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Cost of Environmentally Sustainable Industrial Development

In: The Economics of Sustainable Development

Author

Listed:
  • Surender Kumar

    (TERI University)

  • Shunsuke Managi

    (Yokohama National University)

Abstract

It is now known that sustainable industrial development requires the preservation of the environment. Industries create a demand not only for waste-receptive services from the environmental media -- air, forests, land, and water -- but also for material inputs supplied by environmental resources (e.g., wood in the paper and pulp industry). Environmental resources can ensure a sustainable supply of these services if they are preserved at their natural regenerative level or if the demand for waste-receptive services is equal to the waste-assimilative capacity of environmental resources. Given that the demand for environmental services from various economic activities can exceed the natural sustainable levels of supply at a given time, and if measures are not taken to reduce this excess demand to zero, environmental resources can be degraded. The cost of reducing the demand for environmental services to the natural sustainable level of supply is regarded as the cost of sustainable use of environmental resources and, in the case of industrial demand for environmental services, it is the cost of sustainable industrial development. The measurement of this cost of sustainable industrial development is the main objective of this chapter.

Suggested Citation

  • Surender Kumar & Shunsuke Managi, 2009. "Cost of Environmentally Sustainable Industrial Development," Natural Resource Management and Policy, in: The Economics of Sustainable Development, chapter 0, pages 139-156, Springer.
    • Handle: RePEc:spr:nrmchp:978-0-387-98176-5_8
    DOI: 10.1007/978-0-387-98176-5_8
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