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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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