Environmental Sustainability

Definition

Environmental sustainability refers to the responsible interaction with the environment to avoid depletion or degradation of natural resources. This concept emphasizes the need to meet present needs without compromising the ability of future generations to meet their own needs, highlighting the balance between economic growth and the preservation of ecosystems. It becomes essential when evaluating national income, as traditional measures often overlook environmental costs and the long-term viability of economic activities.

5 Must Know Facts For Your Next Test

1. Traditional measures of national income like GDP do not account for environmental degradation, leading to potential misinterpretations of economic health.
2. Sustainable development seeks to balance economic growth with environmental protection, requiring new metrics that reflect long-term sustainability rather than short-term gains.
3. Environmental sustainability encourages investment in renewable resources and technologies that minimize ecological impact and promote resource regeneration.
4. Policies aimed at improving environmental sustainability can lead to innovation in industries, creating jobs in green technologies and renewable energy sectors.
5. Measuring national income through alternative indicators like Genuine Progress Indicator (GPI) can provide a clearer picture of a country's economic health while considering environmental factors.

Review Questions

• How does environmental sustainability challenge traditional measures of national income like GDP?
  • Environmental sustainability challenges traditional measures such as GDP by highlighting their failure to account for environmental costs associated with economic activities. While GDP may indicate growth, it does not reflect the depletion of natural resources or damage to ecosystems caused by that growth. This discrepancy underscores the need for alternative measures that incorporate ecological health, ensuring that economic progress does not come at the expense of environmental integrity.
• Discuss the implications of neglecting environmental sustainability in the assessment of national income.
  • Neglecting environmental sustainability in assessing national income can lead to misguided policies that prioritize short-term economic gains over long-term ecological health. This oversight may result in unsustainable practices that deplete resources, harm biodiversity, and increase vulnerability to environmental disasters. By failing to recognize these impacts, countries risk compromising their future economic stability and the well-being of future generations.
• Evaluate the potential effectiveness of alternative measures like the Genuine Progress Indicator (GPI) in promoting environmental sustainability alongside economic growth.
  • The Genuine Progress Indicator (GPI) could be effective in promoting environmental sustainability by providing a more holistic view of a nation's well-being. Unlike GDP, GPI accounts for factors like income distribution, environmental degradation, and resource depletion, fostering an understanding of true economic progress. By emphasizing sustainability in its calculations, GPI encourages policymakers to pursue strategies that support both economic growth and ecological balance, ultimately leading to more sustainable development outcomes.

Related terms

Gross Domestic Product (GDP):

A monetary measure that represents the market value of all final goods and services produced in a country during a specific period, often criticized for not accounting for environmental degradation.

Natural Capital: The world's stocks of natural assets including geology, soil, air, water, and all living things, which provide ecosystem services that are crucial for sustainable development.

Ecological Footprint: A measure of human demand on Earth's ecosystems, representing the amount of natural capital used by an individual or group, compared to the planet's ability to regenerate those resources.