Table of Contents

The Profitability of Sustainable Companies: Towards a Rating System

Luisa Nenci, SustainValues

Limits to Substitution between Ecosystem Services and Manufactured Goods and Implications for Social Discounting

Moritz A. Drupp, University of Kiel - Institute of Economics, London School of Economics & Political Science (LSE) - Department of Geography and Environment

Economic Behavior, Market Signals, and Urban Ecology

Joshua Abbott, Arizona State University (ASU)
H. Allen Klaiber, Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics
V. Kerry Smith, Arizona State University (ASU) - Economics Department, National Bureau of Economic Research (NBER)

Environmental Racism in the Durban South Region: The Importance of Public Participation in Environmental Impact Assessments

Lembenji William Mngoma, Government of South Africa - Department of Agriculture and Environmental Affairs
Eunice Tressa Dlamini, Independent Researcher in KwaZulu Natal

Economic Growth, CO2 Emissions, and Energy Use in Israel

Cosimo Magazzino, University of Rome III, Royal Economic Society, Italian Economic Association


ENVIRONMENTAL ECONOMICS eJOURNAL

"The Profitability of Sustainable Companies: Towards a Rating System" Free Download
Capital Finance International, Winter 2014-2015

LUISA NENCI, SustainValues
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A Green Economy (GE) is growing if economic prosperity goes hand-in-hand with sustainability – developing investments in green sectors and in greening brown sectors. Some investors are already screening companies through enhanced qualitative parameters. However, these practices usually lead investors to companies operating in a green sector (for example renewable energy projects)
and not to “normal? companies in the process of implementing a green business model.

"Limits to Substitution between Ecosystem Services and Manufactured Goods and Implications for Social Discounting" Free Download

MORITZ A. DRUPP, University of Kiel - Institute of Economics, London School of Economics & Political Science (LSE) - Department of Geography and Environment
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This paper examines limits to substitution between ecosystem services and manufactured goods in consumer's utility and their implications for the evaluation of environmental policies. We provide a survey on empirical evidence regarding substitution elasticities, which suggests that manufactured goods are substitutes for many ecosystem services at the margin. Ultimately, however, substitutability may be limited by subsistence requirements in terms of ecosystem services. We therefore extend the theory of dual discounting by introducing such a subsistence requirement. We find that the resulting relative price of ecosystem services is non-constant and grows without bound as their consumption declines towards the subsistence level. An application suggests that the discount rate for ecosystem services should be, at present, about 1 to 5 percentage points lower compared to the rate for manufactured goods. The effect of considering limited substitutability in governmental project evaluation can thus be substantial. Furthermore, the results have implications for sustainability policy, in particular the management of climate change, and call for safeguarding critical ecosystem services.

"Economic Behavior, Market Signals, and Urban Ecology" Fee Download
NBER Working Paper No. w20959

JOSHUA ABBOTT, Arizona State University (ASU)
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H. ALLEN KLAIBER, Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics
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V. KERRY SMITH, Arizona State University (ASU) - Economics Department, National Bureau of Economic Research (NBER)
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Urban ecologists have extended the bounds of this field to incorporate both the effects of human activities on ecological processes (e.g., humans as generators of disturbances), and the ways in which the structures, functions, and processes of urban ecosystems, and human alterations to them, in turn alter people’s behavior. This feedback loop from the perspective of urban ecologists offers a natural connection to economic models for human behavior. At their core, housing markets reveal price signals that communicate to developers the tradeoffs consumers are willing to make for the private characteristics of homes and the attributes of the neighborhoods where they are located. These signals together with local land use rules guide the location of development. The characteristics of this development in turn influence the functioning and evolution of urban ecosystems. This paper describes markets as coordination mechanisms and conveyors of information from a complex adaptive systems perspective. It also discusses the way in which physical and biological processes, infrastructural boundaries, and the institutional equivalent of “barbed wire? all simultaneously act to shape the transmission of ecosystem services over the landscape. These processes alter the spatial distribution of housing prices in ways that are both continuous and discrete.

Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

"Environmental Racism in the Durban South Region: The Importance of Public Participation in Environmental Impact Assessments" Free Download
OIDA International Journal of Sustainable Development, Vol. 07, No. 11, pp. 99-108, 2014

LEMBENJI WILLIAM MNGOMA, Government of South Africa - Department of Agriculture and Environmental Affairs
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EUNICE TRESSA DLAMINI, Independent Researcher in KwaZulu Natal
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The idea of community participation is seen as one of the ingredients necessary to promote sustainable development. Community participation is firmly entrenched in the constitution of South Africa. It revolves around communities taking responsibility for themselves in the ways that will assist them in improving their quality of life. The participation of the community in the Durban South Basin should be seen as a way in which citizens contribute towards the shaping of the final decisions with regard to industrial and community development in the area. The shaping of the final decision-making about the location of industries has been a bone of contention between the industrialists and the community of the Durban South Basin. This area characterizes a long history of conflicts between residents and the industrialists. The struggle of the community members has been for a better life for all in the area, free from toxic fumes.

The Objectives of the study were: (1) to establish the significant decision makers in the Durban South Industrial Basin, (ii) to explore how the public, generally excluded from the decision-making process are able to hold their own in the light of development demands from business, (iii) and to determine to what extent the structures of production, particularly industrial and petrol related industries affect local municipalities in decision-making.

Methodology used in collecting data involved the review of published material on the study area. These included government policies, studies done by local and international scholars in local and foreign tertiary institutions, parastatals as well as articles published in the newspapers from 1996 to 2014. Analysis of the documents was done in relation to policy guidelines and strategies for public participation. Respiratory illnesses are prevalent in the South Durban area due to the proximity of the residents to the industry. The study reflects that current practices and patterns of industrialization, have contributed to the questioning of the development process which has been labelled as unsustainable. The analysis revealed that the neglect of people by industries amounts to environmental racism and this is regarded as violation of human rights. The Durban South community exposed to the toxic environment consists mainly of Non-white populations of South Africa. The recommendations from the study encourage the industrialists to access local and traditional knowledge so that they will be able to understand and respond to public concerns with reference to diverse communities.

"Economic Growth, CO2 Emissions, and Energy Use in Israel" 
The International Journal of Sustainable Development and World Ecology, 22, 1, 89-97, 2015, ISSN: 1745-2627.

COSIMO MAGAZZINO, University of Rome III, Royal Economic Society, Italian Economic Association
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This paper analyses the relationship among economic growth, energy use and carbon dioxide (CO2) emissions in Israel over the period 1971-2006. Results of unit root tests show that all variables are integrated of order one. Causality results suggest that real gross domestic product (GDP) drives both energy use and CO2 emissions. Forecast error variance decompositions (FEVDs) evidence that the errors in real per capita GDP are mainly due to uncertainty in GDP itself, while the errors in predicting the energy consumption and the CO2 emissions are sensitive to disturbances in the other two equations. The FEVDs show that forecast errors in real per capita GDP are mainly due to uncertainty in GDP itself, the errors in predicting the energy use are sensitive to disturbances both in the GDP and in CO2 equations, while the forecast errors in CO2 emissions should be essentially connected to emissions itself. Finally, the vector autoregression (VAR) forecast represents an improvement in simpler forecasts in more than half the comparisons.

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