News Update on Sustainable Economic : Oct 2021

Socially Sustainable Economic De-growth
 
Economic growth is not compatible with environmental sustainability. The effort to push up the rate of growth by increasing obligations to repay financial debts is in direct conflict with the availability of exhaustible resources and with the capacity of waste sinks. The economic crisis of 2008–09 has resulted in a welcome change to the totally unsustainable trend of increasing carbon dioxide emissions. The Kyoto Protocal of 1997 was generous to the rich countries, giving them property rights on the carbon sinks and the atmosphere in exchange for the promise of a reduction of 5 per cent of their emissions relative to1990. This modest Kyoto objective will be fulfilled more easily because of the economic crisis. This shows that economic de-growth, leading to a steady state, is a plausible objective for the rich industrial economies. This would be supported by the environmental justice movements of the South, which are active in resource extraction conflicts.[1]


Cultural Districts, Property Rights and Sustainable Economic Growth

The purpose of this article is to analyse the economic properties as well as the institutions governing the start-up and evolution of cultural districts. The first part of the article reviews the relationships between culture, viewed as an idiosyncratic good, and the theory of industrial districts. The second part comprises a critical discussion of four models of cultural districts: the industrial cultural district (mainly based on positive externalities, localized culture and traditions in ‘arts and crafts’); the institutional cultural district (chiefly relying on the assignment of property rights); the museums cultural district (based on network externalities and the search for optimal size); and the metropolitan cultural district (based on communication technologies, performing arts and electronic trade). The assignment of intellectual property rights to local idiosyncratic cultural goods seems to be the most significant way to differentiate among cultural districts. The final section discusses a possible convergence of all district models towards the institutional district, based on the creation of a system of property rights as a means to protect localized production. [2]


Frontiers and sustainable economic development

Exploiting new resource “frontiers,” such as agricultural land and mineral reserves, is a fundamental feature of economic development in poor economies. Yet frontier-based development is symptomatic of a pattern of economy-wide resource exploitation in developing economies that: (a) generates little additional economic rents, and (b) what rents are generated are not being reinvested in other sectors. Such development is inherently unsustainable. The following paper explains this phenomenon, and provides evidence that long-run expansion of agricultural land and oil and natural gas proved reserves across poor economies is associated with lower levels of real income per capita. The paper proposes a frontier expansion hypothesis to explain why the structural economic dependence of these economies on frontier land expansion and resource exploitation is not conducive to sustained long-run growth. The key to sustainable economic development in poor economies will be improving the economic integration between frontier and other sectors of the economy, targeting policies to improved resource management in frontier areas and overcoming problems of corruption and rent-seeking in resource sectors. [3]


Effect of Firm Size and Profitability on Corporate Social Disclosures: The Nigerian Oil and Gas sector in Focus

The objective of this paper is to examine the effect of firm size and profitability on the extent of corporate social disclosures by Oil and Gas firms in Nigeria. A sample of twenty quoted companies selected using the simple random sampling technique was utilized for the study. Secondary data retrieved from content analysis of the audited financial reports of the selected companies for 2011 financial year was employed in the study. The ordinary least squares regression technique was used for data analysis. The findings among other shows that an insignificant negative correlation exists between CSR disclosure and firm size. Profitability is significantly positively related to CSR disclosure of the companies. We recommend that there is urgent need for regulatory agencies to develop a CSR disclosure framework that focuses considerably on utilizing firm profitability and providing incentives and penalties as the case may be for firms’ corporate social responsiveness level. [4]



Climate Change and Its Impact in Nigerian Economy

Climate change has become a great challenge to our generation and its impact is felt in almost every society in the world. Nigeria as a developing country with a population of about 180 million is likely to be adversely impacted by climate change due to its vulnerability and low coping capability. Evidences have shown that climate change impacts on Nigeria arises from various climate change related causes experienced due to the  increase in temperature, rainfall, sea level rise, impact on fresh water resources, extreme weather events, flooding, drought in the north and increased health risk. The study reviews some existing literatures, information, policies, and data on climate change in Nigeria and its impact on the various sectors of the economy. The finding for this paper indicates that many sectors of Nigerian economy appear to be directly vulnerable to the impacts of climate change such as agricultural sector, health, energy, etc. This generally affects the growth of economy. The impacts of climate changed highlighted in this study raise the need for more support in research and education awareness on the impact of climate change in Nigeria. This review attempts to create awareness on the impacts of climate change in Nigeria and presents some policy recommendations for adaptation and mitigation measures to tackle the challenges.[5]

Reference

[1] Alier, J.M., 2009. Socially sustainable economic de‐growth. Development and change, 40(6), pp.1099-1119.

[2] Santagata, W., 2002. Cultural districts, property rights and sustainable economic growth. International journal of urban and regional research, 26(1), pp.9-23.

[3] Barbier, E.B., 2007. Frontiers and sustainable economic development. Environmental and Resource Economics, 37(1), pp.271-295.

[4] Ebiringa, O.T., Yadirichukwu, E., Chigbu, E.E. and Ogochukwu, O.J., 2013. Effect of firm size and profitability on corporate social disclosures: The Nigerian oil and gas sector in focus. Journal of Economics, Management and Trade, pp.563-574.

[5] Ebele, N.E. and Emodi, N.V., 2016. Climate change and its impact in Nigerian economy. Journal of Scientific research and Reports, pp.1-13.

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