CHAPTER 10
Concepts, methods and indicators
Shared, underlying notions and organizing concepts are important in sustainability science, notably with respect to ideas about the relations between people and Nature and people.
- Among the schemes to integrate data and insights is the vertical hierarchy of nature, as environmental and resource system, as substrate and economic, government and social and ethical organizations and thoughts as higher-up layers. Others are the Planetary Boundaries (PBs), the ‘doughnut’, the PSIR framework and the IPAT-equation. Another scheme highlights the distinction between kinds of economic activities (formal-monetized, informal, subsistence et al.).
- In analyzing thematic issues, it is important to have some basic understanding of data collection and processing and of the various analytical and assessment methods and tools available and used in sustainability science. Prominent are material flow analysis (MFA), lice cycle analysis (LCA), cost-benefit analysis (CBA) and input-output (I-O) analysis. Applications are found throughout the thematic chapters. A critical attitude is needed: (an abundance of) information may also obscure.
- Besides collecting data and applying assessment methods, effective decision-making irequires the establishment and use of indicators. They can be chosen from different parts of the system under investigation and can reflect a state or a change in state as well as performamce (distance to target). Linked to the large and growing databases, some prominent indicators are the Human Development Index (HDI), the Genuine Progress Indicator (GPI) and the Environmental Footprint (EF).
- These indicators are proposed as a remedy for the deficits of GDP. Another approach to well-being is are citizen’s expenditures, as one measure of what people value. Another side of the coin is the valuation of production in the form of wages, dividends and taxes minus subsidies.
Test your understanding of this chapter by reviewing the study questions below.
All Materials Relevant to this Chapter
Input-Output Methodology
Measuring monetary flows: I-O matrices National economic models have usually more sectors than the economic growth models discussed so far. Such sectoral disaggregation is based on a table or matrix of the intersectoral flows, or [...]