Sustainable Development and Its Approaches.pptx

A brief discription about Sustainable development and its approaches

1. Name : Yawar Khursheed Bhat Subject : Environmental Economics Roll No : 2105-cukmr-27 Topic : Sustainable Development and its Approaches , Environmental Kuznets H ypothesis

2. Sustainable Development Sustainable development implies using the environment to fulfill our current needs while also not damaging it in such a way that future generations would be unable to fulfill their needs through it. This principle was first published in the Global Environment Preservation Strategy compiled in 1980 by such organizations as United Nations Environment Programme (UNEP) and the International Union for the Conservation of Nature and Natural Resources (IUCN). Became more popular concept after publication of 1987 Brundtland Commission Report.

3. Millennium Development Goals

4. SDGs 2015 - 2030

5. Definitions “ Sustainability is defined as ... non-declining utility of a representative member of society for millennia into the future”. Pezzey (1992 ) “ The alternative approach to sustainable development is to focus on natural capital assets and suggest that they should not decline through time”. (Pearce et al. (1989)) “Sustainable economy ... is one that can be maintained indefinitely into the future in the face of biophysical limits”. (Daly (2005 ))

6. Brundtland Commission Definition “Sustainable development is development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs”.

7. Pillars of Sustainable Development

8. Approaches Capital Approach : As per this approach, sustainability depends upon the maintenance of natural capital. Hartwick -Solow Approach Defined in terms of maintaining constant consumption of goods and services over a period of time. The constraint of exhaustible (non-renewable) resources is particularly stressed in this approach.

9. Assumptions 1) Welfare W = f(U) U = f(C) C = f(Y) Y = f(K) 2) K = Km + Kn 3) Km and Kn are substitutes 4) Km and Kn are homogenous

10. Y = f(K) Or Y = f(Km + Kn) As Y increases, Km increases but Kn gets decreased To maintain the same level of income, total K should be kept constant Km should increase at the same rate as Kn decreases Then total K will remain constant . If K is constant , Y, C and welfare will also remain constant.

11. Ecological approach Given by Herman Daly in 1996 Natural world is finite and non-growing Km and Kn are not substitutes but complements Km can be substituted for Kn upto a certain limit

12. S ustainability rules advocated by the proponents of this approach The rate of exploitation of renewable resources should not exceed the regeneration rate. Waste emission (pollution) should be kept at or below the waste-absorptive capacity of the environment . The extraction of nonrenewable resources (such as oil) should be consistent with the development of renewable substitutes.

13. More Steps to be followed Adoption of energy and resource saving methods. Technological progress must be promoted through a system which encourages a transition from using non-renewable to using renewable resources. Renewable resources ought to be used. Economic activity must be restricted to a scope that does not transcend the natural resource limitations.

14. Environmental Kuznets hypothesis The environmental Kuznets hypothesis describes an inverse U-shaped relationship between economic development and environmental pollution.