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- W1518439836 abstract "Summary I have discussed several aspects of sustainable development, beginning with the three fundamental issues: 1. Who speaks for the environment and future generations? 2. How rosy is the future? 3. Are environmental resources unique in production? Answering these questions is inherently difficult. The second topic was an examination of economic theory as giving a decomposition of the economy such that a free market can produce outcomes as efficient as the best central planner can. However, the decomposition runs afoul of the assumption that externalities cannot be present. Internalizing externalities, such as environmental pollution, has been done by command and control regulation. Market mechanisms, such as effluent fees and cap and trade schemes provide more efficient mechanisms for controlling the externalities. The experiment with trading allowances for sulfur dioxide emissions showed that these mechanisms could achieve the goal at must less cost and more quickly. In order to have efficient regulation or to set effluent fees, decision makers need to know the full life cycle implications of a decision. For example, I commented that California's requirement for zero emissions cars likely harms environmental quality by substituting a large amount of lead discharges to the environment for a tiny reduction in ozone concentrations. I described a better tool for calculating the life cycle of a product, process, or material. Sustainable consumption paths depend on the level of renewable resources and the technology for using them. I described a neo-classical growth model the examined the interrelationships among the endowment of fossil fuels, the ability to accomplish R&D, and the willingness to sacrifice current consumption in order to improve the well-being of future generations. Finally, I discussed the role of uncertainty in making decisions about greenhouse policy. The differences between American and European policies on greenhouse policy are more closely related to their view about what to do under uncertainty than their perceptions of the seriousness of the problem. Although long term environmental issues are difficult to model and put into policy analysis, there are some helpful approaches and tools that have been developed." @default.
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- W1518439836 date "1998-01-01" @default.
- W1518439836 modified "2023-09-27" @default.
- W1518439836 title "Sustainable economic development" @default.
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- W1518439836 doi "https://doi.org/10.1016/s0166-1116(98)80056-3" @default.
- W1518439836 hasPublicationYear "1998" @default.
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