GY 423: Environment and Development – Full Unit
Lecture Programme – Michaelmas Term 2011
GY468: Environment and Development: Sustainability, Technology and Business – Half Unit (MT Only)
Michaelmas Term – Eric Neumayer (course manager) – STC.S503
Richard Perkins – STC.S413
John Childs – STC.S501
Lent Term – Charles Palmer – KGS.K205 and Salvatore di Falco – KGS.K204
Lectures: Thursday, 8.30-10 a.m. (Room CLM.D202)
Seminars: Thursday, 10-11 a.m. OR 11-12 a.m. OR 1-2 p.m. OR 2-3 p.m. OR 3-4 p.m. (Room CLM.D206)
Availability
Obligatory course for MSc Environment and Development. GY468 is a core course for MSc Environmental
Policy and Regulation students (Michaelmas Term half unit) while GY423 (full unit) is optional for EPR
students. Available to other students with the consent of the course teachers and subject to space (this is a
capped course).
Aims
In the Michaelmas term this course will provide an introduction to economic concepts of sustainable
development, appraise the availability of natural resources for and the environmental consequences of sustained
economic growth, examine the interlinkages between trade, investment and the environment, analyse indicators
for measuring progress towards sustainability. The then proceeds to consider the scope for decoupling economic
development from negative environmental consequences by considering the potential for technology, focusing
on the drivers, barriers and dynamics of green technological change in both developed and developing countries.
Finally, the course examines the role of business, critically analysing the conditions under which corporations
might be instrumental in contributing to sustainable development.
The Lent term begins with an analysis of the mechanisms that relate population growth to the environment, the
ecological footprint, the empirical evidence on the “resource curse” hypothesis and the role of biodiversity in
supporting important ecosystems services and resilience. The issue of adaptation to the social and economic
implications of climate change in developing countries will also be covered. An introduction to forests and land
use is followed with trends on deforestation and its causes in developing countries. The role of forests in climate
change along with the impacts on human welfare are covered in the same lecture, which then leads to a lecture
that looks at broader issues of equity in resource use and management. The fourth lecture on bioenergy in
developing countries also links back to land use and climate change.
Teaching Arrangements
The course will consist of weekly lectures accompanied by weekly seminars.
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Assessment for GY423
The deadline for the 3000 word course essay (25%) is Thursday 15th March 2012, 4pm (questions to follow). A
three-hour unseen examination takes place in May/June (75%). MSc Environment and Development students
not writing a dissertation write a 5000 word course essay instead of the 3000 word essay. The deadline for this
essay is Thursday 24th August 2012, 4pm (questions to follow).
Assessment for GY468
A two hour unseen examination (100%) taking place in May/June
Office hours (Michaelmas term – term time only):
Eric Neumayer – Mondays 14.15 to 15.45
Richard Perkins – Wednesdays 15.00-16.30
Salvatore di Falco – Fridays 13.30 to 15.00
Charles Palmer – Tuesdays 14:00 to 15:30
John Childs - TBC
Michaelmas Term - Lecture and Seminar Programme
To look up terms used during this course, see generally Markandya et al. (2001).
1.
Introduction and Overview
Seminar: General discussion and allocation of topics for presentation in Lent Term (weeks 2-10)
2.
The concept of sustainable economic development
Core Reading: Neumayer (2010, sections 2.1 and 2.2.1), Atkinson et al. (1997, ch. 1), Perman et al.
(2003, ch. 4), Atkinson, Dietz and Neumayer (2007), Dasgupta (2008)
Debate: Weak versus strong sustainability
Core Reading: as above. In addition: Neumayer (2010, sections 2.3 and 3.3.1), Solow (1999), Daly
(2005)
3.
The ‘source’-side: Resource availability for sustained economic growth
Core Reading: Neumayer (2010, sections 3.1 and 3.2), Meadows et al. (1972, 1992, 2004), Beckerman
(1995, ch. 4), Unruh (2000), Lomborg (2001, ch. 11 and 12), Krautkraemer (2005), Kammen (2006),
Lackner and Sachs (2005), Blanchette (2008)
Debate: What economic mechanisms can explain why renewable resources are much under
pressure (and sometimes rendered extinct), compared to non-renewable resources?
Core Reading: Neumayer (2010, section 4.4), Krautkraemer (2005), Meadows et al. (2004, pp. 57107), Lomborg (2001, chs. 9, 10, 13), Broswimmer (2002), Common and Stagl (2005, ch. 14)
4.
The ‘sink’-side: Economic growth and the environment
Core Reading: Neumayer (2010, section 3.3), Cole (2007), Cole and Neumayer (2005), Selden,
Forrest and Lockhart (1999), Neumayer (2002a), Binder and Neumayer (2005), Common and Stagl
(2005, ch. 7), Stern (2003), Neumayer and Cole (2004), Neumayer (2003), Neumayer (2004c)
2
Debate: Beyond growth: What factors drive environmental pollution?
Core Reading: as above.
5.
Investment, trade and the environment: Theory and evidence
Core Reading: Neumayer (2001), Daly (1993), Bhagwati (1993), Muradian (2004), Ekins (2003),
Clapp and Dauvergne (2005), Neumayer (2004b), Boyce (2004)
Debate: Is globalisation good for sustainable development?
Core Reading: as above. In addition: Vogel (1997), Falkner (2006), Clapp (2002), Busch et al. (2005),
Neumayer (2002b), Perkins and Neumayer (2005), Perkins and Neumayer (2010)
6.
Measuring progress towards weak sustainability? Genuine Savings (GS), Index of Sustainable
Economic Welfare (ISEW) and Genuine Progress Indicator (GPI)
Core Reading: Neumayer (2010, sections 5.1 and 5.2), Hamilton (2007), World Bank (2011), Dietz,
Neumayer and de Soysa (2007), De Soysa and Neumayer (2005), Arrow et al. (2004), Arrow et al.
(2007), Daly et al. (2007), Redefining Progress (2006), New Economics Foundation (2004), Daly and
Cobb (1989, appendix, especially pp. 401-416 and 453-455) OR Cobb and Cobb (1994), Daly and Cobb
(2007), Lawn (2005).
Background reading on happiness studies: Easterlin (2003, 2005), Graham (2005), Hagerty and
Veenhooven (2003), Layard (2003)
Debate: The pros and cons of the weak sustainability measures
Core Reading: as above.
7.
Technological Change: Patterns, Systems & Lock-In
Core Reading: Wilson and Grubler (2011), Unruh (2000). In addition: Berkhout (2002), Grubler,
Nakicenovic et al (1999), Marechal and Lazaric (2010), Mokyr (2002), Perkins (2003), Sovacool
(2009), Carter (2007)
Debate: How might globalisation both help and hinder industrialising countries to achieve lowcarbon development?
Core Reading: Unruh and Carrillo-Hermosilla (2006), Van Bentham (2010), Rock, Murphy et al (2008)
8.
Technological Change: Policies & System Transformations
Core Reading: Sanden, Bjorn and Azar (2005), Markard and Truffer (2008), Foxon and Pearson
(2008) In addition: Nemet (2009), Norberg-Bohm (2000), Geels and Schot (2007), Kemp (2010), Nill
and Kemp (2009), Jacobsson and Lauber (2006), Stern (2007), Sagar and Van Der Zwaan (2006), Jaffe,
Newell and Stavins (2005), Verbong and Geels (2010)
Debate: What public support policies are most effective in promoting the large-scale uptake of
renewable energy? Lessons from the EU
Core Reading: Haas et al (2010), Meyer (2007), Toke (2007)
9.
Corporate responsibility: Nature, drivers and strategies
Core Reading: Blowfield and Murray (2008), Delmas and Toffel (2004), Auld, Bernstein and
Cashore (2008). In addition: Muller and Kolk (2010), Crane et al (2008), Vogel (2008), Gardberg and
Fombrun (2005), Hoffman (2000), Garriga and Mele (2004), Fiorino (2006), Jamali (2010), Khanna and
Anton (2002), Perkins (2007)
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Debate: Does it pay to be environmentally/socially responsible? And, if so, under what conditions
does it pay?
Core Reading: Ambec and Lanoie (2008), Vogel (2005), Lankoski (2007)
10.
Critical perspectives on corporate responsibility: Substantive progress or simply the manufacture
of ethical appearances?
Core Reading: Doane (2005), Blowfield and Murray (2008), Devinney (2009). In addition: Banerjee
(2007), Egels-Zanden (2007), Fougere and Solitander (2009), Futerra, Soederberg (2007),
Hooghiemstra (2000), Ihlen (2009), Beder (2001), Niskanen and Nieminen (2001), Preuss (2005)
Debate: To what extent can corporate social responsibility (CSR) serve as a substitute to
government policy in developing countries?
Core Reading: Fox, Ward and Howard (2002), Frynas (2008), Idemudia (2011)
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Michaelmas Term - Reading List
Ambec, S. and Lanoie, P. (2008). Does it pay to be green? A systematic overview. The Academy of Management
Perpectives 22 (4), pp.45-62.
Arrow K., Bolin B., Costanza R., Dasgupta P., Folke C., Holling CS., Jansson B-O., Levin S., Mäler K-G.,
Perrings C., Pimentel D. (1995) Economic growth, carrying capacity, and the environment. Science 268:
520-521.
Arrow, K. et al. (2004). Are we consuming too much? Journal of Economic Perspectives 18(3), pp.147172. (Main Collection HB1)
Arrow, K. et al. (2007). Consumption, investment and future well-being: reply to Daly et al. Conservation
Biology 21 (5), pp. 1363-1365.
Atkinson, G. et al. (1997). Measuring Sustainable Development - Macroeconomics and the Environment,
Cheltenham: Edward Elgar. (Ch 4 in OFFPRINT COLLECTION P2210; Course Collection HC79.E5
M17)
Atkinson, G., S. Dietz and E. Neumayer (eds). (2007). Handbook of Sustainable Development, Cheltenham:
Edward Elgar. (Course Collection HC79 E5 H23.)
Auld, G., Bernstein, S. & Cashore, B. (2008). The new corporate social responsibility. Annual Review of
Environment and Resources 33, pp.413-435.
Banerjee, S. B. (2007). Corporate social responsibility: The good, the bad and the ugly. Cheltenham: Edward
Elgar.
Beckerman, W. (1995). Small is Stupid - Blowing the Whistle on the Greens, London: Duckworth ( Course
Collection JA75.8 B39)
Beder, S. (2001) Global spin. In Starkey, R. & Welford, R. (eds.). The Earthscan reader in business and
sustainable development. London: Earthscan, pp.242-266.
Berkhout, F. (2002). Technological regimes, path dependency and the environment. Global Environmental
Change 12, pp.1-4.
Bhagwati, J. (1993).The Case for Free Trade, Scientific American November 1993, pp.42-47. ( Classmark
Q1.A3; MAP ROOM Record #7531)
Binder, S. and E. Neumayer (2005). Environmental Pressure Group Strength and Air Pollution: An Empirical
Analysis, Ecological Economics 55 (4), pp.527-538. (Main Collection HC79.E5)
Blanchette, S. (2008), A hydrogen economy and its impact on the world as we know it. Energy Policy 36, pp.
522-530.
Blowfield, M. and Murray, A. (2008). Corporate responsibility: A critical introduction. Oxford: Oxford
University Press.
Boyce J. K. (2004). Green and brown? Globalization and the environment. Oxford Review of Economic Policy,
20 (1): 105-128.
Broswimmer, Franz (2002): Ecocide: a short history of the mass extinction of species. London : Pluto Press
(MAIN COLLECTION GF75 B87)
Busch, P., H. Jörgens and K. Tews (2005). The global diffusion of regulatory instruments: The making of a new
international environmental regime. The Annals of the American Academy of Political and Social Science,
598 (1), pp.146-167.
Carter, N. (2007). The politics of the environment: Ideas, activism, policy. (2nd edition). Cambridge: Cambridge
University Press. pgs 207-239.
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Clapp, J. (2002).What the pollution haven debate overlooks. Global Environmental Politics 2 (2), pp.11-19.
Clapp, J. and P. Dauvergne (2005). Paths to a green world – the political economy of the global environment,
Cambridge (Mass.): MIT Press. (Main Collection HC79.E5 C58)
Cobb, C. W. and J. B. Cobb (1994).The Green National Product: a Proposed Index of Sustainable Economic
Welfare, Lanham: University Press of America. (Course Collection HD75.6 C65)
Cole, M. (2007).Economic Growth and the Environment. In: G. Atkinson, S. Dietz and E. Neumayer, (eds).
Handbook of Sustainable Development, Cheltenham: Edward Elgar, pp.240-253.(Course Collection HC79
E5 H23.)
Cole, M. and E. Neumayer (2005).Environmental Policy and the Environmental Kuznets Curve; in: P.
Dauvergne (ed). Handbook of Global Environmental Politics, Cheltenham: Edward Elgar. pp.298318.(Course Collection GE170 H23)
Crane, A. et al. (Eds) (2008). The Oxford handbook of corporate social responsibility. Oxford: Oxford
University Press.
Daly, H. E. (1993). The Perils of Free Trade, Scientific American November 1993, pp.24-29.(Main Collection
Q1.A3; MAP ROOM Record #7533 GY423)
Daly, H.E. (2005). Economics in a full world. Scientific American 293 (3), pp. 100-107.
Daly, H. E. and J. B. Cobb (1990). For the Common Good, Boston: Beacon Press. (Course Collection HD75.6
D15)
Daly, H. E. and J. B. Cobb (2007). ISEW. The ‘debunking’ interpretation and the person-in-community
paradox: comment on Rafael Ziegler. Environmental Values 16, pp. 287-288.
Daly, H. E. et al. (2007). Are we consuming too much – for what? Conservation Biology 21 (5), pp. 1359-1362.
Dasgupta, P. (2008). Nature in Economics. Environmental and Resource Economics 39, pp. 1-7.
Delmas, M. A. & Toffel, M. W. (2004). Stakeholders and environmental management practices: An institutional
framework. Business Strategy and the Environment 13 (4), pp.209-222.
Devinney, T. M. (2009). Is the socially responsible corporation a myth? The good, the bad and the ugly of
corporate social responsibility. Academy of Management Perspectives 23 (2), pp.44-56.
De Soysa, I. and E. Neumayer (2005). False Prophet, or Genuine Savior? Assessing the Effects of Economic
Openness on Sustainable Development, 1980-1999. International Organization 59 (3), pp. 731-772
Dietz, S., E. Neumayer and I. de Soysa (2007). Corruption, the Resource Curse and Genuine Saving,
Environment and Development Economics 12 (1), pp.33-53.
Doane, D. (2005). Beyond corporate social responsibility: Minnows, mammoths and markets. Futures 37 (2-3),
pp.215-229.
Easterlin, R. A. (2005). Feeding the illusion of growth and happiness: a reply to Hagerty and Veenhoven. Social
Indicators Research 74, pp.429-443.
Easterlin, R. A. (2003). Explaining Happiness. Proceedings of the National Academy of Sciences 100 (19),
September 16, pp. 11176–11183.
Egels-Zandén, N. (2007). Suppliers’ compliance with MNCs’ codes of conduct: Behind the scenes at Chinese
toy suppliers. Journal of Business Ethics 75 (1), pp.45-62.
Ekins, P. (2003).Trade and environment. In the Online Encyclopedia of Ecological Economics (OEEE), the
International Society for Ecological Economics (ISEE).
Falkner, R. (2006).International sources of environmental policy change in China: The case of genetically
modified food. The Pacific Review, 19 (4).
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Fiorino, D. J. (2006). The new environmental regulation. London: MIT Press.
Fougère, M. and Solitander, N. (2009). Against corporate responsibility: Critical reflections on thinking,
practice, content and consequences. Corporate Social Responsibility and Environmental Management, 16,
pp.217-227.
Foxon, T. & Pearson, P. (2008). Overcoming barriers to innovation and diffusion of cleaner technologies: Some
features of a sustainable innovation policy regime. Journal of Cleaner Production 16 (1S), pp.S148-161.
Fox, T., Ward, H. and Howard, B. (2002). Public Sector Roles in Strengthening Corporate Social
Responsibility: A Baseline Study, Washington, D.C.: World Bank
Frynas, J.G. (2008) Corporate Social Responsibility and International Development: Critical Assessment.
Corporate Governance: An International Review. 16 (4), pp. 274-281.
Futerra (n.d.). The greenwash guide. London: Sustainability Communications.
Gardberg, N. A. & Fombrun, C. J. (2005). Corporate citizenship: Creating intangible assets across institutional
environments. The Academy of Management Review 31 (2), pp.329-346.
Garriga, E. and Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of
Business Ethics 53 (1-2), pp.51-71.
Geels, F. W. & Schot, J. (2007). Typology of sociotechnical transition pathways. Research Policy 36 (3),
pp.399-417.
González-Benito, J. & González-Benito, Ó. (2006). A review of determinant factors of environmental
proactivity. Business Strategy and the Environment 15 (2), pp.87-102.
Graham, C. (2005). Insights on Development from the Economics of Happiness. World Bank Research
Observer 20 (2), pp.201-231.
Grübler, A., N. Nakicenovic, et al. (1999). Dynamics of energy technologies and global change, Energy policy
27 (5), pp.247-280.
Haas, R. et al. (2010). A historical review of the promotion strategies for electricity from renewable energy
sources in EU countries. Renewable and Sustainable Energy Reviews 15 (2), pp.1003-1034
Hagerty, M. R. and R. Veenhoven (2003). Wealth and happiness revisited – growing national income does go
with greater happiness. Social Indicators Research 64, pp.1-27.
Hamilton, C. (2007). The index of sustainable economic welfare In: G. Atkinson, S. Dietz and E. Neumayer,
(eds). Handbook of Sustainable Development, Cheltenham: Edward Elgar, pp.307-318. (Course
Collection HC79 E5 H23.)
Hoffman, A. (2000). Competitive environmental strategy: A guide to the changing business landscape.
Washington, D.C.: Island Press.
Hooghiemstra, R. (2000). Corporate communication and impression management – New perspectives why
companies engage in corporate social reporting. Journal of Business Ethics 27 (1-2), pp.55-68.
Idemudia, U. (2011). Corporate Social Responsibility and Developing Countries: Moving the Critical CSR
Research Agenda in Africa Forward. Progress in Development Studies, 11 (1), pp.1-18.
Ihlen, O. (2009). The oxymoron of sustainable oil production: The case of the Norwegian oil industry. Business
Strategy and the Environment.
Jacobsson, S. & Lauber, V. (2006). The politics and policy of energy system transformation—explaining the
German diffusion of renewable energy technology. Energy Policy 34 (3), pp.256-276.
Jaffe, A. B., Newell, R. G. & Stavins, R. N. (2005). A tale of two market failures: Technology and
environmental policy. Ecological Economics 54 (2-3), pp.164-174.
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Jamali, D. (2010). The CSR of MNC subsidiaries in developing countries: Global, local, substantive or diluted?
Journal of Business Ethics 93, pp.181-200
Kammen, D. M. (2006). The Rise of Renewable Energy. Scientific American. September. pp.84-93.
Kemp, R. (2010). The Dutch energy transition approach. International Economics and Economic Policy, 7: 291316.
Khanna, M. & Anton, W. R. Q. (2002). What is driving corporate environmentalism: Opportunity or threat?
Corporate Environmental Strategy 9 (4), pp.409-417.
Krautkraemer, J.A. (2005). Economics of Natural Resource Scarcity: The State of the Debate. Discussion Paper
05-14. Washington D.C.: Resources for the Future.
Lackner, K. S. and J. D. Sachs (2005). A Robust Strategy for Sustainable Energy. Brookings Papers on
Economic Activity Number 2, pp.215-284.
Lankoski, L. (2007). Corporate responsibility activities and economic performance: A theory of why and how
they are connected. Business Strategy and the Environment 17 (8), pp.536-547.
Lawn, P. A. (2005).An assessment of the valuation methods used to calculate the Index of Sustainable
Economic Welfare (ISEW), Genuine Progress Indicator (GPI), and Sustainable Net Benefit Index (SNBI).
Environment, Development and Sustainability 7(2), pp.185-208.
Layard, R. (2003).Happiness: Has Social Science a Clue? Lecture series. London: LSE.
Lomborg, B. (2001).The Skeptical Environmentalist, Cambridge: Cambridge University Press. (Course
Collection GE149 L84)
Marechal, K. & Lazaric, N. (2010). Overcoming inertia: Insights from evolutionary economics into improved
energy and climate policies, Climate Policy 10, pp.103-119.
Markard, J. & Truffer, B. (2008). Technological innovation systems and the multi-level perspective: Towards an
integrated framework. Research Policy 37 (4), pp.596-615
Markandya, A. et al. (eds). (2001).Dictionary of environmental economics, London: Earthscan. (HC79.E5 D55
Reference only)
Meadows, D. et al. (1972), The Limits to Growth, New York: Universe Books. (Course Collection HD82 L73)
Meadows, D., D. Meadows and J. Randers (1992), Beyond the Limits: Global Collapse or a Sustainable Future,
London: Earthscan. (Course Collection HD75.6 M48)
Meadows, D., J. Randers and D. Meadows (2004), The Limits to Growth: the 30-year Update, White River
Junction: Chelsea Green Publishing Company. (Main Collection HD75.6 M48)
Meyer, N,I. (2007). Learning from wind energy policy in the EU: Lessons from Denmark, Sweden and Spain.
European Environment 17 (5), pp.347-362
Mokyr, J. (2002). Thinking about technology and institutions. Prometheus's Bequest: Technology and Change.
Macalester International College
Muller, A. & Kolk, A. (2010). Extrinsic and intrinsic drivers of corporate social performance: Evidence from
foreign and domestic firms in Mexico. Journal of Management Studies 47 (1), pp.1-26
Muradian. R. (2004).Economic Globalisation and the Environment. In the Online Encyclopedia of Ecological
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Nemet, G. F. (2009). Demand-pull, technology-push, and government-led incentives for non-incremental
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Neumayer, E. (2000).On the methodology of ISEW, GPI and related measures: some constructive suggestions
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Neumayer, E. (2001).Greening Trade and Investment – Environmental Protection without Protectionism,
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Neumayer, E. (2002b). Does trade openness promote multilateral environmental cooperation?, World Economy
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Neumayer, E. (2003). Are Left-Wing Party Strength and Corporatism Good for the Environment? A Panel
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Neumayer, E. (2004b).The WTO and the environment: its past record is better than critics believe, but the future
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Neumayer, E. (2004c). National Carbon Dioxide Emissions: Geography Matters. Area 36 (1), pp. 33-40.
Neumayer, E. (2010).Weak versus Strong Sustainability: Exploring the Limits of Two Oppoing Paradigms,
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Neumayer, E. and M. Cole (2004). Examining the Impact of Demographic Factors On Air Pollution. Population
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Nill, J. and Kemp, R. (2009). Evolutionary approaches for sustainable innovation policies: From niche to
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Rock, M., Murphy, J. T., Rasiah, R., van Seters, P. and Managi, S. (2009). A hard slog, not a leap frog:
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Sandén, Björn A. & Azar, C. (2005). Near-term technology policies for long-term climate targets—economy
wide versus technology specific approaches. Energy Policy 33 (12), pp.1557-1576.
Selden, T. M., A. S. Forrest and J. E. Lockhart (1999), Analyzing the Reductions in U.S. Air Pollution
Emissions: 1970 to 1990, Land Economics 75 (1), pp.1-21. (Main Collection HD101)
Soederberg, S. (2007). Taming corporations or buttressing market-led development? A critical assessment of the
Global Compact. Globalizations 4 (4), pp.500-513.
Solow, R. M. (1999), ‘An almost practical step toward sustainability’, in: W. E. Oates (ed). The RFF Reader in
environmental and resource management, Washington D.C.: Resources for the Future, pp.253-272.
(Course Collection GE170 R33)
Sovacool, B. K. (2009). Rejecting renewables: The socio-technical impediments to renewable electricity in the
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Stern, N. (2007). The economics of climate change: The Stern review. Cambridge, Cambridge University Press.
Stern, D.I. (2003).Environmental Kuznets Curve, In the Online Encyclopedia of Ecological Economics (OEEE),
the International Society for Ecological Economics (ISEE).
Toke, D. (2007). Renewable financial support systems and cost-effectiveness. Energy Policy 15 (3), p.280-287.
Unruh, G. C. and Carillo-Hermosilla, J. (2006). Globalising carbon lock-in. Energy Policy 34 (10), pp.11851197.
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HD9502.A4.G7)
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10-047
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clean technology cluster. IIASA Interim Report IR-11-001.
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