Sustainable Development and Macroeconomics

Contents

AIM OF THE COURSE

Students learn about the term “Sustainable Development” and how to achieve sustainability in our world. They get a critical insight into economic growth and the meaning of development. This will be accomplished by applying economic theory and evaluating empirical evidence how to use unlimited and limited resources in the context of sustainability.

MAIN ISSUES

The term “Sustainable Development” has become popular after the UN Conference on Environment and Development held in Rio de Janeiro in 1992. The Brundtland Commission Report (World Commission on Environment and Development, 1987) has made a great contribution by emphasizing the importance of sustainable development and by giving the most often-quoted definition: “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs."
The starting point of theory formation is the ethical idea of sustainability. It is based on obligations toward future generations and presupposes intergenerational equity.

Concerning specific resources and services (e.g. fresh water, the atmosphere as a carbon sink, the wide variety of ecosystem) it is evident that continuing growth at this rate of utilization is unsustainable.
In this course a simple world model is the basis for structuring a concept of sustainability. Analysts with different perspectives have applied criteria of sustainability which emphasize the ability of the economy to maintain living standards. This course examines these criteria.

The main limit in our ecosystem is the carrying capacity for human influences controlled by the world population and satisfaction of needs. The limits of ecosystems have an impact on our economic system if sustainability will be implemented.
How should mankind deal with natural resources especially with non-renewables? How should mankind solve problems like poverty and wastage? What are the consequences for industrial and developing nations?

Contents of the course:

• What is Sustainability?
• The history of Sustainability
• Neoclassical Economics and Sustainable Development
• Ecological Economics and Sustainable Development
• Economic growth and Sustainable Development
• Main problems of mankind (Wastage and Poverty, Environmental Degradation)
• How to achieve Sustainability?
• A simple model of the Earth
o The economic and the ecological system
o Natural means of livelihood
o Resources and waste
o Population and satisfying needs
• The major goal of mankind: Implementing Sustainable Development
• Consequences for industrial and developing nations
• What does a Sustainable World look like?

TEACHING METHODOLOGY

The course will consist of a lecture on theoretical aspects of macroeconomics, ecological economics and natural sciences. The students will get an insight into current researches of sustainability.

LEARNING OUTCOME

The students’ learning outcome of the course is:
• knowledge of the definition and history of sustainability
• critical insight to economic growth
• knowledge of the difference between growth and development
• understanding the main problems in the world: poverty and wastage
• understanding the importance of sustainability
• comprehension of the consequences for all nations in the world

EVALUATION OF LEARNING OUTCOME: ASSESSMENT CRITERIA

By the end of the course students must be able to fulfill the above stated learning outcome.
Grade 12:
Grade 12 denote 100% target fulfillment related to the learning outcome.
Grade 02:
Grade 02 is the minimum grade required for passing and is therefore given for the minimum acceptable performance related to the learning outcome.

LITERATURE

Mandatory Literature:
• Lecture Notes (will be provided to the students some weeks before the course starts)
• Common, Michael and Stagl, Sigrid, Ecological Economics: An Introduction, Cambridge 2005.