Economic Development Week 6- Sustainable Development Goals and Environmental

Issues (Summary)

I. Introduction to Sustainable Development Goals

> The Sustainable Development Goals (SDGs) aim to transform our world. They are a call to
action to end poverty and inequality, protect the planet, and ensure that all people enjoy health,
justice and prosperity. It is critical that no one is left behind.

Brief History of Sustainable Development Goals

> The Sustainable Development Goals (SDGs) were born at the United Nations Conference on
Sustainable Development in Rio de Janeiro in 2012.

> The SDGs replace the Millennium Development Goals (MDGs), which started a global effort in
2000 to tackle the indignity of poverty

> In 2015, all the countries in the United Nations adopted the 2030 Agenda for Sustainable
Development. It sets out 17 Goals, which include 169 targets. These wide-ranging and
ambitious Goals interconnect. Goal 3 is to ensure healthy lives and promote well-being for all at
all ages.

The 17 Sustainable Development Goals

Theme of Sustainable Development Goals

● People (SDG 1-5) - This theme focuses on ending poverty and hunger, promoting
health, education, gender equality, and ensuring dignity for all. Key goals under this
theme include SDG 1 (No Poverty), SDG 2 (Zero Hunger), SDG 3 (Good Health and
Well-being), SDG 4 (Quality Education), and SDG 5 (Gender Equality)
● Planet (SDG 6, 12-15) - Protecting our environment is essential for sustainability. This
theme includes goals focused on climate action, water and sanitation, responsible
resource use, and conserving life on land and below water. Key goals include SDG 6
(Clean Water and Sanitation), SDG 12 (Responsible Consumption and Production),
SDG 13 (Climate Action), SDG 14 (Life Below Water), and SDG 15 (Life on Land).
● Prosperity (SDG 7-11) - This theme emphasizes inclusive economic growth, energy
access, innovation, and sustainable communities. It includes SDG 7 (Affordable and
 Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry,
Innovation, and Infrastructure), SDG 10 (Reduced Inequalities), and SDG 11
(Sustainable Cities and Communities)
● Peace (SDG 16) - Achieving sustainable development requires peace and effective
institutions. SDG 16 (Peace, Justice, and Strong Institutions) falls under this theme,
focusing on creating inclusive, just societies with strong institutions
● Partnerships (SDG 17) - To reach these ambitious goals, global collaboration is
essential. SDG 17 (Partnerships for the Goals) encourages partnerships at all levels to
mobilize resources and share knowledge to achieve the SDGs.

17 Sustainable Development Goals

> SDG 1: No Poverty – Aims to eradicate extreme poverty and reduce the number of people
living in poverty worldwide

> SDG 2: Zero Hunger – Focuses on ending hunger, achieving food security, and promoting
sustainable agriculture

> SDG 3: Good Health and Well-being – Aims to ensure healthy lives and promote well-being
for all ages

> SDG 4: Quality Education – Seeks to provide inclusive and equitable education for all

> SDG 5: Gender Equality – Promotes gender equality and empowers women and girls

> SDG 6: Clean Water and Sanitation – Ensures the availability and sustainable management
of water resources

> SDG 7: Affordable and Clean Energy – Seeks to ensure access to sustainable and reliable
energy for all

> SDG 8: Decent Work and Economic Growth – Promotes sustained economic growth,
productive employment, and decent work

> SDG 9: Industry, Innovation, and Infrastructure – Focuses on building resilient

infrastructure and fostering innovation

> SDG 10: Reduced Inequalities – Aims to reduce inequalities within and among countries
> SDG 11: Sustainable Cities and Communities – Promotes safe, resilient, and sustainable
urban areas

> SDG 12: Responsible Consumption and Production – Encourages sustainable practices in
resource use and waste reduction

> SDG 13: Climate Action – Urges immediate measures to combat climate change and its
impacts

> SDG 14: Life Below Water – Focuses on conserving marine resources and reducing
pollution in oceans

> SDG 15: Life on Land – Protects terrestrial ecosystems, promotes biodiversity, and combats
desertification

> SDG 16: Peace, Justice, and Strong Institutions – Aims to reduce violence, ensure access
to justice, and build effective, accountable institutions

> SDG 17: Partnerships for the Goals – Encourages partnerships to mobilize resources and
share knowledge for sustainable development

Sustainable Development Goals in Economic Development

● The Sustainable Development Goals (SDGs), adopted by all United Nations member
states in 2015, are a call to action to end poverty, protect the planet, and ensure
prosperity for all. Economic development plays a crucial role in achieving these goals, as
it directly impacts areas such as poverty reduction, job creation, and sustainable industry
practices. This report explores how SDGs intersect with economic development and the
ways in which economic policies can support sustainable and inclusive growth

Inclusive Economic Growth and Poverty Alleviation (SDG 1 & SDG 8)

● SDG 1 focuses on ending poverty, while SDG 8 promotes inclusive and sustainable
economic growth. Together, these goals highlight the importance of developing
economies that benefit all segments of society

Role of government and businesses in creating jobs for marginalized

communities: Governments and businesses play crucial roles in job creation, especially
 in underserved areas. Public policies such as tax incentives, grants, or subsidies
encourage businesses to operate in low-income regions, creating job opportunities for
marginalized communities. Corporate initiatives, like inclusive hiring practices, can also
prioritize employment for disadvantaged groups, fostering economic inclusion and
reducing poverty.

How equitable income distribution helps reduce poverty and supports economic
stability: Equitable income distribution ensures that wealth generated by economic
growth is shared more fairly among society. Reducing income inequality leads to
increased purchasing power for lower-income groups, which boosts economic demand
and contributes to stability. Policies like minimum wage laws and progressive taxation
can help redistribute income and reduce poverty, creating a more balanced economy

Sustainable Industry, Innovation, and Infrastructure (SDG 9)

● SDG 9 encourages sustainable industrialization, innovation, and the development of

resilient infrastructure, which are essential for economic progress and long-term
sustainability

Importance of eco-friendly technologies and sustainable industrial practices: Eco-

friendly technologies, such as renewable energy and low-emission manufacturing, are
critical for reducing environmental harm while supporting industrial growth. Sustainable
practices in industry, like waste reduction and energy efficiency, help companies lower
their carbon footprint. As businesses adopt these methods, they contribute to a healthier
planet and can become more resilient to environmental regulations and consumer
demands for sustainability.

Need for investment in infrastructure that withstands climate change: Infrastructure

like roads, bridges, and energy grids are essential for economic development, but they
must be resilient to climate impacts like flooding and storms. Investing in climate-
adaptive infrastructure—such as flood-resistant roads or renewable energy sources—
protects communities from climate-related disruptions, ensuring long-term economic
stability

Sustainable Consumption and Production (SDG 12)

 ● SDG 12 calls for sustainable consumption and production patterns to minimize
environmental impact and encourage responsible economic practices

How businesses can implement sustainable resource management: Sustainable

resource management involves using resources efficiently and reducing waste.
Businesses can implement practices like energy-efficient production processes, reducing
water consumption, and minimizing raw material use. Such practices lower costs and
environmental impact, making businesses more sustainable in the long run.

The circular economy model as a strategy to reduce waste and promote recycling:
The circular economy promotes reusing and recycling products rather than discarding
them, reducing the need for new resources. This model encourages businesses to
design products with a longer lifespan, utilize recycled materials, and create systems for
product recovery. This reduces waste, conserves resources, and can open up new
economic opportunities

Gender Equality in Economic Development (SDG 5 & SDG 8)

● Gender equality in the workforce and entrepreneurship is critical for achieving inclusive
economic growth (SDG 5) and supporting economic growth (SDG 8).

Addressing the gender pay gap and ensuring equal opportunities: Gender equality
in the workforce is vital for economic development. Closing the gender pay gap and
providing equal opportunities in hiring, promotions, and leadership roles empower
women and contribute to economic productivity. This equality promotes social justice
and benefits the economy by fully utilizing the talent of both women and men.

Supporting women-led businesses and female workforce participation: Women-led

businesses can drive innovation and economic growth, but they often face challenges
like limited access to funding. Supporting these businesses through micro-loans,
training, and policies that promote female entrepreneurship helps create a more
inclusive economy. Increasing female workforce participation also fosters economic
resilience and diversity
Reducing Inequality within and among Countries (SDG 10)

● SDG 10 seeks to reduce income inequality within and between nations, an essential
aspect of creating a fair and sustainable economic system.

How fair trade practices and responsible investments can lessen economic
disparities: Fair trade ensures producers receive fair wages and work under safe
conditions, reducing income inequality. Responsible investments, like financing projects
in low-income areas, provide economic opportunities where they’re needed most.
Together, these practices help bridge economic divides and promote sustainable,
inclusive growth.

Role of global economic partnerships and trade policies in reducing inequalities:

Partnerships between countries and inclusive trade policies can help reduce economic
disparities. For example, developed countries can offer preferential trade terms to
developing nations, providing greater access to markets. Global collaboration also
allows countries to share knowledge and resources, helping less wealthy nations
advance economically.

II. Environmental Economics and Development

Environmental economics is the study of the cost-effective allocation, use, and protection of
the world's natural resources. Economics, broadly speaking, is the study of how humans
produce and consume goods and services.

The Role of Environmental Economics

Balancing Growth and Environmental Protection

Developing countries often prioritize economic growth to alleviate poverty and improve
standards of living. Environmental economics helps design policies that balance the need for
economic growth with environmental protection.

Valuation of Natural Resources

Natural resources like forests, rivers, and air provide essential services (e.g., clean water,
oxygen, fertile soil) often undervalued in traditional economics. Environmental economics seeks
to quantify these values to encourage sustainable use.

Methods of Valuation
Contingent Valuation Method(Direct)
- CVM is a survey method in which respondents are asked how much they are willing to
pay for the use and conservation of natural goods.
Hedonic pricing model(Indirect)
- Hedonic pricing approach is derived from the characteristics theory of value first
proposed by Lancaster (1966) and Rosen (1974). This seeks to explain the value of the
commodity as a bundle of valuable characteristics.
Environmental Externalities
Economic activities often lead to environmental externalities, or costs/benefits not reflected in
market prices, such as pollution. Environmental economics helps identify these costs and create
mechanisms to internalize them.

Type of Externalities
Positive Externalities- These are beneficial effects experienced by others due to an activity,
but the individual or entity causing them does not receive compensation.

Negative Externalities- These are harmful effects caused by an activity, with the costs borne
by society rather than the individual or entity responsible.

Sustainable Development Goals

Environmental economics supports the United Nations Sustainable Development Goals (SDGs),
particularly SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), and SDG 15
(Life on Land).

Policies and Instruments of Environmental Economics.

Tradable Permits
Tradable permits allow the exchange of rights to engage in certain activities that impact the
environment.
Examples include:
Water rights
Fishing Quotas
Command and Control Policies
These are regulatory policies that set specific limits or standards for pollution and resource use,
often enforced through fines or penalties for non-compliance.
Market-Based Instruments
● Carbon Taxes
● Subsidies for Green Technology
● Tax Incentives for Conservation
Public Awareness and Education
Public awareness campaigns aim to educate the public on environmental issues and promote
sustainable behavior.
Carbon offsetting
The goal here is to offset or compensate for the carbon emissions. A carbon offset credit helps
us to measure the magnitude and effectiveness of this trade.
Fuel-efficiency mandates
Fuel-efficiency mandates strive to reduce vehicular carbon dioxide emissions by requiring newer
vehicles to meet higher fuel economy standards.

Challenges in Implementing Environmental Economics Policies in Developing Countries

Limited Financial Resources
The high upfront costs of green technologies and sustainable practices often conflict with
priorities like economic growth and poverty alleviation, making it hard to allocate funds for
sustainability.
Institutional weaknesses
Institutional weaknesses, like corruption and limited government capacity, hinder effective
environmental policy enforcement in developing countries.

Dependence on Resource-Intensive Industries

Many developing economies rely on industries like mining, agriculture, and manufacturing,
which are resource-intensive and polluting. Transitioning to sustainable practices in these
sectors requires substantial restructuring.
 III. The Balance Between Economic Growth and Environmental Sustainability

Environment - The complex of physical, chemical and biotic factors that act upon an organism
or an ecological community and determine its form and survival.

Characteristics of Environmental Resources

● Have intrinsic value of their own
● Have value for longer term sustainability
● Elements of the human environment
● Intangible in nature
● Scarce in absolute terms

Trade-off Between Economic Growth and Environment

Economic Growth: an increase in what an economy can produce if it uses its scarce
resources.

How the Environment Degrades

Impacts of Economic Growth on the Environment

● Increased Resource Consumption - Economic growth leads to higher demand for
natural resources, causing depletion of resources like water, energy, and raw materials.
● Industrialization and Pollution - As industries grow, they release more pollution (air,
water, soil), contributing to climate change and environmental degradation.
● Land Use Changes and Urbanization - Economic growth drives urban expansion,
which often results in deforestation, habitat loss, and soil degradation due to the
conversion of land for development.
● Increased Agricultural Production - Growth leads to expanded agriculture, causing
soil erosion, overuse of water, and chemical pollution in the environment.
 ● Energy Demand and Climate Change - Economic growth increases energy demand,
often relying on fossil fuels, which release greenhouse gases and accelerate climate
change.
● Waste Generation and Disposal - Economic growth leads to more production and
consumption, which generates more waste, contributing to pollution and landfill overflow.

Sustainability
● As a broad descriptor of prosperity goals related to an integrated approach between the
economy; ecology; and community-improving each domain without diminishing the
other.
● More specifically, as improvements in "environmental performance" of social and
economic systems (resources consumed; waste produced). This is what is typically
referred to as "environmental sustainability.
Importance of Environmental Sustainability in Development
● Long-Term Economic Stability - Sustainable resource use prevents ecosystem
damage, supporting industries like agriculture and tourism for ongoing income and jobs.
● Avoiding Resource Crises - Sustainability prevents resource shortages, such as water
and forests, conserving them for future generations.
● Reducing Carbon Footprint - Using renewable energy and sustainable methods cuts
greenhouse gas emissions, helping to combat climate change.
● Enhancing Quality of Life - Sustainability reduces pollution, ensuring cleaner air and
water, which improves community health and well-being.
● Social and Environmental Responsibility - It promotes decisions that protect both
society and the environment, preserving resources and supporting vulnerable
communities.
● Cost Savings - Reducing waste and conserving energy save money long-term for
businesses and communities.
● Climate Resilience - Sustainable practices prepare communities for climate-related
challenges, like extreme weather.
● Driving Innovation - Sustainability promotes advances in green tech and resource
efficiency, creating jobs.

Strategies for Achieving the Balance

Technological and Economic Innovation

● Adopt Green Technology - Use renewable energy to lower emissions and meet energy
needs.
● Implement Circular Economy Practices - Promote product reuse and recycling to
reduce waste.
● Invest in Research and Development - Fund innovation in sustainable technologies to
support industry growth.

Policy and Regulation

 ● Enforce Environmental Regulations - Set limits on pollution and protect natural
habitats.
● Incentivize Sustainable Agriculture - Support eco-friendly farming through subsidies
and guidance.
● Promote Sustainable Tourism - Encourage eco-tourism with policies that protect
ecosystems and support local communities.

Community Engagement and Awareness

● Promote Sustainable Urban Planning - Design cities with green spaces and efficient
infrastructure to benefit communities.
● Encourage Corporate Social Responsibility (CSR) - Inspire businesses to prioritize
environmental impact and community well-being.
● Monitor and Measure Progress - Set and track sustainability goals to ensure alignment
with growth and community needs.

IV. Sustainable Development Plan of a Local Community

Sustainable Development
- According to the United Nations, It is a development that meets the needs of the present
without compromising the ability of future generations to meet their own needs. It
emphasizes balancing economic development, social well-being, and environmental
protection.

Three Pillars of Sustainable Development

1. Environmental Stewardship
- Protect and enhance our natural resources, ensuring a healthy environment for
present and future generations.
2. Economic Prosperity
- Promote sustainable economic growth, creating job opportunities and improving
quality of life.
3. Social Equity
- Ensure equitable access to resources and opportunities, fostering a thriving and
inclusive community.

Key Principles of Sustainable Development

These principles serve as the ethical and practical guidelines for policymakers, businesses, and
communities aiming to implement sustainable practices.
1. Intergenerational Equity
- Ensures that resources are used wisely to preserve opportunities for future
generations.
2. Environmental Stewardship
- Protects and restores ecosystems while minimizing environmental harm.
3. Social Inclusion and Equity
- Promotes equal access to resources, opportunities, and basic services, ensuring
no one is left behind.
 4. Economic Viability
- Encourages economic growth that creates jobs, reduces poverty, and supports
long-term development without depleting natural resources.
5. Integrated Decision-Making
- Considers the interconnectedness of environmental, social, and economic factors
in policy and project decisions.

SGD 11: Sustainable Cities and Communities

“Make cities and human settlements inclusive, safe, resilient and sustainable.”

Targets:
1. SAFE AND AFFORDABLE HOUSING
- By 2030, ensure access for all to adequate, safe and affordable housing and
basic services and upgrade slums.

2. AFFORDABLE AND SUSTAINABLE TRANSPORT SYSTEMS

- By 2030, provide access to safe, affordable, accessible and sustainable transport
systems for all, improving road safety, notably by expanding public transport, with
special attention to the needs of those in vulnerable situations, women, children,
persons with disabilities and older persons.
3. PROTECT THE WORLD’S CULTURAL AND NATURAL HERITAGE
- Strengthen efforts to protect and safeguard the world’s cultural and natural
heritage
4. INCLUSIVE AND SUSTAINABLE URBANIZATION
- By 2030, enhance inclusive and sustainable urbanization and capacity for
participatory, integrated and sustainable human settlement planning and
management in all countries.
5. REDUCE THE ENVIRONMENTAL IMPACT OF CITIES
- By 2030, reduce the adverse per capita environmental impact of cities, including
by paying special attention to air quality and municipal and other waste
management.
6. REDUCE THE ADVERSE EFFECTS OF NATURAL DISASTERS
- By 2030, reduce the adverse per capita environmental impact of cities, including
by paying special attention to air quality and municipal and other waste
management.
7. PROVIDE ACCESS TO SAFE AND INCLUSIVE GREEN AND PUBLIC SPACES
- By 2030, provide universal access to safe, inclusive and accessible, green and
public spaces, in particular for women and children, older persons and persons
with disabilities.
8. STRONG NATIONAL AND REGIONAL DEVELOPMENT PLANNING
- Support positive economic, social and environmental links between urban, peri-
urban and rural areas by strengthening national and regional development
planning.
 9. SUPPORT LEAST DEVELOPED COUNTRIES IN SUSTAINABLE AND RESILIENT
BUILDING
- Support least developed countries, including through financial and technical
assistance, in building sustainable and resilient buildings utilizing local materials.
10. IMPLEMENT POLICIES FOR INCLUSION, RESOURCE EFFICIENCY AND DISASTER
RISK REDUCTION
- By 2020, substantially increase the number of cities and human settlements
adopting and implementing integrated policies and plans towards inclusion,
resource efficiency, mitigation and adaptation to climate change, resilience to
disasters, and develop and implement, in line with the Sendai Framework for
Disaster Risk Reduction 2015–2030, holistic disaster risk management at all
levels.

Importance of Sustainable Cities

Sustainable cities are essential for the well-being of our planet and its inhabitants. By
creating inclusive, safe, resilient, and sustainable urban environments, we can address a range
of challenges, including climate change, poverty, and inequality.
Sustainable cities offer numerous benefits, such as improved air quality, reduced traffic
congestion, increased access to green spaces, and enhanced quality of life for resident

Challenges in Sustainable City Development

1. Rapid urbanization and population growth
- Cities are growing faster than their infrastructure and services can adapt. This
leads to overcrowding, inadequate housing, traffic congestion, and overstretched
services like water, sanitation, and waste management. Informal settlements
often emerge, exposing residents to unsafe living conditions.
2. Limited resources and funding
- Cities in developing countries frequently face financial constraints, limiting their
ability to implement large-scale sustainable projects. Insufficient funding delays
the development of public transportation, renewable energy systems, and green
spaces.
3. Lack of political will and commitment
- Political leaders may prioritize short-term gains over long-term sustainability.
Bureaucratic inefficiencies and corruption can also hinder the implementation of
sustainable projects.
4. Inequality and social exclusion
- Marginalized groups, such as informal settlers and low-income families, are
frequently excluded from urban planning processes and denied access to
essential services. This creates a divide between the wealthy and the poor,
leading to social tensions.
5. Climate change and its impacts
- Climate change exacerbates existing urban challenges, leading to increased
flooding, heat-related illnesses, and damage to infrastructure. Cities contribute
 significantly to greenhouse gas emissions but also face disproportionate impacts
from climate events.

Sustainable Development Plans Implemented in the Philippines

1. Mangrove Rehabilitation in Leyte
- Communities replanted mangroves to restore coastal ecosystems and protect
against storm surges after Typhoon Yolanda.
- Mangroves and coastal forests are important especially to the marine ecosystem
in the community. Specifically, mangroves are home to a variety of fish, crab,
shrimp, and mollusk species, while coastal forests serve as nurseries for a huge
number of fish species.
- The massive mangrove rehabilitation project will not only protect the coastal
communities along Leyte Gulf areas from strong waves and storm surges during
typhoons but will also help improve the environmental conditions, provide
livelihood and food security to the communities.
2. Eco-Waste Management Program in La Union
- San Fernando, the capital city of La Union, has implemented various eco-waste
management programs aimed at addressing waste disposal issues, reducing
landfill dependence, and promoting sustainability in the community. The city has
been actively pursuing initiatives to engage its residents in proper waste
segregation, recycling, and the reduction of single-use plastics.
3. Renewable Energy Projects in Romblon
- Romblon utilizes a hybrid energy system combining wind turbines, solar panels,
and diesel generators to provide stable electricity. Its strong winds and rivers with
robust currents make it ideal for wind farms and hydroelectric dams. Solar power
installations also contribute to sustainable energy generation in remote areas.
These renewable energy sources reduce reliance on fossil fuels, lower carbon
emissions, and combat climate change by mitigating greenhouse gas emissions.
Additionally, these initiatives promote energy independence, support local
communities, and pave the way for a cleaner, more sustainable future in the
province.
4. Sustainable Agriculture in Benguet
- Sustainable agriculture in Benguet focuses on environmentally friendly farming
methods to address challenges such as soil degradation, overuse of chemical
inputs, and climate change.
- Farmers use techniques like terracing, organic farming, crop diversification, and
agroforestry to prevent soil erosion, conserve water, and enhance biodiversity.
Climate-smart practices, such as planting resilient crops and using greenhouses,
help adapt to climate change. These methods reduce chemical dependency,
improve soil fertility, and provide economic benefits through lower costs and
premium-priced organic produce.
5. El Nido Marine Conservation
- Palawan has taken significant strides in the establishment of Marine Protected
Areas.
- Community-based initiatives empower residents to actively participate in
safeguarding their marine resources.
- The Philippines has implemented policies and regulations aimed at protecting
marine biodiversity, including restrictions on destructive fishing practices and the
establishment of marine reserves.
- The health of Palawan’s coral reefs is intrinsically linked to the economic well-
being of the region. Fishing, tourism, and related industries contribute
significantly to the local economy.