More on Sustainability
Sustainability is the passing to the next generation of the potential (via capital assets) for producing at least the same level of welfare.
The strong sustainability principle states that if there is a reduction in any of the four stocks of wealth then this threatens the future flow of welfare so the development is unsustainable.
The weak sustainability principle states that reductions (most likely in natural capital or possibly social capital) may prove sustainable as long as the total stock of wealth remains at the same level or greater. For example substituting physical capital for natural capital would be sustainable under the weak sustainability principle but not under the strong sustainability principle.
Technological change can increase the productivity of a given size of capital stock and reduce threats to natural capital. This means that a reduction in the total wealth may not threaten the flow of welfare if the remaining wealth is more productive.
Homework
Read and come up with ideas for data response question 1 for Monday. Read p23-24 in the study guide and the article and updates notes as appropriate for Friday 8th October.
These notes form a homework given in a lesson on 01/10/2004.
