Download Consumption Concept and Model

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• Describe sustainable
consumption model
• Explain the various
social, economic and
environmental trend
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 Neoclassical
microeconomics
 Consumption and Household Production
 Sustainable Consumption
 Consumption from religious perspectives
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Traditional economics (classical and neoclassical) is
concerned with the efficient, least cost allocation of
scarce productive resources and with optimal growth of
these resources over time so as to produce an everexpanding range of goods and services.
It assumes economic rationality and a purely
materialistic, individualistic, self-interested orientation
toward economic decision making.

Michael Todaro
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Political economy encompasses social and
institutional processes where economic and
political elites influence the allocation of scarce
productive resources now and in the future for
benefits ofthe larger population.
It is concerned with the relationship between
politics and economics, with a special emphasis
on the role of power in economic decision
making.
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Development economics, in addition to being concerned with
the efficient allocation of existing scarce (or idle) productive
resources and with their sustained growth over time, it also
deals with the economic, social, political, and institutional
mechanisms, both public and private, necessary to bring about
rapid and large-scale improvements in levels of living for the
masses.
Thus economic, cultural and political requirements are taken
into consideration in bringing about economic progress for the
entire societies.
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Early research on the interface between the economy
and the environment focus on the environmental
impact of production in relation to resource depletion
and pollution and on the demand for environmental
goods such as pleasing landscapes.

Importance of production methods and technologies
was emphasized much more than living standards and
consumption patterns.
Ropke, 2005
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Consumer behavior research was one of the first academic
discipline to look at consumption from environmental perspective.
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Initially developed in the field of marketing in U.S in 1950s, but
gradually separated from it.
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Leading scholars include Joerges (1982) and Uusilato (1983) on “
Consumer Behaviour and Environmenatal Quality”.
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Early research focus on production because the type of
environmental problems that politicians tried to deal with – toxic
emission and acidification. The problems were conceived as local
or regional and related to point sources.
Ropke, 2005
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During 1980s, the focus of environmental
policies changed to global problems such as
global warming and other related problems
with diffuse source (non-point).
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The changing focus was reflected in
Brundtland Report “ Our Common Future” in
1987, which popularized the concept of
sustainable development. All stakeholders,
government, industries and consumers are
encouraged to adopt.
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1)Environmental damage
The extraction, production, use and disposal of many goods and
services cause serious environmental problems such as resource
depletion, energy wastage, pollution of the air, water and land,
and growth in the levels of solid, toxic and hazardous wastes.
2)Poverty
While many people around the world, especially in the North,
live lives of abundance and affluence, over a billion people still
lack access to supplies of safe water, adequate sanitation,
energy and nutrition.
3)Health
The production of many consumer goods cause extensive
damage to human health through air and water pollution. While
pollution is a major cause of premature death in the South,
many diseases in the North are now considered 'lifestyle'
diseases with people dying from the over-indulgence brought on
by affluence.
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4)Economic efficiency
Conventional development models have sought to compensate for the
above problems by attempting to incorporate more people into
consumer economy through economic growth (the proverbial 'bigger
cake'). This has often been at the expense of changes in the
distribution and pattern of consumption, which can be more costeffective and resource efficient.
5)Global environmental change
Industrial, commercial and domestic energy use, especially in the
transport sector, is the major source of greenhouse gases while airconditioning and refrigeration are significant causes of ozone
depletion. These global environmental threats can be addressed by
changes in the design and construction of buildings and transport
systems.
6)Quality of life
Increasing material affluence does not necessarily lead to a better
quality of life due to the degradation of the human environment and
the erosion of social relationships that it can bring.
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SC has been defined in many ways such as:
The definition proposed by the 1994 Oslo
Symposium on Sustainable Consumption defines
it as
"the use of services and related products which
respond to basic needs and bring a better
quality of life while minimizing the use of
natural resources and toxic materials as well as
emissions of waste and pollutants over the life
cycle of the service or product so as not to
jeopardize the needs of future generations”.
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Sustainable consumption integrates a range of social, economic and political
practices at the individual, household, community, business and government
levels that support and encourage:

reducing the direct environmental burden of producing, using and disposing
goods and services;
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meeting basic needs for key consumption goods and services, such as food,
water, health, education and shelter;
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maximizing opportunities for sustainable livelihoods in the South;
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consuming goods and services that contribute positively to the health and wellbeing of women and children;
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increasing the development and adoption of energy and water efficient
appliances, public transport and other demand-side measures the production and
sale of new goods and services adapted to global environmental constraints;
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and lifestyles that place greater value on social cohesion, local traditions and
non-material values.
UNESCO
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There are many definitions of sustainable consumption, but
most share a number of common features, including an
emphasis on:
Satisfying basic human needs (not the desire for 'wants' and
luxuries);
Favouring quality of life over material standards of living;
Minimising resource use, waste and pollution; Taking a lifecycle perspective in consumer decision-making;
Acting with concern for future generations
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Worldwatch Institute (2004)
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32.9
31.5
Amerika Syarikat dan Kanada
30
28.7
Eropah Barat
25
Asia Timur dan Pasifik
22.4
21.4
Amerika Latin dan Caribbean
20
Eropah Timur dan Asia
Tengah
15
Asia Selatan
10.9
10
8.5
6.7
Australia dan New Zealand
7.9
6.4
Timur Tengah dan Afrika
Utara
5.2
5
4.1
3.3
2
1.4
0
Sub-Sahara Afrika
1.2
0.4
0
Peratusan penggunaan (%)
Percentage of population
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I. WHAT IS NEW SINCE RIO 1992?
II. WHAT IS THE SOCIAL, ECONOMIC AND
ENVIRONMENTAL TREND AFTER RIO?
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Information and Communication Technology
 Internet
 Mobile phones
 Social media- face book 2004
 Space based satellite –GPS
 Economic power and production is shifting to
the East and South
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 Natural
resources are being depleted or
degraded— sometimes before we realize it—
and certain metals seem to become “rare”
all of a sudden.
 The ever-increasing demand for resources
such as water, energy, food, minerals and
land is driven by growing populations with
rising incomes, while in parallel these
resources are increasingly constrained by
ecosystem changes, inherent variability of
weather conditions and resource
productivity, and the impacts of climate
change.
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New environmental instrument developed to
tackle the issues and phenomena have arisen
since 1992:
New Multilateral Environmental Agreements
and Conventions- United Nations Framework
Convention on Climate Change (UNFCCC), the
Convention on Biological Diversity (CBD),
agreements related to chemicals (Basel,
Rotterdam and Stockholm Conventions), and the
United Nations Convention to Combat
Desertification (UNCCD).
 Awareness of Climate Change
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The Green Economy-shifting economic
development to become more low-carbon,
climate resilient, resource efficient, and socially
inclusive, as well as for valuing
ecosystem services, are now being proposed
widely and increasingly pursued.
 Carbon Trading and other Environmental
Market Tools -Placing a monetary value on
greenhouse gas emissions and creating a market
for trade in carbon is a new and increasingly
utilized concept to address climate change.
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Markets for Organic Products and Eco-labeling
 Genetically Modified Organisms- for GM food
production
 Recycling – becoming mainstream policy and
practices
 Commercialization of Biofuels, Solar and Wind
Energy
 Chemicals Management- improved and many
toxic chemicals banned
 Nano Materials –significant opportunities and
benefits but has potential human and
environmental hazards
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World population increased from 5.500 b in 1992 to 7 b in
2011, 26% increase
In 2011, over 3 500 million people—more than half the world’s
population—are living in urban areas
The number of “megacities” (>10m) has more than doubled
since 1990
A total number of those who live in slums has risen to 827 m
The population aged over 65 is growing at a faster rate than
other age groups in most regions of the world
The average global citizen consumes 43 kg of meat per year, up from
34 kg in 1992
Women’s influence, as measured by seats in national parliaments, is
steadily rising
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 GDP
has continued to climb at a steady
rate...but huge differences in economic
development persist
 The absolute value of trade among
countries, a major aspect of globalisation,
has tripled
 As societies grow and become wealthier,
demand for basic materials ( fuel, minerals,
construction materials etc) further
increasing
 More energy and natural resources are being
consumed, but the amounts needed per
product are declining
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 Global
CO2 emissions continue to rise, with
80% emitted by only 19 countries
 Over 60% of Greenhouse Gases are emitted
by three economic sectors – energy , industry
and mining
 Global mean temperature increased by
0.4°C between 1992 and 2010
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 The
average amount of CO2 in the Earth’s
atmosphere shows a steady rise over the last
two decades
 Oceans are also warming, while sea-level
rise continues unabated
 Oceans are becoming more acidic, with
negative implications for corals and other
marine life
 Most mountain glaciers around the world are
diminishing rapidly
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 Primary
forest area decreased by 300 million
ha since 1990, or an area larger than
Argentina
 Only about 10% of global forests are under
certified sustainable management
 Drinking water coverage increased to 87%,
but the world is far from meeting the
sanitation target of 75%
 The Living Planet Index has declined by 12%
at the global level and by 30% in the tropics
 Plastics decompose very slowly, creating a
major long-term environmental impact
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 Both
human losses and economic damage
from natural disasters show an upward trend
 More people living in hazard-prone areas
 Food production has continued to rise
steadily at a pace exceeding population
growth
 The depletion of fish stocks is one of the
most pressing environmental issues
 Energy consumption in developed countries
is nearly 12 times higher than that of
developing countries
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 Al
components of the environment—land,
water, biodiversity, oceans and atmosphere
continue to degrade.
 The negative impacts are experienced by the
poorest and most vulnerable parts of society
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A
new commitment to deal with persistent
environmental problems and emerging issues
calls for cooperation, flexibility and
innovative solutions.
 Natural
resource consumption must be
decoupled from economic growth, that
consumption should conform to, or be led by,
the principles of sustainability, and that new
paradigms and solutions should be applied
for progress towards a Green Economy.
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A
green economy is one whose growth in
income and employment is driven by public
and private investments that reduce carbon
emissions and pollution, enhance energy and
resource efficiency, and prevent the loss of
biodiversity and ecosystem services.
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