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Integrating social, environmental and economic dimensions into a monitoring framework Maria Martinho [email protected] Summary • Context • What do data tell us about the integration of the three dimensions of sustainable development? • Indicators/measures to monitor sustainable development • Inequality measures • Conclusion Context Rio+20, HLPGS, post-2015 discussions • Increasing interest in having sustainable development at the core of development • Need to integrate the social, economic and environmental dimensions of development What do data tell us about the integration of the social, economic and environmental dimensions of development? Illustrative example: HDI versus Ecological footprint Countries with high HDI tend to have high environmental impact 1.0 Countries with low ecological foortprint tend to have low HDI Human Development Index 0.9 CLOSER TO SUSTAINABLE DEVELOPMENT 0.8 High human development (HDI>0.8) 0.7 0.6 0.5 0.4 0.3 0.2 0.1 Earth's biocapacity (2.1 hectares per person) 0.0 0.0 2.0 4.0 6.0 8.0 10.0 Ecological Footprint (global hectares per capita) 12.0 HDI versus Ecological footprint • So far, in most countries, there has been a tradeoff between socio-economic development and environmental protection Countries with high HDI tend to have high environmental impact 1.0 Countries with low ecological foortprint tend to have low HDI Human Development Index 0.9 CLOSER TO SUSTAINABLE DEVELOPMENT 0.8 High human development (HDI>0.8) 0.7 0.6 0.5 0.4 0.3 0.2 0.1 Earth's biocapacity (2.1 hectares per person) 0.0 0.0 2.0 4.0 6.0 8.0 10.0 Ecological Footprint (global hectares per capita) 12.0 Is it possible for countries to reach higher levels of social development while keeping a sustainable environmental impact? HDI versus Ecological footprint • Some countries have succeeded in moving higher up in the HDI while keeping within a sustainable ecological footprint Peru 1 2005 2000 1995 0.8 1990 1985 1975 1980 HDI 0.6 0.4 0.2 0 0 0.5 1 1.5 Ecological footprint 2 2.5 HDI versus Ecological footprint • And others have succeeded to move to a lower ecological footprint while keeping high levels of HDI Germany 2005 2000 1995 1990 1985 1980 1 HDI 0.8 0.6 0.4 0.2 0 0 1 2 3 4 5 Ecological footprint 6 7 What measures can make the interlinkages between the socioeconomic and environmental dimensions visible? • Indicators/measures to monitor sustainable development should: – Permit to visualize the environmental implications of socio-economic activities and the welfare implications of imbalances and changes of ecosystems • to promote synergies and avoid trade-offs favouring one dimension over the others – Reflect the complexity of sustainable development in its multiple dimensions • but be simple and user-friendly for policy makers Integrating the 3 dimensions • Indicators on the three dimensions of sustainable development Social indicators Economic indicators Environmental indicators Health Income GHG emissions Education GDP Land degradation Hunger Debt Water Shelter Productivity Forests etc etc etc Integrating the 3 dimensions • Indicators that reflect impacts on all 3 dimensions – eradicating hunger • Social: food security – MDG 1.8, prevalence of underweight children – MDG 1.9, population below a minimum level of dietary energy consumption • Economic: efficient use of water and land – Agricultural output per unit water consumed (CSD indicator), but data are scarce • Environmental: decreased environmental degradation and waste, in food production and consumption – Amount of food waste (FAO) – Use of agricultural pesticides (FDES indicators) Integrating the 3 dimensions • Another example: – sustainable energy for all • Social: energy access – Energy use per capita (IEA) – Share of households without electricity or other modern energy services (CSD indicator; collected in household surveys), but data are scarce • Economic: energy efficiency – Energy use per $1000 GDP (IEA) • Environmental: use of renewable and clean sources – Renewable as % of total (IEA) – % of population using solid fuels (WHO) Integrating and balancing the 3 dimensions Social indicators Economic indicators Environmental indicators Health Income GHG emissions Education Employment Land degradation etc etc etc Social summary measure Economic summary measure Environmental summary measure Integrating the 3 dimensions • Summary measures to provide an overall picture of what happens in social, economic and/or environmental dimensions – GDP – Human development index – Ecological footprint, environmental performance index, living planet index – etc Integrating and balancing the 3 dimensions Social indicators Economic indicators Environmental indicators Health Income GHG emissions Education Employment Land degradation etc etc etc Social summary measure Economic summary measure How to integrate them? Environmental summary measure Integrating the 3 dimensions • Measures that favour synergies and penalize tradeoffs – Many summary measures do not penalize trade offs • methodology for aggregation: simple average of different indicators Country Env Soc Eco X 0.1 0.5 0.9 Y 0.4 0.5 0.6 S = social measure Eco = economic measure Env = Environmental measure • Simple average – Both countries, X and Y, have the same average (Env + Soc + Eco)/3 = 0.5 Integrating the 3 dimensions • Measures that favour synergies and penalize tradeoffs – Many summary measures do not penalize trade offs • methodology for aggregation: simple average of different indicators Country Env Soc Eco X 0.1 0.5 0.9 Y 0.4 0.5 0.6 But country X performs much better in the economic dimension at the price of a low environmental performance S = social measure Eco = economic measure Env = Environmental measure Values closer to one indicate better performance Integrating the three dimensions Country X Y Env Soc Eco • Simple average – Both countries, X and Y, 0.1 0.5 0.9 have the same mean (Env + Soc + Eco)/3 = 0.5 0.4 0.5 0.6 • Geometric mean 3 SD = Soc × Eco × Env – Country X: 0.36 – Country Y: 0.49 Penalized for the economicenvironmental trade-off Integrating the 3 dimensions • Measures that favour synergies and penalize tradeoffs – Geometric mean • Has been used in the calculation of the human development index since 2011 • Better than simple average at penalizing trade-offs Integrating and balancing the 3 dimensions Social indicators Economic indicators Environmental indicators Health Income GHG emissions Education Employment Land degradation etc etc etc Social summary measure Economic summary measure Overall SD measure Environmental summary measure Inequality measures • Measure disparities across a population of the resources received by that population • Resources: income, land, education, health services, energy, water, etc. • Measures across all population versus disaggregating for specific groups – Across all population: Gini coefficient, Hoover coefficient, % population with access to a service, etc. – For specific groups: disaggregating indicators for women/men, by wealth quintiles, for minorities, for persons with disabilities, etc. Income inequality measures • Increased interest in the SDG discussions • Associated to social negative outcomes, like increased violence, increased adolescent pregnancy rates • Popular/discussed measures – Gini coefficient – Palma index – Poorest quintile's share in national income/consumption Income inequality measures • Popular/discussed measures Cumulative income – Gini coefficient • Intuitive • More sensitive to changes in the middle class • Not immediate to see the situation of the poorest Cumulative population – Palma index • Ratio of the income of top 10% to the bottom 40% • Most equal countries have Palma index close to one • The bottom 40% may improve without improvement of the bottom 10% – Poorest quintile's share in national income/consumption Palma index for Brazil Income inequality measures • Popular/discussed measures Cumulative income – Gini coefficient • Intuitive • More sensitive to changes in the middle class • Not immediate to see the situation of the poorest Cumulative population – Palma index • Ratio of the income of top 10% to the bottom 40% • Most equal countries have Palma index close to one • The bottom 40% may improve without improvement of the bottom 10% – Poorest quintile's share in national income/consumption • Can supplement other inequality measures Concluding points • Sets of indicators should address the three dimensions of sustainable development Combining measures can help promote synergies in the three dimensions • – • geometric means Many inequality measures around, selection depends on purpose