observations @trial and errorA.
!.*#
,he most common criti:ues are related to issues like data :uality, comparability, obDective
function and the necessary resources.
!..#
(owever a more general criticism is coming from
the proDect management community> (ow can a sustainable development be achieved at
global level if we cannot monitor it in any single proDectR
!.0#!.2#
,he 1uban-born researcher and entrepreneur $onia /ueno suggests an alternative
approach that is based upon the integral, long-term cost-benefit relationship as a measure
and monitoring tool for the sustainability of every proDect, activity or enterprise.
!.4#
!07#
Furthermore this concept aims to be a practical guideline towards sustainable
development following the principle of conservation and increment of value rather than
restricting the consumption of resources.
8easonable :ualifications of sustainability are seen ?.$. Breen /uilding 1ouncilJs @?$B/1A
Ceadership in +nergy and +nvironmental %esign @C++%A. ,his design incorporates some
ecological, economic, and social elements. ,he goals presented by C++% design goals are
sustainable sites, water efficiency, energy and atmospheric emission reduction, material and
resources efficiency, and indoor environmental :uality. Although amount of structures for
sustainability development is many, these :ualification has become a standard for
sustainable building.
$atural capital[edit]
%eforestation of native rain forest in 8io de Naneiro 1ity for e-traction of clay for civil engineering @&774
pictureA.
,he sustainable development debate is based on the assumption that societies need to
manage three types of capital @economic, social, and naturalA, which may be non-
substitutable and whose consumption might be irreversible.
!0"#
%aly @"44"A,
!0&#
for e-ample,
points to the fact that natural capital can not necessarily be substituted by economic capital.
While it is possible that we can find ways to replace some natural resources, it is much more
unlikely that they will ever be able to replace eco-system services, such as the protection
provided by the ozone layer, or the climate stabilizing function of the Amazonian forest. In
fact natural capital, social capital and economic capital are often complementarities. A further
obstacle to substitutability lies also in the multi-functionality of many natural resources.
Forests, for e-ample, not only provide the raw material for paper @which can be substituted
:uite easilyA, but they also maintain biodiversity, regulate water flow, and absorb 1=&.
!citation
needed#
Another problem of natural and social capital deterioration lies in their partial irreversibility.
,he loss in biodiversity, for e-ample, is often definite. ,he same can be true for cultural
diversity. For e-ample with globalisation advancing :uickly the number of indigenous
languages is dropping at alarming rates. 5oreover, the depletion of natural and social capital
may have non-linear conse:uences. 1onsumption of natural and social capital may have no
observable impact until a certain threshold is reached. A lake can, for e-ample, absorb
nutrients for a long time while actually increasing its productivity. (owever, once a certain
level of algae is reached lack of o-ygen causes the lakeJs ecosystem to break down
suddenly.
!citation needed#
!usiness as usual[edit]
/efore flue-gas desulfurization was installed, the air-polluting emissions from this power plant in 6ew
5e-ico contained e-cessive amounts of sulfur dio-ide.
If the degradation of natural and social capital has such important conse:uence the :uestion
arises why action is not taken more systematically to alleviate it. 1ohen and Winn @&770A
!0'#
point to four types of market failure as possible e-planations> First, while the benefits of
natural or social capital depletion can usually be privatized, the costs are often e-ternalized
@i.e. they are borne not by the party responsible but by society in generalA. $econd, natural
capital is often undervalued by society since we are not fully aware of the real cost of the
depletion of natural capital. Information asymmetry is a third reason9often the link between
cause and effect is obscured, making it difficult for actors to make informed choices. 1ohen
and Winn close with the realization that contrary to economic theory many firms are not
perfect optimizers. ,hey postulate that firms often do not optimize resource allocation
because they are caught in a business as usual mentality.
!citation needed#
See also