Foreword by James Gustave Speth ................................ xi
Preface ...................................................... xiii
I Framework and fundamentals
1 Overview and summary ......................................... 3
1.1 Outline of the book ..................................... 4
1.2 Rationale and motivations ............................... 9
1.3 Brief history and summary of sustainomics .............. 20
1.4 Millennium development prospects and worldwide
status ................................................. 25
2 Sustainomics framework ...................................... 31
2.1 Basic concepts and principles .......................... 31
2.2 Key elements of the sustainable development triangle ... 40
2.3 Integration of economic, social and environmental
elements ............................................... 46
2.4 Tools and methods for integrated analysis and
assessment ............................................. 55
2.5 Restructuring development and growth for greater
sustainability ......................................... 64
3 Economics of the environment ................................ 72
3.1 Human activities and the environment ................... 72
3.2 Conventional project evaluation ........................ 73
3.3 Measuring costs and benefits ........................... 77
3.4 Basic concepts for valuing environmental costs and
benefits ............................................... 82
3.5 Multicriteria analysis ................................. 89
3.6 Discount rate, risk and uncertainty .................... 91
3.7 Economy-wide policies and the environment .............. 96
3.8 Appendix: Estimating and using shadow prices .......... 106
4 Ecological and social aspects .............................. 111
4.1 Conceptual framework linking ecological and
socioeconomic systems ................................. 111
4.2 Property rights, governance and ecological-social
linkages .............................................. 118
4.3 Environmental and social assessment ................... 128
Part II Global and transnational applications
5 Global analytical applications ............................. 137
5.1 Climate change and sustainable development ............ 137
5.2 Applying the sustainomics framework to climate
change ................................................ 140
5.3 Climate-change adaptation and mitigation .............. 150
5.4 Global-level interactions between climate change and
sustainable development ............................... 154
5.5 Greenhouse-gas-mitigation prospects in Sri Lanka ...... 159
5.6 Real-options framework for carbon trading under
uncertainty ........................................... 173
6 International process applications: multilevel,
multistakeholder, transdisciplinary dialogues .............. 180
6.1 Global transdisciplinary scientific dialogue on
climate change and sustainable development ............ 180
6.2 Multilevel integration of millennium ecosystem
assessment results and millennium development goals ... 184
6.3 Using the AIM to analyse MA-MDG links at the
national and global levels ............................ 189
6.4 Dams and development: multilevel, multistakeholder
dialogue .............................................. 193
6.5 Evaluation of the Dams and Development Project
(2001-2004) ........................................... 198
6.6 Dams and Development Project evaluation, conclusions
and results ........................................... 200
Part III National and macroeconomic applications
7 National economy-wide applications ......................... 211
7.1 Historical evolution of ideas ......................... 212
7.2 Empirical evidence .................................... 215
7.3 Framework for analysis ................................ 219
7.4 Case study of Brazil - making long-term development
more sustainable ...................................... 225
8 Mathematical macromodel applications ....................... 243
8.1 Optimal growth models and sustainable development ..... 243
8.2 Economic and non-economic costs and benefits of
growth ................................................ 244
8.3 An optimization model: Ecol-Opt-Growth-1 .............. 246
8.4 Ecol-Opt-Growth-1 model conclusions ................... 253
8.5 Macroeconomic policies, second-best theory and
environmental harm .................................... 254
8.6 Developing country case studies ....................... 256
8.7 Appendix A: The Ecol-Opt-Growth-1 model ............... 260
8.8 Appendix B: Second-best nature of macroeconomic
policies when environmental externalities are
present ............................................... 265
9 Computable general equilibrium modelling applications ...... 269
9.1 Economy-wide cross-effects of social and
environmental policies in Chile ....................... 269
9.2 Review of economic, social and environmental issues
and policies .......................................... 272
9.3 Interactions between social, environmental and
economic policies ..................................... 280
9.4 Chile case study conclusions .......................... 288
9.5 Economy-wide policies and deforestation in Costa
Rica .................................................. 289
9.6 Modelling approach .................................... 292
9.7 Main findings of the Costa Rica study ................. 299
9.8 Appendix A: ECOGEM-Chile CGE model summary ............ 303
9.9 Appendix B: Costa Rica CGE model summary .............. 306
Part IV Sub-national sectoral and system applications
10 Energy-sector applications ................................. 313
10.1 Energy and sustainable development .................... 313
10.2 Framework for sustainable energy development .......... 321
10.3 Applying SED to power planning in Sri Lanka ........... 333
10.4 Energy policy options ................................. 338
10.5 Assessing the sustainability of energy policies in
South Africa .......................................... 343
10.6 Making electricity development more sustainable in
the UK ................................................ 350
11 Transport-sector applications .............................. 355
11.1 Generic priorities for sustainable transport .......... 355
11.2 Health-damage costs of air pollution in Sri Lanka ..... 357
11.3 Traffic congestion - economic and environmental
sustainability ........................................ 364
11.4 Other options for reducing traffic congestion ......... 377
11.5 Sustainable transport policy in Sri Lanka ............. 385
12 Water-resource applications ................................ 391
12.1 Hydrological cycle and human actions .................. 391
12.2 Water and development ................................. 395
12.3 Sustainable water-resources management and policy
(SWAMP) ............................................... 402
12.4 Management of groundwater depletion and saline
intrusion in the Philippines .......................... 406
12.5 Policy implementation issues .......................... 413
12.6 Simple water filtration method for cholera
prevention in Bangladesh .............................. 416
12.7 Appendix: Economic costs of producing water ........... 420
13 Ecological and agricultural system applications ............ 424
13.1 Sustainable management of tropical forests ............ 424
13.2 Valuing forest ecosystems in Madagascar ............... 434
13.3 Agriculture and climate change ........................ 441
13.4 Climate impacts on agriculture in Sri Lanka ........... 444
13.5 Appendix: Models used for tropical forest valuation ... 456
14 Resource-pricing-policy applications ....................... 460
14.1 Sustainable pricing policy (SPP) ...................... 460
14.2 Extensions of the basic model ......................... 467
14.3 Calculating economically efficient prices based on
strict LRMC ........................................... 475
14.4 Adjusting efficient prices to meet other objectives ... 480
14.5 Sustainable pricing of water resources ................ 486
14.6 Appendix A: Optimal energy pricing .................... 490
14.7 Appendix B: Demand analysis and forecasting ........... 496
Part V Project and local applications
15 Project applications ....................................... 503
15.1 Small hydro-projects and sustainable energy
development in Sri Lanka .............................. 503
15.2 Main findings of small hydro study .................... 508
15.3 New and renewable energy projects: case study of
solar photovoltaics ................................... 512
15.4 Sustainable rural electrification based on renewable
energy ................................................ 519
15.5 Evaluating a typical water supply project in a poor
African village ....................................... 535
16 Local applications - hazards, disasters and urban growth ... 544
16.1 Sustainable hazard reduction and disaster management
(SHARM) ............................................... 544
16.2 The 2004 Asian Tsunami - a preliminary assessment ..... 554
16.3 Sustainability of long-term growth in Asian cities .... 569
16.4 Urban vulnerability, natural hazards and
environmental degradation ............................. 578
16.5 Making urban development more sustainable in North
America and Europe .................................... 583
References ................................................. 588
Index ......................................................... 631
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