StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Environmental economic - Essay Example

Cite this document
Summary
A Critique of the Adjusted Net Savings as Measuring Approach to Sustainable Development There are various definitions for sustainable development, the simplest yet comprehensive definition however is the one released in 1987 by the World Commission on Environment and Development (WCED) in stating that it is that which meets the present generation’s needs and does not compromise that of the future generation’s…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.2% of users find it useful
Environmental economic
Read Text Preview

Extract of sample "Environmental economic"

Download file to see previous pages

The propriety of using the adjusted net savings is evaluated. The paper sets off by stating the need for sustainability measurement and identifying the three most popular sustainability indicators. Thereafter, the discussion focused on its characteristics together with criticisms of the indicator. In the end, a brief discussion with reference to Solo’s and Beckerman’s criticism is included for verification of the indicator’s fitness as the sustainability measuring tool. Before moving further, it will be quite beneficial to first examine the need for such measurement.

Current trend on national and global issues places environmental sustainability at the very core (Ollivier & Giruad, 2008). In equating sustainability with wealth and looking at the former from the capitalist’s approach, measurement guides policy maker into the future by being forward-looking (Atkinson). Major decisions are made from intelligent evaluation of trends and gathered statistics. It is important therefore that factors affecting any national or global issues be available in numerical form or visual trends such that decision makers need not labor more to understand the available information.

To measure performance or verify the current standing, indicators are used by interested institutions and policy makers. Numerous environment and sustainability indicators were conceived depending on the interest group that conceptualized the measurement tool or data collection method. For sustainability measurement, three aggregate indicators are prominent, The Ecological Footprint (EF) of World-wide Fund (WWF) for Nature International, Environmental Sustainability Index (ESI) supported by the World Economic Forum while the Adjusted Net Savings (ANS) also known as Genuine Savings was developed and published by the World Bank (Ollivier & Giruad, 2008).

The latter being a product of World Bank is receiving considerable interest and is the subject of this evaluation. The Adjusted Net Savings is an attempt of the World Bank to measure true savings rate of an economy after factoring in investments from human capital, depletion of natural resources, and damage to the environment as a result from pollution. This indicator is not wholly dependent on environmental indicators but infuses some macroeconomic and social indicator as can be seen in the current equation (Bolt, et al, 2002): ANS = (GNS - Dh + CSE - ?

Rn,i - CD) / GNI, where: ANS = Adjusted Net Savings Rate GNS = Gross National Saving Dh = Depreciation of produced capital CSE = Current (non-fixed-capital) expenditure on education Rn,i = Rent from depletion of natural capitali CD = Damages from carbon dioxide emissions GNI = Gross National Income at Market Prices. The above model suggests that sustainable economy is indicated by a positive or at the very least 0 ANS rating. For that to happen, the sum of gross national savings and expenditure on education must exceed the total amount of depreciation and depletion and damages combined.

All these factors are highly dependent on policies supported by an economy. It is highly important therefore to refer to ANS in evaluating or assessing the policies maintained with respect to sustainability as they indicate performance or direction to which an economy must thread on. As previously mentioned, it is advantageous to use ANS because of measurability.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Environmental economic Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/environmental-studies/1413220-environmental-economic
(Environmental Economic Essay Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.org/environmental-studies/1413220-environmental-economic.
“Environmental Economic Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/environmental-studies/1413220-environmental-economic.
  • Cited: 0 times

CHECK THESE SAMPLES OF Environmental economic

Implementation of Planned Objectives

hellip; All business organizations are required to adhere to the principles of sustainable development in order to achieve environmental, economic and social sustainability (Khondker, 2004).... Also, it provides a detailed comparison of Auburn city to both Moreland and Conroe as far as environmental, economic and social sustainability is concerned.... The second matrix is used to classify the environmental, economic and social sustainability of the three organizations and the factors considered in this case are together with waste, energy, water, training, R & D, business networking, job creation and crime reduction....
5 Pages (1250 words) Assignment

Environmental Economic and Political Factors

The paper "environmental economic and Political Factors" examines sources of energy.... The success of venturing into renewable energy depends on environmental economic and political factors.... It has an opportunity to build a strategy that would help it utilize more of its renewable energy resources to produce energy....
9 Pages (2250 words) Essay

The Environmental, Economic, Legal, and Political Aspects of Fracking

This paper "The Environmental, economic, Legal, and Political Aspects of Fracking" focuses on the fact that fracking has often received a lot of criticism.... The Environmental, economic, Legal and Political Consequences of Unlimited Fracking 2.... environmental consequences There are many consequences that come with embracing unlimited hydraulic fracturing or fracking.... The following are the environmental consequences that come with unlimited fracking: a....
11 Pages (2750 words) Term Paper

Investment Decision Making

3 From a corporate perspective, sustainable development refers to companies that are committed to minimizing the environmental footprint of their operations, while simultaneously contributing to the economic and social advancement of communities in which they operate.... From a social perspective companies may schedule community outreach meetings, create the position of "ethics officer," reduce noise and odor pollution, and provide support for school lunch and recreation programs: economic commitment often includes local procurement and hiring mandates, providing scholarships, for higher education and transferable skills training, and community infrastructure improvement....
11 Pages (2750 words) Article

What is the Theory of Coase

There existed a few theories of externality before Coase's.... In general the goods are produced if the value of the goods are more than their manufacturing cost, but if their value is less than the goods are not manufactured.... Here the cost of the manufacturing includes the direct costs like raw material, labor, electricity etc (The Swedes Get it Right, 1) … Let us consider the example of a steel manufacturer around which there are residences....
7 Pages (1750 words) Essay

Environmental economic--sustainable development

World Bank (WB) defines adjusted net saving (ANS) as gauge of economic indicator through a comparative measure of national wealth per year by evaluating changes in produced capital (through investments), natural resources utilization and diminution via extraction of minerals,… WB reported that ANS is used in 140 countries from 1970 to 2008 while upgraded information is yet to release this year (WB, 2011)....
5 Pages (1250 words) Essay

Restoration. Michael

he arrangement of the essay is also impeccable since he proposed solutions as well as the realities of their adoption are detailed following the student's pointing out of the unsustainable monetary schemes that BP has set up to possibly mitigate the severe environmental, economic and even social challenges that resulted from the collapse of the Deep Water Oil rig.... These include the waiters and Lawyers who continue to look for clients willing to make a Number environmental Studies environmental Studies- Review of Essay The essay can be termed as effective in thatit manages to deliver the author's intended message which is his or her displeasure with the huge financial payouts that British Petroleum, BP is submitting to anyone and everyone who claims to have suffered a loss or otherwise as a direct result of the spill which hit the Gulf of Mexico back in 2010....
1 Pages (250 words) Essay

Key Performance Indicators for Coca-Cola

In addition, the page enables reporting on the products performance and… Particularly, Coca-Cola promotes social performance, environmental sustainability and economic empowerment of the enthusiasts.... Particularly, Coca-Cola promotes social performance, environmental sustainability and economic empowerment of the enthusiasts.... Selecting output as an indicator demonstrates to the customers that the firm values environmental, economic and social development....
1 Pages (250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us