1. Sustainability from an
Economic Perspective
Dr. Joachim H. Spangenberg
Helmholtz Centre for Environmental Research UFZ, Dept. Community
Ecology, Halle, Germany
Presentation at the UNDP Capacity development Lab
“Integrative Capacity Cdevelopment for Sustainable
Development”
Hotel Devin, Bratislava, October 15th, 2012
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

2. From the policy discourse:
- Sustaining the capital stocks
- Getting the prices right
-Green economy
From the sustainability concept
- The full Brundtland definition
-Production & Consumption
-The big capacity deficit
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

3. Sustaining the capital stocks
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

4. Human made capital
Natural capital
Human capital Social capital
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

5. Sustaining the capital stocks
- to generate a constant income flow
by sustaining the sum of all stocks,
assuming substitutability (weak SD),
- or by preserving each stock (no
substitution, strong SD)
HOWEVER: capital stocks have a size, but
no quality – the Mafia is an important
element of the social capital, but not a
contribution to social sustainability.
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

6. Getting the prices right
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

7. The World according to
environmental economists
Services
Biodiversity
The
Labour
Services
Economy
Ecosystem
functions
Income Demand The Production
System &
Sources Consumption
& Sinks The Financial
Pressures System
Nature
Society Human well being
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

8. The World according to
ecological economists
Ecosystem integrity (if natural)
Biodiversity or health (all systems) Services
Sources
Ecosystem
& Sinks
processes
PressureSociety Human well being
Drivers
Pressures
Pressures
Pressures
Economy
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

9. If the environment is part of the
economy
- then pricing it is the solution, then the
market will do the rest and internalising
external cost leads to optimal solutions.
HOWEVER: if vice versa the economy is
part of nature, economic laws do not
necessarily apply, there is no equilibrium,
supply does not match demand, and the
economic optimum is not necessarily
ecologically optimal (extinction can be).
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

10. Green economy
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

11. First step towards a solution?
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

12. Instead of inefficient production
and unjust distribution…
distribution…
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

13. …we need green innovation
and social justice!
justice!
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

14. Innovative environmental
technologies combining
emission reduction and
recycling are needed
but not really new
and insufficient.
E.g.: Metal dust recovery
system, enforced by regional
kings „to avoid damage to
neighbouring fields and
grazing grounds”.
Source: Agricola, G. (1556). De re metallica
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

15. But a Green Economy is less
than Sustainable Development
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

16. The full Brundtland definition
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

17. “Sustainable
development is
development that
meets the needs of the
present without
compromising the
ability of future
generations to meet
their own needs. It
It
contains within it two
key concepts two key
concepts: …
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

18. (definition cont.)
1. The concept of “needs”,
in particular the essential
needs of the world’s poor, to
which overriding priority
should be given, and
2. The idea of limitations
imposed by the state of
technology and social
organisation on the
environment’s ability to meet
present and future needs.”
(WCED 1987, p.43)
p.43)
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

19. A Sustainable Economy
requires limitations ...
… to certain activities, in order to allow
replenishing of natural resources or
naturalcapital, justice and social equality.
The alternative is collapse (e.g. fisheries).
Combatting poverty
requires other allocation mechanisms than
the market, as the poor have no purchsing
power: merit & public goods, entitlements.
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

20. Production & Consumption
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

21. Unsustainable Consumption
Today,
too many people
use money they don‘t have,
to buy things they don‘t need
to impress people they don‘t like.
.
Sustainable consumption
is not about neglecting needs,
but about identifying adequate satisfiers.
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

22. Sustainable Consumption &
Production
Production: Efficiency plus Resilience
The most efficient solution today can be
outdated tomorrow. Innovation systems and
diversity provide resilience.
Consumption: Sufficiency plus Opulence
Living with enough is recommendable, but
quality of life requires opportunities to party,
squandering resources with friends
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

23. The real capacity deficit
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

24. Standard economics fails.
fails.
In sustainability economics,
economics,
capacity building is urgent
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07

25. Thank you
for your
attention
For the presentation
and other papers see
http://seri.academia.edu/JoachimHSpangenberg
Dr. Joachim H. Spangenberg, Biodiversity and SPAC, Belgrade 9.10. 07