Sustainable Development: Critical Issues (Development Centre Studies)

FOREWORD
TABLE OF CONTENTS
Section I
	Chapter 1.
		TABLE OF CONTENTS
		Chapter 1. ECONOMIC, ENVIRONMENTAL AND SOCIAL TRENDS
			Introduction
			Economic growth, technology and globalisation
				Figure 1.1. Long-term trends in real GDP per capita in major world regions
				Figure 1.2. Long-term trends in productivity and key technologies
			Environmental pressures
				Table 1.1. International targets for preserving life support systems
				Figure 1.3. Global temperatures and emissions of greenhouse gases
				Table 1.2. Economic pressures on biodiversity
				Figure 1.4. Annual freshwater withdrawals, 1997
				Figure 1.5. Trends in environment and natural resources in OECD countries
				Table 1.3. Environmental factors affecting health
				Figure 1.6. Economic losses from large weather-related disasters
				Figure 1.7. World population projections
			Social pressures
				Figure 1.8. Trends in inequality in real GDP per capita between countries
				Box 1.1 International development goals
				Figure 1.9. Dependency ratios in OECD countries
				Figure 1.10. Trends in income inequality within OECD countries
			Conclusions
		NOTES
		REFERENCES
	Chapter 2.
		TABLE OF CONTENTS
		Chapter 2. KEY FEATURES AND PRINCIPLES
			Introduction
			Historical background
			Interactions among key dimensions of sustainable development
				Figure 2.1. Some interactions between economic, social and environmental factors
			Needs, resources and productivity
			Needs
			Capital
				Figure 2.2. Different types of capital and human well-being
			Productivity
			Complementarity and substitutability among types of capital
				Box 2.1. The role of social capital in sustaining human well-being
			Valuation and aggregation of different types of capital
			Internalising externalities and providing public goods
				Figure 2.3. Total value of natural capital
			Population size and per capita well-being
			Future generations: time horizons and discount rates
			Risks and uncertainties
			Intra-generational equity and social sustainability
			Sustainability at the sectoral and local levels
			Conclusions
				Box 2.2. Important elements of sustainable development policies
		NOTES
		REFERENCES
	Chapter 3.
		TABLE OF CONTENTS
		Chapter 3. MEASUREMENT
			Introduction
			Measurement considerations
				Box 3.1. OECD work relevant to sustainable development measurement
			Assessing overall sustainability
				Box 3.2. Genuine savings as an indicator of sustainable development
				Figure 3.1. Genuine savings rates, 1998
			Frameworks for measuring sustainable development
			Accounting frameworks
				Box 3.3. Examples of resource accounting for subsoil assets: European Union pilot study results
			Analytical frameworks
			Resource indicators
			Environmental assets
			Economic assets
			Social assets
				Table 3.1. Resource indicators
			Possible resource indicators
			Outcome indicators
			Towards an OECD set of sustainable development indicators
				Table 3.2. Outcome indicators
				Box 3.4. Key principles in selecting sustainable development indicators
				Table 3.3. A preliminary set of sustainable development indicators
			Conclusions
		NOTES
		REFERENCES
		Annex 3.A.
			Annex 3.A. INDICATORS FOR SUSTAINABLE DEVELOPMENT
				Figure 3.A.1. CO2 emissions from energy use
				Figure 3.A.2. Total man-made NOx and SOx emissions
				Figure 3.A.3. Total freshwater abstraction and resources
				Figure 3.A.4. Consumption of energy resources
				Figure 3.A.5. Major protected area in per cent of territory in 1996
				Figure 3.A.6. Multi-factor productivity growth
				Figure 3.A.7. Net foreign assets and current account balance
				Figure 3.A.8. Proportion of the population (25-64 years) with upper secondary/tertiary qualifications
				Figure 3.A.9. Public expenditure on education
				Figure 3.A.10. Standardised unemployment rates
				Figure 3.A.11. Household consumption and waste generation
				Figure 3.A.12. Income inequality
				Figure 3.A.13. Life expectancy at birth
				Figures 3.A.14. Urban air quality
				Figures 3.A.14. Urban air quality
				Figure 3.A.15. Employment to population (over 15 years) ratio
				Figure 3.A.16. Total enrolment as a proportion of total population
Section II
	Chapter 4.
		TABLE OF CONTENTS
		Chapter 4. INSTITUTIONS AND DECISION MAKING
			Key institutional issues
			Integrated approaches to decision-making
			Participation of citizens
				Box 4.1. The Aarhus Convention
			Taking a longer-term view
			Domestic institutional developments
			The changing role and function of government: consequences for sustainable development
			Supplementing the existing framework with new institutions and processes
				Box 4.2. Organisational approaches to sustainable development within the executive: some examples
			The role of civil society
			International institutional developments
			Foundations of the international institutional architecture
			Implementation of key sustainable development principles
				Table 4.1. Overview of some key international and regional organisations and sustainable development
				Table 4.1. Overview of some key international and regional organisations and sustainable development (cont.)
			Conclusions
		NOTES
		REFERENCES
	Chapter 5.
		TABLE OF CONTENTS
		Chapter 5. POLICY INSTRUMENTS
			Introduction
			Improving the policy framework
			The need for a more effective and efficient regulatory framework
			Valuing externalities in practice
				Table 5.1. Scope and applicability of main valuation techniques
			Integrating the social dimension
			The need for a coherent set of policy instruments
				Table 5.2. The array of environmental policy instruments
				Box 5.1. Main types of voluntary approaches in OECD countries.
				Box 5.2. Economic instruments for environmental protection
			Correcting market and intervention failures
			Subsidy reform
				Box 5.3. Environmental support measures
				Box 5.4. Effects of energy support removal
				Table 5.3. Trends in support levels in OECD countries
				Box 5.5. Social concerns and water subsidies
			Environmental taxes
				Box 5.6. Defining environmentally related taxes
				Figure 5.1. Revenues from environmentally related taxes in per cent of total tax revenue
				Box 5.7. Green tax reform and employment: is there a “double dividend”?
				Figure 5.2. Revenues from environmentally related tax-bases, 1995
				Box 5.8. Dealing with competitiveness concerns: current practices
			Creating markets
				Box 5.9. Different types of transferable permits
				Box 5.10. Guidelines for the implementation of domestic tradable permits system
			Conclusions
		NOTES
		REFERENCES
	Chapter 6.
		TABLE OF CONTENTS
		Chapter 6. TECHNOLOGY
			Introduction
			Failures and obstacles to stimulating innovation for environmental sustainability
				Figure 6.1. Environmental R&D spending
				Box 6.1. The environmental goods and services sector
			Drivers of environmental innovation
				Table 6.1. Government budget appropriations and outlays for environmental R&D
				Table 6.2. . Pollution abatement capital expenditures in the US manufacturing sector by abatement technique, 1980-94
				Box 6.2. National surveys on environmental innovation
				Box 6.3. WBCSD survey of “sustainable firms”
			Environmental policies for innovation
				Box 6.4. Innovation effects of the US sulphur dioxide tradable permits scheme
				Box 6.5. Carbon tax in Sweden
				Box 6.6. Keidanren Voluntary Action Plan
			Innovation policies for sustainable development
				Box 6.7. Wind power generation in California
				Box 6.8. UK Foresight Programme
			New technologies for sustainable development
			Information and communication technologies
			Biotechnology 15
				Box 6.9. Industrial use of bio-catalysts
			Addressing negative externalities and promoting public acceptance of new technology
			International co-operation for the development and diffusion of clean technologies 16
			Stimulating innovation that is beneficial for the environment: the role of policy
		NOTES
		REFERENCES
	Chapter 7.
		TABLE OF CONTENTS
		Chapter 7. EXPERIENCE IN OECD COUNTRIES
			Introduction
			Policy co-ordination
			Sectors
				Figure 7.1. Water prices in selected OECD countries 1
				Figure 7.2. Taxes on diesel and petrol as of January 2000
				Figure 7.3. Air pollution externalities due to motor car fuels, Belgium
			Co-ordination
			The legal system
				Table 7.1. Environmental impact and regulatory assessment in selected OECD countries
				Table 7.1. Environmental impact and regulatory assessment in selected OECD countries (cont.)
			Cost-benefit analysis
				Table 7.2. Legal liability and standing in selected OECD countries
			Choice of instrument
			Economic instruments
				Table 9.3. Use of economic instruments in OECD countries
				Box 7.1. Transactions and prices in US emission trading
				Figure 7.4. Emissions trading in the United States
				Box 7.2. Renewable electricity programmes
				Table 7.4. Incentives for electricity from renewable energy in selected OECD countries
			Voluntary agreements
			Some obstacles to implementation: competitiveness and income distribution
			Competitiveness
				Box 7.3. Competitiveness concerns as a factor shaping policies
				Figure 7.5. Fuel prices and taxes in neighbouring countries, 1999
			Distributive effects
		NOTES
		REFERENCES
Section III
	Chapter 8.
		TABLE OF CONTENTS
		Chapter 8. INTERNATIONAL TRADE AND INVESTMENT
			Introduction
			Recent trends and policy developments concerning trade and international investment
			Trends
				Figure 8.1. Annual growth rate of merchanise exports from low and middle income countries 1987-1997
				Table 8.1. OECD foreign direct investment outflows by region
				Table 8.2. Major recipients of OECD foreign direct investment outflows
				Box 8.1. The “greening” of portfolio investment
				Figure 8.2. Total OECD foreign direct investment outflows to selected sectors
			Policy developments
			Remaining barriers to trade and investment
			How trade and investment affect sustainable development: opportunities and risks
			Economic growth
				Box 8.2. Bribery, corruption and sustainable development
			Environmental protection
				Box 8.3. Examples of environmental benefits and risks linked to trade
			Social development
			Policies to promote sustainable development in an integrating world economy
			Strengthening national policies
			International policy responses
			Firm-level responses
			Conclusions
		NOTES
		REFERENCES
	Chapter 9.
		TABLE OF CONTENTS
		Chapter 9. STRATEGIES FOR NON-MEMBER COUNTRIES
			Introduction
				Table 9.1. Eight countries with critical global weight
			Partnerships for sustainable development: key objectives and principles
			The OECD Development Assistance Committee’s Strategy for development co-operation
				Box 9.1. The past 50 years: achievements and the role of development co-operation
			Focusing around shared goals and monitoring progress
			Democratic accountability, the protection of human rights, and the rule of law
			Adequate, well co-ordinated support and a conducive policy environment
				Figure 9.1. Selected long-term flows from OECD to developing countries, 1980-99
				Figure 9.2. Net ODA receipts and foreign direct investment in selected regions, 1997-99
			Shaping effective sustainable development strategies
			National strategies for sustainable development: a Rio commitment
			Translating commitment into action
			Key prerequisites in shaping sustainable development strategies
				Box 9.2. Political, economic and environmental reforms are mutually supportive: evidence from economies in transition in Central and Eastern Europe and the Newly Independent States 3
				Box 9.3. Effectiveness of sustainable development strategies
			New international initiatives
				Box 9.4. Examples of sustainable development strategies
			Sustainable development and poverty reduction
			Poverty-environment linkages
			Two major threats: desertification and biodiversity loss
			Combating poverty while enhancing natural resource management: key policies and strategies
				Box 9.5. Stopping environmentally damaging activities by the non-poor in Sri Lanka
			The role of development co-operation
			Managing rapid urbanisation
			Key trends
			Urbanisation: benefits and trade-offs
				Box 9.6. Curitiba: an urban success story
			Managing urban growth: policies and strategies
				Box 9.7. Private sector participation in the provision of urban water and wastewater services: key lessons from experience
			The role of development co-operation
			Helping developing countries avail of the opportunities arising from increased international investment and trade: policy and institutional challenges
			Risks from increased openness to trade and investment: accelerated natural resource degradation
			Risks from openness to capital markets
			The role of Development Co-operation: key areas for capacity development
			Fostering greater policy coherence in OECD countries
			Conclusions
		NOTES
		REFERENCES
Section IV
	Chapter 10.
		TABLE OF CONTENTS
		Chapter 10. NATURAL RESOURCE MANAGEMENT
			Introduction
			Natural resources: characteristics and ownership
			Characteristics
				Figure 10.1. A classification of natural resources based on their physical characteristics
			Ownership and access
			Natural resources and sustainable development
			Natural resource depletion: scarcity, technological change and recycling
				Box 10.1. Measures of natural resource scarcity
				Box 10.2. Recycling
				Figure 10.2. Real prices for selected minerals and metals
				Figure 10.3. Real prices of selected commodities
				Figure 10.4. Trends in wood growing stock, 1980s and 1990s
				Figure 10.5. World fish production
				Box 10.3. Measuring biodiversity
			Environmental impacts of natural resource use and resource degradation
			Resource values
				Box 10.4. The price of a non-renewable natural resource
				Box 10.5. Methods for valuing externalities
			Natural resource management policy issues
			Development of property rights and markets
			Removal of subsidies that have been shown to hamper sustainable resource use
			Reducing resource degradation and enhancing the provision of environmental services
				Box 10.6. Instruments for natural resource management
				Box 10.7. Initiatives to preserve biodiversity in Finland
			Management of publicly owned natural resource based assets
				Table 10.1. Annual worldwide investment requirements for water resources
			Reducing pollution by natural-resource-based industries
			Dealing with information shortfalls
				Box 10.8. Two examples of information provision
			Addressing distributive implications of natural resource management policies
			Conclusions
		NOTES
		REFERENCES
	Chapter 11.
		TABLE OF CONTENTS
		Chapter 11. CLIMATE CHANGE
			Introduction
			The nature of the problem
			Impacts and vulnerability
				Figure 11.1. Annual anomalies in average near-surface temperatures, Northern Hemisphere, 1860-1999
				Box 11.1. Desertification, biodiversity and climate change
			Estimated costs of climate change
				Table 11.1. Estimates of the regional impacts of climate change
			International framework for co-operation
				Box 11.2. Key features of the Kyoto Protocol
				Box 11.3. The clean development mechanism
			National implementation strategies
				Figure 11.2. Greenhouse gases emissions and Kyoto targets, industrialised countries
			The energy dimension
				Figure 11.3. Contributions to changes in emissions of carbon dioxide in OECD countries, 1973-1998
				Box 11.4. Higher energy prices drive energy efficiency and technical change
			National policy developments
				Table 11.2. Examples of ancillary benefits of greenhouse gas mitigation, by sector
			The costs of achieving the Kyoto Protocol
			Single gas mitigation
			Multi-gas mitigation
				Figure 11.4. Costs of implementing the Kyoto targets under alternative assumptions, 2010
			Carbon uptake by sinks 15
			Use of the Kyoto mechanisms
			Adjustment costs and other missing factors
			Ancillary benefits and costs
			The long -term challenge
			Assisting developing countries
				Box 11.5. Assisting developing countries in responding to climate change
			Negotiating mitigation commitments
				Box 11.6. Developing countries and climate change: highly differentiated contributions and vulnerabilities
				Figure 11.5. Long term concentration pathways for carbon dioxide
				Box 11.7. Alternative forms of mitigation commitments
				Figure 11.6. Emission allowances in alternative scenarios, 2010-2050
			Estimated costs of long term stabilisation targets 24
				Table 11.3. Costs of alternative concentration targets for Annex I and non-Annex I countries
			The policy challenge
			Mitigation
			Adaptation
			Conclusions
		NOTES
		REFERENCES
Section V
	Chapter 12.
		TABLE OF CONTENTS
		Chapter 12. ENERGY
			Introduction
				Figure 12.1. Average life-spans for selected energy-related capital stock
			The energy system
			The short to medium term
				Figure 12.2. Composition of world energy demand by region
				Figure 12.3. World primary energy supply by fuel
				Figure 12.4. World energy-related services
			The long term
			The social dimension: energy supply and access
			A case study of the power sector
				Figure 12.5. Reserve margins in electricity generating capacity for selected OECD countries
			Energy and environmental sustainability
			Extraction, production and processing
			Transport
				Table 12.1. Airborne concentrations of major pollutants, 1995
				Figure 12.6. Progress in reducing selected emissions from power generation in OECD countries
				Box 12.1. The case of particulates, NO X and SO X
			Combustion and energy use
				Box 12.2. The case of greenhouse gases
				Figure 12.7. World energy-related carbon dioxide emissions
			Sustainable economic growth: the role of markets
			Sustainability of the current energy system: energy indicators
			The role of governments
				Box 12.3. Life cycle analysis and the assessment of sustainability
				Table 12.2. Estimates of damage costs from energy-related airbome emissions
				Table 12.3. Life cycle emissions from renewable energy
			Fiscal and market instruments
				Figure 12.8. Electricity prices and electricity use per GDP, 1996
			Regulation and voluntary initiatives
			Research and development policies
			Are there ‘win-win-win’ opportunities?
			Renewable energy
				Table 12.4. Development of renewable energy
			Energy efficiency
			Technology
				Figure 12.9. Learning curves for selected electric technologies in the EU, 1980-1995
			The magnitude of the investment challenge
				Table 12.5. Energy investments in developing countries
			Conclusions
		NOTES
		REFERENCES
	Chapter 13.
		TABLE OF CONTENTS
		Chapter 13. TRANSPORT
			Introduction
			Transport demand and outlook
				Figure 13.1. Passenger travel by car in OECD regions
			Sustainable development concerns in the transport sector
			Environmental impact
				Figure 13.2. Transport energy demand in OECD countries
				Figure 13.3. Marine oil spills, 1970-1999
			Social impacts
			Objectives
			Targets
			Transport sectors: current strategies for improving sustainability
			Aviation
			Maritime transport
			Land transport
			Reducing emissions impacts of motor vehicles
			Potential energy and emissions savings from changes in transport modes
			Economic instruments
			Subsidies
			Regulation
			Longer-term considerations
				Figure 13.4. Motor vehicle ownership per capita
			Action priorities, rationale and approach
				Box 13.1. Guidelines for environmentally sustainable transport (EST)
			Atmosphere and resources
			Water quality
			Urban amenity
			Transport noise
			Transport safety
			Public health
			Transport demand
			Broad approach: economic, pricing and regulatory measures
			Evaluation methodologies
			Conclusions
			Short-term and precautionary action
			Longer-term measures
			Prerequisites for success
		NOTES
		REFERENCES
	Chapter 14.
		TABLE OF CONTENTS
		Chapter 14. AGRICULTURE
			Introduction
			Demands on agriculture
			Food
			Uncertain demand growth for non-food commodities
			Demands relating to public goods and externalities
			Factors affecting the supply capacity of agriculture
				Box 14.1. Managing genetic resources
			Recent trends in the performance of the sector
			Economic trends
			Social trends
				Box 14.2. Horticulture and immigrant labour
			Environmental trends
				Figure 14.1. Soil surface nitrogen balance estimates, 1985-87 to 1995-97
			Meeting sustainability objectives for agriculture
			Agricultural policy reform
			An ecosystem approach
			Structural adjustment
			Conclusions
		NOTES
		REFERENCES
	Chapter 15.
		TABLE OF CONTENTS
		Chapter 15. MANUFACTURING
			Introduction
			Resource use
				Figure 15.1. OECD manufacturing resource use, 1980-1997
				Table 15.1. Energy use and intensity of selected US manufacturing sectors
			Air pollution
				Figure 15.2. OECD manufacturing air pollutant emissions, 1980-1997
			Toxic releases
			Sectoral case studies
			Chemicals
				Table 15.2. Pollution intensities of selected manufacturing sectors
			Iron and steel
				Table 15.3. Pollutant releases of selected steps of the steelmaking process
			Pulp and paper
			Textiles
			Automobiles
				Table 15.4. Principal polluting outputs of automobile production
			Electronics
				Table 15.5. Polluting outputs of selected electronics production
			Environmental implications of structural change in industry
				Table 15.6. Key environmental parameters of manufacturing and services
			Manufacturing
				Table 15.7. Output and growth of selected OECD manufacturing sectors
				Table 15.8. Changes in pollution intensities in OECD manufacturing due to structural change
			Traditional services
				Figure 15.3. Energy use in OECD industrial and commercial and public sectors, 1978-1997
				Figure 15.4. Fossil fuel and electricity intensities of US industrial and commercial sectors,
			ICT-based services
			Policy implications
			Environmental management in industry
			Environmental policy approaches
		NOTES
		REFERENCES
	Chapter 16.
		TABLE OF CONTENTS
		Chapter 16. TERRITORIAL DEVELOPMENT
			Introduction
			From a remedial to a proactive approach
			The need for an integrative, cross-sectoral approach
			The challenges of restoring the land and improving the built environment
				Box 16.1. Urban deconcentration
			Changing policy priorities
			Key issues in territorial development: strategies for people and places
			Strategies for local sustainability
				Box 16.2. Implementing Agenda 21 at the territorial level
			Local and regional policies for economic and social development
				Box 16.3. An example of an eco-industrial network
				Box 16.4. Labour market initiatives
			Territorial policies for rural development
			Territorial policies for urban areas
				Box 16.5. Urban redevelopment initiatives
			Building territorial development strategies for sustainability: a common approach?
			Modes of intervention: systems and policies for the sustainable management of territories
			A strategic approach to territorial management
				Box 16.6. Vertical and horizontal integration
			A tool kit of policy instruments and mechanisms
				Table16.1. Examples of applying sustainability in spatial planning and territorial development policy
				Box 16.7. Financial incentives for sustainable development
				Box 16.8. Implementation for sustainable territorial development
				Box 16.8. Implementation for sustainable territorial development (cont.)
			Conclusions
		NOTES
		REFERENCES
Annex 1
	GLOSSARY
	ACRONYMS, ABBREVIATIONS AND SYMBOLS