Environment and development(1)

“The ‘environment’ is where we live;
and development is what we all do in
attempting to improve our lot within
that abode. The two are inseparable.”
Our Common Future, 1987

ENVIRONMENT AND DEVELOPMENT
Can the world sustain development
without running in resource constraints
and despoiling the environment beyond
repair?

Development is the improvement, either in the general
situation of a system, or in some of its constituent elements
ENVIRONMENT AND DEVELOPMENT
Dimensions of Development
Economic development: improvement of goods and services used
within (or by) a country to generate new goods and services in order
to provide additional consumption and/or investment possibilities to
the members of the country.
Human development: improvement of the dimensions affecting the
well-being of individuals and their relationships with the society
(health, education, per capita income etc.)
Sustainable development: development that meets the needs of the
present without compromising the ability of future generations to meet
their own need.

Economic development:
 Development is the capacity of a nation to generate and sustain an annual
increase in its Gross National Product (GNP).
 GDP: is the market value of all final goods and services produced within a country in a given period
of time
 GNP: is the market value of all final goods and services produced by permanent residents of a
country in a given period of time
 Development was based on capital accumulation
 Efficient market hypothesis
 Development was associated with industrialization and measured solely by
economic activity and increases in wealth
 Requires larger inputs and material which generates larger quantities of waste
and pollution (Roegen, 1971; Meadows et al, 1972).
 Environmental protection was perceived by many as an obstacle to
development
 Environmental quality was not measure as part of development
Economic Development and Environment

Supply curve: private
marginal costs of
production—in other
words, the costs of
producing one more unit of
a good or service
Demand curve: private
marginal benefits curve
because it tells us the
perceived benefits
consumers obtain from
consuming one additional
unit
Economic efficiency
(Equilibrium):
maximization of total
benefits to the buyers and
sellers in the market with no
externalities
Market efficiency (Equilibrium)

High proportion of income is generated for self-
consumption
Prices of non-traded goods are not appropriately
reflected in exchange rates.
Externalities are not reflected.
Issues with Economics development (Neoclassical Economic)
idea

Externalities is central to environmental studies and
economics
Externalities: A situation in which the private costs or
benefits to the producers or purchasers of a good or service
differs from the total social costs or benefits entailed in its
production and consumption. An externality exists whenever
one individual's actions affect the well-being of another
individual -- whether for the better or for the worse.
 Positive Externalities
 Negative Externalities

Economy with Negative Externalities Economy with Negative
Externalities Taxed

Economy with Positive Externalities Economy with Positive Externalities
Subsidy

• Environmental Kuznet Curve (EKC): Development paths
of countries determine whether there will be positive or
negative effects on environment. An inverted-U
relationship between environmental degradation/pollution
and economic development
• As agriculture and resource extraction intensify and
industrialization takes off, both resource depletion and
waste generation accelerate
• At higher levels of development, structural change
towards information-based industries and services, more
efficient technologies, and increased demand for
environmental quality result in levelling-off and a steady
decline of environmental degradation (Kuznet, 1955)

Kuznets Environmental Curve
• An U.S. economist, Simon Kuznets proposed that income inequality
generally rises as development proceeds, falling after the rewards of growth
accumulate
• Similarly, some researchers have claimed to identify “Kuznets Environmental
curve Model”, in which pollution from industry, motor vehicles and
households increases until development generates enough wealth to
promote significant pollution control
• Kuznets based his hypothesis on per capita income. However, there is
controversy among the economists about the turning point the level of per
capita income of the countries when inequality or environmental pollution
starts decreasing
• This ambiguity raises many questions: Does pollution follow as “Kuznets‟
curve, first rising and then falling as income increase? At what income level
does turnaround occur? Do all pollutions follow the same trajectory? Is
pollution reduction in developed economies due primarily to structural
change or on account of regulation?

Intensification
in agricultural
and resource
extraction
activities
production
processes more
efficient,
environmental
regulation,
awareness, and
education
Massive
resource
extraction
and
pollution

Mehboobul Haq’s Model
• This model has novel idea. It is based on sustainable
development model that focus on people as their primary
concern, incorporate new environmentally safe technologies
into all investment planning and seek ways to reflect the
scarcity value of environmental resources in decision-making
• This model stands on five pillars: First, the model must place
the people at the centre. Like economic growth, it is a means.
The primary objective must be to protect human life and human
options
• Every environmental measure must be tested against how
much it adds to the human welfare of the majority of the world's
population. In other words, we must opt for human
development

• Second, the model must be based on environmentally
sound technologies, particularly energy
• By opting clean energy technology (natural gas,
unleaded fuel, clean coal technologies and natural gas,
etc.) we can reduce emissions of particulates by 99
percent
• Third, powerful incentives are needed for economic
agents to reflect the correct value of the environment in all
decision-making. A mechanism must be evolved for the
pricing of environmental resources

• Fourth, sustainable development model must be participatory
and community-based
• They must mobilize all sectors of civil society because
everyone has something valuable to contribute
• They must draw on local wisdom, experience and traditions,
pasture lands, fisheries and wildlife. Unless local communities
believe in and contribute to sustainability, all models will be a
theoretical exercise
• Fifth, the world is generally divided into north and south. The
rich nations live in the north while the poor countries are
situated in the south. The north has roughly one-fifth of the
world's people but consumes 70% of energy, 75% of metals,
85% of its wood and 60% of its food

• As the economy begins to mature, rapid growth in
services becomes the dominant factor and consequently
m decline
• Some industries have significant effect on sectoral
composition of industrial activity on its average pollution
intensity, or pollution per unit of output

Environmental improvement along the path of economic
growth, higher incomes increase demand for goods and
services as well as demand for improved environmental
quality. Thus surest way to improve your environment is to
become rich (Beckerman, 1992)
Poverty leads to environmental degradation and pollution
 Non-sustainable livelihoods
 Rapid urbanization (Fasters growing urbanised centers are
in developing countries)
 Low income and automotive pollution
 Less developed countries become pollution havens

Human Development Index (HDI):Low ,Medium and High
Focus on three dimensions of human welfare:
Longevity – Life expectancy
Knowledge – Access to education, literacy rates (primary,
secondary and tertiary)
Standard of living – GDP per capita:
World Bank 1990: Socio-economic definition of
development
 The Human Development index (HDI) provide better
measures of development than Neoclassical economic
development
 HDI reveals how some countries do better than others in
turning income into education and health opportunities
Human Development and Environment

Limitations of HDI
 High level of generalization
 Restricted to socio-economic
(thus neglecting political and civic)
 Underreporting of income by developing countries
 Only three main variables
 Problem with weighting of variables
Human Development and Environment

ENVIRONMENT, DEVELOPMENT AND HUMAN WELL-BEING
 Past development practices and ideas have been destructive,
even violent to nature.
 Our common Future advocates Sustainable development
 The end point of development is human well-being (UN:MDG’s)
 Human well-being is the extent to which individuals have the
ability and the opportunity to live the kinds of lives they have
reasons to value
 Human well-being encompasses personal and environmental
security, access to materials for a good life, good health and
good social relations
 But Unsustainable development has led to effects on human
well-being through environmental changes (Degradation and
Pollution)

Good Health
A state of complete physical, mental and social wellbeing, and
not merely the absence of disease or illness. Good health not
only includes being strong and feeling well, but also freedom
from avoidable disease, a healthy physical environment,
access to energy, safe water and clean air
Issues affecting the attainment of good health
 Destruction of water sources
 Diseases and infestation
 Physical development impairments
 Heavy metals (mercury and lead) accumulation
EFFECT OF ENVIRONMENTAL CHANGE
ON COMPONENTS OF HUMAN WELL-BEING

Material needs
Relate to access to ecosystem goods-and-services. The
material basis for a good life includes secure and adequate
livelihoods, income and assets, enough food and clean
water at all times, shelter, clothing, access to energy to
keep warm and cool, and access to goods
Issues affecting the attainment of material needs
 Food shortage/scarcity
 Unemployment
 Livelihood at risk
 Decrease or Increase Income (Kerr et al, 2002)

Personal and environmental security
It includes access to natural and other resources, and freedom
from violence, crime and wars (motivated by environmental
drivers), as well as security from natural and human-caused
disasters
Issues affecting the attainment of environmental security
 Crime and violence
 Disputes and Wars
 Hazards
 Climate change
 Migration

Social relations
Positive characteristics that define interactions among
individuals, such as social cohesion, reciprocity, mutual
respect, good gender and family relations, and the ability to
help others and provide for children
Issues affecting the attainment of social relationship
 Diminishes of cultures and indigenous people
 Destruction of local livelihoods systems
 Destruction of traditional foods

DRIVERS AND PRESSURES
OF ENVIRONMENTAL CHANGE (DEGRADATION/POLLUTION)
Population
Population is an important driver behind environmental
change, leading to increased demand for food, water and
energy, and placing pressure on natural resources.
Economic growth
Economic growth and unsustainable consumption patterns
represent a growing pressure on the environment, though
this pressure is often distributed unequally.
Environmental changes and the effects on human
wellbeing are induced by various drivers and pressures.
Influencing the state of the environment with impacts on
the environment itself, and on society and economic
activity

Globalization
Increasing integration of the global economy through trade and
financial flows, and in the integration of knowledge through the
transfer of information, culture and technology
 Exploitation
 Facilitated the spread of exotic species
 Reluctant to enforce strict environmental laws
 Increase inequality
Trade
World trade has as a result of lower transport and communication costs,
trade liberalization and multilateral trade agreements
 Construction of roads
 Increase in fossil fuels
 Increase food prices
 Wildlife trade
 Overfishing
 Increase in disasters (man-made)
OF ENVIRONMENTAL CHANGE

Energy
Global demand for energy keeps growing, placing an ever-increasing
burden on natural resources and the environment
 Increase in carbon dioxide emissions
 Destruction of ecoregions or ecosystems
Technological innovation
Advances in agriculture, energy, medicine and manufacturing have offered
hope for continued human development and a cleaner environment
 Increase in water usage
 Excess fertilization
 Biotechnology (Genetic modified crops)
 Eutrophication
 Depletion of marine fish stocks
 Masts and Cable planting
OF ENVIRONMENTAL CHANGE

CURTAILING DRIVERS OF ENVIRONMENTAL CHANGE
Economic instruments
 Property rights
 Market creation (Water shares, fishing rites)
 Fiscal instruments (Taxes and royalties)
 Charge systems (Water pricing, water treatment fees,
import charges)
 Liability systems (Legal liability and insurance liabilities)
 Bonds and deposits (Deposit refund, Reforestation bonds,
forest management bonds, oil spoil bonds, land
reclamation bonds)
Non-Economic instruments
 Public participation
 Education

Environment and development(1)

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