This document summarizes key concepts from two textbooks on environmental valuation and sustainable development: "Blueprint for a Green Economy" and "Sustainability and Environmental Economics". It discusses the history of sustainable development and key thinkers in the field such as Arthur Pigou, Gro Harlem Brundtland, and David Pearce. The document also covers environmental valuation techniques, problems with valuation, policy instruments, and concludes that while sustainable development has been discussed since the 1970s, it remains a difficult concept to define and implement.

1. Environmental valuation for sustainable
development - ‘Blueprint for a Green Economy’
and ‘Sustainability and Environmental Economics:
an Alternative Text’
Nick Cooper, Nuray Erturk, Andy Irish, Joe Peach & EvanAlison
Tabor

2. What is sustainable development?
• The ‘sustainable development’ concept emerged during the 1972
Stockholm Declaration.
• The Brundtland effect is clear in both Pearce et al. and Bowers.
• Current priority areas include climate change and energy, sustainable
consumption and production, natural resource protection and
environmental enhancement, and sustainable communities.

3. Key thinkers
• Arthur Pigou (1920)
• Gro Harlem Brundtland
• David Pearce

4. Key thinkers
• Arthur Pigou (1920)
• Gro Harlem Brundtland
• David Pearce
• John Corkindale

5. Environmental valuation
• Improving environmental quality also means economic improvement.
• Indirect valuation (e.g. environmental improvements which improve human
health or building materials).
• Direct valuation – an obvious monetary value to the area (e.g. tourism,
house prices).
• TEV = Actual use + option value + existence value.
• (BD-CD-BP) >0 - Go ahead with development.

6. Types of valuation
• Hedonic price – property values
• Contingent valuation – hypothetical situations
• Travel/Cost – cost of access
By valuing the environment we are able to make comparisons and provide
support for environmental quality. The above techniques have shown
environmental features to have a high value, yet in many situations these
values are not considered.

7. Problems with valuation
• Valuations are undertaken from particular perspectives (what about future
generations & other inhabitants of the planet?)
• We cannot put a monetary value on everything (human life?)
• The valuations are not 100% accurate (to be accurate would require a
market) but that is why we are attempting these measurements in the first
place.
• Some conservationists may not agree with valuation.

8. Natural assets
• Biodiversity: Bowers argues that the effects of economic development on
biodiversity are often irreversible, therefore an important area.
• Value of the activity as opposed to the fine: is the fine affordable? Do the
wealthy escape?
• Instruments are often successful, but can create additional and
interrelated problems.
• Incentives are often more effective, and the economic value of wildlife is a
key tool.

9. Instruments
• Market Based Instruments:
• Incentive systems that operate through establishing prices for
environmental services in the market.
• Green Taxes:
• Designed to place a tariff on environmentally harmful products in order
to encourage a behaviour change among users.

10. Examples of instruments
• Landfill tax, Bowers: a key instrument that enforces ‘polluter pays’ logic,
LA & householder.
– Value, availability and impact on land
– Economics of recycling, value of materials
– Problems with alternatives, incineration etc.
• Carbon trading and permits: instruments to discourage carbon usage.
– Problem with wealth divide: an unequal tax
– Cost of operating an effective system may outweigh benefits – complex
system creates enforcement issues
– Economic effects and availability of alternatives

11. Business incentives
• Long term benefits from sustainability.
• Sustainability creates new business opportunities.
• We can approach sustainable development as we would a viable business.
• Consumer awareness.

12. Conclusions
• Despite emerging in the early 70s, sustainable development remains a
broad term which is hard to define.
• Direct and indirect environmental evaluation, but both can be problematic.
• Numerous instruments available with clear business incentives, yet
sustainable development remains niche.

13. References
• Bowers, J. (1997). Sustainability and environmental economics.
Singapore: Longman Singapore.
• Pearce, D., & Barbier, E. (2000). Blueprint for a sustainable economy.
London: Earthscan.
• Pearce, D. W., Markandya, A., & Barbier, E. B. (1990). Blueprint for a green
economy: a report; [Pearce report]. London: Earthscan Publ.