Can all 7bn humans live a good life, without breaking the planet?

The Earth from space. Image: Getty/NASA.

Imagine a country that met the basic needs of its citizens – one where everyone could expect to live a long, healthy, happy and prosperous life. Now imagine that same country was able to do this while using natural resources at a level that would be sustainable even if every other country in the world did the same.

Such a country does not exist. Nowhere in the world even comes close. In fact, if everyone on Earth were to lead a good life within our planet’s sustainability limits, the level of resources used to meet basic needs would have to be reduced by a factor of two to six times.

These are the sobering findings of research that my colleagues and I have carried out, recently published in the journal Nature Sustainability. In our work, we quantified the national resource use associated with meeting basic needs for a large number of countries, and compared this to what is globally sustainable. We analysed the relationships between seven indicators of national environmental pressure (relative to environmental limits) and 11 indicators of social performance (relative to the requirements for a good life) for over 150 countries.

The thresholds we chose to represent a “good life” are far from extravagant – a life satisfaction rating of 6.5 out of 10, living 65 years in good health, the elimination of poverty below the $1.90 a day line, and so on.

Nevertheless, we found that the universal achievement of these goals could push humanity past multiple environmental limits. CO₂ emissions are the toughest limit to stay within, while fresh water use is the easiest (ignoring issues of local water scarcity). Physical needs such as nutrition and sanitation could likely be met for 7bn people, but more aspirational goals, including secondary education and high life satisfaction, could require a level of resource use that is two to six times the sustainable level.

Although wealthy nations like the US and UK satisfy the basic needs of their citizens, they do so at a level of resource use that is far beyond what is globally sustainable. In contrast, countries that are using resources at a sustainable level, such as Sri Lanka, fail to meet the basic needs of their people. Worryingly, the more social thresholds that a country achieves, the more biophysical boundaries it tends to transgress.

Measures of a ‘good life’ vs overuse of resources for different countries (scaled by population). Ideally, countries would be located in the top-left corner. Image: O'Neill et al./author provided.

No country currently achieves all 11 social thresholds without also exceeding multiple biophysical boundaries. The closest thing we found to an exception was Vietnam, which achieves six of the 11 social thresholds, while only transgressing one of the seven biophysical boundaries (CO₂ emissions).

Vietnam has come closest to balancing sustainability with a good life, but still falls short in some areas. Image: O'Neill et al./author provided.

To help communicate the scale of the challenge, we have created an interactive website, which shows the environmental and social performance of all countries. It also allows you to change the values that we chose for a “good life”, and see how these values would affect global sustainability.

Time to rethink ‘sustainable development’

Our work builds on previous research led by the Stockholm Resilience Centre, which identified nine “planetary boundaries” that – if persistently exceeded – could lead to catastrophic change. The social indicators are closely linked to the high-level objectives from the UN’s Sustainable Development Goals. A framework combining both planetary boundaries and social thresholds was proposed by economist Kate Raworth, and is described in her recent book Doughnut Economics (where the “doughnut” refers to the shape of the country plots, such as the one above for Vietnam).


Our findings, which show how countries are doing in comparison to Raworth’s framework, present a serious challenge to the “business-as-usual” approach to sustainable development. They suggest that some of the Sustainable Development Goals, such as combating climate change, could be undermined by the pursuit of others, particularly those focused on growth or high levels of human well-being.

Interestingly, the relationship between resource use and social performance is almost always a curve with diminishing returns. This curve has a “turning point”, after which using even more resources adds almost nothing to human well-being. Wealthy nations, including the US and UK, are well past the turning point, which means they could substantially reduce the amount of carbon emitted or materials consumed with no loss of well-being. This would in turn free up ecological space for many poorer countries, where an increase in resource use would contribute much more to a good life.

The ConversationIf all 7bn or more people are to live well within the limits of our planet, then radical changes are required. At the very least, these include dramatically reducing income inequality and switching from fossil fuels to renewable energy as quickly as possible. But, most importantly, wealthy nations such as the US and UK must move beyond the pursuit of economic growth, which is no longer improving people’s lives in these countries, but is pushing humanity ever closer towards environmental disaster.

Daniel O'Neill, Lecturer in Ecological Economics, University of Leeds.

This article was originally published on The Conversation. Read the original article.

 
 
 
 

High streets and shopping malls face a ‘domino effect’ from major store closures

Another one bites the dust: House of Fraser plans to close the majority of its stores. Image: Getty.

Traditional retail is in the centre of a storm – and British department store chain House of Fraser is the latest to succumb to the tempest. The company plans to close 31 of its 59 shops – including its flagship store in Oxford Street, London – by the beginning of 2019. The closures come as part of a company voluntary arrangement, which is an insolvency deal designed to keep the chain running while it renegotiates terms with landlords. The deal will be voted on by creditors within the month.

Meanwhile in the US, the world’s largest retail market, Sears has just announced that it will be closing more than 70 of its stores in the near future.

This trend of major retailers closing multiple outlets exists in several Western countries – and its magnitude seems to be unrelated to the fundamentals of the economy. The US, for example, has recently experienced a clear decoupling of store closures from overall economic growth. While the US economy grew a healthy 2.3 per cent in 2017, the year ended with a record number of store closings, nearly 9,000 while 50 major chains filed for bankruptcy.

Most analysts and industry experts agree that this is largely due to the growth of e-commerce – and this is not expected to diminish anytime soon. A further 12,000 stores are expected to close in the US before the end of 2018. Similar trends are being seen in markets such as the UK and Canada.

Pushing down profits

Perhaps the most obvious impact of store closures is on the revenues and profitability of established brick-and-mortar retailers, with bankruptcies in the US up by nearly a third in 2017. The cost to investors in the retail sector has been severe – stocks of firms such as Sears have lost upwards of 90 per cent of their market value in the last ten years. By contrast, Amazon’s stock price is up over 2,000 per cent in the same period – more than 49,000 per cent when considering the last 20 years. This is a trend that the market does not expect to change, as the ratio of price to earnings for Amazon stands at ten times that of the best brick-and-mortar retailers.

Although unemployment levels reached a 17-year low in 2017, the retail sector in the US shed a net 66,500 jobs. Landlords are losing longstanding tenants. The expectation is that roughly 25 per cent of shopping malls in the US are at high risk of closing one of their anchor tenants such as a Macy’s, which could set off a series of store closures and challenge the very viability of the mall. One out of every five malls is expected to close by 2022 – a prospect which has put downward pressure on retail real estate prices and on the finances of the firms that own and manage these venues.

In the UK, high streets are struggling through similar issues. And given that high streets have historically been the heart of any UK town or city, there appears to be a fundamental need for businesses and local councils to adapt to the radical changes affecting the retail sector to preserve their high streets’ vitality and financial viability.


The costs to society

While attention is focused on the direct impacts on company finances, employment and landlord rents, store closures can set off a “domino effect” on local governments and businesses, which come at a significant cost to society. For instance, closures can have a knock-on effect for nearby businesses – when large stores close, the foot traffic to neighbouring establishments is also reduced, which endangers the viability of other local businesses. For instance, Starbucks has recently announced plans to close all its 379 Teavana stores. Primarily located inside shopping malls, they have harshly suffered from declining mall traffic in recent years.

Store closures can also spell trouble for local authorities. When retailers and neighbouring businesses close, they reduce the taxable revenue base that many municipalities depend on in order to fund local services. Add to this the reduction in property taxes stemming from bankrupt landlords and the effect on municipal funding can be substantial. Unfortunately, until e-commerce tax laws are adapted, municipalities will continue to face financial challenges as more and more stores close.

It’s not just local councils, but local development which suffers when stores close. For decades, many cities in the US and the UK, for exmaple Detroit and Liverpool, have heavily invested in efforts to rejuvenate their urban cores after years of decay in the 1970s and 1980s. Bringing shops, bars and other businesses back to once derelict areas has been key to this redevelopment. But today, with businesses closing, cities could once again face the prospect of seeing their efforts unravel as their key urban areas become less attractive and populations move elsewhere.

Commercial ecosystems featuring everything from large chain stores to small independent businesses are fragile and sensitive to change. When a store closes it doesn’t just affect employees or shareholders – it can have widespread and lasting impacts on the local community, and beyond. Controlling this “domino effect” is going to be a major challenge for local governments and businesses for years to come.

Omar Toulan, Professor in Strategy and International Management, IMD Business School and Niccolò Pisani, Assistant Professor of International Management, University of Amsterdam.

This article was originally published on The Conversation. Read the original article.