Sustainability - Economic Dimension

Economic Dimension

Further information: Ecological economics, Environmental economics, and Green economy

On one account, sustainability "concerns the specification of a set of actions to be taken by present persons that will not diminish the prospects of future persons to enjoy levels of consumption, wealth, utility, or welfare comparable to those enjoyed by present persons." Sustainability interfaces with economics through the social and ecological consequences of economic activity. Sustainability economics represents: "... a broad interpretation of ecological economics where environmental and ecological variables and issues are basic but part of a multidimensional perspective. Social, cultural, health-related and monetary/financial aspects have to be integrated into the analysis." However, the concept of sustainability is much broader than the concepts of sustained yield of welfare, resources, or profit margins. At present, the average per capita consumption of people in the developing world is sustainable but population numbers are increasing and individuals are aspiring to high-consumption Western lifestyles. The developed world population is only increasing slightly but consumption levels are unsustainable. The challenge for sustainability is to curb and manage Western consumption while raising the standard of living of the developing world without increasing its resource use and environmental impact. This must be done by using strategies and technology that break the link between, on the one hand, economic growth and on the other, environmental damage and resource depletion.

A recent UNEP report proposes a green economy defined as one that “improves human well-being and social equity, while significantly reducing environmental risks and ecological scarcities”: it "does not favour one political perspective over another but works to minimise excessive depletion of natural capital". The report makes three key findings: “that greening not only generates increases in wealth, in particular a gain in ecological commons or natural capital, but also (over a period of six years) produces a higher rate of GDP growth”; that there is “an inextricable link between poverty eradication and better maintenance and conservation of the ecological commons, arising from the benefit flows from natural capital that are received directly by the poor”; "in the transition to a green economy, new jobs are created, which in time exceed the losses in “brown economy” jobs. However, there is a period of job losses in transition, which requires investment in re-skilling and re-educating the workforce”.

Several key areas have been targeted for economic analysis and reform: the environmental effects of unconstrained economic growth; the consequences of nature being treated as an economic externality; and the possibility of an economics that takes greater account of the social and environmental consequences of market behaviour.