Langues appliquées - Anglais : Economie, gestion, droit, AES - 4e - 85

sustainaBle GloBal development

If global warming stems from increasing CO2 emissions, it is natural for policymakers to consider
policy options for reducing such emissions (and other greenhouse gases). Coal-fired power stations
are a major problem in this context, since the specific emission of CO2 is high for coal - hard coal
and lignite. It is lower for natural gas burnt in power stations. It is (almost) zero for water energy
and other renewables such as solar power and wind energy. The problem with renewables is that
they are intermittent energy-producing options so that a sophisticated system of coordinating all the
various renewable sources has to be developed. Renewable energy without adequate software and
computer investment will not work. On a very sunny and windy day in Germany, in 2013 there will be
100% renewable energy production, although on average, over the whole year, the share of renewable
electricity was close to only 25% in 2013/2014. Energy generation and the share of renewables in
energy generation thus is one key issue of sustainable global development.
Green innovation
A static view of the economy and the global ecological system is not adequate; rather a
Schumpeterian innovation perspective is required. In a broader context, environmental upgrading
and ecological modernization bring crucial advantages:
- A better environment will stimulate working efforts and reduce absenteeism due to the illness
of workers, so that output will increase.
- A better environment raises life expectancy and thus lifetime consumption could increase.
- With a declining level of emissions (e.g., sulphur dioxide emissions), there will be less damage
to the physical infrastructure and to machinery and equipment: the effective capital depreciation rate
will reduce, so that in the context of a neoclassical model, the level of the growth path of per capita
income will increase.
- A better environment also improves the utility of consumption - if people are healthier and can
therefore enjoy consumption more than before, there will be an increase in utility. As one may assume
that per capita consumption is proportionate to per capita output, a cleaner environment brings a
double benefit.
- The ability of a society to switch to a higher environmental quality hinges on investment in
research and development in general and on green R&D in particular. Adequate innovation in green
technological progress thus is crucial.
In the end, voters and investors are interested in an economic and ecological system which is stable
and generates long-term wealth. Sustainable development requires that future generations should have
at least similar prospects of economic welfare as current generations. Moreover, if living standards for
future generations are to be on a level that is at least as high as that of today's generation, the current
capital stock, broadly defined, has to be maintained.
Excerpt from: Paul Welfens, Jens K. Perret, Tony Irawan, Towards Global Sustainability:
Issues, New Indicators and Economic Policy, Springer, 2016

Table des matières de la publication Langues appliquées - Anglais : Economie, gestion, droit, AES - 4e