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Natural Resource Economics, Planetary Boundaries and Strong Sustainability

Author

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  • Edward B. Barbier

    (Department of Economics, Colorado State University, Fort Collins, CO 80523-1771, USA)

  • Joanne C. Burgess

    (Department of Economics, Colorado State University, Fort Collins, CO 80523-1771, USA)

Abstract

Earth systems science maintains that there are nine “planetary boundaries” that demarcate a sustainable, safe operating space for humankind for essential global sinks and resources. Respecting these planetary boundaries represents the “strong sustainability” perspective in economics, which argues that some natural capital may not be substituted and are inviolate. In addition, the safe operating space defined by these boundaries can be considered a depletable stock. We show that standard tools of natural resource economics for an exhaustible resource can thus be applied, which has implications for optimal use, price paths, technological innovation, and stock externalities. These consequences in turn affect the choice of policies that may be adopted to manage and allocate the safe operating space available for humankind.

Suggested Citation

  • Edward B. Barbier & Joanne C. Burgess, 2017. "Natural Resource Economics, Planetary Boundaries and Strong Sustainability," Sustainability, MDPI, vol. 9(10), pages 1-12, October.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:10:p:1858-:d:115230
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    References listed on IDEAS

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    1. Frederick Ploeg, 2018. "The safe carbon budget," Climatic Change, Springer, vol. 147(1), pages 47-59, March.
    2. Barbier,Edward B., 2011. "Capitalizing on Nature," Cambridge Books, Cambridge University Press, number 9781107007277, January.
    3. Sam Fankhauser & Alex Bowen & Raphael Calel & Antoine Dechezlepr�tre & David Grover & James Rydge & Misato Sato, 2012. "Who will win the green race? In search of environmental competitiveness and innovation," GRI Working Papers 94, Grantham Research Institute on Climate Change and the Environment.
    4. Barbier, Edward B. & Burgess, Joanne C., 2017. "Depletion of the global carbon budget: a user cost approach," Environment and Development Economics, Cambridge University Press, vol. 22(6), pages 658-673, December.
    5. Edward B. Barbier, 2015. "Nature and Wealth," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-40339-1.
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