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Economics of sustainable development

Interdepartmental review

On behalf of the Government Economic Service, Richard Price, Defra’s Chief Economist, is leading a review of the economics of sustainable development. Our Steering Group includes economists and sustainable development experts from across government, and draws on leading academics and other researchers in the field.

We aim to establish a clear analytical framework for considering sustainable development during policy development, appraisal and evaluation, and to publish results in summer 2009.

Interim report - published 15 October 2009

The Interim Report of the Review of the Economics of Sustainable Development is now available. The Review proposes a working definition of sustainable development. It also identifies considerations that policymakers need to understand when assessing whether an individual project or policy is consistent with the Government’s position on sustainable development. (An updated bibliography was included in November 2009.)

Most of the Interim Report’s recommendations focus on giving policymakers better tools to assess the impacts on their policies/projects, and what they can do about them. These tools supplement the approach to cost-benefit analysis used across UK government (as set out in the Treasury’s ‘Green Book’). 

Our emerging recommendations focus on:

  • what to do when policy options have large, non-marginal or irreversible impacts;
  • taking social impacts into account more systematically;
  • dealing more transparently with the consequences of policy for future generations; and
  • improving the way we value externalities (such as damage to environmental assets) and environmental limits.

We welcome comments on the Review, its recommendations and on the steps needed to implement the recommendations, including improving the evidence base.

Please send comments to: economics@defra.gsi.gov.uk 

Further information

Page last modified: 18 November 2009
Page published: 16 April 2009