Economic scenario of sustainability

1706
Abraham McLaughlin

What is the economic scenario of sustainability?

The economic scenario of sustainability It is an orientation given to economic planning that seeks to promote economic growth, while preserving the quality of the environment for future generations..

In other words, this economic scenario tries to satisfy the needs of the current generation, without compromising the needs of future generations. Economists have used this scenario to explain the imperative harmony between economic growth and environmental conservation..

The concept of sustainable economic development has proven difficult to apply in many cases, even though it gained great prominence in the late twentieth century, mainly because the long-term results of sustainability analyzes depend on the particular resources on which it is focused..

For example, a forest that provides a sustained benefit from wood in perpetuity may not support native bird populations. However, a mineral deposit that eventually runs out can support more or less sustainable communities..

Therefore, economic growth will be sustainable if the assortment of natural resources remains constant or increases over time..

Dimensions of the sustainability of the economic scenario

Economic development without considering the environment can cause serious environmental damage, which in turn impairs the quality of life of present and future generations.

Such environmental degradation imposes a cost on society and must be explicitly taken into account in economic planning, incorporating the necessary corrective measures..

Therefore, the challenge of the economic scenario of sustainability requires integrating the search for economic development of each country with its environmental concerns..

Destroying and overexploiting natural resources indiscriminately by polluting the environment will increase the rate of economic growth in the short term, but the standard of living of the population will have an adverse effect on the long-term growth and quality of life of future generations..

Therefore, it is necessary that when deciding on growth take into account environmental issues. For example, the loss or preservation of important environmental resources should be taken into account when preparing economic growth estimates..

New economic policies

Policymakers can choose to frame an economic growth strategy without a net loss of environmental assets, thereby ensuring sustainable development.

If environmental resources are destroyed or depleted in an area, an equal or greater amount of these resources must be replenished or regenerated so that future economic growth is not adversely affected..

During the 20th century, world economic production multiplied by 40 and the standard of living rose enormously. However, this came at an immense cost as it was based on the unsustainable use of scarce global resources: fuels, metals, minerals, wood, water and ecosystems..

The planet needs green growth and employment opportunities for millions of people who currently live in poverty, but who aspire to a better future, also guaranteeing decent living standards for future generations..

Cooperation between countries

Developed and developing countries need to act together to meet the challenge of sustainable economic development. Sustainability should not be a choice, but a precondition for economic development.

There are many challenges that represent a serious threat to the sustainable economic scenario, from climate change and increasing water scarcity to low resilience to natural disasters, plus the loss of ecosystems and biodiversity..

Fortunately, there are tools to address these challenges. Prosperous countries have developed efficient technologies that allow them to exploit their resources in a sustainable way, from forests and biodiversity to land and minerals, capable of supporting increased consumption and GDP..

To also obtain a sustainable economic scenario for developing countries, it is necessary for developed nations to transfer these green technologies to developing countries..

Scenario in Mexico

Mexico is the second largest economy in Latin America, with rapid growth in the industrial and service sectors. A country with a vision of the future on climate change.

The nation recognizes that the threat of higher temperatures, changes in rainfall patterns, and more frequent weather-related disasters could pose a substantial risk to its expanding economy..

To reduce climate change, the Mexican government has established numerous plans and policies that support its low-emission development strategy, such as the “General Law on Climate Change” and the “Bases for Low-Emissions Development”.

Reduction in the emission of Greenhouse Gases (GHG)

Given that GHG emissions in the agriculture and forestry sectors represent 19% of Mexico's total emissions, it is key to include these sectors in the planning and implementation of the sustainable economic scenario to reduce the path of future GHG emissions from Mexico. This includes:

  • Collaborate with analysts to update current cost models to reduce GHG emissions and develop Mexico-specific data on reduction initiatives in the land use sector.
  • Design and establish a carbon inventory and accounting system for the forestry sector.
  • Expand sustainable agriculture management practices through nutrient management trainings, as well as conservation tools and policies that will promote a low-emission, climate-flexible agricultural sector.

Strategy

Mexico and the United States are working together to advance the common goals of fostering economic growth and reducing long-term pollutant emissions..

Experts and Mexican government institutions, such as the Interministerial Commission on Climate Change, the coordinating body for formulating and coordinating climate change policies in Mexico, are collaborating to:

  • Promote inter-institutional cooperation in Mexico around the development and implementation of a sustainable economic scenario with low emissions.
  • Strengthen Mexico's national capacity for macroeconomic modeling.
  • Address technical and financial barriers to meeting Mexico's renewable energy targets.
  • Support the general integration of climate change mitigation considerations into Mexico's agricultural and forestry programs.

Joint activities with the US.

  • The U.S. provides expert guidance and support to help Mexico reach its ambitious goal of 35% renewable electricity by 2024.
  • Identify sustainable opportunities for bioenergy to achieve future low emissions in Mexico.
  • Build experiences in the financial sector on solar energy technology to encourage private investment.

References

  1. Britannica (2021). Sustainable development. Taken from: britannica.com.
  2. Supriya Guru (2021). Importance of Sustainable Development for the Economic Growth of a Country. Your Article Library. Taken from: yourarticlelibrary.com.
  3. Nrel (2021). Promoting Sustainable Economic Growth in Mexico. Taken from: nrel.gov.
  4. Acciona (2021). Sustainable Development. Taken from: acciona.com.
  5. Annual Reviews (2021). The Economics of Sustainable Development. Taken from: annualreviews.org.

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