SUSTAINABLE summary
DEVELOPMENT
2025-2026
By Aaron Van Goethem
,Table of Contents
Lecture 1: Introduction to Sustainable Development ................................................................4
How are we doing, clouds on the horizon?.............................................................................4
Economicsts .......................................................................................................................4
SDefinitions .........................................................................................................................5
Capital ................................................................................................................................7
Collapse and tipping points ..................................................................................................8
IPAT ................................................................................................................................... 11
Lecture 2&4: Theory............................................................................................................... 13
Lecture 2: .......................................................................................................................... 13
The Dasgupta review .......................................................................................................... 13
Discount Rate .................................................................................................................... 14
1) Declining discount rate ................................................................................................... 17
2) Dual discounting ............................................................................................................ 17
Lecture 4: .......................................................................................................................... 20
Capital: ............................................................................................................................. 20
Cake eating: ...................................................................................................................... 22
Distinguishing current welfare and Sustainability ................................................................ 23
Correct accounting prices .................................................................................................. 26
Lecture 3: Climate Energy ...................................................................................................... 27
1. Long-run Perspective on Energy and Climate Policy ......................................................... 28
2. European Climate Policy: The European Green Deal ........................................................ 29
3. The ‘Fit for 55’ Package ................................................................................................... 30
4. Key Policy Instruments of the Fit for 55 Package ............................................................... 31
5. Political Pressure and the Future of Fit for 55 ................................................................... 35
6. Classification and Evaluation of Climate Policy Instruments ............................................ 36
7. Summary: Learning Objectives ....................................................................................... 39
Lecture 5,6&7: Indicators....................................................................................................... 40
Lecture 5: Indicators I — GDP, Monetary Approaches and the GPI ........................................... 40
1. Framework and the Brundtland Starting Point .................................................................. 40
2. GDP and Its Discontents................................................................................................. 41
3. Better Monetary Measures: The Corrected GDP Family .................................................... 42
4. Measure of Economic Welfare (MEW) and SMEW ............................................................ 42
5. ISEW, GPI, and the Genuine Progress Indicator ................................................................ 43
6. Evaluation: Pros and Cons of the Monetary/Corrected GDP Approach .............................. 46
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,Lecture 6: Indicators II — The Capital Approach, Genuine Savings, CWON and Dashboard
Indicators.............................................................................................................................. 46
1. The Capital Approach: A Portfolio View of Sustainability................................................... 46
2. The Wealth Equation and Two Approaches ...................................................................... 47
3. Genuine Savings (GS) and Adjusted Net Savings (ANS)..................................................... 48
4. The Hartwick Rule .......................................................................................................... 50
5. Measuring the Total Stock: CWON (World Bank) .............................................................. 51
6. Evaluation: Pros and Cons of the Capital Approach ......................................................... 52
7. Dashboard Indicators: The SDGs and Multi-Dimensional Approaches .............................. 52
Lecture 7: Indicators III — Composite Indexes, Capabilities and Equivalent Income ................. 53
1. Composite / Hybrid Indexes: The Middle Way .................................................................. 53
2. Human Development Index (HDI) .................................................................................... 53
3. Other Composite Indicators ........................................................................................... 56
4. The Ecological Footprint (EF) .......................................................................................... 56
5. Individual-Level Measures: Capabilities and Subjective Well-Being .................................. 57
6. Equivalent Income: Bridging Objectivity and Individual Preferences ................................. 58
7. The Two-Pillar Framework ............................................................................................... 59
Lecture 7&10: Behavioral change ........................................................................................... 61
Lecture 7 ........................................................................................................................... 61
Assignment and group discussion ...................................................................................... 61
Lecture 10 ......................................................................................................................... 64
The challenge .................................................................................................................... 64
Determinants of Behavior................................................................................................... 65
Lecture 8: Resource allocation and recycling & Economics of Electric vehicle transition (Guest
lecture) ................................................................................................................................. 73
1. Introduction: Why the EV Transition Matters .................................................................... 73
2. A Brief History of the Electric Vehicle ............................................................................... 74
3. Demand: Consumer Choices and Budget Constraints ..................................................... 75
4. Supply: Market Failures and the Charging Infrastructure Problem ..................................... 79
5. Government Incentives: Desired and Undesired Effects ................................................... 81
6. Charging Behaviour and Electricity-System Impacts ........................................................ 84
7. The Full Carbon Picture: EVs in a Wider Transport Context ............................................... 86
8. Summary: Learning Objectives ....................................................................................... 87
Lecture 8 Part 2: Scarce Resource Allocation and Recycling (Guest Lecture) ............................ 88
1. Static Efficiency ............................................................................................................. 88
2. Dynamic Efficiency and the Discount Rate ...................................................................... 89
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, 3. Resource Types and Classification .................................................................................. 90
4. The Two-Period Model .................................................................................................... 91
5. The N-Period Model and Hotelling's Rule ......................................................................... 93
6. Perfect Competition versus Monopoly ............................................................................. 95
7. Two-Period Model with Recycling .................................................................................... 96
8. Numerical Application: Sand Extraction (Hoogmartens et al., 2018) ................................. 98
9. Recycling in Practice: Critical Minerals and EV Batteries .................................................. 99
10. Battery Cost Dynamics: Learning-by-Doing and Policy ................................................. 102
11. Summary: Learning Objectives ................................................................................... 103
Lecture 9: Electricity transition and markets ......................................................................... 105
1. The energy transition .................................................................................................... 105
2. The electricity supply chain .......................................................................................... 105
3. Electricity market ......................................................................................................... 106
4. Model of optimal investment in electricity generation capacity ....................................... 108
5. What happens if we add renewables? ........................................................................... 109
6. What do we need to do for a 100% carbon-free electricity system? (in Europe by 2040) ... 111
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DEVELOPMENT
2025-2026
By Aaron Van Goethem
,Table of Contents
Lecture 1: Introduction to Sustainable Development ................................................................4
How are we doing, clouds on the horizon?.............................................................................4
Economicsts .......................................................................................................................4
SDefinitions .........................................................................................................................5
Capital ................................................................................................................................7
Collapse and tipping points ..................................................................................................8
IPAT ................................................................................................................................... 11
Lecture 2&4: Theory............................................................................................................... 13
Lecture 2: .......................................................................................................................... 13
The Dasgupta review .......................................................................................................... 13
Discount Rate .................................................................................................................... 14
1) Declining discount rate ................................................................................................... 17
2) Dual discounting ............................................................................................................ 17
Lecture 4: .......................................................................................................................... 20
Capital: ............................................................................................................................. 20
Cake eating: ...................................................................................................................... 22
Distinguishing current welfare and Sustainability ................................................................ 23
Correct accounting prices .................................................................................................. 26
Lecture 3: Climate Energy ...................................................................................................... 27
1. Long-run Perspective on Energy and Climate Policy ......................................................... 28
2. European Climate Policy: The European Green Deal ........................................................ 29
3. The ‘Fit for 55’ Package ................................................................................................... 30
4. Key Policy Instruments of the Fit for 55 Package ............................................................... 31
5. Political Pressure and the Future of Fit for 55 ................................................................... 35
6. Classification and Evaluation of Climate Policy Instruments ............................................ 36
7. Summary: Learning Objectives ....................................................................................... 39
Lecture 5,6&7: Indicators....................................................................................................... 40
Lecture 5: Indicators I — GDP, Monetary Approaches and the GPI ........................................... 40
1. Framework and the Brundtland Starting Point .................................................................. 40
2. GDP and Its Discontents................................................................................................. 41
3. Better Monetary Measures: The Corrected GDP Family .................................................... 42
4. Measure of Economic Welfare (MEW) and SMEW ............................................................ 42
5. ISEW, GPI, and the Genuine Progress Indicator ................................................................ 43
6. Evaluation: Pros and Cons of the Monetary/Corrected GDP Approach .............................. 46
1
,Lecture 6: Indicators II — The Capital Approach, Genuine Savings, CWON and Dashboard
Indicators.............................................................................................................................. 46
1. The Capital Approach: A Portfolio View of Sustainability................................................... 46
2. The Wealth Equation and Two Approaches ...................................................................... 47
3. Genuine Savings (GS) and Adjusted Net Savings (ANS)..................................................... 48
4. The Hartwick Rule .......................................................................................................... 50
5. Measuring the Total Stock: CWON (World Bank) .............................................................. 51
6. Evaluation: Pros and Cons of the Capital Approach ......................................................... 52
7. Dashboard Indicators: The SDGs and Multi-Dimensional Approaches .............................. 52
Lecture 7: Indicators III — Composite Indexes, Capabilities and Equivalent Income ................. 53
1. Composite / Hybrid Indexes: The Middle Way .................................................................. 53
2. Human Development Index (HDI) .................................................................................... 53
3. Other Composite Indicators ........................................................................................... 56
4. The Ecological Footprint (EF) .......................................................................................... 56
5. Individual-Level Measures: Capabilities and Subjective Well-Being .................................. 57
6. Equivalent Income: Bridging Objectivity and Individual Preferences ................................. 58
7. The Two-Pillar Framework ............................................................................................... 59
Lecture 7&10: Behavioral change ........................................................................................... 61
Lecture 7 ........................................................................................................................... 61
Assignment and group discussion ...................................................................................... 61
Lecture 10 ......................................................................................................................... 64
The challenge .................................................................................................................... 64
Determinants of Behavior................................................................................................... 65
Lecture 8: Resource allocation and recycling & Economics of Electric vehicle transition (Guest
lecture) ................................................................................................................................. 73
1. Introduction: Why the EV Transition Matters .................................................................... 73
2. A Brief History of the Electric Vehicle ............................................................................... 74
3. Demand: Consumer Choices and Budget Constraints ..................................................... 75
4. Supply: Market Failures and the Charging Infrastructure Problem ..................................... 79
5. Government Incentives: Desired and Undesired Effects ................................................... 81
6. Charging Behaviour and Electricity-System Impacts ........................................................ 84
7. The Full Carbon Picture: EVs in a Wider Transport Context ............................................... 86
8. Summary: Learning Objectives ....................................................................................... 87
Lecture 8 Part 2: Scarce Resource Allocation and Recycling (Guest Lecture) ............................ 88
1. Static Efficiency ............................................................................................................. 88
2. Dynamic Efficiency and the Discount Rate ...................................................................... 89
2
, 3. Resource Types and Classification .................................................................................. 90
4. The Two-Period Model .................................................................................................... 91
5. The N-Period Model and Hotelling's Rule ......................................................................... 93
6. Perfect Competition versus Monopoly ............................................................................. 95
7. Two-Period Model with Recycling .................................................................................... 96
8. Numerical Application: Sand Extraction (Hoogmartens et al., 2018) ................................. 98
9. Recycling in Practice: Critical Minerals and EV Batteries .................................................. 99
10. Battery Cost Dynamics: Learning-by-Doing and Policy ................................................. 102
11. Summary: Learning Objectives ................................................................................... 103
Lecture 9: Electricity transition and markets ......................................................................... 105
1. The energy transition .................................................................................................... 105
2. The electricity supply chain .......................................................................................... 105
3. Electricity market ......................................................................................................... 106
4. Model of optimal investment in electricity generation capacity ....................................... 108
5. What happens if we add renewables? ........................................................................... 109
6. What do we need to do for a 100% carbon-free electricity system? (in Europe by 2040) ... 111
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