文档介绍：Lecture
Accounting for the environment
Lecturer: Dr. Justus Wesseler, Wageningen University
Literature: Perman et al. (2003),
Why Measuring Sustainability?
Nobel laureate economist Robert Solow suggested that
‘an innovation in social accounting practice could contribute to more rational debate and perhaps more rational action in the economics of non-renewable resources and the approach to a sustainable economy.’
OECD (1994)
Driving Force-Pressure-State-Impact-Response Framework
The Driving Force - Pressure - State - Impact - Response Framework (DPSIR) provides an overall mechanism for analysing environmental problems.
Driving forces, such as industry and transport, produce
Pressures on the environment, such as polluting emissions, which then degrade the
State of the environment, which then
Impacts on human health and eco-systems, causing society to
Respond with various policy measures, such as regulations, information and taxes, which can be directed at any other part of the system.
OECD: Towards Environmental pressure Indicators for the EU - First Edition 1998.
Important question:
How to measure depreciation on natural capital?
We start with a simple economy, where one good will be produced and either consumed or added to the capital stock:
Objective function:
Constraints:
current-value Hamiltonian:
Important question:
How to measure depreciation on natural capital?
necessary conditions for optimum:
current-value Hamiltonian:
maximized current-value Hamiltonian:
or
Important question:
How to measure depreciation on natural capital?
maximized current-value Hamiltonian:
Ct and dK/dt are the OPTIMAL values of the utility maximization process
instantaneous national e measured in utils
if the utility function is linearlized by using U(Ct) = UCCt: