Comparing augmented sustainability measures in Scotland: Is there a mismatch?

J.C.V. Pezzey, N. Hanley, D. Tinch, K. Turner

Research output: Contribution to journalArticle

25 Citations (Scopus)

Abstract

We estimate and compare two empirical measures of the weak sustainability of an economy for the first time: the change in augmented Green Net National Product (GNNP), and the interest on augmented Genuine Savings (GS). Yearly calculations are given for each measure for Scotland during 1992-1999. Augmentation means including, using projections to 2020, changed production possibilities enabled by exogenous technical progress or changing oil prices. The change in augmented GNNP and the interest on augmented GS are both always positive, showing no sustainability problem for Scotland then, according to the assumptions underlying our weak sustainability calculations. However, the former greatly exceeds the latter, even when macroeconomic fluctuations are taken into account. This is a mismatch which poses an unresolved problem with the theory. Resolving it may require respecifying the utility functions used in mainstream growth theory.
LanguageEnglish
Pages60-74
Number of pages14
JournalEcological Economics
Volume57
Issue number1
DOIs
Publication statusPublished - 2006

Fingerprint

sustainability
savings
growth theory
macroeconomics
oil
Weak sustainability
Genuine savings
Net national product
Mismatch
Scotland
Sustainability
calculation
product
Macroeconomic fluctuations
Growth theory
Augmentation
Oil prices
Technical progress
Utility function
price

Keywords

  • sustainability
  • scotland
  • environment
  • economics

Cite this

Pezzey, J.C.V. ; Hanley, N. ; Tinch, D. ; Turner, K. / Comparing augmented sustainability measures in Scotland: Is there a mismatch?. In: Ecological Economics. 2006 ; Vol. 57, No. 1. pp. 60-74.
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Comparing augmented sustainability measures in Scotland: Is there a mismatch? / Pezzey, J.C.V.; Hanley, N.; Tinch, D.; Turner, K.

In: Ecological Economics, Vol. 57, No. 1, 2006, p. 60-74.

Research output: Contribution to journalArticle

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