An aggregate resource efficiency perspective on sustainability: a Sustainable Value application to the EU-15 countries

The Sustainable Value approach integrates the efficiency with regard to environmental, social and economic resources into a monetary indicator. It gained significant popularity as evidenced by diverse applications at the corporate level. However, its introduction as a measure adhering to the strong sustainability paradigm sparked an ardent debate. This study explores its validity as a macroeconomic strong sustainability measure by applying the Sustainable Value approach to the EU-15 countries. Concretely, we assessed environmental, social and economic resources in combination with the GDP for all EU-15 countries from 1995 to 2006 for three benchmark alternatives. The results show that several countries manage to adequately delink resource use from GDP growth. Furthermore, the remarkable difference in outcome between the national and EU-15 benchmark indicates a possible inefficiency of the current allocation of national resource ceilings imposed by the European institutions. Additionally, by using an effects model we argue that the service degree of the economy and governmental expenditures on social protection and research and development are important determinants of overall resource efficiency. Finally, we sketch out three necessary conditions to link the Sustainable Value approach to the strong sustainability paradigm.

Beyond the environmentalist's paradox and the debate on weak versus strong sustainability

Environmentalists generally argue that ecological damage will (eventually) lead to declines in human well-being. From this perspective, the recent introduction of the “environmentalist’s paradox” in BioScience by Raudsepp-Hearne and colleagues (2010) is particularly significant. In essence, Raudsepp-Hearne and colleagues (2010) claimed that although ecosystem services have been degraded, human well-being—paradoxically—has increased. In this article, we show that this debate is in fact rooted in a broader discussion on weak sustainability versus strong sustainability(the substitutability of human-made capital for natural capital). We warn against the reductive nature of focusing only on a stock–flow framework in which a natural-capital stock produces ecosystem services. Concretely, we recommend a holistic approach in which the complexity, irreversibility, uncertainty, and ethical predicaments intrinsic to the natural environment and its connections to humanity are also considered.

Sustainability assessment indicators and methodology for intelligent buildings

The sustainable intelligent building is a building that has the best combination of environmental, social, economic and technical values. And its sustainability assessment is related with system engineering methods and multi-criteria decision-making. Therefore firstly, the wireless monitoring system of sustainable parameters for intelligent buildings is achieved; secondly, the indicators and key issues based on the “whole life circle” for sustainability of intelligent buildings are researched; thirdly, the sustainable assessment model identified on the structure entropy and fuzzy analytic hierarchy process is proposed.

Emergy-based sustainability assessment of different energy options for green buildings

It is necessary to minimize the environmental impact and utilize natural resources in a sustainable and efficient manner in the early design stage of developing an environmentally-conscious design for a heating, ventilating and air-conditioning system. Energy supply options play a significant role in the total environmental load of heating, ventilating and air-conditioning systems. To assess the environmental impact of different energy options, a new method based on Emergy Analysis is proposed. Emergy Accounting, was first developed and widely used in the area of ecological engineering, but this is the first time it has been used in building service engineering. The environmental impacts due to the energy options are divided into four categories under the Emergy Framework: the depletion of natural resources, the greenhouse effect (carbon dioxide equivalents), the chemical rain effect (sulphur dioxide equivalents), and anthropogenic heat release. The depletion of non-renewable natural resources is indicated by the Environmental Load Ratio, and the environmental carrying capacity is developed to represent the environmental service to dilute the pollutants and anthropogenic heat released. This Emergy evaluation method provides a new way to integrate different environmental impacts under the same framework and thus facilitates better system choices. A case study of six different kinds of energy options consisting of renewable and non-renewable energy was performed by using Emergy Theory, and thus their relative environmental impacts were compared. The results show that the method of electricity generation in energy sources, especially for electricity-powered systems, is the most important factor to determine their overall environmental performance. The direct-fired lithium-bromide absorption type consumes more non-renewable energy, and contributes more to the urban heat island effect compared with other options having the same electricity supply. Using Emergy Analysis, designers and clients can make better-informed, environmentally-conscious selections of heating, ventilating and air-conditioning systems.

Output sustainability to exogenous and endogenous shocks: evidence from emerging economies

This paper studies the impact of exogenous and endogenous shocks (exogenous shock is used interchangeably with external shock; endogenous shock is used interchangeably with domestic shock) on output fluctuations in post-communist countries during the 2000s. The first part presents the analytical framework and formulates a research hypothesis. The second part presents vector autoregressive estimation and analysis model proposed by Pesaran (2004) and Pesaran and Smith (2006) that relates bank real lending, the cyclical component of output and spreads and accounts for cross-sectional dependence (CD) across the countries. Impulse response functions show that exogenous positive shock lead to a drop in output sustainability for 9 over 12 Central Eastern European countries and Russia, when the endogenous shock is mild and ambiguous. Moreover, the effect of exogenous shock is more significant during the crises. Variance decompositions show that exogenous shock in the aftermath of crisis had a substantial impact on economic activity of emerging economies.

The diffusion of grassroots innovations for sustainability in Italy and Great Britain: an exploratory spatial data analysis

Little research so far has been devoted to understanding the diffusion of grassroots innovation for sustainability across space. This paper explores and compares the spatial diffusion of two networks of grassroots innovations, the Transition Towns Network (TTN) and Gruppi di Acquisto Solidale (Solidarity Purchasing Groups – GAS), in Great Britain and Italy. Spatio-temporal diffusion data were mined from available datasets, and patterns of diffusion were uncovered through an exploratory data analysis. The analysis shows that GAS and TTN diffusion in Italy and Great Britain is spatially structured, and that the spatial structure has changed over time. TTN has diffused differently in Great Britain and Italy, while GAS and TTN have diffused similarly in central Italy. The uneven diffusion of these grassroots networks on the one hand challenges current narratives on the momentum of grassroots innovations, but on the other highlights important issues in the geography of grassroots innovations for sustainability, such as cross-movement transfers and collaborations, institutional thickness, and interplay of different proximities in grassroots innovation diffusion.

The effects of corporate and country sustainability characteristics on the cost of debt: an international investigation

We investigate the relationship between corporate and country sustainability on the cost of bank loans. We look into 470 loan agreements signed between 2005 and 2012 with borrowers based in 28 different countries across the world and operating in all major industries. Our principal findings reveal that country sustainability, relating to both social and environmental frameworks, has a statistically and economically impactful effect on direct financing of economic activity. An increase of one unit in a country's sustainability score is associated with an average decrease in the cost of debt by 64 basis points. Our international analysis shows that the environmental dimension of a country's institutional framework is approximately twice as impactful as the social dimension, when it comes to determining the cost of corporate loans. On the other hand, we find no conclusive evidence that firm-level sustainability influences the interest rates charged to borrowing firms by banks. Our main findings survive a battery of robustness tests and additional analyses concerning subsamples, alternative sustainability metrics and the effects of financial crisis.

The diffusion of the Transition Network in four European countries

The Transition Network exemplifies the potential of social movements to create spaces of possibility for alternatives to emerge in the interstices of mainstream, neoliberal economies. Yet, little work has been carried out so far on the Transition Network or other grassroots innovations for sustainability in a way that reveals their actual patterns of diffusion. This graphic of the diffusion of the Transition Network visualises its spatial structure and compare diffusion patterns across Italy, France, Great Britain and Germany. The graphics show that the number of transition initiatives in the four countries has steadily increased over the past eight years, but the rate of increase has slowed down in all countries. The maps clearly show that in all four countries the diffusion of the Transition Network has not been spatially even. The graphic suggests that in each country transition initiatives are more likely to emerge in some geographical areas (hotspots) than in others (cold spots). While the existence of a spatial structure of the Transition Network may result from the combination of place-specific factors and diffusion mechanisms, these graphics illustrate the importance of better comprehending where grassroots innovations emerge.