IDEAS home Printed from https://ideas.repec.org/p/anu/eenwps/0301.html
   My bibliography  Save this paper

Financing SD: Country Undertakings and Rights for Environmental Sustainability

Author

Listed:
  • R. Quentin Grafton

    (Australian National University, Asia Pacific School of Economics and Government)

  • Frank Jotzo

    (Australian National University, Centre for Resource and Environmental Studies)

  • Merrilyn Wasson

    (Australian National University, Research School of Pacific and Asian Studies)

Abstract

The paper proposes a global mechanism to finance and promote sustainable development (SD) that is multinational, provides incentives for rich and poor countries to promote SD, incorporates the principle of common but differentiated responsibilities and links incentives and funding for SD to structural benchmarks and performance targets. The mechanism would operate as a large fund into which rich countries would pay based on their level of population, per capita income and change in an individual or composite measure of environmental sustainability. The approach offers a number of features that make it a superior mechanism to the Global Environmental Facility (GEF). Receipts from the funds, called Country Undertakings and Rights for Environmental Sustainability (CURES), would be made to poor countries based on their population, per capita income and absolute level of environmental sustainability. To illustrate the mechanism, Genuine Savings (GS) is used as a measure of environmental sustainability and country contributions and payments from a $10 billion annual fund are calculated and compared. The control of Indonesian forest fires is used as an example where CURES could be used to fund initiatives that could generate very large global benefits.

Suggested Citation

  • R. Quentin Grafton & Frank Jotzo & Merrilyn Wasson, 2003. "Financing SD: Country Undertakings and Rights for Environmental Sustainability," Economics and Environment Network Working Papers 0301, Australian National University, Economics and Environment Network.
    • Handle: RePEc:anu:eenwps:0301
    as

    Download full text from publisher

    File URL: http://een.anu.edu.au/download_files/een0301.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hamilton, Kirk & Clemens, Michael, 1999. "Genuine Savings Rates in Developing Countries," The World Bank Economic Review, World Bank, vol. 13(2), pages 333-356, May.
    2. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    3. Neumayer, Eric, 2001. "The human development index and sustainability -- a constructive proposal," Ecological Economics, Elsevier, vol. 39(1), pages 101-114, October.
    4. Pearce, David & Hamilton, Kirk & Atkinson, Giles, 1996. "Measuring sustainable development: progress on indicators," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 85-101, February.
    5. Holden, Stein T. & Shiferaw, Bekele & Wik, Mette, 1998. "Poverty, market imperfections and time preferences: of relevance for environmental policy?," Environment and Development Economics, Cambridge University Press, vol. 3(1), pages 105-130, February.
    6. Nijkamp, Peter & Vreeker, Ron, 2000. "Sustainability assessment of development scenarios: methodology and application to Thailand," Ecological Economics, Elsevier, vol. 33(1), pages 7-27, April.
    7. Bird, Richard M. & Smart, Michael, 2002. "Intergovernmental Fiscal Transfers: International Lessons for Developing Countries," World Development, Elsevier, vol. 30(6), pages 899-912, June.
    8. Dasgupta, Partha, 1996. "The economics of the environment," Environment and Development Economics, Cambridge University Press, vol. 1(4), pages 387-428, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Quentin Grafton, R. & Jotzo, Frank & Wasson, Merrilyn, 2004. "Financing sustainable development: Country Undertakings and Rights for Environmental Sustainability CURES," Ecological Economics, Elsevier, vol. 51(1-2), pages 65-78, November.
    2. Perrings, Charles, 2014. "Environment and development economics 20 years on," Environment and Development Economics, Cambridge University Press, vol. 19(3), pages 333-366, June.
    3. Schilling, Markus & Chiang, Lichun, 2011. "The effect of natural resources on a sustainable development policy: The approach of non-sustainable externalities," Energy Policy, Elsevier, vol. 39(2), pages 990-998, February.
    4. Valeria Costantini & Chiara Martini, 2010. "A Modified Environmental Kuznets Curve for sustainable development assessment using panel data," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 84-122.
    5. Adrian Boos & Karin Holm‐Müller, 2012. "A theoretical overview of the relationship between the resource curse and genuine savings as an indicator for “weak” sustainability," Natural Resources Forum, Blackwell Publishing, vol. 36(3), pages 145-159, August.
    6. Adrian Boos, 2015. "Genuine Savings as an Indicator for “Weak” Sustainability: Critical Survey and Possible Ways forward in Practical Measuring," Sustainability, MDPI, vol. 7(4), pages 1-37, April.
    7. Ourvashi Bissoon, 2017. "Is Sub-Saharan Africa on a Genuinely Sustainable Development Path? Evidence Using Panel Data," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 11(4), pages 449-464, November.
    8. Kenneth Arrow & Partha Dasgupta & Karl-Göran Mäler, 2003. "Evaluating Projects and Assessing Sustainable Development in Imperfect Economies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 647-685, December.
    9. Kenneth Arrow & Partha Dasgupta & Lawrence Goulder & Gretchen Daily & Paul Ehrlich & Geoffrey Heal & Simon Levin & Karl-Göran Mäler & Stephen Schneider & David Starrett & Brian Walker, 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer.
    10. Partha Dasgupta, 2009. "The Welfare Economic Theory of Green National Accounts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(1), pages 3-38, January.
    11. Costantini, Valeria & Monni, Salvatore, 2008. "Environment, human development and economic growth," Ecological Economics, Elsevier, vol. 64(4), pages 867-880, February.
    12. Van de Kerk, Geurt & Manuel, Arthur R., 2008. "A comprehensive index for a sustainable society: The SSI -- the Sustainable Society Index," Ecological Economics, Elsevier, vol. 66(2-3), pages 228-242, June.
    13. Koji Tokimatsu & Louis Dupuy & Nick Hanley, 2019. "Using Genuine Savings for Climate Policy Evaluation with an Integrated Assessment Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(1), pages 281-307, January.
    14. Indra de Soysa & Jennifer Bailey & Eric Neumayer, 2004. "Free to Squander? Democracy, Institutional Design, and Economic Sustainability, 1975–2000," Macroeconomics 0412004, University Library of Munich, Germany.
    15. Everett, Tim & Ishwaran, Mallika & Ansaloni, Gian Paolo & Rubin, Alex, 2010. "Economic growth and the environment," MPRA Paper 23585, University Library of Munich, Germany.
    16. Manel Kamoun & Ines Abdelkafi & Abdelfetah Ghorbel, 2019. "The Impact of Renewable Energy on Sustainable Growth: Evidence from a Panel of OECD Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 221-237, March.
    17. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.
    18. Fleurbaey, Marc, 2015. "On sustainability and social welfare," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 34-53.
    19. Yesuf, Mahmud & Bluffstone, Randall, 2008. "Wealth and Time Preference in Rural Ethiopia," RFF Working Paper Series dp-08-16-efd, Resources for the Future.
    20. Céline Antonin & Thomas Melonio & Xavier Timbeau, 2012. "L'epargne nette ré-ajustée," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 259-286.

    More about this item

    Keywords

    sustainable development; environmental performance; genuine savings;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anu:eenwps:0301. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jack Pezzey (email available below). General contact details of provider: http://een.anu.edu.au/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.