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Sustainable Practices
in the Built Environment

This Page Intentionally Left Blank

Sustainable Practices
in the Built Environment
Second edition
Edited by
Craig A. Langston and Grace K.C. Ding
OXFORD AUCKLAND BOSTON JOHANNESBURG MELBOURNE NEW DELHI

Butterworth-Heinemann
Linacre House, Jordan Hill, Oxford OX2 8DP
225 Wildwood Avenue, Woburn, MA 01801-2041
A member of the Reed Elsevier plc group
First published 1997
Second edition 2001
© Reed Educational and Professional Publishing Ltd 2001
All rights reserved. No part of this publication may be reproduced in
any material form (including photocopying or storing in any medium by
electronic means and whether or not transiently or incidentally to some
other use of this publication) without the written permission of the
copyright holder except in accordance with the provisions of the Copyright,
Designs and Patents Act 1988 or under the terms of a licence issued by the
Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London,
England W1P 0LP. Applications for the copyright holder’s written
permission to reproduce any part of this publication should be addressed
to the publishers
British Library Cataloguing in Publication Data
Sustainable practices in the built environment
1. Construction industry – Environmental aspects 2. Building materials –
Environmental aspects
I. Langton, Craig A. II. Ding, Grace K. C.
691
Library of Congress Cataloguing in Publication Data
Sustainable practices in the built environment/edited by Craig A. Langston and
Grace K.C.Ding
p. cm
Includes bibliographical references and index.
ISBN 0-7506-5153-9
1. Environmental engineering. I. Langton, Craig A. II. Ding, Grace K.C.
TA170 .S88 2001
628--dc21
2001035007
ISBN 0 7506 5153 9
Typeset by Avocet Typeset, Brill, Aylesbury, Bucks
Printed and bound in Great Britain

Contents
List of contributors vii
Foreword to first edition ix
Foreword to second edition xi
Introduction xiii
PART 1: ENVIRONMENTAL QUALITY 1
1. The planet in crisis 3
2. Sustainable development 15
3. Accounting for the environment 25
PART 2: DEVELOPMENT CONTROLS 35
4. Environmental law 37
5. Environmental impact assessment 44
6. Environmental policies and strategies 51
PART 3: ANALYTICAL TOOLS 61
7. Environmental economics 65
8. Cost-benefit analysis 74
9. Estimating social costs and benefits 84
PART 4: PROJECT FEASIBILITY 95
10. Project selection criteria 97
11. Intergenerational equity 107
12. The measurement of sustainability 116
PART 5: DESIGN CONSIDERATIONS 125
13. Environmental impact of buildings 127
14. Low energy design 136
15. Embodied energy and recycling 150
PART 6: ENERGY CONSERVATION 163
16. Energy quality 167

17. Renewable energy 176
18. Energy regulation and policy 193
PART 7: LIFE-COST STUDIES 203
19. Life-cost planning and analysis 205
20. Determination of the discount rate 218
21. Occupancy costs 230
PART 8: ASSET MANAGEMENT 249
22. Post occupancy evaluation 253
23. Environmental auditing 261
24. Facility management 270
Index 283
vi Contents

Contributors
Editors
Craig Langston – Associate Professor in Construction Economics at the University
of Technology, Sydney (UTS). Before commencing at UTS, he worked for a pro-
fessional quantity surveying office in Sydney. His PhD thesis was concerned with
discounting and life-cost studies. He developed two cost-planning software pack-
ages (PROPHET and LIFECOST) that are sold internationally, and is author of
several books covering aspects of construction economics and facility management.
Grace Ding – Lecturer in Construction Economics at UTS. She has a diploma
from Hong Kong Polytechnic, a bachelors degree from the University of Ulster
and a masters degree by thesis from the University of Salford. She has practised as
a quantity surveyor in Hong Kong, England and Australia. Grace is currently
undertaking PhD research in the area of environmental performance measurement.
Specialist contributions
Rick Best – Lecturer in Construction Economics at UTS. He has degrees in archi-
tecture and quantity surveying and has research interests in information technol-
ogy, energy in buildings and low energy design strategies. Rick is undertaking
research in district energy systems and the international performance of construc-
tion projects, and is the co-editor of several books on value in building.
Gerard de Valence – Senior Lecturer in Construction Economics at UTS. He has
an honours degree in economics from the University of Sydney. He has worked in
industry as an analyst and economist. His principal areas of research interest
include the measurement of project performance, economic factors related to the
construction industry, and the impact of emerging technologies.
Jack Greenland – Retired academic. He is still one of the most respected building
scientists in Australia and has lectured to architects and other professionals for

over 25 years. He is author of a leading text on heat, light and sound and contin-
ues to undertake research and PhD supervision in a range of areas related to energy
in buildings.
Rima Lauge-Kirstensen – Architect and research scholar. She holds a PhD and a
bachelors degree in architecture, and has worked in a number of roles relating to
the construction industry. She has particular expertise in the physics of building
systems and emerging technologies that aim to minimize energy demand.
Caroline Mackley – Project Manager and Researcher with Bovis Lend Lease. She
holds a bachelors degree in quantity surveying, a masters degree in environmental
studies and is currently undertaking a PhD in the area of embodied energy. She has
taught at Massey University in New Zealand and has conducted her own practice
in Australia.
Peter Smith – Senior Lecturer in Construction Economics at UTS. Prior to his
current appointment he worked for a large professional quantity surveying practice
and an international construction and property development company. He is cur-
rently undertaking PhD research and has an interest in consumer investment
advice and property maintenance.
Other contributors
The valuable contribution of the following people to the writing of this book is also
acknowledged and greatly appreciated:
Yu Lay Langston
Ann Godfrey
Phyllis Campbell
Paul Pholeros
Anne-Marie Willis
Alan Gilpin
Margaret Durham
Chris Hall
Martin Hill
Ian Wills
Merv Fiedler
David Muir
Roger Horwood
Bill Lawson
Robert Turner
Stephen Ballesty
viii List of contributors

Foreword
to first edition
Allan Ashworth
‘We know that the whole creation has been groaning as in the pains of childbirth right
up to the present time.’ The Book of Romans, Chapter 8, Verse 22.
The importance of environmental issues throughout society has, I am pleased to
say at last, raised its profile. This increased emphasis is likely to be continued both
for our benefit and those of future generations. It is also becoming much more rec-
ognized as a subject of study in universities and colleges around the world.
Increasingly the activities of the construction industry through mineral extraction,
materials and component manufacture, building and infrastructure development
and through the use of buildings and structures has concentrated the attention of
designers and constructors on the environment. More action and greater care are
required to be taken. Thus those involved in the design and construction process
and others concerned in the important area of providing better living, working and
leisure conditions are encouraged to respond to alternative and improved accom-
modation solutions, taking into account the needs of individual projects. Such
solutions must now more fully consider the environmental implications of
development.
This book, written by experts in the field of environmental economics, presents
its readers not only with the scenarios to be addressed, but solutions to how devel-
opment can be undertaken in an environmentally efficient way. The book does not
limit itself to the theory alone, but provides a basis for real alternatives in respect
of ecologically sustainable development and addresses the economic approaches
and implications that bear on the construction industry. The authors have deliber-
ately dealt with the general, practical and detailed in such a way as to offer a robust
analysis, reminding the reader that the world’s resources are not infinite.
It is important for all those who want to see a prosperous construction industry
to concern themselves with the issues of ecologically sustainable development.
Such a concern must not be limited to the location of the project alone, but the
broader impacts of such development must also be taken into account.

Environmental impact assessment has now become an important consideration in
the developed world. Such analyses must not be allowed to be restricted to ‘one’s
own backyard’ but they must also consider the wider impact of environmental
issues that such development raises in a global context.
I recommend this book to all those people who share my concern about the en-
vironment, the prosperity of future generations and the responsibility entrusted
with those involved in the construction industry to properly consider the impacts
of their decisions.
Allan Ashworth HMI Msc ARICS
Chartered Quantity Surveyor
York, England
1996
x Foreword to first edition

Foreword to
second edition
Dr Douglas Ferry
Since this book was first conceived things have moved on.
Although designers were becoming increasingly aware of long-term envir-
onmental issues during the last part of the twentieth century, short-term profit-
ability for the developer was still tending to win out. Environmental responsibility
and the long-term view were seen as a somewhat idealistic approach suitable for
those Mr Nice Guys who were able to afford it.
After all, it was argued, what effect could a single building have upon a multi-
billion pound national construction programme, or upon the astronomical figures
of global construction resource-use?
It is worth noting that, even on its own terms, such an escapist philosophy
ignored the fact that many of the most pressing environmental issues are local,
where a single development can have a considerable effect for good or bad.
But today government initiatives in the form of penalties and incentives mean
that even those developers who refuse to see the probable benefit to themselves in
taking a long-term view are forced to consider the environmental consequences of
what they are doing.
And here a hopeful comparison is seen with automobile design, where for many
years safety considerations were thought to be unattractive from a marketing view-
point. But once legislation forced attention on this by the compulsory use of
seat-belts, consumers became increasingly safety conscious and such things as
airbags, side-impact protection, and ABS braking became the norm without the
need for government action.

So all those concerned with building procurement need to be properly informed
about sustainable construction, and this book is a veritable mine of information,
progressing from clear explanations of the strategic issues into methods of imple-
mentation. Each chapter deals comprehensively with its subject in a hard-headed
real-world context, and includes an exhaustive list of references and further reading.
Douglas J. O. Ferry PhD FRICS
Adjunct Professor UTS
2001
xii Foreword to second edition

Introduction
We live in an environmental age. As the environmental crisis deepens, valuable
resources are further depleted and limits to growth are approached, it is even more
critical that development of built infrastructure takes proper cognizance of envi-
ronmental impact.
This book is about making development and construction more sustainable. It is
written specifically for people working in or studying about the construction
industry. It embraces a series of topics that address sustainable practices: the key
issues, implementation strategies, policy initiatives and case studies. The aim of
this book is to show ways in which people involved in and allied to the industry
can make a difference by delivering projects that reflect sustainability goals. It,
however, does not deal with the broader issues of urban planning and transporta-
tion, which are important topics in their own right but outside the intended scope
of this text. In the next decade the construction industry will be judged by its
success in this endeavour, and increasing levels of government intervention can be
expected if it fails to live up to its responsibilities.
The philosophy of sustainable development borrows freely from the science of
environmental economics in several major respects. A basic component of envir-
onmental economics concerns the way in which economics and the environment
interact. Fundamental to an understanding of sustainable development is the fact
that the economy is not separate from the environment. There is an interdepend-
ence because the way humans manage the economy impacts on the environment
and the resultant environmental quality, in turn, impacts on the future performance
of the economy.
Definitions of sustainable development abound since what constitutes develop-
ment for one person may not be development or progress for another. Development
is essentially a value word: it embodies personal aspirations, ideals and concepts
of what comprises a benefit for society. The most popular definition of sustainable
development is the one given in the Brundtland Report (1987):
development that meets the needs of the present without compromising the ability of
future generations to meet their own needs.

This definition is about the present generation’s stewardship of resources. It
means that for an economic activity to be sustainable it must neither degrade nor
deplete the natural resources nor have serious impacts on the global environment
inherited by future generations. For example, if greenhouse gases continue to build,
the ozone layer becomes further depleted, soil quality is degraded, natural resources
are exhausted and water and air are badly polluted, then the present generation
clearly has prejudiced the ability of future generations to support themselves.
Development implies change, and should by definition lead to an improvement
in the quality of life of individuals. Development encompasses not only growth,
but also general utility and well-being, and involves the transformation of natural
resources into productive output. Sustainable development in practice represents a
balance (or compromise) between economic progress and environmental conser-
vation in much the same way as value for money on construction projects is a
balance between maximum functionality and minimum (life-)cost. The economy
and the environment necessarily interact, and so it is not appropriate to focus on
one and ignore the other.
Development is undeniably associated with construction and the built environ-
ment. Natural resources are consumed by the modification of land, the manufac-
ture of materials and systems, the construction process, energy requirements and
the waste products that result from operation, occupation and renewal. Building
projects are a major contributor to both economic growth and environmental
degradation and hence are intimately concerned with sustainable development
concepts. Every project (new or existing) can be enhanced by consideration of
‘whole-of-life’ methodologies. The term ‘whole-of-life’ simply means taking a
long-term view and finding a balance between the various attributes of a project,
including how to properly evaluate the impact of present and future benefits.
The concept of sustainable development has stimulated the search for construc-
tion solutions that do not result in a clash between rising living standards and en-
vironmental protection. The essential ingredients for sustainability seem clear,
although how they are brought together in practice is undeniably complex. The
main challenges are:
1. The construction industry must re-engineer its entire production process.
2. Current economic approaches to project evaluation need to be re-examined.
3. The integration of economic, environmental and social aspects of sustainabil-
ity needs to be further developed.
4. There needs to be increased awareness and understanding of sustainability
issues at all levels in the community.
The chapters in this book are categorized in a matrix arrangement to illustrate their
interrelationship. The order of chapters reflects a progression from macro issues to
micro issues. The vertical and horizontal integration of the chapters is shown in the
diagram below.
Vertical integration is used to differentiate macro and micro issues. Chapters 1
to 12 cover strategic planning topics, while Chapters 13 to 24 cover facility design
and management topics. Horizontal integration is used to differentiate environ-
mental and economic issues. Chapters 1 to 6 and 13 to 18 cover topics about
xiv Introduction

environmental protection, while Chapters 7 to 12 and 19 to 24 cover topics about
economic rationalism. Furthermore, chapters are grouped into eight parts and
categorized by common themes.
Strategic planning concerns those aspects of sustainable development that are
about making effective decisions between alternative courses of action. Topic areas
include environmental quality, development controls, analytical tools and project
feasibility, and are relevant to the pre-design stage of the development process.
Arguably this is the most important stage, although to some extent it is also the
most intangible. The first half of the book concludes with recommendations on
how sustainable development can be objectively measured and used to make
appropriate decisions.
Facility design and management concerns those aspects of sustainable develop-
ment that relate to specific project choices. Topic areas include design considera-
tions, energy conservation, life-cost studies and asset management and are relevant
to design, construction and occupation stages of the development process. The
second half of the book concludes by suggesting that the effective management of
facilities, which typically spans long time horizons, is critical to the realization of
benefits not only to the owner but to society as a whole.
The chapters categorized as environmental protection involve a study of the
environmental side of the sustainability equation. While there may be a tendency
to maximize the conservation of resources, the reality is that a balance between
Introduction xv
The Planet in Crisis Environmental Impact of Buildings
Sustainable Development Low Energy Design
Accounting for the Environment Embodied Energy and Recycling
Environmental Law Energy Quality
Environmental Impact Assessment Renewable Energy
Environmental Policies and Strategies Energy Regulation and Policy
Environmental Economics Life-Cost Planning and Analysis
Cost-Benefit Analysis Determination of the Discount Rate
Estimating Social Costs and Benefits Occupancy Costs
Project Selection Criteria Post Occupancy Evaluation
Intergenerational Equity Environmental Auditing
The Measurement of Sustainability Facility Management
STRATEGIC PLANNING FACILITY DESIGN AND MANAGEMENT
ENVIRONMENTAL
PROTECTION
ECONOMIC
RATIONALISM
Environmental
Quality
Development
Controls
Analytical
Tools
Project
Feasibility
Design
Considerations
Energy
Conservation
Life-Cost
Studies
Asset
Management
STRATEGIC PLANNING FACILITY DESIGN AND MANAGEMENT

conservation and consumption is necessary. The chapters categorized as economic
rationalism present the methods for assessment and management of development,
and therefore focus on the other side of the sustainability equation. Monetary
issues cannot be ignored, but instead must be integrated into development
processes so that balanced decisions can be made.
The strength of this book is in its ability to present a balanced argument and to
offer solutions that are both effective and practical. The chapters are written from
an international perspective and therefore are applicable to readers from any part
of the world.
This book forms a useful introductory text for construction industry profes-
sionals, facility managers, construction clients and students. The layout of the
book reflects the structure of the Environmental Economics subject in the Master
of Facility Management and the Master of Business Administration (Facility
Management) degrees at the University of Technology, Sydney. Graduates of these
courses are employed in a range of fields including engineering, architecture,
property management, construction management, project management, quantity
surveying and facility management, and apply their skills to projects in countries
throughout the world.
The editors wish to thank all those people who contributed to the writing of
this book, and to those who gave up their valuable time to provide input and/or
review individual chapters. The publishers would like to thank Dr Jorge Vanegas
of The Georgia Institute of Technology, USA, for his help in reviewing the final
manuscript.
xvi Introduction

PART 1
Environmental
quality
The environment and the economy can no longer be treated as independent and the
subject of separate policy direction. Rather, the environment supports economic
growth and rising living standards, providing vital social amenity that itself
encourages human productivity and creativity. Economic well-being supports
initiatives that can protect, conserve and improve environmental quality,
fund research and assist in new discoveries or better understanding of natural
phenomena.
This balance between environmental conservation, which aims to protect natur-
al resources, and economic progress, which aims to develop human infrastructure,
is what is known as sustainable development. Too much emphasis on the environ-
mental side will limit the ability to deliver improvements in living standards, par-
ticularly for the developing world, while too much emphasis on the economic side
will lead to depletion of vital natural resources that cannot be readily recreated.
Therefore sustainable development is one of the most important issues facing
the quality of human habitation of the planet in the future, and one which must be
addressed now if an effective balance is to be struck. It involves proper valuation
of environmental goods and services, taking a long-term view of development
decisions, and seeking to provide equity both within the current generation (rich
versus poor) and across generations (present versus future).
The construction industry is a major player in arriving at an effective balance,
as most new projects involve some form of resource consumption and site modi-
fication that, as a general rule, diminishes environmental wealth and increases cap-
ital wealth. So projects which minimize impact on the environment while still pro-
viding necessary economic and social advantage should be favoured. Such an
approach must bring together the two sides of the equation during the decision-
making process. Techniques are needed to assist in this endeavour so that a con-
centration on short-term monetary performance does not dominate.
In fact, a preoccupation with monetary evaluation has worked against the imple-
mentation of sustainable practices. Environmental impact and financial return
have been separately considered, but seldom integrated into a single decision

criterion. This has led to a division of subjective and objective performance meas-
ures; the former influenced by political interpretations of societal need and the lat-
ter influenced by business goals and profit maximization. Not until subjective and
objective criteria can be evaluated together will sustainable development goals
ever be realistically approached.
But in reality there is probably no such thing as sustainable development, at least
for the majority of new projects that are commenced every day. The same can be
said for existing infrastructure, which may have had the added disadvantage of
poor environmental design in the first place. Sustainable development is not a
point we reach but a journey we take. It is therefore an ideal, a set of goals, an
objective to be pursued, but seldom realized. Yet that is not to say that the concept
is a waste of effort. On the contrary, every step towards it is a positive contribu-
tion. While most projects will consume more resources than they create, projects
that are closer to sustainable ideals will increasingly deliver benefits to their own-
ers and users and to society as a whole. Therefore if design can encompass assess-
ment and decision-making processes that address sustainability goals, it is likely
that over the long term the construction industry will be able to demonstrate a sig-
nificant contribution to global resource efficiency.
Many of the major environmental issues that society faces, however, are not
related to individual projects or decisions, but rather are the result of vast collec-
tions of projects or decisions on a global basis. So how can any one project, or any
one country, make a difference to environmental quality? The answer is reflected
in the current debate over recycling. It is true that no one person can make a dif-
ference by recycling waste products from their own activities, but if everyone does
it then a significant benefit can be realized. In the same way, if every project meets
strict criteria for design, construction and operation then over a period of time
problems like greenhouse gas emissions, global warming, pollution and loss of
biodiversity can be turned around. These are international problems but can be
overcome by local solutions. Everything is a piece of a much bigger puzzle, so a
concerted effort across the board is required.
Yet exponential increases in population growth are the most serious long-term
threat, with the capacity to adversely influence all other environmental problems by
placing stress on natural systems to support and assimilate activity. The construc-
tion industry, in providing additional infrastructure for a growing population, will
have even further impact on environmental goods and services, and as such makes
an even stronger case to search for ways to make development more sustainable.
The chapters in this part deal with the important area of environmental quality.
Chapter 1 discusses the crisis that afflicts the environment and shows the connec-
tivity and complexity of key global problems. Chapter 2 explores the concept of
sustainable development and its characteristics. Chapter 3 demonstrates that envi-
ronmental goods and services must be properly valued and incorporated into eco-
nomic models so that environmental wealth and capital wealth can be assessed col-
lectively.
Environmental quality is both the start and the end of the sustainable develop-
ment debate. It is both the rationale and the objective; the problem and the solu-
tion. Only through an appreciation of the importance of the environment to human
prosperity can development be put into its proper perspective.

1
The planet in crisis
Caroline Mackley
1.1 Introduction
It is commonly accepted that the planet faces an environmental crisis precipitated
by anthropocentric activity that is resulting in a reduction in the earth’s productive
capacity from which serious consequential social and environmental effects are
starting to flow. The significance of the problem has given rise to global co-oper-
ation in the form of a range of major international agreements constructed with the
objective of seeking a balance between the opposing yet interdependent forces of
society, economy and environment.
Nowhere is the complexity and importance of this relationship more evident
than in relation to the built environment. Constructed facilities are humankind’s
most important economic, social and environmental investment. When viewed in
terms of its economic significance (as measured as a proportion of GDP), the
direct and indirect capital flows constitute on average about 40% of national GDP
(Bon and Pietroforte, 1999; International Building Research Council, 1999). In
addition, 50% of the world’s primary energy production is consumed by buildings
when both direct and indirect flows are considered together (Levine et al., 1995;
Russell, 1998).
It has been noted that our current economic activity has the potential to reduce
the capacity of the environment to provide useful inputs to, and services for, future
economic activity (Dovers, 1994). Human economic activity is the principal cause
of the environmental crisis through exploitation and pollution, and yet such activ-
ity relies on a healthy environment for its continuance and productivity. There is
hence a vital partnership upon which much depends.
Sustainability relates to the carrying capacity of the planet to maintain life in all
its forms. It is often referred to as ‘sustainable harvests’, or in other words, the
amount that various resources can be harvested at certain rates indefinitely with-
out decreasing environmental quality or necessitating reductions in carrying
capacity. At a global level sustainability is a complex issue and is difficult to deter-
mine accurately for any resource (Botkin and Keller, 1995).

Environmental quality and sustainability are closely linked. Future reductions in
the quality and availability of natural resources upset estimates of carrying capac-
ity and accelerate the likelihood of significant environmental catastrophe.
The environmental crisis concerns a wide range of matters. The major themes
into which concerns are categorized are (a) social and economic dimensions, and
(b) conservation and management of the natural environment. Social and econom-
ic dimensions concern such issues as poverty, consumption patterns, human pop-
ulation and health. Conservation and management issues cover atmospheric pro-
tection, land resources, ecosystem protection and waste management, amongst
other things. The three main environmental problems currently facing the planet,
however, are climate change, loss of biological diversity and population growth.
These problems, as will be shown below, are interrelated.
1.2 Climate change
1.2.1 Atmospheric protection
‘Of all the global environmental problems, climate change is the most pervasively
threatening to human well-being and in many respects the most intractable’ (Schipper
and Meyers, 1994, p. 21).
The imperative to protect the atmosphere rises out of its various properties and the
relationship it has with the maintenance and support of the Earth’s ecosystems. It
is now generally accepted that a link exists between atmospheric degradation and
the onset of climate change and climate variability. Major uncertainties in modern
scientific understanding of the causes and effects of climate change remain and
thus are the focus of international research efforts. Whilst these uncertainties
remain, the ability of governments to ratify increasingly demanding control meas-
ures is hindered.
Currently, the major concern in relation to climate change is anthropocentric air
pollution in the form of carbon dioxide (CO2), nitrogen oxides (NOx), sulphur
dioxide (SO2), methyl chloride and chlorine gas (Cl2) and methane (CH4), as well
as issues relating to ozone layer depletion. It is a major objective of the United
Nations Conference for Environment and Development (UNCED) to ‘improve the
understanding of processes that influence and are influenced by the Earth’s atmos-
phere on a global, regional and local scale including, inter alia, physical, chemical,
geological, biological, oceanic, hydrological, economic and social processes … to
improve understanding of the economic and social consequences of atmospheric
changes’ (UNCED, 1996, p. 2).
In terms of quantifying impacts, atmospheric emissions are generally classified
by impact categories instead of pure emissions of CO2, SO2, NOx, etc. Each of
these emissions may have impacts under several categories. These categories
include global warming, depletion of the stratospheric ozone layer, acidification,
nutrification, ecological toxicity and human toxicity (Fossdal, 1999).
4 The planet in crisis

1.2.2 The greenhouse effect
It is important to distinguish between the natural and enhanced greenhouse effect.
Greenhouse gases play a vital role in maintaining a balance on Earth that keeps the
temperature and functioning of ecosystems at a level conducive to human, animal
and plant life – a delicate interaction that is not evident on any other planet in the
solar system. The Earth’s natural ability to balance the chemical composition of the
atmosphere to maintain life is what is considered to be the natural greenhouse
effect. The chemical composition of the atmosphere enables solar radiation to be
absorbed at such a rate as to provide suitable temperature ranges and weather. It is
estimated that the greenhouse balance, driven predominantly by carbon dioxide
and atmospheric water vapour, leads to a mean surface temperature of the Earth of
about 10°C above what it would otherwise be (Lovelock, 1979). Natural fluxes in
this balance occur and up until the time of the industrial revolution, the Earth man-
aged these without interference.
It is essential to be cognizant of the fact that greenhouse gases occur naturally
in the atmosphere. Table 1.1 provides a summary of the composition of the Earth’s
atmosphere.
Table 1.1 Composition of the Earth’s atmosphere
Gas Proportion of Flux in megatons Atmospheric
atmosphere (%) per annum function
Nitrogen 79 300 Pressure builder, fire
extinguisher, alternative to
nitrate in the sea
Oxygen 21 100 000 Energy reference gas
Carbon dioxide 0.03 140 000 Photosynthesis, climate
control
Methane 10–4 1 000 Oxygen regulation and
ventilation of the anaerobic
zone
Nitrous oxide 10–5 30 Oxygen and ozone
regulation
Ammonia 10–6 300 PH control and climate
control
Sulphur gases 10–8 100 Transport gases of the
sulphur cycle
Methyl chloride 10–7 10 Ozone regulation
(Adapted from: Lovelock, 1979, p. 68.)
The enhanced greenhouse effect is caused by the build-up of greenhouse gases
beyond known maximum natural atmospheric concentrations. This is compound-
ed by the Earth’s reduced capacity to absorb these as a result of the destruction of
natural sinks.
Sources of greenhouse gas emissions are well known. Progress has been made
in the last two decades towards a reduction in their atmospheric concentrations
through a series of mitigation policies implemented as a result of major interna-
Climate change 5

tional agreements, but it should be noted that even if all emissions were to stop
today, the atmospheric concentration of many of these substances would continue
to increase for decades to come.
1.2.3 Global warming
Global warming is caused by the build-up of greenhouse gases like carbon diox-
ide, water vapour, methane, chlorofluorocarbons (CFCs), nitrous oxide and ozone
which trap energy on the Earth’s surface. While the presence of greenhouse gases
is essential to the survival of all living creatures, increases upset the natural equi-
librium. Scientists have measured a significant rise in the levels of heat-absorbing
gases in the atmosphere and these increases give rise to global warming which can
result in damaging consequences for the planet.
Historical evidence suggests that discernible climate change occurs in connec-
tion with a doubling or halving of atmospheric CO2 concentrations. At present only
about 0.03% of our atmosphere is carbon dioxide (see Table 1.1 above), which
relates to approximately 6 gigatonnes of carbon dioxide emission per year (IPCC,
1995). During the most recent ice age 150 000 years ago, it has been calculated
that the mean surface temperature of Earth was a mere 5°C cooler than today with
corresponding CO2 concentrations of 170 parts per million (ppm). In the inter-
glacial period, about 100 000 years ago, the mean surface temperature was about
1 to 2°C warmer than today with concentrations of CO2 of between 270 to 300 ppm
(Falk and Brownlow, 1989). Since the time of the industrial revolution (about 1750
AD), atmospheric concentrations of CO2 have increased from about 280 ppm to
360 ppm at present day (IPCC, 1995). This increase has corresponded with a rise
in the global mean surface temperature of between 0.3 and 0.6°C since the late
nineteenth century.
Climate change scenarios generally attempt to calculate the time frame and tem-
perature change on the basis of a doubling of atmospheric carbon dioxide. By most
accounts these scenarios point to the year 2100 as being the point at which signif-
icant changes will be clearly evident. The reason for international interest in reduc-
ing CO2 emissions relates to the expected reduction in the Earth’s productive
capacity and the consequential social and environmental effects. The International
Framework Convention on Climate Change (IFCCC) provides a protocol for all
nations to measure and report their annual CO2 emissions.
Reporting on the conclusions of various climate change studies, Leary and
Scheraga (1994, p. 105) note that ‘a 3°C warming will reduce annual world output
by 1.3%’. These estimates are qualified for various assumptions and it is possible
that a change in the basis of any variable could result in a sharp increase in this
estimate. Global surface warming affects the climate pattern. Higher temperatures
tend to speed up evaporation in some regions and cause more precipitation in oth-
ers. A warmer atmosphere retains more moisture and water vapour absorbs more
radiant heat.
The extent of knowledge supported by contemporary climate research suggests
that the warming of the Earth’s surface would have a significant effect on living
creatures as well as the composition of the atmosphere. It is thought that oceans

may expand and the polar ice caps may reduce in size which in turn will raise sea
levels and release more carbon dioxide into the atmosphere, as oceans and ice caps
are the planet’s major carbon sinks. It is estimated that there will be an average
increase in sea level of about 6 cm per decade for a temperature rise of between
1.5 to 5.5°C (Falk and Brownlow, 1989). The consequences of rising sea levels
may be soil erosion, flooding and storm damage to many coastal regions as well
as resultant economic and social losses.
1.2.4 Sources of greenhouse gas emissions
The major sources of greenhouse gas emissions originate from energy production
and consumption, industrial developments, and land and marine resource use and
development. Energy related CO2 emissions account for 78% of global anthro-
pogenic emissions (Schipper and Meyers, 1994) and therefore it is logical that the
focus of assessment and mitigation continues to be linked to this aspect. Table 1.2
indicates greenhouse gas impacts and proportional source contributions.
Table 1.2 Greenhouse gas contributions
Indicator of Baseline Energy Natural Industrial
impact contribution production resource use production
Land use or 135 mil km2 6.2% fuelwood 88% grazing, 6% lumbering
conversion supply (6%), area cultivation, towns, transport
occupied by cumulative systems
energy facility desertification
(0.2%)
Nitrogen fixation 200 mil tonnes/yr 32% fossil and 67% fertilizer, 1% refuse
(as NOx, NH4) traditional fuel agricultural burning
burning burning
Nitrous oxide 7 mil tonnes/yr 16% fossil and 84% fertilizer, Small
emissions traditional fuel land clearing and
burning aquifier disruption
Carbon dioxide 280 ppm 78% fossil fuel 15% net 7% net
stock in burning deforestation for deforestation for
atmosphere land clearing lumber, cement
manufacture
CO2 particulate 500 mil tonnes/yr 45% burning 40% biomass 15% smelting,
emissions to fossil and burning and non-agricultural
atmosphere traditional fuels wheat handling land clearing
Methane stock in 800 ppb 23% fossil fuel 62% rice 15% landfills
atmosphere harvesting and paddies,
processing domestic animals
and land clearing
(Source: Schipper and Meyers, 1994, p. 18.)
Carbon dioxide is mainly produced by the burning of compounds that contain
carbon, such as coal, oil, gas and wood. In the past century, carbon dioxide levels
Climate change 7

have increased by 25% due to the burning of fossil fuels and the destruction of
forests (Bates, 1990). Deforestation compounds carbon emissions as the carbon
stored in the soil and in the trees and plants are returned to the air as CO2.
Methane (CH4) emissions are predicted to rise as natural and synthetic gases are
used as alternatives to more expensive oil fuels. While gas is more efficient per
unit of fuel than other forms of carbon fuels, it presents a difficult dilemma in rela-
tion to global warming. Although it is lower in concentration in the atmosphere
than carbon dioxide, it has powerful heat-absorbing characteristics and each mol-
ecule has 30 or 40 times the warming potential of molecule of carbon dioxide. The
increasing amount of methane in the air is primarily from the venting of oil and
gas wells, but also is a result of conversion of forests and fields to cattle produc-
tion and rice paddies, the harvesting of the oceans for fish, and the decay of
organic wastes. Scientists believe that if current trends continue there will be at
least twice as much methane in the air by the middle of the twenty-first century
(New South Wales Government, 1990).
CFCs are compounds that contain carbon, fluorine, chlorine and sometimes
hydrogen and are even more problematic as each molecule provides about 20 000
times more warming capacity than carbon dioxide (New South Wales Government,
1990). CFCs are exclusively man-made products used primarily in refrigerants,
aerosol sprays, insulating materials and solvents. The presence of CFCs in the air
not only traps heat but also attacks the stratospheric ozone layer.
Nitrous oxide (N2O) accounts for about 5% of the greenhouse effect and the
heat-absorbing power is about 200 times stronger than carbon dioxide. Nitrous
oxide is mainly emitted by burning coal and oil, the denitrification of fertilizer and
deforestation.
1.2.5 Depletion of the stratospheric ozone layer
Ozone is a layer of pale blue gas located in the atmospheric zone known as the
stratosphere and occurring in a band between approximately 15 km to 50 km thick
above the Earth’s surface. Its essential function is to screen out damaging ultravi-
olet radiation, known as UV-B, from the sun. Ozone is a naturally occurring but
rare form of oxygen. Ironically, ozone is kept in equilibrium (approx. 5 parts per
million) by ultraviolet radiation (Lovelock, 1979).
Stratospheric ozone forms a protective layer that absorbs UV-B and therefore
plays an important role in screening out high energy ultraviolet radiation from the
sun. This radiation interferes with the human immune system, causes sunburn and
contributes to certain kinds of skin cancers. It also reduces crop yield, and may
even kill surface-dwelling fish and tiny marine organisms called phytoplankton.
Some reports suggest that a major die off of the essential phytoplankton is plausi-
ble which may lead to a collapse in ocean ecosystems.
Ozone contains three oxygen atoms that break apart by ultraviolet photons.
Through the natural process of ozone formation and destruction, most of the harm-
ful and high energy radiation from the sun is screened before it reaches the Earth’s
surface. As a result of human activities the ozone equilibrium has been violated
and new substances such as chlorine have been introduced into the stratosphere.

Over recent decades scientists have become increasingly concerned about the
diminishing level of ozone in the stratosphere. The first clear sign of damage to the
ozone layer was reported in 1985 by the British Antarctic Survey team who had
been measuring ozone levels over the Antarctic since 1957. In October 1987, when
this hole was very severe, the total amount of ozone measured was less than half
of its 1970 levels. In 1993 the Antarctic ozone hole was the deepest ever recorded,
with two thirds of the protective ozone shield in this area destroyed (Gribbin,
1988). Since then a hole over the Arctic region has also been discovered.
The instruments in place which seek to preserve the stratospheric ozone layer
include the 1985 Vienna Convention for the Protection of the Ozone Layer, the
1987 Montreal Protocol on Substances that Deplete the Ozone Layer and the 1992
United Nations Framework Convention on Climate Change. Up until the Montreal
Portocol was ratified, CFCs were widely used as coolants, propellants and solvents
globally. Soon after the agreement, participating countries further agreed to phase
out all CFC production by the year 2000. Other countries, notably China, also
became signatories. However the success of the protocol is yet to be fully
determined. It is up to each country to monitor and report on its success. No
enforcement provisions have ever been agreed.
Apart from the release of chlorine atoms, scientists now also realize that
bromine-containing halons used in fire-extinguishing materials deplete ozone
even more efficiently and are responsible for about 20% of total ozone destruction
(Logan, 1990). Other substances like methyl chloroform and carbon tetrachloride
(from industrial chemicals and oceans), also contribute to ozone depletion by the
release of chlorine, as do large volcanic eruptions and the burning of rainforests.
Research is continuing to search for better substitutes for CFCs. Even if global
production of CFCs completely ceased, the atmosphere concentration of chlorine
atoms would continue to rise in the next few decades as the gases stored in old
appliances gradually leaked into the air. It takes hundreds of years to reduce the
concentration of chloride gases in the stratosphere (Logan, 1990).
The success of the Montreal Protocol depends on the participation of all nations.
Many developing countries have just begun to use CFC-based technologies and
some countries are reluctant to give up the short-term benefits of using CFCs. The
replacements for CFCs are generally more expensive and less effective than the
original compounds and therefore adjustments to alternatives will not be straight-
forward.
1.3 Loss of biological diversity
1.3.1 Context
The term biodiversity is short for biological diversity and describes the ‘variety
and variability of genes, species, populations and natural ecosystems’ (UNCED,
1996, p. 1). Broadly speaking it refers to the number of species that can be found
in nature. The exact number of organisms is not known but it is believed to be
approximately 5 to 30 million, of which only 1.4 million have been described
Loss of biological diversity 9

(Wilson, 1989). The loss of biodiversity has and continues to occur as a result of
habitat destruction, over harvesting, pollution, and the inappropriate introduction
of foreign plants and animals.
Most of the species are found in the rainforests, coral reefs, geologically ancient
lakes and coastal wetlands. It is estimated that rainforests cover only 7% of the
Earth’s land surface but they contain almost half the total species count. The
UNCED recognizes biological resources as a major capital asset and promotes the
development of baseline surveys of resources including identification of the poten-
tial economic and social benefit that these resources present.
Biological diversity can be classified into three levels; namely genetic diversity,
species diversity and ecosystem diversity (Beder, 1993). Genetic diversity is the
sum of genetic information contained in the genes of individual plants, animals
and micro-organisms. Species diversity refers to the number of different living
organisms on Earth. Ecosystem diversity (also called habitat diversity) relates to
the variety of different habitats within an ecosystem.
Biodiversity is important in many ways. First, it sustains food production. With
an increasing rate of growth in world population, the demand for food becomes
critical. Second, species are the source of medicines to cure a range of known dis-
eases, as well as for medical research and development (Bates, 1990). Third, rain-
forests play an important role in the planetary recycling of carbon, nitrogen and
oxygen by helping to regulate the greenhouse effect by absorbing carbon dioxide
out of the air and returning oxygen to the atmosphere. Fourth, the planet is an
interwoven ecosystem. The existence of one species is important to the existence
of another. The demise of one species may eventually lead to the loss of many
others dependent upon it, which may result in accelerated loss of important
genetic information (Bates, 1990).
1.3.2 Deforestation
The greatest immediate threat caused by deforestation is the loss or disruption of
natural habitats. Deforestation has been an ongoing human activity that has sig-
nificantly increased since the Industrial Revolution. In the year 900, 40% of the
Earth was covered by forest. In 1900, the forested area was reduced to 30%, a
reduction of 10% over one thousand years. Today only 20% of the Earth’s surface
is forested, another 10% reduction for just one hundred years and the remaining
forests are decreasing at an accelerating rate (Bates, 1990).
The soils of tropical rainforests are often too infertile to support most forms of
human agriculture. They are almost impossible to farm because these regions are
not periodically glaciated. The ashes and decomposing vegetation release a flush
of nutrients adequate to support the growth of agricultural crops for two to three
years and after that artificial supplements are necessary to carry out intensive
farming (Wilson, 1989).
Deforestation has begun to disrupt the Earth’s equilibrium. The loss of such a
large portion of the rainforest means that less sunlight will be absorbed and more
stored carbon will be released into the air. This is one of the major causes of glob-
al warming. Since 1860, forest clearing has released about 100 to 200 million

tonnes of carbon into the atmosphere (Wilson, 1989). This affects the global climate
as more carbon dioxide released into the atmosphere raises overall temperatures.
The major barrier that presents itself in combating deforestation lies in the com-
plex multiple role that forests play to society and environment. Socially, forests
provide an important ‘free’ economic resource for many nations while simultane-
ously providing shelter and protection. In developed nations they also present an
important cultural and recreational dimension to society. Unfortunately, the
exploitation of forest resources has lead to a tripartite dilemma. Examples of this
dilemma include the indigenous Amazon Indians and their plight to save their vir-
gin forests while at the same time being dependent upon the sale of timber for their
economic livelihood. The forest burning in Indonesia as a cheap and fast method
of land clearing and most recently the beech harvesting on the West Coast of New
Zealand are also examples.
The need for timber and industry employment must be balanced against con-
servation through effective resource management. Issues that arise include the
conservation of forests in representative ecological systems and landscapes, the
maintenance of primary old-growth forests, the conservation and management of
wildlife, the conservation of genetic resources, and the conservation of biological
diversity and traditional habitats of indigenous people, forest dwellers and local
communities (UNCED, 1996).
Loss of biological diversity and species extinction are obviously linked.
Recent analyses predict the loss of species due to deforestation will be about 2
to 8% of all existing species over the next 25 years and the extinction rates are
accelerating (Wilson, 1989). The genetic erosion is now recognized as a major
threat to the long-term maintenance of global food supplies. The rapid loss of
biological diversity has become the subject of increasing national and interna-
tional concern.
1.4 Population growth
1.4.1 Rates of growth
World population has more than doubled from 2.52 billion in 1950 to 5.29 billion
in 1990 and is estimated to exceed 6 billion early this century (UNEP, 1999). It is
estimated that 90% of the increase in population occurs in developing countries
(Botkin and Keller, 1995) and is a result of the birth rate rather than greater life
expectancy or advancements in medicine. Population increases at an exponential
rate and places a corresponding demand on food production. Nevertheless, the rate
of population growth has fallen from that predicted as little as 20 years ago large-
ly due to progress in reducing fertility rates globally.
‘Currently, the highest fertility rates tend to be found in countries suffering from
poverty, food insecurity and natural resource degradation’ (UNEP, 1999, p. 6). For
the most part Asia continues to provide the greatest challenge to global sustain-
ability. Over 50% of the world’s population is in Asia and it also has the highest
predicted population growth rate of 1.9% or twice that of the global average.
Population growth 11

A strong correlation exists between high fertility rates and poverty which both
exacerbate environmental stress. The main principle behind the United Nations
Conference for Environment and Development Agenda 21 is that eliminating
poverty will result in reduced environmental degradation. The problem is that
growth in wealth leads to increased consumption and then to creation of different
environmental problems. Thus the promotion and implementation of sustainable
measures in the expansion of developing nations is seen as paramount to future
global health.
The depletion of soil fertility and water reserves is due to population growth and
associated increased crop production and over-farming. In order to maintain pro-
ductivity of the soil, farmers have to use chemical fertilizers. Traditionally farm-
ers rotated crops to build up soil and control pests. However, due to increased pop-
ulation density and demand for food supply, farmers have shortened the rotational
cycle and prevented forest regeneration. Crops that are dependent on chemical fer-
tilizers tend to rob the soil of its natural fertility, which in turn will require more
fertilizers in succeeding years. After a number of years overall productivity
declines and so even more fertilizers are applied to compensate.
The need for greater fertilization for farming has further sped up the rate of
global warming. Fertilizer production involves mining and processing of phos-
phate and nitrogen-bearing ores, and this process consumes fossil fuels and releas-
es carbon dioxide, methane and other greenhouse gases. Fertilizers also reduce the
ability of soil microbes to remove carbon from the atmosphere.
An example of this is seen in the world grain harvest. In 1987 it was 459 mil-
lion tonnes which was enough to feed the world for 101 days. However, in 1989,
the world grain harvest had reduced to only feed the world for 60 days, a reduction
of about 41% in two years (Bates, 1990). The reason for the decline in production
is due in part to the depletion of the environment. As population grows, greater
demands are placed on land use, leading to deforestation, loss of biodiversity,
water resource shortage, waste of natural resources, loss of soil fertility and
increased soil erosion. This is especially serious in the developing countries where
deforestation is at its highest.
The growth of human population is the most significant threat to the global
environment. The demands that more people place on natural resources will lead
to lower standards of living, more pollution, climate change and loss of biological
diversity. Ultimately there can be no long-term solutions to environmental prob-
lems unless there is a cessation in the growth of human population. Even the most
optimistic forecasts indicate a doubling of population during this century.
1.4.2 Pollution
Pollution is essentially an anthropogenic process and can be characterized as water
pollution, air pollution and waste disposal on land. Examples of pollution include
sewage, smog, hazardous waste, fertilizers and garbage. Pollution becomes a prob-
lem only when the natural assimilative ability of ecosystems is reached. In major
population centres evidence of this problem is clear. Technology and development
contribute to pollution, supplemented by other events such as major oil spills and

nuclear accidents, and threaten the ability to deliver improvements in living stan-
dards in the future. Fresh water supplies and clean air to breathe are obviously crit-
ical to long-term human health.
There are few solutions to pollution other than prevention through better pro-
duction methods and a greater realization of the problem at all levels of society.Yet
in the context of increasing world population any significant improvement in envi-
ronmental quality is unlikely.
1.5 Conclusion
Clearly environmental problems are interrelated, and the planet needs to be seen as
a whole rather than a series of separate parts that need attention. It is fair to say
that the planet is in environmental crisis, in the context that future generations may
inherit less than their right because of past and present mismanagement. The envi-
ronmental crisis is also an economic crisis. It is caused by economic activities and
it undermines the very functions on which the economy depends.
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Bowers, J.K. (1997). Sustainability and Environmental Economics: An Alternative Text. Longman.
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Dragon, A.K. and Jakobsson, K.M. (eds.) (1997). Sustainability and Global Environmental Policy:
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References and bibliography 13

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2
Sustainable
development
2.1 Introduction
The risks of treating economic management and environmental quality as if they
are separate, non-interacting elements have now become apparent. The world
cannot continue to deplete the stratospheric ozone layer by indiscriminate use of
chlorofluorocarbons (CFCs). Furthermore, damage to the ozone layer affects
human health and economic productivity. Few would argue now that we can per-
petually postpone taking action to contain the emission of greenhouse gases
(GHGs). Our use of fossil fuels is driven by the goals of economic change and that
process will affect global climate. In turn, global warming and sea-level rise will
affect the performance of economies.
Sustainable development is not a new idea. Many cultures over the course of
human history have recognized the need for harmony between the environment,
society and economy. What is new is an articulation of these ideas in the context
of a global industrial and information society.
Sustainable development focuses on improving the quality of life for all of the
Earth’s citizens without increasing the use of natural resources beyond the capac-
ity of the environment to supply them indefinitely. It requires an understanding
that inaction has consequences and that innovative ways must be found to change
institutional structures and influence individual behaviour. It is about taking
action, changing policy and practice at all levels from the individual to the inter-
national.
In 1962 Silent Spring by R. Carson was published, a book many consider a
turning point in our understanding of the interconnections between the environ-
ment, economy and social well-being. In the decades that have followed, many
milestones have marked the journey toward sustainable development.

2.2 Historical context
The concept of sustainable development gained momentum in the 1980s when sci-
entific evidence about depletion of the environment became obvious. It is now
widely recognized that environmental quality and the conservation of natural
resources are of importance for the well-being of humankind today and for gener-
ations to come.
This recognition was first discussed in the 1973 United Nations Conference on
the Human Environment in Stockholm. Furthermore, the ideas of sustainable
development have been discussed in the 1980 World Conservation Strategy
(WCS), produced by the International Union for Conservation of Nature and
Natural Resources (IUCN) in collaboration with the United Nations
Environmental Programme (UNEP) and the World Wildlife Fund (WWF, now the
World Wide Fund for Nature). Based on the World Conservation Strategy the
National Conservation Strategies for sustainable development were then prepared
and adopted by the governments of fifty countries. However, the World
Conservation Strategy has had little practical impact.
The World Commission on Environment and Development (WCED), created
by the United Nations as a result of a General Assembly Resolution in autumn
1983, published a report on sustainable development called Our Common Future
in 1987. The report incorporated the concept of sustainable development pre-
sented by the World Conservation Strategy in 1980. The Commission was chaired
by Mrs Gro Harlem Brundtland, Prime Minister of Norway, and the report
became known as the Brundtland Report and has since been widely accepted and
quoted.
By the end of 1988 Our Common Future had received public backing from the
leaders of the world. The Earth Summit was held in Rio de Janeiro in 1992 by the
United Nations Conference on Environment and Development (UNCED) to follow
up on key recommendations and strategies previously identified in the Brundtland
Report. This conference, also known as the Rio Conference, was the first time the
discussion of the planet’s future was attended by world leaders. The Earth Summit
reached a number of important conclusions, and the Rio Declaration on
Environment and Development was agreed setting out 27 general principles for
achieving sustainable development. To support this declaration the Summit
adopted Agenda 21, which is an action plan to pursue the principles of sustainable
development into the twenty-first century. The establishment of a new
Commission on Sustainable Development (CSD) under the aegis of the United
Nations was established to monitor progress.
In December 1997 the Kyoto Climate Summit was held to set targets for green-
house gas emissions. The conclusions of the Kyoto Summit were that the industri-
alized countries, known as Annex 1, were to bring their collective greenhouse gas
emissions down by at least 5% below 1990 levels by 2008–2012. That is a consid-
erably weaker target than is necessary to avoid the risk of dangerous climate
change. The Protocol was meant to put in place legally binding targets and time-
tables for industrialized countries to reduce their emissions of greenhouse gases.
However, many loopholes exist in the new treaty and it could take several more
16 Sustainable development

negotiations before the rules and regulations of the issues put forwarded in Kyoto
are environmentally sound, agreed by all the countries and ratified (WWF,
<http://panda.org>).
2.3 Definition
More than 70 definitions of sustainable development have been made and used or
interpreted by different groups to suit their own goals. Definitions of sustainable
development abound since what constitutes development for one person may not
be development or progress for another. Development is a value word: it embod-
ies personal ideals, aspirations and concepts of what constitutes good for society.
Yet in all the writing on sustainable development there is a common thread, a fairly
consistent set of characteristics that appear to define the conditions for sustainable
development that need to be achieved. The most popular definition is the one given
in the Brundtland Report:
‘development that meets the needs of the present without comprising the ability of
future generations to meet their own needs’ (cited in Kirby et al., 1995, p. 1).
This means that for an economic activity to be sustainable it must neither degrade
nor deplete natural resources nor have serious impacts on the global environment
inherited by future generations. For example, if greenhouse gases build up, ozone
is depleted, soil is degraded, natural resources are exhausted and water and air are
polluted, the present generation clearly has prejudiced the ability of future gener-
ations to support themselves.
Development embodies a set of desirable goals or objectives for society. These
goals undoubtedly include the basic aim to secure a rising level of real income per
capita and hence increase the standard of living. But it is now accepted there is
more to development than economic growth. While economic growth is defined as
an increase in real income per capita, development simply means desirable change.
Whether growth constitutes development depends on social goals. An increase in
real income per capita may be one in a list of development objectives, along with
reductions in crime, improved educational and cultural opportunities, greater
employment security, increased racial and gender equality, or clean beaches and
scenic landscapes (Zarsky, 1990).
The means of achieving sustainable development are identified by Pearce et al.
(1989) as consisting of:
1. Environmental value. Sustainable development typically involves a substan-
tially increased concentration on the real value of the natural, built and cultural
environments. This higher profile arises either because environmental quality
is generally seen as an important factor contributing to the success of the more
traditional development objectives such as rising real incomes, or simply
because environmental quality is increasingly being viewed as part of the wider
development objective and as instrumental in the achievement of an improved
quality of life.
2. Futurity. Sustainable development involves a concern not only for the short to
Definition 17

medium term time horizon, but also for the longer term which will ultimately
impact on the inheritance of future generations and their quality of life.
3. Equity. Sustainable development places emphasis on providing for the needs of
the least advantaged in society (intragenerational equity) and on a fair treat-
ment of future generations (intergenerational equity).
Sustainable development therefore deals with three primary concepts: environ-
ment, futurity and equity. These concepts are integrated in sustainable develop-
ment through a general underlying theme that future generations should be com-
pensated for reductions in the endowments of resources brought about by the
actions of present generations.
Munasinghe (1993) suggests economic, ecological and socio-cultural as three
approaches to sustainable development. The economic approach to sustainable
development is to maximize the flow of income while maintaining the stock of
assets (or capital). The ecological approach is to protect biological and physical
systems. The socio-cultural concept of sustainable development is to stabilize the
social and cultural systems and to minimize destructive conflicts for both intra-
generational and intergenerational equity. From a practical point of view the
renewable resources such as scarce natural resources should be utilized at rates less
than or equal to the natural rate of regeneration. Non-renewable resources should
be optimized subject to an ability for substitution between these resources and
technological progress. Waste production should be minimized and recycling or
reuse maximized.
2.4 The Brundtland Report and sustainable development
The Brundtland Report is considered to be anthropogenic, or human-centred,
which means that it is primarily concerned with human welfare through meeting
needs and ensuring quality of life over and above protection of the environment
(Kirby et al., 1995). The Brundtland Report does not guarantee the needs or quality
of life of animals or other living organisms, except in so much as this will benefit
humankind. However, to ecologists, living organisms have a right to exist regard-
less of whether they are beneficial or valuable to humans.
The Brundtland Report suggests that equity can be used to overcome environ-
mental problems. This means that inequality between the developed and develop-
ing countries has to be dealt with by raising the living conditions in the develop-
ing countries that are generally impoverished.
The Brundtland Report suggests seven strategies to sustainable development:
1. Reviving growth.
2. Changing the quality of growth.
3. Meeting essential needs for jobs, food, energy, water and sanitation.
4. Ensuring a sustainable level of population.
5. Conserving and enhancing the resource base.
6. Reorienting technology and managing risks.
7. Merging the environment and the economy in decision-making.

The Rio Conference was used to follow up the strategies set by the Brundtland
Report and mainly concerned conventions on biodiversity, climate change and
principles of forest management.
2.5 The environment and economic growth
Economic growth is an ultimate goal for every government to achieve in order to
improve standards of living and increase the capacity of providing goods and serv-
ices to satisfy human needs. Little attention has therefore been paid to the envir-
onment. In the 1970s people argued that economic growth put too much pressure
on the consumption of renewable and non-renewable natural resources and was
directly causing environmental depletion (Beder, 1993).
In the past attention has concentrated on the environment for raw materials and
natural resources to carry out economic activities such as agriculture, mining and
manufacture, and to provide food, shelter and clothing for human needs. The
effects of the environment upon economic systems were largely ignored. Today
people recognize that environmental degradation can, in turn, affect economic
activities and the ability to meet development goals.
Munasinghe (1993) describes the environment as providing three main types of
services to human society. First, natural resources provide raw materials as
required by humans for economic activities. Second, the environment acts as a sink
to absorb and recycle the waste products of economic activities (such as forests
extracting carbon dioxide from the air and returning oxygen to the atmosphere).
Third, it is recognized that the environment supports life on Earth. Economic activ-
ities, therefore, are greatly affected if the environment is degraded or the resource
base is significantly diminished.
Economic growth and environmental protection have a two-way interaction.
Economic growth is a necessary part of sustainable development (Beder, 1993).
Sustainable development, therefore, is about ensuring that economic activity that
supplies communities with food, shelter, manufactured goods and services for
today can be continued into the future.
According to Carley and Christie (1992), sustainable growth of society refers to
the carrying capacity or the number of people that can be supported at any time on
a sustainable basis. In other words, the sustainable growth of an economy is the
maximum rate of resource consumption and waste production that can be sustained
indefinitely in a region without impairing ecological productivity and integrity.
Beder (1993) suggests that economic growth can be achieved in a number of
ways, some of which have more impact on the environment than others. Sustainable
development aims to achieve economic growth by increasing productivity through
technological change without excessively increasing natural resource use.
2.6 Principles of sustainability
To demonstrate the link between economics and the environment it is first neces-
sary to define sustainability in both economic and ecological terms. Economic and
Principles of sustainability 19

ecological sustainability precepts may be considered as partially overlapping
circles, as shown in Figure 2.1. The overlap marks the territory of sustainable
development.
Figure 2.1 Conceptual framework for sustainable development
Zarsky (1990) defines sustainability as the way that humans manage an
economy to preserve its productiveness. It can be described by four key attributes:
1. Efficiency. Projects implemented and production processes employed should be
efficient and therefore should yield the greatest output per unit within the
bounds of current technology. For market-based economies, inputs and outputs
are measured by their monetary values.
2. Investment. The total resource base for production (comprising human, manu-
factured and natural resources) should not be diminished. Investment should be
sufficient to at least replenish and preferably to expand the resource base.
While there are short-term consumption gains from depleting the productive
stock, in the long term depletion destroys the capability for an economy to
function. Of course, investment requires that the economy generates an
investible surplus.
3. Diversification. Sources of inputs and the range of outputs should be diversi-
fied as much as possible so that the system as a whole is less vulnerable to
internal or external risks.
4. External balance. The value of imports and exports should balance over the
long term.
Zarsky (1990) defines ecological sustainability as the way in which humans should
interact with the biosphere to maintain its life-support function. It can be described
by the following five attributes:
1. Biodiversity. All species of flora and fauna and their habitats should be con-
served, maintaining the natural potential for species to evolve.
2. Ecosystem conservation. The natural stock of ecological resources, such as soil,
Economy Environment
Sustainable development

ground and surface water, land biomass and water biomass, has regeneration
limits. Ecosystems play a vital life-support function and should be protected.
3. Interconnectedness. Improvements in environmental quality in one country
should not be achieved at the expense of another.
4. Aversion to risk. The future is unpredictable and it is best to be cautionary and
to make decisions based on avoidance of potentially bad consequences, even if
this means that returns are not maximized in the short term. This is particularly
important given unknown thresholds wherein incremental change can suddenly
give way to sweeping systematic change. Any activity that has the potential to
irreversibly change an ecosystem from one state to another should be avoided.
5. Scale of impact. Humans should minimize their use of mass and energy flows
relative to the total mass and energy flows of the relevant ecosystem.
2.7 Conserving natural capital
The fundamental principle of sustainable development is intergenerational equity.
Fulfilling development goals today should not be allowed to jeopardize the ability
of future generations to meet their own needs.
There is debate, however, over what exactly should be protected. Some eco-
nomists argue that natural and human-made capital stocks are interchangeable: one
can switch between them and thus trade off some depletion in the natural environ-
ment for the enhanced income benefits of increases in plant, equipment or other
human-made capital assets. Sustainable development in this context would mean
preserving the total asset stock.
Others, such as Pearce et al. (1989), argue that the relevant concept for sustain-
able development is the non-depletion of the natural capital stock. Future genera-
tions should inherit at least a similar natural resource base as present generations
were afforded.
There is no doubt that investment in technology and the development of knowl-
edge today will benefit generations in the future. Nonetheless, Pearce (cited in
Zarsky, 1990) argues that there are four reasons why natural and human stocks of
capital should not be treated together:
1. Non-substitutability. Technology can substitute for services provided by the
natural environment on a local scale and to a limited extent. Despite this,
natural and human-made capital are generally not interchangeable, particularly
in terms of global ecosystem functions.
2. Uncertainty. Future technological breakthroughs might increase the inter-
changeability of natural and human-made capital. Ecologists argue that when
faced by uncertainty decisions should be made that avoid risk. In other words,
natural capital should not be depleted on the assumption that sometime in the
future a technological replacement will be created.
3. Irreversibility. Some forms of natural environment degradation can never be
restored by human technology or ingenuity.
4. Equity. Typically, environmental degradation is suffered to a greater extent by
the poor in society than those that are wealthy. This situation is no more obvious
Conserving natural capital 21

than in developing countries where the poor depend heavily on the productiv-
ity of natural resources for their survival. Treating natural and human-made
capital as interchangeable will disadvantage disproportionately the poorer
members of society.
The above reasons suggest that sustainable development should aim to ensure that
present economic activity does not deplete the stock of natural capital. Conserving
the environment should be treated as a constraint on all economic activity. Within
this constraint projects should maximize net economic benefits.
2.8 Sustainable construction
Sustainable construction is perhaps best described as a subset of sustainable devel-
opment. It focuses on the issues of procurement, assembly and commissioning and
embraces matters such as tendering, site planning and organization, material selec-
tion, recycling and, in particular, waste minimization.
Procurement processes provide an opportunity for clients to introduce objectives
that contractors must meet during site construction. These may comprise environ-
mental performance standards, verification measures and reporting requirements.
For example, when a client opts for a ‘design and build’ process, it is important to
specify the level of environmental performance expected, not just for the completed
design, but also the activities necessary to deliver that design. In such situations
contractors may be required to submit an environmental performance statement as
part of their bid, or undertake a full life-cost report, or comply with some other con-
tractual obligation aimed at ensuring the work meets expected standards.
Assembly activities are usually left to the contractor to determine. This is an
opportunity for contractors to contribute to environmental performance through
site processes that minimize damage and inconvenience to the surrounding land-
scape. Issues may include noise, site run-off, excavation methods, disposal of
building waste, and minimization of material requiring disposal, especially to
landfill. Strategies commonly used on large modern sites include waste sorting,
recycling and stormwater containment.
Commissioning should entail information provision that enables building users
to understand the way the design is intended to operate and how to fine-tune
systems to meet user needs into the future. Information should relate to warranties
and performance specifications, maintenance cycles and methods, component
adjustment, upgrade and system monitoring, and becomes a key quality control
tool for a facility manager or building supervisor.
The success of any plan to improve the environmental performance of the site
construction process relies on proper training of site operatives and effective
supervision. It is recommended that a waste management plan is formally devel-
oped to deal with issues such as choice of materials to be recycled, on-site sorting
strategies at the point of waste creation, stormwater run-off prevention and the cost
implications of decisions. Although the construction process is relatively short-
lived in comparison to a building’s intended life, it is nevertheless a potentially
damaging exercise and one that offers considerable opportunity for improvement.

A large proportion of material sent to landfill is construction related.
Sustainable construction requires that building waste, whether comprising new
materials or demolished components, is recycled whenever possible and not
merely discarded as landfill. Therefore effective waste management and mini-
mization of site waste are the key issues in ensuring that modern construction does
not have inappropriate impacts on the environment.
2.9 Conclusion
Sustainable development is a fluid concept that will continue to evolve over time,
but there remains a set of common characteristics underlying the many streams of
thought. Sustainable development emphasizes the need for understanding the
interconnections between the environment, economy and society, taking a long-
term view of present actions, and having concern for equity and fairness.
In addition, sustainable development strategies usually highlight the interplay
between the local and global, the developing and the developed, and the need for
co-operation within and between sectors. Sustainable development is not a detailed
plan of action, a formula that can be followed blindly. There is no one solution.
Solutions will differ between places and times and depend on the mix of values
and resources found there. Approaching decision-making processes from a sus-
tainable development perspective requires undertaking a careful assessment of the
strengths of households, communities, companies and governments to determine
priority actions.
References and bibliography
Beder, S. (1993). The Nature of Sustainable Development. Scribe Publications.
Botkin, D. and Keller, E. (1995). Environmental Science: Earth as a Living Planet. John Wiley &
Sons.
Bowers, J.K. (1997). Sustainability and Environmental Economics: An Alternative Text. Longman.
Carley, M. and Christie, I. (1992). Managing Sustainable Development. Earthscan Publications.
Carson, R. (1962). Silent Spring. Macmillan.
Clayton, A.M.H. and Radcliffe, N.J. (1996). Sustainability: A Systems Approach. Earthscan
Publications.
Common, M. (1995). Sustainability and Policy: Limits to Economics. Cambridge University Press.
Dragon, A.K. and Jakobsson, K.M. (eds.) (1997). Sustainability and Global Environmental Policy:
New Perspectives. Edward Elgar Publishing.
Field, B.C. (1997). Environmental Economics: An Introduction (2nd edition). McGraw-Hill.
Gilpin, A. (2000). Environmental Economics: A Critical Overview. John Wiley & Sons.
Gupta, A. and Asher, M.G. (1998). Environment and the Developing World: Principles, Policies and
Management. John Wiley & Sons.
Hutchinson, A. and Hutchinson, F. (1997). Environmental Business Management: Sustainable
Development in the New Millennium. McGraw-Hill.
Kaya, Y. and Yokobori, K. (eds.) (1997). Environment, Energy and Economy: Strategies for
Sustainable Development. United Nations University Press.
Kenny, M. and Meadowcroft, J. (eds.) (1999). Planning Sustainability. Routledge.
Kirby, J., O’Keefe, P. and Timberlake, L. (1995). The Earthscan Reader in Sustainable Development.
Earthscan Publications.
References and bibliography 23

Kolstad, C.D. (2000). Environmental Economics. Oxford University Press.
Munasinghe, M. (1993). Environmental Economics and Sustainable Development (Paper Number 3).
The World Bank.
Nagle, G. and Spencer, K. (1997). Sustainable Development. Hodder & Stoughton.
Opschoor, J.B., Button, K.J. and Nijkamp, P. (eds.) (1999). Environmental Economics and
Development. Edward Elgar Publishing.
Pearce, D., Markandya, A. and Barbier, E. (1989). Blueprint for a Green Economy. Earthscan
Publications.
Pearce, D., Barbier, E. and Markandya, A. (1990). Sustainable Development Economics and
Environment in the Third World. Edward Elgar Publishing.
Santos, M.A. (1999). The Environmental Crisis. Greenwood Press.
The Secretaries of State for the Environment (1994). Sustainable Development: The UK Strategy.
HMSO.
Underdal, A. (ed.) (1997). The Politics of International Environmental Management. Kluwer
Academic Publishers.
World Commission on Environment and Development (1990). Our Common Future (Australian
edition). Oxford University Press.
Zarsky, L. (1990). Sustainable Development: Challenges for Australia. The Commission for the
Future, Canberra.

3
Accounting for the
environment
3.1 Introduction
One of the central activities in both environmental economics and sustainable
development is the placement of proper values on the services provided by the
natural environment. Many of these services currently are perceived as having a
zero price simply because no marketplace exists in which their true values can be
revealed through the commercial actions of buying and selling. Supply and
demand theory indicates that if something is provided at a zero price then more of
it will be demanded than if it had a positive price. The danger is that a greater level
of demand for the environment will be more than natural systems can sustainably
support.
It thus is critical that resources and environments which serve economic func-
tions have a positive economic value. To treat them as if they had a zero value is
to seriously risk exploitation and depletion. An ‘economic function’ is defined as
any service that contributes to human well-being, to the standard of living or to
development. This simple logic underlies the importance of valuing the environ-
ment correctly and integrating those values into a convention (or ‘neo-classical’)
economical framework, and it is in relation to this last objective that discounting
assumes great responsibility.
Environmental concerns tend to be dissipated by current generations because
their impact will occur well into the future and hence rectification can be under-
taken at a later time. One reason for postponing action is that future costs are con-
sidered less of a burden than current costs. This is reflected in the discounting
process, which plays a fundamental role in economic evaluations. Discounting
suggests that deferring problems is preferable and this translates to an emphasis on
reactive rather than anticipatory policy, which Pearce et al. (1989) refer to as the
‘fix it later’ syndrome.
But other considerations work against this purely economic view.
Environmental damage can become irreparable (or irreversible) and hence its def-
erence into the future where it will presumably be fixed later might be impossible,

even if the relative value of the future money used to undertake the repair might
be quite small. Furthermore, environmental issues are often treated as if they rep-
resent some minor problem in the otherwise efficient working of an economic
system that can easily be overcome through theoretical compensation allowances
or else ignored completely. Yet the essential feature about environments is that
their workings are pervasive and therefore the effects of damage, depletion, pollu-
tion, energy usage, waste disposal and the like may manifest themselves in a
variety of unexpected ways. Deferring environmental issues to the future therefore
attracts a greater level of uncertainty about the nature of the problem, its effect and
its ultimate solution.
3.2 The concept of sustainable income
As population is growing and economic activities are becoming intensified,
greater pressure is being put on the existing stock of natural resources. As a result
more damage is being caused to the environment and the stock of natural resources
is being progressively exhausted. Today the fundamental problem facing the
economy is the depletion of renewable resources and the exhaustion of non-renew-
able resources. More attention is now being paid to the conservation of such
resources in order that future generations will be able to enjoy the same natural
wealth as that available to the present generation.
Environmental accounting is becoming more important as economists recognize
that conventional national accounting cannot reflect the sustainable income of a
nation. Capital wealth increases do not truly represent the economic growth and
economic success of a country because environmental depletion has been
excluded. Economists now argue that a modification to conventional national
accounting is necessary in terms of subtracting the cost of damages and changes
to the environment from the final figure. Environmental accounting is critical for
both investment decisions involving environmental impacts and for the proper reg-
ulation of the environment.
Sustainable income is the true income of a nation. According to Daly (1989)
sustainable income is the maximum amount that a nation can consume without
reducing the amount of possible consumption in a future period. This concept is
not just looking at current earnings but also changes in capital. In order to arrive
at the principle of sustainable income a number of factors need to be subtracted
from the gross national product (GNP). Traditionally, only depreciation for plant
and equipment is subtracted to arrive at net national product (NNP) but no con-
sideration is being taken for the depreciation of natural assets.
Daly suggests two adjustments to NNP to move it closer to the concept of sus-
tainable income. First, depreciation for the consumption of environmental assets
needs to be included. Second, adjustment also needs to be made for the defensive
expenditures such as the cost of environmental protection and the expenditures for
environmental damage compensation arising through economic activities. The net
national product with the deduction of both defensive expenditure and deprecia-
tion of natural capital is the sustainable income of a society.
The measurement of sustainable income allows governments to know the
26 Accounting for the environment

maximum amount of income that can be consumed within a particular period of
time without causing its eventual impoverishment. It is therefore important to
measure the national income correctly to indicate the true position of a nation.
3.3 Problems with conventional national accounting
Conventional national accounting is a tool used by economists to measure eco-
nomic activities for a country within a particular period of time. It is a valuable
method to indicate short to medium term changes in the level of economic activi-
ties of a country. An increase in the national account is often regarded as economic
growth and economic success. However, it is less useful for measuring long-term
sustainable economic growth as environmental protection costs and the depletion
of natural resources is excluded. The outcome is that the economic indicators show
the world is prospering but on the other hand the environment is under severe
stress as pollution of the environment and exhaustion of natural resources continue
simultaneously. It therefore cannot truly reflect sustainable income of a society.
The main problems of conventional national accounts are as follows:
1. National accounts only measure goods and services legally bought or sold in
the market but the consumption of renewable and non-renewable natural
resources are not recorded in the national accounts as they are not sold as com-
modities. Manufactured assets such as plant and equipment are valued as pro-
ductive assets and are written off against the value of production as they depre-
ciate. Natural resource assets are not so valued or adequately accounted for.
Their loss produces no change in the national account to reflect the decrease in
potential future production. Natural resources like water, soil, air and mineral
resources are not just raw materials needed to uphold economic activities but
also contain waste absorbing and life-supporting capabilities.
2. National accounts may be able to indicate the level of economic activities at a
particular period of time but may not accurately represent welfare of the people
as environmental degradation has been neglected. People may find that they are
living in an area with air and water seriously polluted but the national income
indicates that the living standard has been improved.
3. The cost spent on cleaning up the environment is added to the national account
and the inflated economy is labelled as exhibiting increased growth and pro-
duction. It is not adequate that national accounts only incorporate expenditures
incurred to compensate the negative consequences caused by economic activi-
ties with no record of the consumption of the stock of natural resources.
Due to the problems associated with conventional national accounting, economists
argue that national accounts do not reflect social well-being and the true sustain-
able income of a nation. Therefore, action needs to be taken to incorporate the
value of natural assets and expenditure on damage to the environment resulting
from economic activities into the national accounts.
Serafy (1989) recommends two approaches to deal with the depletion or degra-
dation of natural resources: the depreciation approach and the user cost approach.
Problems with conventional national accounting 27

By using the depreciation approach, depletion or degradation of natural resources
is needed to be priced or valued and adjustment can be made to GNP to arrive at
a correct NNP. The user cost approach avoids the difficulties of putting values on
the stock of natural resources. Instead it measures the current extraction rates in
relation to the total available stock. No matter what approach is used, it is funda-
mental to understand and accept the shortcomings of conventional national
accounts for indicating true sustainable income.
3.4 Environmental accounting
Environmental destruction is often related to the special properties of environ-
mental goods themselves. To economists, environmental goods are public goods
and generate externalities whenever they are utilized. According to Thampapillai
(1991), public goods display two properties: non-exclusion and zero marginal
costs.
The availability of public goods is often abundant and once they are consumed
they do not reduce the quantity available to others. Furthermore, once they are pro-
vided they bear no extra cost to additional consumers. To a certain extent the
public properties of environmental assets will cease and they will become private
goods. Beyond this point people may need to pay for the consumption of environ-
mental goods. Environmental goods are free gifts of nature and their zero price
condition has led to them being used excessively, resulting in depletion, deteriora-
tion and no incentive for their protection.
As society fails to protect the environment and destruction occurs, these goods
become externalities in the market (Beder, 1993). They directly affect the normal
functioning of the market and the welfare of society. For instance, manufacturing
industries often discharge chemicals into water systems. This results in the deteri-
oration of water quality, poisoning of marine species, destruction of fishing indus-
tries and damage to human health. Since this loss cannot be easily measured and
valued, it has been ignored in the national accounts. However, even though en-
vironmental goods have no market price value, they affect the well-being of
humankind both now and in the future.
According to Shechter and Freeman (1994), environmental goods can be char-
acterized into use values (UV) and non-use values (NUV). Use values can be
broken down further into direct and indirect use values and option values. Direct
use values represent the output of environmental goods that can be consumed
directly (such as food, recreation and health). Indirect use values refer to benefits
derived from functional services (such as flood control and storm protection).
Option values refer to the willingness to pay by consumers to avoid something
running out in the future (such as biological diversity and conserved habitats).
Non-use values, also known as bequest values, derive from the welfare that people
enjoy today and are passed on to future generations.
Both use and non-use values are necessary to be measured and recorded in the
national accounts so that people are fully aware of the environmental impacts to
the economy as a whole. Environmental goods can be measured by different valu-
ation techniques even though they would not be truly bought or sold in the market.

3.5 Valuation techniques
Economists have developed different techniques to put monetary values on en-
vironmental goods. Different valuation techniques have different strengths and
weaknesses and the decision on the type of techniques to be used will depend on
the nature of environmental goods. The following are some general considerations
for making decisions on the type of techniques to be used (OECD, 1994):
1. It is often possible to use more than one type of valuation technique for a pro-
posed project or change. As a result multiple estimates can be established for
comparison and greater confidence obtained.
2. Different valuation techniques are used for different types of environmental
goods. In this sense they should be considered as complimenting rather than
competing with each other. These techniques are not substitutes for one another
but rather value different aspects of a proposed project or change.
3. The selection of valuation method depends on individual preferences. In some
cases people may have preferences for the use of one technique over another.
People do not like survey-based methods because they are considered to be too
subjective and unreliable. Therefore, they tend to use methods based on
observed market behaviour.
4. The needs of the general public should be considered. When choosing a valua-
tion technique consideration should be given to how the information obtained
will be received by the general public.
Economists have developed different techniques to put monetary values on envir-
onmental goods. The following are some of the popular methods used on different
types of environmental goods.
3.5.1 Willingness to pay method
Willingness to pay (WTP) is also known as contingent valuation (CV). This is a
survey-based method used to value environmental goods in the hypothetical
market. This hypothetical market must be as close to the real market as possible.
The survey is taken in the form of personal interview, a mail survey or a telephone
interview. Therefore, the format of the questionnaire is crucial in obtaining accu-
rate results. As recommended by Hoevenagel (1994), the CV questionnaire should
consist of three elements: description of the environmental change, method of
payment and the description of the hypothetical market.
The method is based on the concept that people have true preferences for all
kinds of environmental goods and they are able to transform these preferences into
monetary terms. The idea of WTP is to find out how much people are willing to
pay to preserve or improve an environment and is based on the assumption that the
environment does not already belong to them but they have to buy it (Hoevenagel,
1994).
Another measure of economic value is to ask how much people are willing to
Valuation techniques 29

accept (WTA) in the way of compensation for environmental damage. Answers
obtained through WTP and WTA could differ. In most cases questions about WTA
compensation yields higher answers than questions about WTP to retain the same
amenity. This tends to be caused by human nature rather than the type of questions
being asked. Pearman (1994) suggests that the gap between WTP and WTA can be
narrowed with successive iterations.
The advantage of the WTP method is that it can be used to value a variety of
environmental goods such as the protection of endangered species, commercial
and recreational fishing and health risks (Hoevenagel, 1994; OECD, 1994). This
method is the only method available to measure non-use benefits especially for
environmental goods that are unique or have few substitutes. However, there are
limitations of the WTP method. As Markandya and Richardson (1994) describe,
the WTP method has different biases including hypothetical context, information,
strategic and payment bias.
Hypothetical context bias arises because it is difficult for people to come out
with an accurate figure in a hypothetical market. The figures obtained through
WTP or WTA are not actually paid or received. People may tend to inflate or
deflate the amount they are willing to pay or accept should they be given the
opportunity to buy or sell in the future. Information bias refers to the level of infor-
mation available to people at the time of the interview and their knowledge about
the environment. Strategic bias arises because people tend to understate their will-
ingness to pay as they would prefer to enjoy the benefit at a lower price should they
really be given the opportunity to buy. This is often related to a person’s income
level and their ability to borrow. Finally, payment bias arises because the respon-
dents are sensitive to the method of payment for the improvement that is proposed,
such as surcharges, utility fees and taxes.
3.5.2 Stated preference method
This method is also known as contingent ranking. Under this method people are
not asked to transform their preferences on environmental goods into monetary
values. Instead they are asked to place their preferences on a set of choices of one
or more specified multi-attributed alternatives. Then their subjective preferences
are inferred and transformed into monetary values.
This technique is used widely for transport planning, air quality, commercial
and recreational fishing and valuing the environmental impacts of transport policy
(OECD, 1994). Sometimes difficulties may arise due to misunderstanding of the
choice context and abandoning one alternative for another.
3.5.3 Does-response method
This method is based on developing a does-response relationship between eco-
nomic activities and environmental qualities. For many economic activities, en-
vironmental quality is considered to be a factor of production. For example, water
quality can affect agricultural productivity and industries using water for process-

ing purposes. Therefore, water quality or the cost to improve water quality can be
considered as a factor of production in these economic activities.
This method is useful to alert people about the effects of pollution upon their
health and economic activities and is a useful tool for decision-makers on the for-
mation of environmental policies. However, this method requires collection of
sophisticated data that is difficult to obtain. It can also underestimate the benefits
of environmental policy if the indirect use and non-use values are expected to be
crucial (Hoevenagel, 1994).
3.5.4 Opportunity cost method
Opportunity cost is often related to the conflicts between preservation and devel-
opment (Beder, 1993). This method is used to put values on a list of alternative
activities that could take place in a preserved area. Benefits will then be worked
out for individual activities. Net benefits will be obtained by subtracting the cost
incurred in getting these benefits. The highest amount of net benefits will be taken
as the opportunity costs of preserving an environment. The opportunity cost
method can help the decision-maker and the general public to be aware of the
worth of an environmental loss before any decision is made.
3.5.5 Hedonic price method
The hedonic price method is based on the assumption that environmental assets
can be valued by estimating the prices of their closest market substitutes (Beder,
1993). For instance, property value will be higher if it contains special features
such as a swimming pool, tennis court and access to public transport. However,
other environmental qualities can also affect the property value, such as clean air
and views. Given the same type of property people may wish to pay more for one
with better environmental quality. The differences between the properties will
reflect the value the market puts on clean air and views. This method attempts to
identify the effect of environmental quality upon value and infer how much people
are willing to pay for an improvement in environmental quality.
This method is commonly used for measuring the benefits of changes in en-
vironmental risks to human lives, urban air quality, water quality and wildlife
hunting (Hoevenagel, 1994). Economists agree that since the hedonic price
method obtains results by observing market behaviour, it is more accurate than
survey-based methods. However, this method is based on the assumption that
people are fully aware of the effects of environmental quality, they can find the
exact market substitutes and their WTP prices are the highest. This, in reality,
never happens. The method tends to obtain poor results if the seriousness of en-
vironmental quality cannot be directly perceived or is unclear to people. Also the
method cannot be used to measure non-use values.
Valuation techniques 31

3.5.6 Travel cost method
This method uses information on the amount of time and money people incur to
access a recreational site. The value of that site can be obtained by estimating their
willingness to pay for the facilities available at the site. It is used to value benefits
of improvements in recreational facilities in parks, or the values of cultural sites
that are visited by people from many different locations. It is used widely by devel-
oping countries to estimate benefits from tourism development. This method is
costly to implement and only appropriate to valuing recreational benefits where
the sites concerned are visited specifically for recreational purposes.
It uses journey costs as substitute values for measuring willingness to pay for
the recreational or educational experience. The disadvantage of the travel cost
method is people may not take the most direct route to the location. Also recre-
ational activities are often complex and may have more than one activity in the
same trip (such as shopping and visiting friends). The results obtained may, there-
fore, be distorted.
3.5.7 Averting behaviour method
This method is based on the assumption that people are aware of the effects of
environmental quality to their well-being. The environmental quality value is es-
timated by obtaining the costs of expenditure people make to avoid the effects of
environmental hazards. For example, due to the depletion of the ozone layer,
people have to spend more on sunscreens, hats and protective clothing and the
expenditures on health and medical care are higher if the environment is polluted
(Hoevenagel, 1994).
This method obtains results through observed market behaviour and is regarded
as more accurate than results from surveys. However, it is important to obtain data
with regards to the relationship between health, averting behaviour undertaken and
its price. It is often difficult to obtain accurate information in this regard. Also this
method cannot be used for measuring non-use values.
3.6 Conclusion
Many people argue that putting a price on environmental quality is not useful for
protection as none of the valuation methods can accurately value the environment.
Furthermore, ecologists argue that matters such as biological diversity cannot be
priced at all since plants and animals have an intrinsic value that cannot be repre-
sented in monetary terms.
No matter what techniques are to be used to value environmental assets, the
primary aim is to ensure that renewable resources are being restored and the rate
of consumption of non-renewable resources is slowed to enable an orderly transi-
tion to new solutions. Even though putting a price on the environment cannot save
the environment, to a certain extent it allows the decision-maker and the general

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"Yes."
"Well, sing in a whisper and pull."
The bar was inserted into the capstan, and the boys, as they
shoved on the bar, sang softly,--
"O poor Reuben Ranzo!
Ranzo, boys, Ranzo!"
"That's the chorus, Johnny. Sing the other part. Shove hard but sing
easy."
"Oh, Reuben was no sailor.
Chorus--O poor Reuben Ranzo!
Ranzo, boys, Ranzo!
O poor Reuben Ranzo!
"Sing another verse, Johnny. That shove just took up the slack-line,
and the next will pull on the anchor. Hun-now, Johnny! You're a real
good sailor. Sing easy, but shove."
"He shipped on board of a whaler.
Chorus--O poor Reuben Ranzo!
Ranzo, boys, Ranzo!
O poor Reuben Ranzo!

The last tug at the bar came hard, but the boys took it as an
encouraging sign that the anchor too was coming. They were not
mistaken. Another minute, and Johnny eagerly exclaimed,--
"Dick, I do believe she's going!"
"Good! That's so. I knew 'Reuben Ranzo' would bring her."
Yes, the Relentless had relented before the fascinating persuasion
of "Reuben Ranzo," and without a murmur of resistance was softly
slipping through the dark sea water.
"Can you stop her any time, Dick?" asked Johnny in tones a bit
alarmed.
"Easy. Just let the anchor slip back again, you know."
"Shan't we tell the boys?"
"Wait a moment. We want to surprise 'em. They'll find it out
pretty soon."
The boys at the stern had been discussing a subject so eagerly
that every one had lost his temper, and when that is lost it may not be
found again in a moment. It was like starting the Relentless--a thing
quite easily done; but as for stopping her--however, I will not
anticipate. The boys were quarrelling about a light on shore, and
wondering why that illumination was started so early, when it did not
seem dark enough for a home light. In the course of the discussion a
second light, not far from the first, came into view. Over this the
controversy waxed hotter than ever, and led to much being said of
which all felt heartily ashamed.
No one heard the creak of the capstan-bar at the bow or the
devoted wooing of the Relentless by the fascinating "Reuben Ranzo."
"That's funny," said Dave, after a while. "One of those lights has
gone. They have been approaching one another, I have noticed. Look
here, fellers: I believe this old elephant is moving!"

"She is," exclaimed Jimmy Davis.
They all turned and looked toward the bow. The figures there
were growing dim in the thickening twilight, but they could see Dick
and Johnny waving their hats, and of course they could plainly hear
them shout, "Hurrah! hurrah!"
"What's the matter?" cried Dave, rushing across the deck.
"Having a sail," said Dick.
"And without a sail too," cried Johnny triumphantly.
"What do you mean?" asked Dab.
"Why, we just hoisted the anchor, and the tide is taking us
along," replied Dick. The party at the stern did not know how to take
this announcement.
"But," said Dave, advancing toward the capstan, and
remembering his promise to Squire Sylvester that he would be
"particular," "we are adrift, man!"
"Oh, we can stop any time--just drop the anchor--and the next
tide will drift us back where we were before."
"Y-e-s," said Dave, but reluctantly, "if we don't get in water too
deep for our anchor. I like fun, Dick, but--"
"Oh, well," replied Dick angrily, "we will stop her now if you think
we need to be so fussy.--Just let her go, Johnny."
Johnny, however, did not understand how to "let her go." It
seemed to him and the others as if "she" were already going.
"Oh, well, I can show you, if you all are ignorant," said Dick
confidently. "Just shove on this bar--help, won't you?--and then knock
up that ratchet that keeps the capstan from slipping back--there!"
The weight of the anchor now drew on the capstan, and round it
spun, creaking and groaning, liberating all the cable that had been

wound upon it; but when every inch of cable had been paid out, what
then?
"There! The anchor must be on bottom, and she holds!" shouted
Dick in triumph.
"No--she--don't," replied Dab. "We are in deep water, and adrift."
"Can't be," asserted Dick. "All that cable paid out!"
Dick leaned over the vessel's rail and tried to pierce the shadows
on the water and see if he could detect any movement. "Don't--see--
anything that looks like moving, boys. Surely the anchor holds her,"
he said, in a very subdued way.
"Dick, see that rock on the shore?" asked Dave.
A ledge, big, shadowy, could be made out.
"Now, boys, keep your eyes on that two or three minutes and see
if we stay abreast of it," was Dave's proposed test.
Five pairs of eyes were strained, watching the ledge; but if there
had been five hundred, they would not have seen any proof that the
vessel was stationary.
The ledge was stationary, but the Relentless--
"Well," said Dick, scratching his head, "I don't think we need
worry. We--we--"
"Can drift," said Dab scornfully.
"It is of no use to cry over spilled milk," said Dave, in a tone
meant to assure others. "Let's make the best of it, now it's done, and
get some fun out of it if we can. All aboard for--Patagonia!"
"Good for you," whispered Dick. "The others are chicken-hearted.
We shall come out of it all right; though I wish the schooner's rudder
worked, and we might steer her."
The rudder was damaged and would not work.

"Say, boys, we might tow her into shallow water!" suggested
Dave. "Come on, come on! Let's have some fun. And see--there's the
moon!"
Yes, there was a moon rising above the eastern waters, shooting
a long, tremulous arrow of light across the sea. The boys' spirits rose
with the moon, and as the light strengthened, their surroundings--the
harbour, the lighthouse near the bar, the shores on either hand--were
not so indistinct.
"Not so bad," said Dick in a low tone to Dab. "There's our boat,
you know. We can get into that and let this old wreck go. We can get
ashore. We will have a lot of fun out of this."
The situation was delightful, as Dick continued to paint its
attractions. They could have a "lot of fun" out of the schooner, and at
the same time abandon the source of it when that failed them. Dave
talked differently.
"Come, boys, we must try to get the old hulk ashore," he said. "I
believe in staying by this piece of property long as we got permission
to use it; but we will make the best of our situation. All hands into the
boat to tow the schooner into shallow water!"
The boys responded with a happy shout, and climbed over the
vessel's side, descending by the ladder that still clung to the rail.
"What have we got to tow with?" asked Jimmy Davis.
"That is a conundrum!" replied Dave. "Didn't think of that!"
"May find something on the deck," suggested Dick.
A hunt was made, but no rope could be found.
"Boys, we have got to tow with the boat's painter; it's all we have
got," said Dave, in a disgusted tone. This rope was about ten feet
long. It was attached to the schooner's bow, and how those small

arms did strain on the oars and strive to coax the Relentless into shoal
water!
"Give us a sailor's song, Dick," said Jimmy Davis.
"I will, boys, when I get my breath," replied Dick, puffing after
his late efforts and wiping the sweat from his brow. "I'll start 'Reuben
Ranzo.'"
The boys sang with a will, and their voices made a fine chorus.
"Reuben" had been able to coax the schooner away from her
moorings, but he could not win her back.
True to her name, she obstinately drifted on.
"Don't you know anything else?" inquired Dave.
"I know 'Haul the Bow-line.'"
"Give us that, Dick."
"I'll start you on the words, boys,--
'Haul the bow-line, Kitty is my darling;
Haul the bow-line, the bow-line haul.'
Sing and pull, boys."
The boys sang and the boys pulled, and there was a fierce
straining on that bow-line; but no soft words about "Kitty" had any
effect on the Relentless. It seemed as if this obdurate creature were
moved by an ugly jealousy of "Kitty," and drifted on and on.
"It's of no use!" declared Dick. "I move we untie our rope and go
ashore and let the old thing go. We have done what we could to get
ashore."
He did not say that he had done what he could to get the
Relentless adrift, and had fully succeeded. Dave did not twit him with
the fact, but he was not ready to abandon the schooner.

Some of the boys murmured regrets about their "things." They
did not want to forsake these.
"Well, boys," said Dick, with a boastful air, "I'll get you out of the
scrape somehow. We might go on deck again, and hold a council of
war and talk the situation over."
Any change was welcomed, and the boys scrambled on deck
again. Dick was the last of the climbing column.
"Hand that painter up here and I'll make it fast," said Dave.
"Then come up and we will talk matters over."
"Oh!" said Dick, who was half-way up the ladder, "I forgot to
bring that rope up."
He descended the ladder and reached out his foot to touch the
boat, but he could not find it! When he had left the boat, a minute
ago, he gave it unintentionally a parting kick, and--and--alas! The
boat was now too far from the schooner's side to be reached by Dick's
foot.
"Get something!" he gasped. "Bring a--pole--and--get that boat!"
The boys scattered in every direction to find a--they did not know
what, that in some way they might reach after and capture that
escaping boat. Their excitement was intense but fruitless. There were
now two vessels adrift--a schooner and a dory--serenely floating in
the still but strong current, steadily moving seaward, and the
moonlight that had been welcomed only revealed to them more
plainly the mortifying situation of the party.
"Ridiculous!" exclaimed Dick.
Most of the boys looked very sober. Dave put his hands in his
pockets and whistled.
"Well, boys, don't you worry! I'll get you out of this in good
fashion yet," cried Dick. "We can't go far to sea, and then the tide will

bring us back again in the morning."
"Far to sea!" said Dab mockingly. "There's the lighthouse on the
left, and it looks to me as if we should hit the bar!"
The bar! The boys started. At the mouth of the river the sand
brought down from the yielding shores would accumulate, and it
formed a bar whose size and shape would annually change, but the
obstacle itself never disappeared. There it stretched in the navigator's
way, seriously narrowing the channel; and of how many catastrophes
that "bar" had been the occasion! The breakers above were soft and
white, and the sand below was yielding and crumbling; and yet just
there how many vessels had been tripped up by that foot of sand
thrust out into the harbour! The boys laughed and tried to be jolly,
but no one liked the situation. It was a very picturesque scene,--the
moonlight silvering the sea, the calmly-moving schooner and boat,
that lighthouse like a tall, stately candlestick lifting its quiet light; but,
for all that, there was the bar! Either the night-wind was growing very
chilly, or the boys shivered for another reason.
"Don't worry, fellows," said Dick, putting as much courage as
possible into his voice. "When this old thing hits, you see, we shan't
drift right on to the bar, but our anchor will catch somewhere on this
side. That will hold us. I can swim, and I'll just drop into the sea and
make for the light and get Toby Tolman's boat, and come and bring
you off."
He then proceeded to hum "Reuben Ranzo;" but nobody liked to
sing it, and Dick executed a solo for this unappreciative audience.
"How--how deep is the water inside the bar?" said chattering
Jimmy Davis. He felt the cold night-air, and he shook as if he had an
ague fit.
"Pretty deep," solemnly remarked Dab Richards.

The musical hum by the famous soloist, Dick Pray, ceased; only
the breakers on the bar made their music.
Dick began to doubt seriously the advisability of dropping into
that deep gulf reputed to be inside the bar. It was now not very far to
the lighthouse, and the surf on the bar whitened in the moonlight and
fell in a hushed, drowsy monotone. People by the shore may be
hushed by this lullaby of the ocean, but to those boys there was
nothing drowsy in its sound; it was very startling.
"I--I--I--" said Jimmy.
"What is it, Jimmy?" asked Dave.
Jimmy did feel like wishing aloud that he could be at home, but
he concluded to say nothing about it. Steadily did the Relentless drift
toward that snow-line in the dark sea.
"Almost there!" cried Dave.
"May strike any moment!" shouted Dab.
Yes, nearer, nearer, nearer, came the Relentless to that foaming
bar. The boat had already arrived there, and Dave saw it resting
quietly on its sandy bed. Did he notice a glistening strip of sand
beyond the surf? He had heard some one in Shipton say that at very
low tide there was no water on portions of the bar. This fact set him
to thinking about his possible action. It now seemed to him as if the
distance between the stern of the vessel and the bar could not be
more than a hundred feet. The bow of the vessel pointed up river. She
was going "stern on." How would it strike--forcibly, easily?

"Nearer and nearer came the 'Relentless'
to that foaming bar." Page 43]
"Ninety feet now!" thought Dave. "Will the shock upset her, pitch
us out, or what?"
Sixty feet now!

"The bar looks sort of ugly!" remarked Johnny Richards.
Thirty feet now!
"Wish I was in bed!" thought Jimmy Davis.
Twenty feet now!
Had the schooner halted? The boys clustered in the bow and
looked anxiously over to the bar.
"Boys, she holds, I do believe," said Dave.
"All right!" shouted Dick--"all right! The anchor holds!"
It did seem an innocent, all-right situation: just the quiet sea, the
musically-rolling surf along the bar, the stately lighthouse at the left,
and that schooner quietly halting in the harbour.
"Now, boys," exclaimed Dick, "we can--"
"I thought you were going to swim to the lighthouse?" observed
Dab.
"Oh, that won't be necessary now," replied Dick. "We are just
masters of the situation. The moment the tide turns we can weigh
anchor and drift back again just as easy! Be in our old quarters by
morning, and nobody know the difference. Old Sylvester himself
might come down the river, and he would find everything all right. Ha!
ha!"
Dick's confidence was contagious, and when he proposed "Haul
the Bow-line," his companions sang with him, and sang with a will.
How the notes echoed over the sea! Such a queer place to be singing
in!
"Mr. Toby Tolman," said Dick, facing the lighthouse, "we propose
to wake you up! Let him have a rouser. Give him 'Reuben Ranzo!'"
While they were administering a "rouser" to Mr. Toby Tolman,
somebody at the stern was dropping into the sea. He had stripped
himself for his swim, and now struck out boldly for the bar. Reaching

its uncovered sands he ran along to the boat, lying on the channel
side of the bar and not that of the lighthouse, leaped into the boat,
and, shoving off, rowed round to the bow of the schooner. There was
a pause in the singing, and Dick Pray was saying, "This place makes
you think of mermen," when Dab Richards, looking over the vessel's
side, said, "Ugh! if there isn't one now!"
"Where--where?" asked Johnny.
"Ship ahoy!" shouted Dave from the boat. "How many days out?
Where you bound? Short of provisions?"
"Three cheers for this shipwrecked mariner just arrived!" cried
Dab. And the hurrahs went up triumphantly in the moonlight. Dave
threw up to the boys the much-desired painter, and the runaway boat
was securely fastened.
"There, Dave!" said Dick, as he welcomed on deck the merman:
"I was just going after that thing myself, just thinking of jumping into
the water, but you got ahead of me. Somehow, I hate to leave this old
craft."
"I expect," said Dab Richards, a boy with short, stubby black hair
and blue eyes, and lips that easily twisted in scorn, "we shall have
such hard work to get Dick away from this concern that we shall have
to bring a police-officer, arrest, and lug him off that way."
"Shouldn't wonder," replied Dick. "Couldn't be persuaded to
abandon this dear old tub."
"Well, boys, I'm going to the lighthouse as soon as I'm dressed,"
said Dave.
There was a hubbub of inquiries and comments.
"What for?" asked Dick. "Ain't we all right?"
"I hope so; but I want to keep all right. I want to ask the light-
keeper--"

"But all we have got to do is to pull up anchor when the tide
comes, and drift back."
"Oh yes; we can drift back, but where? We can't steer the
schooner. We don't know what currents may lay hold of her and take
her where we don't want to go. There are some rocks with an ugly
name."
"'Sharks' Fins!'" said Jimmy. "Booh!"
"What if we ran on to them?" said Dave. "We had better go and
ask Toby Tolman's opinion. He may suggest something--tell us of
some good way to get out of this scrape. He knows the harbour, the
currents, the tides, and so on. Any way, it won't do any harm to speak
to him. I won't bother anybody to go with me. Stay here and make
yourselves comfortable; I will dress and shove off."
When Dave had dressed and returned, he found every boy in the
boat. Dick Pray was the first that had entered.
"Hullo!" shouted Dave. "All here, are you? That's good. The more
the merrier."
"Dave, we loved you so much we couldn't leave you," asserted
Dick.
"We will have a good time," said Dave. "All ready! Shove off!
Bound for the lighthouse!"
The old schooner was left to its own reflections in the sober
moonlight, and the boat slowly crept over the quiet waters to the tall
lighthouse tower.
III.

DID THE SCHOONER COME BACK?
Mr. Toby Tolman sat in the snug little kitchen of the lighthouse tower.
He was alone, but the clock ticked on the wall, and the kettle purred
contentedly on the stove. Music and company in those sounds.
The light-keeper had just visited the lantern, had seen that the
lamp was burning satisfactorily, had looked out on the wide sea to
detect, if possible, any sign of fog, had "felt of the wind," as he
termed it, but did not discover any hint of rough weather. Having
pronounced all things satisfactory, he had come down to the kitchen
to read awhile in his Bible. The gray-haired keeper loved his Bible. It
was a companion to him when lonely, a pillow of rest when his soul
was weary with cares, a lamp of guidance when he was uncertain
about the way for his feet, a high, strong rock of refuge when sorrows
hunted his soul.
"I just love my Bible," he said.
He had reason to say it. What book can match it?
As he sat contentedly reading its beautiful promises, he caught
the sound of singing.
"Some fishermen going home," he said, and read on. After a
while he heard the sound of a vigorous pounding on the lighthouse
door.
"Why, why!" he exclaimed in amazement, "what is that?"
He rose and hastily descended the stair-way leading to the
entrance of the lighthouse. To gain admission to the lighthouse, one
first passed through the fog-signal tower. The lighthouse proper was
built of stone; the other tower was of iron. They rose side by side. A
covered passage-way five feet long connected the two towers, and
entrance from the outside was first through the fog-signal tower. The

foundation of each tower was a stubborn ledge that the sea would
cover at high-water, and it was now necessary to have all doors
beyond the reach of the roughly-grasping breakers. Otherwise they
would have unpleasantly pressed for admittance, and might have
gained it. The entrance to the fog-signal tower was about twenty feet
above the summit of the ledge, and from the door dropped a ladder
closely fastened to the tower's red wall. Around the door was a railed
platform of iron, and through a hole in the platform a person stepped
down upon the rounds of the ladder. Toby Tolman seized a lantern,
and crossing the passage-way connecting the two towers, entered the
fog-signal tower, and so gained the entrance. Just above the threshold
of the door he saw the head and shoulders of a boy standing on the
ladder.
"Why! who's this, at this time of night?" said Toby.
"Good-evening, sir. Excuse me, but I wanted to ask you
something."
It was Dave Fletcher.
"Any trouble?"
"Well, yes."
"Come in, come in! Don't be bashful. Lighthouses are for folks in
trouble."
"Thank you."
When Dave had climbed into the tower Dick Fray's curly head
appeared.
"Oh, any more of you?" asked the keeper. "Bring him along."
"Good-evening," said Dick.
Then Jimmy Davis thrust up his head.
"Oh, another?" asked Toby. "How many?"
"Not through yet, Mr. Tolman," said Dave, laughing.

Johnny Richards stuck up his grinning face above the threshold.
"Any more?" said the light-keeper.
And this inquiry Dab Richards answered in person, relieving the
ladder of its last load.
"Why, why! wasn't expecting this! All castaways?"
"Pretty near it, Mr. Tolman," said Dick.
"Come up into the kitchen, and then let us have your story,
boys."
They followed the light-keeper into the kitchen, so warm, so
cheerfully lighted.
In the boat Dick Pray had been very bold, and said he would go
ahead and "beard the lion in his den;" but when at the foot of the
lighthouse, he concluded he would silently allow Dave to precede him.
The warmth of the kitchen thawed out Dick's tongue, and now that he
was inside he kept a part of his word, and made an explanation to the
light-keeper. He stated that they had had permission to "picnic" on the
schooner, had--had--"got adrift"--somehow--and were caught on the
bar, and the question was what to do.
"Perhaps you can advise us still further," explained Dave. "One
suggestion is that when the tide turns we pull up anchor and drift
back with the tide."
"Anchor?" asked Mr. Toby Tolman. "I thought you went on
because you couldn't help it. Didn't know you dropped anchor there."
Dick blushed and cleared his throat.
"The schooner was anchored, but," said Dick, choking a little,
"we--we--got--got--into water too deep for our anchor, and kept on
drifting till the anchor caught in the bar."
"Oh!" said the light-keeper, who now saw a little deeper into the
mystery, though all was not clear to him yet. "What will you do now?

It is a good rule generally, when you don't know which way to move,
not to move. Now, if you pull up anchor and let the next tide take you
back, there is no telling where it will take you. Some bad rocks in our
harbour as well as a lot of sand. 'Sharks' Fins' you know about. An
ugly place. Now let me think a moment."
The light-keeper in deep thought walked up and down the floor,
while the five boys clustered about the stove like bees flocking to a
flaming hollyhock.
"See here: I advise this. Don't trouble that anchor to-night. The
sea is quiet. No harm will be done the schooner, and her anchor has
probably got a good grip on some rocks down below, and the tide
won't start her. A tug will bring down a new schooner from Shipton
to-morrow, and I will signal to the cap'n, and you can get him to tow
you back. What say?" asked the keeper. "'Twill cost something."
"That plan looks sensible," said Dave. "I will give my share of the
expense."
Dick looked down in silence. He wanted to get back without any
exposure of his fault. The tug meant exposure, for the world outside
would know it. The tide as motive power, drifting the schooner back,
would tell no tales if the schooner went to the right place. There
would, however, be danger of collision with rocks, and then the bill of
expense would be greater and the exposure more mortifying. He
scratched his head and hesitated, but finally assented to the tug-boat
plan, and so did the other boys.
"Very well, then," said the keeper, "make yourselves at home,
and I'll do all I can to make you comfortable."
What, stay there? Did he mean it? He meant a night of comfort in
the lighthouse.
What a night that was!

"I wouldn't have missed it for twenty pounds," Johnny Richards
said to those at home.
And the breakfast! It was without parallel. The schooner was held
by its anchor inside the bar, and the boys in the morning visited their
provision-baskets, and brought off such a heap of delicacies that the
light-keeper declared it to be the "most satisfyin' meal" he had ever
had inside those stone walls.
About nine o'clock he said, "Now, boys, I expect the tug-boat will
be down with that schooner. When the cap'n of the tug-boat has
carried her through the channel, I will signal to him--he and I have an
understanding about it--and he will come round and tow you up, I
don't doubt. You might be a-watching for her smoke."
Soon Dab Richards, looking up the harbour, cried out, "Smoke!
she's coming!"
Yes, there was the tug-boat, throwing up a column of black
smoke from her chimney, and behind her were the freshly-painted
hull, and new, clean rigging of the lately launched schooner. The boys,
save Dave, went to the Relentless, as the light-keeper said he would
fix everything with the tug-boat, "make a bargain, and so on," and
Dave could hear the terms and accept them for the party if he
wished. The light-keeper had also promised in his own boat to put
Dave aboard the tug.
But what other tug-boat was it the boys on the Relentless saw
steaming down the harbour? They stood in the bow and watched her
approach.
"She looks as if she were going to run into us," declared Dick.
"She certainly is pointing this way," thought Johnny.
"Our friends may be alarmed for us," was Dab's suggestion.

This could not be, the other boys thought, and they dismissed it
as a teasing remark by Dab. And yet the tug-boat was coming toward
them like an arrow feathered with black smoke and shot out by a
strong arm.
"It is certainly coming toward us," cried Dick in alarm. Who was it
his black eyes detected among the people leaning over the rail of the
nearing tug-boat?
He looked again.
He took a third look.
"Boys," he shouted, "put!"
How rapidly he rushed for a hatchway, descending an old ladder
still in place and leading into the schooner's hold! Fear is catching.
Had Dick seen a policeman sent out in a special tug to hunt up the
boys and secure the vessel? Johnny Richards flew after Dick. Jimmy
Davis followed Johnny. Dab was quickly at the heels of Jimmy. Down
into the dark, smelling hold, stumbling over the keelson, splashing
into the bilge water, and frightening the rats, hurried the still more
frightened boys.
"Who was it, Dick?" asked Dab.
"Keep still boys; don't say anything."
"Can't you tell his name?" whispered Johnny.
There it was, down in the dark, that Dick whispered the fearful
name. When the tug-boat, the Leopard, carrying Dave neared the
schooner, the captain said, "You have another tug there. It is the
Panther."
The Leopard hated the Panther, and would gladly have clawed it
out of shape and sunk it.
"I don't understand why the Panther is there," said Dave; "I really
don't know what it means."

"You see," said the master of the Leopard fiercely, "if that other
boat is a-goin' to do the job, let her do it (he will probably cheat you).
I can't fool away my time. The Sally Jane is waitin' up stream to be
towed down, and I would like to get the job."
"We will soon find out what it means, sir. Just put me alongside
the schooner."
"I will put my boat there, and you can jump out."
Who was it that Dave saw on the schooner's deck? Dave
trembled at the prospect. He could imagine what was coming, and it
came.
"Here, young man, what have you been up to? A precious set of
young rascals to be running off with my property. I thought you said
you would be particular. The state prison is none too good for you,"
said this unexpected and gruff personage.
"Squire Sylvester," replied Dave with dignity, "just wait before you
condemn after that fashion; wait till you get the facts. I did try to be
particular. I don't think it was intended when it was done; boys don't
think, you know--"
"When what was done?"
"Why, the anchor lifted--weighed--"
"Anchor lifted!" growled Squire Sylvester. "What for?"
"Just to see it move, and have a little ride, I think."
"Have a little sail! Didn't you know, sir, it was exposing property
to have a little sail?"
Here the squire silently levelled a stout red forefinger at this
opprobrious wretch, this villain, this thief, this robber on the high
seas, this--with what else did that finger mean to label David
Fletcher?

"But the anchor was dropped again, and it was thought, sir, that
it--that it would stop--"
"And the vessel did not stop! Might have guessed that, I should
say. You got into deep water."
"We were going to hire the Leopard to tow it back, and any
damages would have been paid. I am very sorry--"
"No apologies, young man. What's done is done. I have got a
tug-boat to take the vessel back."
"And you don't want me?" here shouted the captain of the
Leopard.
"Of course not," muttered the captain of the Panther, showing
some white teeth in derision.
"I don't know anything about you," said Squire Sylvester to the
captain of the Leopard; "this other party may settle with you."
"I'll pay any bill," said Dave to the Leopard, whose steam was
escaping in a low growl.
"Can't waste any more time," snarled the Leopard. He rang the
signal-bell to the engineer, and off went his tug.
"Well, where are your companions?" said Squire Sylvester to
Dave.--"O Giles," he added to the Panther, "you may start up your
boat if you have made fast to the schooner."
"Weigh the anchor fust, sir."
"Oh yes, Giles."
The anchor weighed, the Panther then sneezed, splashed,
frothed, and the Relentless followed it. Squire Sylvester declared that
he must find the other runaways; that they must be on board the
schooner, and he would hunt for them. He discovered them down in
the hold, and out of the shadows crawled four sheepish, mortified
hide-aways.

And so back to its moorings went the old schooner.
Back to his office went Squire Sylvester, mad with others, and
mad with himself because mad with others.
Back to their homes went a shabby picnic party, and after them
came a bill for the expense of the Relentless's return trip. It costs
something in this life to find out that the thing easily started may not
be the thing easily stopped.
IV.
WHAT WAS HE HERE FOR?
Bartie Trafton, alias Little Mew, was crouching behind a clump of
hollyhocks in a little garden fronting the Trafton home. It was a
favourite place of retreat when things went poorly with Little Mew.
They had certainly gone unsatisfactorily one day not long after the
sail that was not a sail. He had perpetrated a blunder that had
brought out from Gran'sir Trafton the encouraging remark that he did
not see what the boy was in this world for. Bartie had retreated to the
hollyhock clump to think the situation over. He was ten years old, and
life did have a hard look to Little Mew. He never supposed that his
father cared much for him. When the father was ashore he was
drunk; when he came to his senses, and was sober, then he went to
sea. Bart sometimes wondered if his mother thought of him and knew
how he was situated.
"She's up in heaven," thought Bart among the hollyhocks, and to
Bart heaven was somewhere among the soft, white clouds, floating

like the wings of big gulls far above the tops of the elms that
overhung the roof of the house and looked down upon this poor little
unfortunate. If earth brought so little happiness, because bringing so
little usefulness, then why was Bart on the earth at all?
"I don't see," he murmured.
The question was a puzzle to him. He was still looking up when
he heard the voice of somebody calling.
"It is somebody at the fence," he said. It was a musical voice,
and Bart wondered if his mother wouldn't call that way. He turned;
and what a sweet face he saw at the fence!--a young lady with
sparkling eyes of hazel, fair complexion, and cheeks that prettily
dimpled when she laughed. He surely thought it must be his mother
grown young and come back to earth again. There was some
difference between that face, so picturesquely bordered with its
summer hat, and the puzzled, irregular features under the old, ragged
straw hat that Bart wore.
"Are you the little fellow I heard about that got into the water
one day?" asked the young lady.
"Yes'm," said Bart, pleased to be noticed because he had been in
the water, while thankful to be out of it.
"Well, I'm getting up a Sunday-school class, and I should like
very much to have you in it. Would you like to come?"
"Yes'm," said Bart eagerly, "if--if granny and gran'sir would let
me."
"Where are they? You let me ask them."
"She's got a lot of tunes in her voice," thought Bart, eagerly
leading the young lady into the presence of granny and gran'sir.
They were in a flutter at the advent of so much beauty and
grace, and gave a ready permission.

"Now, Bartie--that is your name, I believe--"
"Yes'm."
"I shall expect you next Sunday down at that brick church, Grace
Church, just on the corner of Front Street."
"I know where it is."
"And one thing more. Do you suppose you could get anybody
else to come?" asked the young lady.
"I'll try."
"That's right. Do so. Good-bye."
"Good-bye."
Bart was puzzled to know whom to solicit for the Sunday school.
Gran'sir was so much interested in the young lady that Bart concluded
gran'sir would be willing to go if asked and if well enough; but Bart
concluded that gran'sir was too old, and he said nothing. Sunday
itself, on his way to the church, Bart saw a recruit. It was Dave
Fletcher.
"Oh, you will go with me, won't you? I haven't anybody yet," he
said eagerly.
"What do you mean?" replied the wondering Dave.
"Oh, go to Sunday school with me. I said I would try to bring
some one."
Dave smiled, and Bart interpreted the smile as one half of an
assent.
"Oh, do go! I said I would try. And she's real pretty."
"Who? your teacher?"
"Yes."
"Well, that is an inducement. But I am only going to be here a
Sunday or two. My visit is almost over."
"Oh, well, it would please teacher."

Dave smiled again, and this Bart interpreted as the other half of
the assent desired.
"Oh, I am so glad! I'll tell you where it is."
"W-e-l-l! It won't do any harm. I can go as visitor, and I suppose
it would please my family--"
"Family?"
"My father and mother and sister, if they should know I had
visited the Sunday school. Come along! We don't want to be late, you
know. I'll be visitor, and perhaps they will want me to make a speech
at the school. Ha! ha!"
Bart pulled Dave eagerly into the entry of the church, and then
looked through the open door into the room where he knew the
Sunday school met; for Bart had been a visitor once in that very same
place.
"Oh, I see teacher," thought Bart, spying his friend in a seat not
far from the door. Her back was turned toward him, but he had not
forgotten the pretty summer hat with its fluttering ribbons of blue.
Dave, with a smile, followed the little fellow, who was timorously
conveying his prize to the waiting young lady. She looked up as Bart
exclaimed, "Here, teacher! I've got one."

"'Here, teacher! I've got a recruit.'" Page
63.
"Why, Dave," she exclaimed, "where did you come from?"
"Annie--this you?" he said. The two began to laugh. Bart in
surprise looked at them.
"This is my sister, Bart," explained Dave. "Ha! ha!"

That beautiful young lady and the big boy who had saved him
sister and brother? He might have guessed such a friend as Dave
would have such a sister as this nice young lady. She was visiting at
Uncle Ferguson's.
"You see, Dave, when I began my visit I did not expect to teach
while here; but I met the minister, Mr. Porter, and he said he wished I
would start another class for him in his Sunday school and teach it
while here, and I could not say no; and went to work, and have been
picking up my class. I didn't happen to tell you."
The Rev. Charles Porter, at this time the clergyman at Grace
Church, was an old friend of the Fletcher family. Meeting Annie in the
streets of Shipton, and knowing what valuable material there was in
the young lady, he desired to set her to work at once; and when her
stay in town might be over, he could, as he said, "find a teacher,
somebody to continue to open the furrow that she had started."
Dave enjoyed the situation.
"I will play that I am superintendent, Annie, and have come to
inspect your class, and will sit here while you teach."
"I don't know about allowing you to stay here, sir, unless you
become a member of the class and answer my questions, Dave."
Annie was relieved of the presence of this inspector; for a
gentleman at the head of a class opposite, noticing a big boy among
Annie's flock of little fellows, kindly invited Dave to sit with his older
lads.
"I am Mr. Tolman," said the gentleman. "Make yourself at home
among the boys."
"Thank you, sir," said Dave; and his sister, with a roguish smile,
bowed him out of her class.

That Sunday was an eventful day to Little Mew. It was pleasant
any way to be near this young lady, who seemed to him to be some
beautiful being from a sphere above the human kind in which he
moved. And then Bart was interested in the subject Annie presented.
She talked about heaven and its people. She talked about God; but
she did not make him that far-off being that Bart thought he must be,
so that the louder people prayed the quicker they would bring him.
She told how near he was, all about us, so that we could seem to
hear his voice in the pleasant wind, and feel his touch in the soft,
warm sunshine.
"But--but," said Bart, "he seems to be behind a curtain. I don't
see him."
And then the teacher, her voice to Bart's ear playing a sweeter
tune than ever, told how God took away the curtain; how he came in
the Lord Jesus Christ; that the Saviour was the divine expression of
God's love; and men could see that love going about their streets,
coming into their homes, healing their sick, and then hanging on the
cross that the world might be brought to God. Bart had been told all
this before, but somehow it never got so near him.
"What she says somehow gets into me," thought Bart, looking up
into the teacher's face. He thought he would like to ask her one
question when he was alone with her. The school was dismissed, and
Bart lingered that he might walk away with the teacher.
"Could I ask you about something?" he said, trotting at her side
and lifting his queer, oldish face towards her.
"Certainly; ask all the questions you want. I can't say that I can
answer them, but there's no harm in asking them."
"Well, what am I in this world for?"
He said it so abruptly that it amused Annie.

"What are you in this world for?"
"Yes'm. I don't seem to amount to much."
Bart eagerly watched the face above him, that had suddenly
grown serious; for Annie was thinking of the little fellow's home--of its
unattractiveness, of the two old people there that seemed so
uninteresting, especially the grandfather, who, as Annie recalled him,
seemed to be only a compound of a whining voice, a gloomy face, a
bad cough, and a clumsy cane. Then she recalled the slighting way in
which she heard people speak of this odd little fellow, who seemed to
be a figure out of place in life's problem; one who seemed to run into
life's misfortunes, not waiting that they might run into him--one ill-
adjusted and awry. Well, what should she say? She thought in silence.
Then she stopped him, and looked down into his face.
Bart never forgot it. It was as if all of heaven's beautiful angels
she had told about that day were looking at him through her face,
and all of heaven's beautiful voices were speaking in her tones.
"Bart," she said, "the great reason why you are in this world is
because--God loves you."
What? He wanted to think that over.
"Because what?" he said.
"Why, Bart," she said, "God is a Father--a great, dear Father."
Bart began to think he was; but he had been getting his idea of
God through gran'sir's style of religion, and God seemed more like a
judge or a big police-officer--catching up people and always marching
them off to punishment.
"God is a great, dear Father," the tuneful voice was saying, "and
he wants somebody to love him; and the more people he makes, the
more there are to love him, or should be, and so he made you. But
oh, if we don't love him, it disappoints and grieves him!"

"Does it?" said Bart, thoughtfully, soberly.
"When you are at home--alone, upstairs--you tell God how you
feel about it, just as you would tell your mother--"
"Or teacher," thought Bart.
"As you would tell your mother if she were on the earth."
That day, all alone hi his diminutive chamber, kneeling by a little
bed whose clothing was all too scanty in cold weather, a boy told God
he wanted to love him. When Bart rose from his knees he said to
himself, "Now, I must try to love other people."
He went downstairs. Gran'sir was lying on a hard old lounge,
making believe that he was trying to read his Bible, and at the same
time he was very sleepy. Bart hesitated, and then said,--
"Gran'sir, don't you--you--want me to get you a pillow and put
under your head?"
"Oh, that's a nice little boy!" said the weary old grandfather,
when his head dropped on the soft pillow now covering the hard arm
of the lounge.
"And, gran'sir, I ain't much on readin'; but perhaps, if you'd let
me, I might read something, you know."
"Oh, that's a dear little feller," said gran'sir, closing his eyes, so
old and tired. He had been trying to read about Jacob and the angels
at Beth-el; but the lounge was so tough that the feature of the story
gran'sir seemed to appreciate most sensibly was that Jacob slept on a
pillow of stones. I can't say how much of the story, as Bart read it,
gran'sir heard that day, for he was soon as much lost to the outside
world as tired Jacob was. He had, though, a beautiful dream, he
afterwards told granny. Yes; in his sleep he seemed to see the ladder
with its shining, silver rounds, climbing the sky, and on them were so
many angels, oh, so many angels!

"And, granny," whispered gran'sir, "I was a little startled, for one
of them angels seemed to have Bartie's face. I hope nothin' is goin' to
happen, for I am beginnin' to think we should miss that little chap
ever so much."
V.
THE LIGHTHOUSE.
"You say this is your last Sunday at Shipton. Sorry! We shall miss you
in the class," said Dave's new Sunday-school acquaintance, Mr.
Tolman.
"Thank you, sir," replied Dave; "but as this is only my second
Sunday in your class, you won't miss me much."
"Oh yes, we shall. See here, David. There is going to be some
company at my house to-morrow night. Bring your sister round to
tea."
Dave and Annie were at Mr. Tolman's the evening of the next
day; and who was it Dave saw trying to shrink into one corner? A
stout, fat man, altogether too big for the corner.
"He looks natural," thought Dave.
At this point the man saw Dave. He had been looking very lonely,
but his face now brightened as if he had suddenly seen an old and
valued acquaintance.
"Think you don't remember me!" he said, advancing toward
Dave, and extending a large brown hand shaped something like a

flounder. Dave thought at once of a lighthouse, a sand-bar, and an old
schooner halting on the bar.
"Oh, the light-keeper, Mr. Tolman!" cried Dave. "You here?"
"It is my uncle from Black Rocks," said the younger Mr. Tolman,
stepping up to this party of two. "Uncle Toby doesn't get off very
often from the light, and we thought he ought to have a little
vacation, and come and see his relatives."
"My nephew James is very good," said Mr. Toby Tolman. "The last
time I saw you," he added, addressing Dave, "I put you on board that
tug-boat."
Dave dropped his head.
"Oh, you needn't be ashamed of that affair. I didn't think at the
time you could be the cause of the mischief, and I've been told since
who it was that was to blame for it."
Dave raised his head.
"Fact is I've been a-thinking of you. Want a job, young man?"
"Me, sir? I expect to go home to-morrow."
"Got to return for anything special?"
"Well, my visit is out."
"Nothing special to call you home?"
"Oh, I help father, and go to school when there is one."
"Well," said the old light-keeper, fixing his eyes on the boy, "how
should you like to help to keep a lighthouse for three weeks?"
"Me?" said Dave eagerly.
"Yes, you. You know I have an assistant, Timothy Waters. He
wants to be off on a vacation for three weeks, and I must have
somebody to take his place. I want somebody who can work in there,
sort of spry and handy. Now, I think you would do. How should you
like it?"

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