The Environment Canada Policy Research Seminar Series

Dr. Robert Costanza June 14, 2000

On Friday July 14th, 2000, the Environment Canada Policy Research Seminar Series presented Dr. Robert Costanza who spoke on Natural Capital and Sustainable Development. The following is a summary of his discourse.

In order to solve problems one needs to establish an adequate vision of how the world works and how one envisions the world to be. "There is a need to determine an underlying vision and use implementation tools and analytical techniques to work towards that vision."

Ecological economics is a "trans-discipline in which one must transcend boundaries and pursue interdisciplinary goals". The economic system is a subsection of the larger ecosystem and there should be a shift from focusing on the sub system to the economic sub systems' connection with the larger global ecological system.

Three specific interdisciplinary goals were highlighted: firstly, the creation of an "ecologically sustainable scale" or size of the economic sub system, secondly the "fair distribution of resources" between humans and/or species and thirdly, "economic efficient allocation of natural capital" including non market goods and services produced by natural capital. In order to pursue these goals one should establish and maintain a trans-disciplinary dialogue, problem focus, use appropriate science and build effective and adaptive institutions which can integrate new visions.

The paradigm of the way we view and value the world has begun to change. The shift from the conventional model includes the recognition that the earth is a materially closed system, that there are limits to substitutability between natural capital, human capital, social capital and manufactured capital and that natural capital produces services, which are not a currently represented by the consumption function, which increase human well being.

An essential concept within this new paradigm is the pursuit of "Appropriate Science".  This idea incorporates a comprehensive systems approach, which is a balance between synthesis and analysis, is conceptually pluralistic, is problem driven and promotes the use of multi-scale and integrated models. "Integrated ecological economic modeling" is an important aspect of "appropriate science" which incorporates consensus building tools, open participatory practices and the consideration of all stakeholders at a multi-scale level. Furthermore, it acknowledges uncertainties and limited predictability by realizing that all models are simplifications of the system. Most importantly the new paradigm needs to link science with policy in order to be effective. This can be done by using modeling as a consensus building tool as opposed to the more common scientific "expect /policy maker dichotomy", by communicating uncertainties and limits of predictability and by using a community model.

To pursue his point Dr. Costanza described two examples: a synthesis study on the valuation of natural capital (Costanza, R., D' Arge, R., Groot, R.d., et al. The value of the world's ecosystem services and natural capital. Nature (London) (1997) 387, (6630):253-260)  and an envisioning exercise of world views and policy (http://www.consecol.org/Journal/vol4/iss1/art5/index.html).

The Synthesis Study on the Valuation of Natural Capital categorized 17 different ecosystems and assigned values for their functions in terms of ability to provide support to human needs. The majority of this information was synthesized from previous investigations and studies. When all ecosystems were aggregated the services resulted in 33 trillion dollars of value, larger then the global GNP. Thus, what is outside the market is larger then what is inside the market.  This investigation provides the rationale that "these extremities need to be taken into consideration if one wishes to incorporate the ideas of efficiency, fairness and sustainability" into an equation of human well being.

Constanza stressed the ideas of envisioning as a tool for describing the future and pursuing what we collectively desire. From effective visioning one can "choose the policies which will lead to the fulfillment of a given vision". The vision should be judged by the clarity of its goals, the acknowledgment of constraints, the representation of a common ground and should be flexible and evolving.

Two alternatives and competing world views exist: the technological optimist and the technological skeptic. The Technological optimist believes that resources are unlimited and that technological progress can deal with any challenge. It assumes that there is no problem with scale (i.e. an economy can become infinitely large). If this vision is correct a future scenario would include a "Star Trek" vision, in which technology saves human kind, or a "Mad Max" scenario, where chaos emerges as technology fails to account for natural capital depletion. Secondly, there is the technological  skeptic view which contends that resources are limited and that the material system can not grow indefinitely. Social and community development is stressed rather then increased capital growth and markets and technologies are seen as "servants rather than masters". According to this vision, should technology succeed in bridging the gap of natural capital depletion, a big government would result that would slow progress. However, should technology fail, an Ecotopia would result where sustainable government would emerge.

In terms of sustainability, Ecotopia is often viewed as the most preferable outcome of the four scenarios described. While the Mad Max is seen as so undesirable that it makes technological optimism a less-preferred world view. The "Principles of Sustainable Government", envisioned by Ecotopia,  include responsible natural resource use, similarity in scale between institutions, ecosystems and the problems being addressed, use of the precautionary principle, adaptive management, full cost allocation, the use of incentive systems, and full participation from all stakeholders.

One way to pursue Ecotopia or Sustainable Government includes the establishment of ecological tax reforms, the taxation of  "bads", which could include natural capital depletion, pollution and excessive consumption. Taxes shifted to the polluter is one of the "most effective ways to promote sustainable resource use and limit pollution".  

Biography

Dr. Robert Costanza is director of the University of Maryland Institute for Ecological Economics, and a professor in the Center for Environmental Science, at Solomons, and in the Biology Department at College Park. He received his Ph.D. from the University of Florida in 1979 in systems ecology, with a minor in economics.  He also has a Masters degree in Architecture and Urban and Regional Planning from the University of Florida.

Dr. Costanza is co-founder and past-president of the International Society for Ecological Economics (ISEE) and chief editor of the society's journal: Ecological Economics.  He currently serves on the editorial board of eight other international academic journals.  He is currently president of the International Society for Ecosystem Health. In 1982 he was selected as a Kellogg National Fellow, in 1992 he was awarded the Society for Conservation Biology Distinguished Achievement Award and in 1993 he was selected as a Pew Scholar in Conservation and the Environment. In 1998 he was awarded the Kenneth Boulding Memorial Award for Outstanding Contributions in Ecological Economics . He has served on the Scientific Steering Committee for the LOICZ core project of IGBP; the US EPA National Advisory Council for Environmental Policy and Technology (NACEPT); the National Research Council Board on Sustainable Development, Committee on Global Change Research; the National Research Council, Board on Global Change; the US National Committee for the Man and the Biosphere Program, and the National Marine Fisheries Service Committee on Ecosystem Principles.

Dr. Costanza's research has focused on the interface between ecological and economic systems, particularly at larger temporal and spatial scales.  This includes landscape level spatial simulation modeling;  analysis of energy and material flows through economic and ecological systems; valuation of ecosystem services, biodiversity, and natural capital;  and analysis of dysfunctional incentive systems and ways to correct them.

List of articles and books by Dr. Robert Costanza

Compiled in support of an Environment Canada Policy Research Seminar, held in Hull on July 14, 2000.

1. Bernow, S., Costanza, R., Daly, H., et al. Society news : Ecological tax reform. Bioscience (1998) 48 (3) : 193-196.
   
   
2. Bockstael, N., Costanza, R., Strand, I., Boynton, W., Bell, K. & Wainger, L. Ecological economic modeling and valuation of ecosystems. Ecological Economics [Amsterdam] (1995) 14 (2) : 143-159.
   
   
3. Chmura, G.L., Costanza, R. & Kosters, E.C. Modelling coastal marsh stability in response to sea level rise: a case study in coastal Louisiana, USA. Ecological Modelling (1992) 64 (1) : 47-64.
   
   
4. Costanza, R. & Perrings, C. A flexible assurance bonding system for improved environmental management. Ecological Economics [Amsterdam] (1990) 2 (1) : 57-75.
   
   
5. Costanza, R. Ecological economics : the science and management of sustainability New York : Columbia University Press, 1991.
   
   
6. Costanza, R. Haskell, B.D. & Norton, B.G. Ecosystem health : new goals for environmental management.Washington, D.C. : Island Press, 1992.
   
   
7. Costanza, R. & Cornwell, L. The 4P approach to dealing with scientific uncertainty. Environment (1992) 34 (9) : 12-20, 42.
   
   
8. Costanza, R., Kemp, W.M. & Boynton, W. Predictability, scale, and biodiversity in coastal and estuarine ecosystems : implications for management. Ambio (1993) 22 (2) : 88-96.
   
   
9. Costanza, R. Developing ecological research that is relevant for achieving sustainability. Ecological Applications (1993) 3 (4) : 579-581.
   
   
10. Costanza, R. & Patten, B.C. Defining and predicting sustainability. Ecological Economics [Amsterdam] (1995) 15 (3) : 193-196.
    
    
11. Costanza, R. Forum: economic growth, carrying capacity, and the environment. Ecological Economics [Amsterdam] (1995) 15 (2) : 89-147.
    
    
12. Costanza, R. & O'-Neill, R.V. Introduction : ecological economics and sustainability. Ecological Applications (1996) 6 (4) : 975-977. Notes: Introduction to a special section of Ecological Applications containing 6 papers "that lay out the problems and challenges of developing an integration of ecology and economics for achieving sustainability". Introduction à une section spéciale de cette livraison qui comprend 6 articles concernant l'intégration de l'écologie et de l'économie en vue d'un développement durable.
    
    
13. Costanza, R. Ecological economics : reintegrating the study of humans and nature. Ecological Applications (1996) 6 (4) : 978-990.
    
    
14. Costanza, R., D'-Arge, R., Groot, R.d., et al. The value of the world's ecosystem services and natural capital. Nature [London] (1997) 387 (6630) : 253-260.
    
    
15. Costanza, R., Daly, H., Folke, C., et al. Managing our environmental portfolio. Bioscience (2000) 50 (2) : 149-155.
    
    
16. Folke, C., Jansson, A., Larsson, J. & Costanza, R. Ecosystem appropriation by cities. Ambio (1997) 26 (3) : 167-172.
    
    
17. Jansson, A. Hammer, M. Folke, C. & Costanza, R. Investing in natural capital : the ecological economics approach to sustainability. Washington, D.C. : Island Press, 1994.
    
    
18. Norton, B.G., Costanza, R. & Bishop, R.C. The evolution of preferences : why "sovereign" preferences may not lead to sustainable policies and what to do about it. Ecological Economics [Amsterdam] (1998) 24 (2) : 193-211.
    
    
19. Rapport, D., Bohm, G., Buckingham, D., et al. Ecosystem health : the concept, the ISEH, and the important tasks ahead. Ecosystem Health (1999) 5 (2) : 82-90.
    
    
20. Rapport, D.J., Bohm, G., Buckingham, D., et al. Reply to Calow: Critics of ecosystem health misrepresented. Ecosystem Health (2000) 6 (1) : 5-6.