Environmental and Natural Resource Economics 2nd ed. Jonathan M. Harris Updates for 2012 Chapter 20: Institutions for Sustainable Development Copyright © 2012 Jonathan M. Harris

Figure 20.1: World Bank Environmental Lending After extensive criticism of the negative environmental effects of some of its major projects, the World Bank has attempted to “green” its operations with more specifically environmental loans. Environmental loans, at one point as much as 17% of Bank lending, fell to 4.7% in 2002, but have since increased in quantity and as a percentage of total loans.

Figure 20.1 update: World Bank Environmental Lending, 2004-2008 In 2004-2008, World Bank environmental lending increased from 1 billion to about 2.5 billion. The red sections on the bar graph show the amount of loans provided on concessionary terms to the poorest developing countries, and the green sections show “blend” countries which are eligible for both standard and concessionary loans. Blue sections represent loans made on standard terms. Source: World Bank Project Portfolio Database; 2011, includes all Environment Projects with at least one ENRM sub-theme; data does not include GEF and Montreal Protocol Projects

Figure 20.2: Growth Reaching a Steady State The concept of a steady-state economy, proposed by ecological economist Herman Daly, does not necessarily mean an end to growth in well-being or economic services, but posits a limit on the consumption of of material and energy resources. Activities such as services, arts, communication, health care, education, could continue to grow while total “throughput” of resources and energy reached a limit.

Box 20.1: Environmental Data for Selected Countries   Energy Consumption CO2 Emissions Motor Vehicles Country 2007 Population (millions) Per Capita Total (in MMT) Total Per 1000 People Bangladesh 158 168 26 0.3 44 2 China 1,318 1,489 1,962 5.0 6,533 32 42.2 France 62 4,261 264 6.0 371 600 37.2 India 1,125 529 595 1.4 1,611 15 16.9 Japan 128 4,033 515 9.8 1,254 76.0 Mexico 105 1,674 176 4.5 471 243 25.6 Thailand 67 1,552 104 4.1 277 106 7.1 United States 302 7,748 2,337 19.3 5,832 820 247.3 World 6,620 1,821 12,057 4.6 30,647 137 906.9 Energy consumption, CO2 emissions, and vehicle use vary widely across countries. Developing countries such as China and India are increasing their consumption, but are still well below per capita levels in the developed world. In total energy consumption, China now nearly equals the U.S., and exceeds the U.S. in total carbon emissions due to its greater reliance on coal. Source: World Bank, 2011 at http://data.worldbank.org/indicator Energy Consumption: commercial energy from all sources, measured in kilograms of oil equivalent per capita, 2011 data, Totals in million metric tons of oil equivalent Emissions from industrial processes, measured in metric tons of CO2 per capita, 2011 data, Totals in million metric tons. Includes automobiles, buses, and freight vehicles. Date of data varies (generally 2000-2008). Totals in millions of vehicles.

Box 20.1 Supplement: Energy Consumption and Motor Vehicle Use Energy Consumption Per Capita (MMT oil equivalent) Motor Vehicles per 1000 People Energy consumption per capita generally increases as GDP grows, as does vehicle use. Development patterns differ; for example, China and Thailand have similar energy use per capita, but Thailand has more vehicle use relative to population. Mexico, with only slightly higher overall energy consumption per capita, has much higher vehicle use rates. The United States has the highest vehicle use rates, with nearly one vehicle per person. It is difficult to reconcile concepts of sustainability with a “U.S. style” development path. Source: World Bank, 2011 at http://data.worldbank.org/indicator