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Sustainable Development in Practice: Sustainomics Methodology and Applications Book

Sustainable Development in Practice: Sustainomics Methodology and Applications
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  • Sustainable Development in Practice: Sustainomics Methodology and Applications
  • Written by author Mohan Munasinghe
  • Published by Cambridge University Press, May 2009
  • A practical analysis of current sustainable development prospects using the innovative sustainomics framework.
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Authors

Foreword James Gustave Speth xi

Preface xiii

Part I Framework and fundamentals 3

1 Overview and summary 3

1.1 Outline of the book 4

1.2 Rationale and motivations 9

1.3 Brief history and summary of sustainomics 20

1.4 Millennium development prospects and worldwide status 25

2 Sustainomics framework 31

2.1 Basic concepts and principles 31

2.2 Key elements of the sustainable development triangle 40

2.3 Integration of economic, social and environmental elements 46

2.4 Tools and methods for integrated analysis and assessment 55

2.5 Restructuring development and growth for greater sustainability 64

3 Economics of the environment 72

3.1 Human activities and the environment 72

3.2 Conventional project evaluation 73

3.3 Measuring costs and benefits 77

3.4 Basic concepts for valuing environmental costs and benefits 82

3.5 Multicriteria analysis 89

3.6 Discount rate, risk and uncertainty 91

3.7 Economy-wide policies and the environment 96

3.8 Appendix: Estimating and using shadow prices 106

4 Ecological and social aspects 111

4.1 Conceptual framework linking ecological and socioeconomic systems 111

4.2 Property rights, governance and ecological-social linkages 118

4.3 Environmental and social assessment 128

Part II Global and transnational applications 137

5 Global analytical applications 137

5.1 Climate change and sustainable development 137

5.2 Applying the sustainomics framework to climate change 140

5.3 Climate-change adaptation and mitigation 150

5.4 Global-level interactions between climate change and sustainable development 154

5.5 Greenhouse-gas-mitigation prospects in Sri Lanka 159

5.6 Real-options framework for carbontrading under uncertainty 173

6 International process applications: multilevel, multistakeholder, transdisciplinary dialogues 180

6.1 Global transdisciplinary scientific dialogue on climate change and sustainable development 180

6.2 Multilevel integration of millennium ecosystem assessment results and millennium development goals 184

6.3 Using the AIM to analyse MA-MDG links at the national and global levels 189

6.4 Dams and development: multilevel, multistakeholder dialogue 193

6.5 Evaluation of the Dams and Development Project (2001-2004) 198

6.6 Dams and Development Project evaluation, conclusions and results 200

Part III National and macroeconomic applications 211

7 National economy-wide applications 211

7.1 Historical evolution of ideas 212

7.2 Empirical evidence 215

7.3 Framework for analysis 219

7.4 Case study of Brazil - making long - term development more sustainable 225

8 Mathematical macromodel applications 243

8.1 Optimal growth models and sustainable development 243

8.2 Economic and non-economic costs and benefits of growth 244

8.3 An optimization model: Ecol-Opt-Growth-I 246

8.4 Ecol-Opt-Growth-1 model conclusions 253

8.5 Macroeconomic policies, second-best theory and environmental harm 254

8.6 Developing country case studies 256

8.7 Appendix A: The Ecol-Opt-Growth-1 model 260

8.8 Appendix B: Second-best nature of macroeconomic policies when environmental externalities are present 265

9 Computable general equilibrium modelling applications 269

9.1 Economy-wide cross-effects of social and environmental policies in Chile 269

9.2 Review of economic, social, and environmental issues and policies 272

9.3 Interactions between social, environmental and economic policies 280

9.4 Chile case study conclusions 288

9.5 Economy-wide policies and deforestation in Costa Rica 289

9.6 Modelling approach 292

9.7 Main findings of the Costa Rica study 299

9.8 Appendix A: ECOGEM-Chile CGE model summary 303

9.9 Appendix B: Costa Rica CGE model summary 306

Part IV Sub-national sectoral and system applications

10 Energy-sector applications 313

10.1 Energy and sustainable development 313

10.2 Framework for sustainable energy development 321

10.3 Applying SED to power planning in Sri Lanka 333

10.4 Energy policy options 338

10.5 Assessing the sustainability of energy policies in South Africa 343

10.6 Making electricity development more sustainable in the UK 350

11 Transport-sector applications 355

11.1 Generic priorities for sustainable transport 355

11.2 Health-damage costs of air pollution in Sri Lanka 357

11.3 Traffic congestion - economic and environmental sustainability 364

11.4 Other options for reducing traffic congestion 377

11.5 Sustainable transport policy in Sri Lanka 385

12 Water-resource applications 391

12.1 Hydrological cycle and human actions 391

12.2 Water and development 395

12.3 Sustainable water-resources management and policy (SWAMP) 402

12.4 Management of groundwater depletion and saline intrusion in the Philippines 406

12.5 Policy implementation issues 413

12.6 Simple water filtration method for cholera prevention in Bangladesh 416

12.7 Appendix: Economic costs of producing water 420

13 Ecological and agricultural system applications 424

13.1 Sustainable management of tropical forests 424

13.2 Valuing forest ecosystems in Madagascar 434

13.3 Agriculture and climate change 441

13.4 Climate impacts on agriculture in Sri Lanka 444

13.5 Appendix: Models used for tropical forest valuation 456

14 Resource - pricing - policy applications 460

14.1 Sustainable pricing policy (SPP) 460

14.2 Extensions of the basic model 467

14.3 Calculating economically efficient prices based on strict LRMC 475

14.4 Adjusting efficient prices to meet other objectives 480

14.5 Sustainable pricing of water resources 486

14.6 Appendix A: Optimal energy pricing 490

14.7 Appendix B: Demand analysis and forecasting 496

Part V Project and local applications

15 Project applications 503

15.1 Small hydro-projects and sustainable energy development in Sri Lanka 503

15.2 Main findings of small hydro study 508

15.3 New and renewable energy projects: case study of solar photovoltaics 512

15.4 Sustainable rural electrification based on renewable energy 519

15.5 Evaluating a typical water supply project in a poor African village 535

16 Local applications - hazards, disasters and urban growth 544

16.1 Sustainable hazard reduction and disaster management (SHARM) 544

16.2 The 2004 Asian Tsunami - a preliminary assessment 554

16.3 Sustainability of long-term growth in Asian cities 569

16.4 Urban vulnerability, natural hazards and environmental degradation 578

16.5 Making urban development more sustainable in North America and Europe 583

References 588

Index 631


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