United Nations
Commission on Sustainable Development


                        Measuring Changes in 

                 Consumption and Production Patterns





                 Division for Sustainable Development, 

               Department of Economic and Social Affairs

                            United Nations





                              April 1998   





                               FOREWORD



       Indicators are essential tools for policy making, and since the

publication of the Brundlandt report in 1987, policy makers and analysts

have been trying to capture the concept of sustainable development in

statistics. National policy makers around the world are trying to

identify a set of indicators that would "indicate" the nation's

prosperity, well-being and sustainability. Traditionally, the primary

indicator for welfare and well-being is gross domestic product, in spite

of general recognition that it has serious flaws.



       The United Nations Commission on Sustainable Development  (CSD) has

established an international work program on indicators for sustainable

development. An important element of this program is the identification

of a core set of indicators for "changing consumption and production

patterns" (Chapter 4 of Agenda 21).  The set proposed in this report is

provisional because it needs national testing, evaluation and further

discussion, including discussion about what additional information should

be available to policy makers and the general public concerning progress

towards sustainability.



       One of the challenges in indicator identification and development

is to combine scientific analysis and public understanding. Policy making

for sustainable development is a dynamic process that depends on

stakeholder and public participation and support. Indicators for

sustainable consumption and production need to be analytically robust but

also simple, understandable and attractive to the general public. GDP has

great communicative value, and it is this value that should be

incorporated in a set of indicators for consumption and production

patterns.



       It is crucial that policy makers have key information about the

environmental and social conditions of the nation, in addition to

economic performance indicators. The set of indicators presented in this

paper is only a first step. The Division for Sustainable Development

looks forward to working with existing and new partners in the upcoming

years to improve "measuring changes in consumption and production

patterns".





                                            Kenneth G. Ruffing

                                            Officer-in-Charge

                                   Division for Sustainable Development





ACKNOWLEDGMENTS 





       A variety of people have contributed to this activity of identifying

a core set of indicators for changing consumption and production patterns

(Chapter 4, Agenda 21). They certainly include the participants of our

consultative round in 1997 and the workshop held in New York on 2-3 March

1998. The insights and suggestions of these over 75 people were

instrumental in the whole process. It would be too much to mention you

all here, but my many thanks go out to you, listed in the Annex 4 of the

report. In addition, special thanks to Dianne Dillon-Ridgley for

continuous encouragement and very able chairing of the workshop, and to

Hillary Hillier and Bas de Leeuw for co-chairing the fruitful working

group sessions. 



       Several colleagues, past and present, at the Division for

Sustainable Development have supported the activity with suggestions,

feed-back and co-operation. They include Joke Waller-Hunter, Ken Ruffing,

Lowell Flanders, Ralph Chipman, Mary Pat Silveira, Jan Rotmans, Birgitte

Bryld, Monica Luxem and Johan Kuylenstierna. Many special words of

appreciation to Catherine Rubbens who has been the mainstay in delivering

the core-set of indicators and this report. Many thanks to Lars Mortensen

who was there when we needed him, and finally, the Danish Environmental

Protection Agency for their financial support.





                                               Erik Brandsma

                                               New York, April 1998





                               TABLE OF CONTENTS





       FOREWORD



       ACKNOWLEDGMENTS 



       TABLE OF CONTENTS



       EXECUTIVE SUMMARY



                                                                 Page



1      OBJECTIVES AND CONTEXT                                      1



       1.1  Introduction                                           1



       1.2  Agenda 21 and the International Work Programme on 

            Changing Consumption and Production Patterns           3



       1.3  The Work Programme on Indicators of Sustainable 

            Development                                            5



       1.4  Indicators for changing consumption and production

            patterns                                               6

              



2      KEY ELEMENTS RELATING TO CHANGING CONSUMPTION AND 

       PRODUCTION PATTERNS                                         7



       2.1  Introduction                                           7



       2.2  Other factors relating to consumption and production 

            patterns                                               9



       2.3  Policy strategies and target                          11



       2.4  Trends and developments in policy making              14





       2.5  Indicators for key resources and associated 

            environmental issues                                  16



            2.5.1  Energy                                         17

            2.5.2  Materials, material flows and waste            19

            2.5.3  Water                                          22

            2.5.4  Land                                           25



         

       2.6  Indicators for consumption clusters                   27



            2.6.1  Mobility                                       28

            2.6.2  Consumer goods and services                    31

            2.6.3  Buildings and housekeeping                     35

            2.6.4  Food                                           38

            2.6.5  Recreation                                     40

              



3      INDICATORS FOR MEASURING CHANGES IN CONSUMPTION 

       AND PRODUCTION PATTERNS                                    43



       3.1  Approaches to indicator classification and use        43



       3.2  A core set of indicators for changing consumption 

            and production patterns                               45



            3.2.1  Selection of a core set of indicators          45

            3.2.2  The provisional core set of indicators

                   for changing consumption and production  

                   patterns                                       46





TABLE 1:  Core Set of Indicators for Changing Consumption and 

          Production Patterns                                     49



TABLE 2:  Core Set Indicators in the Driving Force - State - 

          Response framework                                      50



REFERENCES                                                        51





LIST OF ANNEXES                                                   56

              



ANNEX 1              Sample methodology sheet



ANNEX 2              Some issues linked to changing consumption and

                     production patterns



ANNEX 3              CSD Working List of indicators of Sustainable

                     Development



ANNEX 4              List of participants of the consultative round and the

                     Workshop





                         EXECUTIVE SUMMARY



       "Measuring Changes in Consumption and Production Patterns" is the

outcome of consultations and a Workshop with policy makers and other

experts working on changing consumption and production patterns and

indicators of sustainable development. The objective of this process,

facilitated by the Division for Sustainable Development, United Nations

Department of Economic and Social Affairs (DSD/DESA), was to identify a

core set of indicators for changing consumption and production patterns.



       Since the Earth Summit in Rio de Janeiro in 1992, discussions on

chapter 4 of Agenda 21, "Changing Consumption and Production Patterns",

have focused on trends in consumption and production patterns and ways

to influence these trends so that they become more sustainable. The issue

covers various resource and policy sectors and has direct linkages with

other important sustainable development issues, such as trade, finance,

education, and technology transfer. 



       Changes in consumption and production patterns result from the

choices and activities of a wide variety of actors including business and

industry, households, and governments. The challenges faced by policy

makers concerned with changing consumption and production patterns are

to optimize resource use, to minimize negative environmental and social

impacts of consumption and production patterns, and to stimulate and

facilitate trends towards more sustainable patterns.



       The availability and use of indicators for monitoring trends in

consumption and production have become increasingly important in this

policy making process. Indicators are essential for monitoring changes

in the volume and intensity of resource use and the environmental effects

thereof, and provide information about possible policies and other

measures for changing consumption and production patterns. 



       This report distinguishes between two broad categories of

indicators:"key resources" and "consumption clusters". It proposes

various indicators for the "key resources", energy, materials, water, and

land; and for the "consumption clusters", mobility, consumer goods and

services, buildings and housekeeping, food, and recreation.  



       The distinction between key resources and consumption clusters is

drawn, because it highlights the need for two different types of

indicators: I) indicators of resource use and environmental impacts, and

ii) indicators that reflect consumer and producer choices. 



       This report proposes a provisional core set of 17 indicators for

changing for changing consumption and production patterns, covering all

key resources and consumption clusters.





------------------------------------------------------------------------

                       Core Set Indicators 



For Key Resources:



- Energy (Annual energy consumption per capita, Intensity of energy use, 

  Share of renewable energy in total energy consumption, Energy prices)

- Materials (Total material requirement, intensity of material use)

- Water (Intensity of water use)

- Land (Intensity of land use)



For Consumption Clusters:



- Mobility (Distance traveled per capita by mode of transport, Number of 

  road vehicles)

- Consumer goods and services (Retail sales of selected goods per capita, 

  Market share of more sustainably produced goods and services)

- Buildings and house-keeping (Residential energy and water use per 

  household, Average household size)

- Food (Market share of more sustainably produced food)

- Recreation (Spending on recreation as share of disposable income, 

  Time spent on leisure, paid and unpaid work, and traveling)

------------------------------------------------------------------------





     The selection of the core set indicators is based on the consultative

process and on the use of selection criteria reflecting the consumption-

production perspective and experience with indicator selection, definition,

and use.



     The selection of indicators also reflects a number of key issues that

have been identified in the discussions on sustainable consumption and

production, including eco-efficiency; cost internalisation; trends and

developments in policy making; responsibilities of key actors; and the

analysis of unsustainable consumption patterns and lifestyles.



     In the selection process of the core set indicators, an effort has also

been made to avoid overlap with other chapters of Agenda 21.



     Governments from industrialized and developing countries and economies in

transition can select, test, and use indicators voluntarily, based on national

characteristics, needs, and priorities.

       

       The core set of 17 indicators is a starting point for the further

development of the indicators for consumption and production patterns.

More work is needed for the development of operational definitions and

methodological descriptions of the indicators. Furthermore, the policy

relevance and data availability for the indicators will become clearer

through testing of the indicators at the national level. The core set is

therefore provisional, should evolve over time in a dynamic process, and

should reflect changes in priorities related to policy making on

sustainable consumption and production patterns.





1      OBJECTIVES AND CONTEXT





1.1    Introduction



       This report is the outcome of a year long process of consultations

with key actors concerned with -Changing Consumption and Production

Patterns~, as well as with indicator experts, on indicators that could

best reflect the main issues and concerns related to changing consumption

and production patterns. The process of consultations was concluded with

a Workshop on Indicators for Changing Consumption and Production

Patterns, hosted by the Division for Sustainable Development of the

Department of Economic and Social Affairs (DSD/DESA) in New York on 2-3

March 1998.



       The objective of the Workshop was to identify a provisional core set

of indicators to measure changes in consumption and production patterns.

Some forty experts from developed and developing countries, and economies

in transition, participated in the Workshop, representing Governments,

international organizations, the research and business communities and

NGOs (ANNEX 4). 



       As the result of the workshop and previous consultations, this

report forms the starting point for work on measuring changes in

consumption and production patterns for policy development and

implementation. The report identifies a provisional core set of

indicators as a tool for policy makers in formulating policies and

monitoring the effectiveness of policy implementation for changing

consumption and production patterns.



       The first chapter of the report includes a brief introduction to the

objectives, context and process that have resulted in the selection of

the provisional core set of indicators. The International Work Programme

on Changing Consumption and Production Patterns, in which this activity

is being undertaken, and the Work Programme on Indicators of Sustainable

Development (WPISD) of the CSD, are also briefly reviewed.



       The second chapter outlines key elements relating to changing

consumption and production patterns. It includes comments on other

factors relating to consumption and production patterns, policy

strategies and targets, and trends and developments in policy making. It

also reflects the discussions during the Workshop about possible

indicators for changing consumption and production patterns. 



       Finally, the third chapter of this report contains information on

approaches to indicator classification and use, selection criteria and

the provisional core set of indicators for changing consumption and

production patterns, including 17 indicators.



       The primary intended users of the indicators are policy makers in

governments at the national level. However, many other partners, such as

local governments, NGOs, research institutes, business and industry, and

international organizations, have contributed to the process and will

have an interest in the findings and conclusions of this process. 



       The framework used to organize and present the indicators is the

Driving Force-State-Response (DSR) framework of the WPISD. The indicators

proposed are national in scope and intended for use primarily at the

national level. However, the problems addressed are of local, national,

transboundary and global nature. 



       The criteria used for selecting the provisional core set of

indicators are the usefulness of the indicators for measuring changes in

consumption and production patterns as well as the other criteria used

in the WPISD. 



       The next steps will develop more precise definitions and

methodological description, and examine measurability and data

availability for the proposed indicators, and an assessment of compliance

with the Bellagio principles 1/. Some of the indicators proposed can be

used immediately, since methodologies and data are readily available.

These indicators are already commonly used in a considerable number of

countries, and widely accepted agreement exists with regard to their

definition. However, some other indicators proposed in the provisional

core set of indicators need to be elaborated further. More work is needed

for finding precise and workable definitions for those indicators, and

for developing methodologies for data collection. 

       

       The provisional core set of indicators for changing consumption and

production patterns will serve as an input to the WPISD. Similar to the

CSD indicators of sustainable development, the indicators for changing

consumption and production patterns will require the development of

methodological descriptions and testing by organizations and/or

governments. If this can be done, the provisional core set of indicators

for changing consumption and production patterns will be included in the

revision of the CSD indicators of sustainable development in 1999-2000.



       This report and the provisional core set indicators is also an

element of the CSD International Work Programme on Consumption and

Production Patterns and will be submitted to the Commission on

Sustainable Development at its seventh session in 1999, during which

chapter 4 of Agenda 21, "Changing Consumption and Production Patterns"

will be reviewed comprehensively.





1.2    Agenda 21 and the International Work Programme on Changing

       Consumption and Production Patterns



              

       Chapter 4 of Agenda 21, "Changing Consumption and Production

Patterns" states that "the major cause of the continued degradation of

the global environment is the unsustainable pattern of consumption and

production, particularly in industrialized countries". 



       Chapter 4, noting that consumption levels are very high in certain

parts of the world, concludes: "This results in excessive demands and

unsustainable life-styles among the richer segments, which place immense

stress on the environment. The poorer segments, meanwhile, are unable to

meet food, health care, shelter, and educational needs". 



       Chapter 4 concludes, "Changing consumption patterns will require a

multi pronged strategy focusing on demand, meeting the basic needs for

the poor, and reducing wastage and the use of finite resources in the

production process".



       Agenda 21 calls on developed countries to take the lead in promoting

and achieving more sustainable consumption patterns. As developing

nations follow development trajectories similar to those of the

industrialized countries, it is essential that the latter demonstrate

that resource-efficient, low-pollution production and consumption

patterns are feasible and attractive. Furthermore, their efforts to move

toward more sustainable consumption and production patterns should not

hinder the development efforts of developing countries. 



       The broad policy objectives and related activities proposed in

chapter 4 of Agenda 21, are presented in Box 1.               





--------------------------------------------------------------------------

    Box 1 - Policy objectives and activities of chapter 4 of Agenda 21



        In order to develop national policies and strategies encouraging 

changes in unsustainable consumption patterns, chapter 4 of Agenda 21 

proposes the following broad objectives, to be aimed at by governments 

and other appropriate organizations:



-  To promote efficiency in production processes and reduce wasteful

   consumption in the process of economic growth, taking into account the

   development needs of developing countries;



-  To develop a domestic policy framework that will encourage a shift to 

   more sustainable patterns of production and consumption; and



-  To reinforce both values that encourage sustainable production and

   consumption patterns and policies that encourage the transfer of

   environmentally sound technologies to developing countries.               



     Chapter 4 recommends five major activities for reaching these 

objectives: (i) encouraging greater efficiency in the use of energy and

resources; (ii) minimizing the generation of wastes; (iii) assisting

individuals and households to make environmentally sound purchasing 

decisions; (iv) exercising leadership through government purchasing; 

and (v) moving towards environmentally sound pricing.

---------------------------------------------------------------------







       In line with Agenda 21, the International Work Programme on

Changing Consumption and Production Patterns, adopted by the Commission on

Sustainable Development at its third session 2/, includes the

following five elements:



       i)  Identifying the policy implications of projected trends in

consumption and production patterns;



       ii) Assessing the impact on developing countries, especially the

least developed countries and small island developing States, of changes

in consumption and production in developed countries;



       iii)   Evaluating the effectiveness of policy measures intended to

change consumption and production patterns, such as command-and-control,

economic and social instruments, and government procurement policies and

guidelines;



       iv) Eliciting time-bound voluntary commitment from countries to

make measurable progress on those sustainable development goals that

have an especially high priority at the national level; and



       v) Revising the United Nations Guidelines for Consumer Protection.



       The need for indicators for sustainable consumption and production

patterns is clearly noted in chapter 4 of Agenda 21: "Consideration

should also be given to the present concepts of economic growth and the

need for new concepts of wealth and prosperity which allow higher

standards of living through changed life-styles and are less dependent

on the Earth's finite resources and more in harmony with the Earth's

carrying capacity. This should be reflected in the evolution of new

systems of national accounts and other indicators of sustainable

development".        



       The CSD, at its 5th session called on the Secretariat and

governments to "Develop core indicators to monitor critical trends in

consumption and production patterns, with industrialized countries taking

the lead". This request is also included in the Programme for the Further

Implementation of Agenda 21, adopted by the General Assembly at its

Nineteenth Special Session on 23-27 June 1997. 





1.3    The Work Programme on Indicators of Sustainable Development



       Chapter 40 of Agenda 21, "Information for Decision-making", calls

for the development of indicators for sustainable development, and

requests countries and international governmental and non-governmental

organizations to develop the concept of indicators of sustainable

development in order to identify such indicators (para 40.6). 



       In promoting the implementation of chapter 40 of Agenda 21, the Work

Programme on Indicators of Sustainable Development (WPISD) was

established at the third session of the CSD (1995) 3/. The overall

objective of the Work Programme is to provide decision-makers at the

national level with indicators of sustainable development. The aim is to

agree on a workable set of indicators by the year 2000, through a process

of feed-back and revision of the indicators. Indicators, as applied in

national policies, may also be used for national reports to the

Commission on Sustainable Development and other intergovernmental

bodies.



       Through collaboration among a large number of governments,

intergovernmental and non-governmental organizations, a preliminary

working list of 134 indicators of sustainable development has been

identified and included in the Work Programme.



       Several lead agencies developed methodology sheets for the

indicators, including information on their policy relevance,

methodological description and definitions, data availability, and the

agencies involved in the development of each indicator 4/. An example

of a methodology sheet, for the indicator "Annual energy consumption",

is presented in ANNEX 1.



       At its fourth Session, the Commission invited governments to

test, develop, and use the indicators of sustainable development. The

working list of indicators is currently being tested in 22 countries 5/. 



       The WPISD recognizes that additional indicators may be needed to

measure progress on some topics of Agenda 21. The indicators in the

programme are intended as a "core list" to which other indicators, or

sets of indicators covering particular aspects of sustainable

development, may be added.





1.4    Indicators for changing consumption and production patterns



        As a basis for decisions to promote changes in consumption and

production patterns, information on conditions and trends of concern

should be available to decision makers at all levels. Economic, social

and environmental data concerning production and consumption patterns is

available, in varying amounts and quality, in countries and organizations

worldwide. However, the data is often at a level of detail that does not

provide the decision-maker with aggregated information on the overall

picture and the main issues of concern. Therefore, more aggregated

information, as defined by a common set of core indicators for changing

consumption and production patterns, is needed to facilitate decision-

making for encouraging sustainable consumption and production patterns

worldwide.



       A set of 8 indicators for changing consumption and production

patterns is included in the WPISD (see ANNEX 3). However, it was

recognized that for this  issue few suitable indicators exist, and that

further indicators might be needed to address the issue of changing

consumption and production patterns.



       An Expert workshop on Methodologies for Indicators of Sustainable

Development 6/, held in Glen Cove, New York, 5-8 February 1996, 

recognized the need to further identify and develop indicators

addressing the key issues for changing consumption and production 

patterns.



       A background paper entitled "Measuring Changes in Consumption and

Production Patterns" was prepared on the basis of a literature review of

recent developments with respect to both consumption and production and

indicator classification and design. 



       This paper was sent to policy makers and other experts in NGOs,

business and industry, international organizations, and the academic

community. In this "consultative round", the experts were asked to

comment on the paper, including the proposed indicators, and to indicate

what they consider the key indicators for changing consumption and

production patterns. 





-------------------------------------------------------------------------

                   Box 2 - Objectives of the process



-  To identify a provisional core set of indicators to monitor

   changes in consumption and production patterns; 



-  To initiate discussion and testing of the provisional set of

   indicators;



-  To facilitate reporting to the CSD on progress in policy

   making for changing consumption and production patterns, and

   to contribute to the revision of Chapter 4 in 1999;



-  To support the efforts of major groups to change consumption

   and production patterns; 



-  To contribute to the further development the Work Programme on

   Indicators of Sustainable Development of the Commission on

   Sustainable Development, and the revision of its indicators in

   1999-2000;



-  To contribute to the process of consistent national reporting

   on changing consumption and production patterns. 

----------------------------------------------------------------------





       A revised background paper, based on results of the consultative

round, and made available for the Workshop in March 1998, provided the

basis for a Workshop discussion among policy makers and other interested

partners on the identification of a core set of indicators for changing

consumption and production patterns. The objectives of the above process

are presented in Box 2.





2      KEY ELEMENTS RELATING TO CHANGING CONSUMPTION AND

       PRODUCTION PATTERNS



2.1    Introduction



       The Earth Summit in Rio de Janeiro in 1992 recognized the causal

link between current consumption patterns and lifestyles, particularly

in industrialized countries, and major environmental problems.

       

       There was concern over the climate change threat due to accumulation

of greenhouse gases in the atmosphere, ozone depletion caused by CFC

emissions, and acidification due to sulphur dioxide and nitrogen oxides.

Biochemical cycles are threatened by excessive use of nitrogenous

fertilizers and the accumulation of toxic heavy metals, radioactive

wastes and long-lived halogenated chemicals in soils and sediments. 



       Other consumption and production related environmental problems are

the depletion of fish stocks, forests, and water resources, the loss of

agricultural land due to soil erosion and desertification, and extinction

of plant and animal species.



       The Rio Conference also noted the contrast between lifestyles in

industrialized countries and those in poorer countries, and the 

inequitable distribution, both among and within countries, of the use of

the world~s natural resources and the generation of emissions and solid

waste.



       At the Rio Conference, questions were raised as to how consumption

patterns and lifestyles in industrialized countries affect current and

future consumption and production options in developing countries. There

was also concern about whether the consumption patterns of the

industrialized countries could be reproduced on a worldwide scale. It

was generally agreed that responsibilities for improving environmental

management were different for people driven by poverty to

unsustainable consumption patterns as opposed to people whose wealth led to

unsustainable consumption patterns. Concerns were also expressed

regarding global dominance and dissemination of Western lifestyles

around the globe, and the potentially far-reaching environmental 

consequences of such dissemination.



       As the consumption and production issue encompasses a broad range

of concepts, resource and policy sectors, and related issues (see ANNEX 2),

it is difficult to find an overall and broadly accepted interpretation of all

the elements covered by the topic. 



       Since the Rio Conference, efforts have been made by various

countries (including Norway, the Republic of Korea, Netherlands,

Brazil and Australia), international organizations (such as UNEP and OECD),

major groups (business and industry, NGOs and the academic community)

to clarify concepts, to strengthen our understanding of sustainable

consumption and production, and to determine the responsibilities of

various actors for changing consumption and production patterns. 



       The following working definition of sustainable consumption,

which was adopted at the January 1994 "Oslo Symposium", is often used as a

starting point: "the use of services and related products which respond

to basic needs and bring a better quality of life while minimizing the

use of natural resources and toxic materials as well as the emissions of

waste and pollutants over the life cycle of the service or product so as

not to jeopardize the needs of future generations".



       In the consultative round and the Workshop, many experts recognized

that focusing on changing consumption patterns, while taking into account

production processes, had the following added value: 



-      It promotes examination of consumer behavior that impedes

       sustainable development and ways to change such behavior;



-      Consideration of consumption and production patterns together

       facilitates identification of the most effective and efficient

       policy instruments for addressing unsustainable patterns. It enables

       policy makers to examine simultaneously economic instruments and

       behavior-related social policies, such as information dissemination

       and eco-labeling;



-      The sustainable consumption and production approach encourages all

       actors to optimize energy and material use, taking into account the

       impact of the use and disposal of products as well as resource

       extraction and production;



-      The focus on changing consumption and production patterns encourages

       consideration of distributional aspects of these patterns, and

       encourages industrialized countries to take the lead in moving

       toward sustainable consumption and production patterns.



       A core set of indicators for monitoring changes in consumption and

production patterns, such as the set proposed in this paper, should

reflect these factors, distinguishing the topic from other approaches to

sustainable development. 



       Many policy measures, indicators and descriptions outlined in this

paper will be particularly relevant for industrialized countries, since

these countries are expected to take the lead in changing consumption and

production patterns. However, the indicators should also be useful for

developing countries and economies in transition, enabling them to track

trends and shifts in consumption and production patterns and identify

ways to change undesirable trends.





2.2    Other factors relating to consumption and production patterns



       There are many factors and indicators of sustainable development

that are related to consumption and production patterns. Many of these

factors influence consumption and production patterns, many are

influenced by these patterns, and for most of them, the causality works

in both directions.



       An example of a factor that influences consumption and production

patterns is poverty. Low-income families are often driven to unproductive

and environmentally-fragile areas, which they can only exploit in

unsustainable ways in order to survive. They lack access to the capital,

tools, services and training needed for sustainable agriculture in arid

and semi-arid areas, in rainforests or in other areas with poor soils.



       For the large majority of poor people in the world, the only

affordable source of energy is fuelwood, which they must gather from

public or common land in unsustainable ways, contributing to

deforestation, erosion, land degradation and domestic air pollution.



       Lack of access to education, sanitation, safe water and other public

services further exacerbates poverty, leading to unsustainable production

and consumption activities. The gendered nature of poverty, and other

aspects of gendered activities and authority, are also important in

determining consumption and production patterns and possibilities for

changing them.



       The Work Programme on Indicators of Sustainable Development (WPISD)

contains, under combating poverty (chapter 3), a number of indicators of

poverty, including indicators for the poverty rate, the poverty gap, the

Gini index of income inequality and gender wage inequality. Under health

(chapter 6) and education (chapter 36), there are indicators for

sanitation, access to safe drinking water, school enrolment, gender

inequality in education and other social factors. 



       Other issues relating poverty to sustainable consumption and

production, especially in rural areas of developing countries, are

covered under fragile ecosystems (chapters 12 and 13), sustainable

agriculture (chapter 14), deforestation (chapter 11) and elsewhere.



       Consumption and production patterns are also affected by movements

of people, goods, capital and information. Rural-urban migration and

international migration change the consumption patterns of the people

involved, and often of their communities of origin. The consumption

patterns of different areas and countries are also linked through trade

and investment, especially direct investment by enterprises, which brings

technology with it. Advertising, television, movies and other mass media,

as well as tourism and other foreign travel also transmit consumption and

production patterns around the world, particularly from developed to

developing countries. All of these flows have been increasing rapidly in

recent years as part of the process of globalization. Indicators relating

to these factors are contained in the WPISD under international

cooperation (chapter 2), demographics (chapter 5), technology transfer

(chapter 34) and elsewhere. 



       Apart from being influenced by the above factors, consumption and

production patterns in turn have an effect on a wide variety of issues.

They affect the quality and availability of natural resources such as

fresh water (chapter 18), land (chapters 10-14), and forests (chapter

11). They also influence health (chapter 6), the development of human

settlements (chapter 7), and lead to the generation of waste (chapters

19-22).



       The present report, while recognizing the effect of a wide range of

factors and indicators on consumption and production patterns, will not

try to cover the broad scope of the issue. Similarly, the report does not

attempt to reflect the entire range of social, health, and environmental

impacts of consumption and production patterns. In particular, those

issues that are adequately covered under other chapters of Agenda 21, and

for which indicators were already selected in the WPISD process, have not

been repeated in the provisional core set of indicators for chapter 4.





2.3    Policy strategies and targets



       An essential element of a strategy for achieving more sustainable

consumption and production patterns is "eco-efficiency", pioneered by the

World Business Council for Sustainable Development. The OECD defines eco-

efficiency as: "A management strategy based on quantitative input-output

measures which seeks to maximize the productivity of energy and material

inputs in order to reduce resource consumption and pollution/waste per

unit of output, and to generate cost savings and competitive

advantage" 7/.



       Eco-efficiency strategies could also cover the maximization of the

productivity of other resources, such as land and water.



       At the OECD Rosendal Workshop 8/ hosted by Norway, encouraging

eco-efficiency was generally supported as a pragmatic strategy with

potential political and economic appeal. Various efforts have been made 

to tie the eco-efficiency concept to specific targets. The 

"Factor 10 Club", a group from the academic and business community, argues

that "a political commitment to a tenfold increase in the average resource

productivity" in the industrialized countries is a prerequisite for achieving

long-term sustainability. They suggest that the industrialized countries

should aim at achieving a 50 per cent reduction in the global levels of non-

renewable material flows over the next 30-50 years 9/.





-------------------------------------------------------------------------

                      Box 3 - Eco-efficiency



     Increasing eco-efficiency means reducing resource use per unit of

product or service or reducing resource use per unit of GDP. It does 

not necessarily imply a reduction of per capita resource use. The 

question remains, therefore, whether increasing eco-efficiency can 

lead to a reduction of per capita or total resource use. 



     A strategy for increasing eco-efficiency should include several 

sub-strategies, including industrial ecology, integrated life-cycle 

management (minimizing environmental impacts from "cradle to grave"), 

reduced energy-use, good house-keeping, dematerialization, and eco-design 

(See "OECD Workshop on Sustainable Production and Consumption:

Clarifying the Concepts", Rosendal, Norway, 2-4 July 1995, Final Report). 



     Eco-efficiency emphasizes both environmental efficiency and

economic efficiency (the "double dividend"). 



        Some NGOs argue that a "sufficiency" strategy is needed to 

complement an eco-efficiency strategy. They argue that governments 

should not only set limits for various types of pollution and stimulate 

more resource-efficient patterns of consumption and production 

(eco-efficiency), but that they should also set limits to the total 

amount of natural resources consumed.

------------------------------------------------------------------------





       In a recent book on Factor Four 10/, numerous examples are given

of possibilities of many-fold increases in resource productivity,

allowing more sustainable provision of the same service to the consumer

without reducing utility or level of satisfaction.



       Targets for increasing resource productivity are also noted in the

Programme for the Further Implementation of Agenda 21 11/ "Action in

this area should focus on promoting international and national programmes

for energy and material efficiency with timetables for their

implementation, as appropriate. In this regard, attention should be given

to studies that propose to improve the efficiency of resource use,

including consideration of a tenfold improvement in resource productivity

in industrialized countries in the long term and a possible factor-four

increase in industrialized countries in the next two to three decades.

Further research is required to study the feasibility of these goals and

the practical measures needed for their implementation. Industrialized

countries will have a special responsibility, and must take the lead in

this regard."



       However, the OECD states in a recent publication 12/ that the

concept of eco-efficiency does not offer a sufficiently comprehensive

framework for determining which consumption trends are unsustainable and

how changing those trends can best be managed. 



       The OECD argues that "These qualifications to the value of eco-

efficiency as a guiding framework for policy to change consumption and

production patterns have two implications. First, a strategy of promoting

eco-efficiency must be linked to explicit environmental quality

objectives that identify any ecological constraints to consumption.

Second, such a strategy must be transparently tied to policies to

influence the other factors that determine consumption patterns and

levels, including welfare and life-style considerations."



       Examples of concepts relating to ecological limits to consumption

are environmental space, ecological rucksacks and footprints, and

carrying capacity. 



       In traditional environmental policy making, targets for emission

reductions are normally based on the capacity of the environment to

absorb emissions to water, air, and soil, or to its capacity for

providing non-renewable and renewable resources.



       The environmental space concept was developed and applied by NGOs

and research organizations (e.g. "Sustainable Netherlands and Europe" by

Friends of the Earth and the Wuppertal Institute) to provide some

quantitative approximation of the environmental impact of different

consumption and production patterns (see Box 4). 





-------------------------------------------------------------------------

                    Box 4 - Environmental space



     Environmental space is a normative concept with a physical and 

socio-economic dimension. In "physical" terms, environmental space is 

a measure of the capacity of the biosphere to support human activities. 

It can be defined as the quantity of energy, water, land, non-renewable 

raw materials and wood that can be used in a sustainable and equitable

fashion. The environment is considered both as a waste-sink, absorbing

emissions to water, atmosphere, and soil; and a source of services 

provided by non-renewable and renewable resources.



     The "socio-economic" dimension of environmental space is based 

on equity principles, such as the idea that all people have a right 

to an equal level of resource use (intragenerational equity); and that



future generations have a right to an equivalent supply of resources

(intergenerational equity).



     Some attempts were made to quantify the environmental space

concept. For example, in the "Sustainable Europe" study, carried out 

by the Wuppertal Institute for Friends of the Earth International, the 

availability of environmental space per capita in the year 2050 was 

calculated for major resources, including total primary energy, 

timber, cement, iron, aluminum and chlorine. Assumptions were made 

with regard to the physical availability of these resources, the 

environmental effects of their exploitation, as well as the global, 

continental, and regional population in 2050. The calculations also 

included value judgements concerning the degree of environmental 

degradation or the risk the society would be willing to accept, and 

the obligations towards future generations ("Towards Sustainable

Europe",  Wuppertal Institute, January 1995).   

-------------------------------------------------------------------------





       Policy strategies and targets, whether they aim at emission

reductions, productivity improvements, or limits to resource use, can

affect both the selection of policy instruments for achieving sustainable

consumption and production, and the selection of indicators for

monitoring changes in consumption and production patterns.



       In line with the eco-efficiency and resource productivity

approaches, indicators should cover both levels of consumption and

intensity of use of key resources such as energy, materials, water, and

land. Indicators should reflect the use of these resources in a variety

of sectors including consumer goods, recreation, transportation, or food

production. 



       Increasing eco-efficiency, interpreted more broadly, can also be

achieved by changes in lifestyles. Transportation, for example, could be

achieved more efficiently if passengers shifted from private car use

towards mass transit or car-pooling. An indicator such as the share of

public transportation in total passenger miles, may be appropriate for

monitoring such a shift.





2.4    Trends and developments in policy making



       The core set of indicators is intended to provide a basis for

monitoring the effectiveness of policies. Therefore, some recent trends

in policy making for more sustainable consumption and production are

briefly reviewed in this section.



       In various areas such as energy, transport, waste generation,

and water, demand-side measures aimed at reducing consumption have been

implemented in various countries. Complementing more traditional

approaches to environmental policy making, where the main objective

was to minimize the environmental damage resulting from resource use,

current policy approaches are increasingly directed at changing consumer

demand and satisfying demand with less resource input and waste output. 



       One reason for the interest in this approach is that increases

in the volume of consumption often overwhelm emission reductions through

efficiency improvements (e.g. in the energy and transport sectors). 



       Another reason is that wastes associated with consumption now

tend to exceed waste emissions from manufacturing processes. The

effectiveness of policy making could therefore be enhanced by targeting

consumers of gasoline, for example, in parallel with car producers.



       Another key development underlying the selection of policy

instruments for changing consumption and production patterns is a

growing recognition of the need to internalize environmental costs. 

External costs (or externalities) arise when costs such as environmental

degradation are not reflected in the prices of goods and services.

Such external costs should be added to production costs, through taxes for

example, and reflected in market prices, thus discouraging consumption

of environmentally damaging goods and services. 



       Other factors such as the absence of well-defined property

rights, environmentally harmful subsidies, and inefficient public 

investments are increasingly recognized as promoting unsustainable 

consumption and production patterns. 



       There are many examples of cost internalization measures,

including reduction or elimination of agricultural fertilizer and pesticide

subsidies. There are fewer success stories in the energy, transport,

and water sectors. Substantial energy savings and reductions in

environmental damage could be achieved by an increase in energy prices. As

long as consumers do not pay the full costs of their energy use and its

associated infrastructure, goods, and services, the development of

more sustainable alternatives will be hindered.



       Subsidized transport can be destructive to the environment and

costly to the economy. When the use of private automobiles is

subsidized directly or indirectly and when petrol is insufficiently taxed,

private transportation soon crowds out public transportation and settlement

patterns become more automobile dependent. 



       At present, the policy implementation process is largely

characterized by self-regulation by consumers and the private sector.

Governments determine policy targets, while other actors are

responsible for the implementation of instruments for complying with these

targets in accordance with their financial and institutional capacity. An

example of such a policy instrument is a voluntary agreement between

government agencies and private enterprises. 



       In designing policies for changing consumer behavior, there is

a need for greater understanding of the motivations behind the behavior.

Many policies used to change consumer behavior are found to be

inadequate. Travel habits, for example, are constrained by a wide

socio-cultural web of institutions and infrastructure, and measures targeted

only at modifying individual behavior are not likely to succeed.



       With regard to the transport sector, further social science

research and analysis should be carried out to determine whether a

"saturation" level exists for the travel activities of individuals, how

telecommunications influence individuals' real and perceived travel

options, and where the pressure points and "learning moments" are that

enable policies to change behavior 13/.





2.5    Indicators for key resources and associated environmental issues



       The considerations of eco-efficiency and for delinking consumer

satisfaction from resource use discussed in section 2.3 provide a basis

for selecting indicators for monitoring changes in consumption and

production patterns. 



       Consideration must be given, on the one hand, to the resources

that should be used more sustainably ("Key Resources" - 2.5), and on the

other hand, to the consumer "needs" or functions that should be satisfied

through the use of these resources ("Consumption Clusters" - 2.6). 



       Policy makers concerned with policy development, implementation, and

evaluation in the area of consumption and production patterns therefore

need two categories of indicators: on the one hand, indicators that

monitor trends in resource use and environmental impacts, and on the

other hand indicators that reflect consumer behavior.  



       In this section, the use of key resources, including energy,

materials, water and land, are considered in more detail. For each

resource, indicators are suggested for monitoring use of those resources

and for reflecting environmental effects caused by the use of the

resources. Consumption clusters, including mobility, consumer goods and

services, housing, food and recreation are discussed in section 2.6. 



       Where possible, mention is made of the type of policy target or

strategy the indicator can monitor. If the indicator is part of the WPISD

core set (see 1.3, 3.1, and ANNEX 3), the appropriate chapter of Agenda

21 is indicated. Links with other chapters covered by the WPISD are

highlighted where appropriate.



       Some of the indicators mentioned were selected by the Workshop for

the core set on the basis of clearly defined selection criteria (3.2.1).

The core set indicators are presented in an indicator framework (the

Driving Force-State-Response framework), in section 3.2.2. For

convenience, the core set indicators are already marked in bold in the

following sections. Where possible, comments are also made with regard

to short term, medium term, and long term data availability for the

development of the core indicators. 



       The indicators proposed here should be considered as the key

indicators covering the main elements of chapter 4 of Agenda 21, which

can be the basis for a broader "hierarchy" of more detailed

indicators. 





2.5.1     Energy 



       While world energy production and consumption has continued to grow,

annual growth rates have decreased, and the world~s energy intensity

(i.e. energy use per unit of production or GNP) has declined,

particularly in OECD countries. 



       The main environmental concern associated with growing energy

consumption, mostly of fossil fuels, is the continuing rise of

atmospheric CO2 concentrations contributing to global warming. The

industrialized countries today account for about 70 per cent of carbon

dioxide emissions 14/. Industry accounts for a large part of global

energy use (43% in 1992). Renewable energy sources provide a small

proportion of total energy supply. 



       Five energy-intensive subsectors, accounting for roughly 45% of

all industrial energy consumption, are iron and steel, chemicals,

petroleum refining, pulp and paper, and cement. Other sectors which make a

major contribution to energy consumption are agriculture, construction, and

transport 15/. Recently, some new initiatives were undertaken by

industry to develop indicators reflecting companies~ contribution to

global warming (Box 5).





------------------------------------------------------------------------

                  Box 5 - Global Warming Indicator



     Recently, a tool has been developed by the British Imperial College 

and the insurance company National Provident Institution to help 

investors assess companies' contribution to climate change and their 

resulting exposure to financial risk. A "global warming indicator" 

enables companies to measure their output of carbon dioxide from fossil 

fuel consumption for making and transporting products or heating offices. 



     The indicator's sponsors hope that the indicator will become an 

internationally accepted reporting requirement in company accounts, to

identify companies least able to curb their emissions and therefore 

susceptible to financial penalties. The indicator would also provide 

shareholders with more adequate information about exposure to new

costs.



     The indicator is being circulated to UK accountants and companies

for review. Once the indicator has been reviewed by some of its 

potential users, it will be available for any business to try out, 

initially on a voluntary basis (Financial Times, 17 November 1997).

------------------------------------------------------------------------

        



       In developing countries, however, the lack of access to

commercial energy often still is a severe constraint on social and economic

development. Poverty and distance from supplies leave communities

dependent on animal or human energy for labor and fuel-wood or animal

dung for cooking and heating. Wood still provides up to 50 per cent of

national energy needs in a number of Asian and sub-Saharan African

countries 16/. In the last two decades, rapid expansion of the energy

sector in developing countries has been accompanied by a decline in

urban air quality, as well as serious land and water degradation from

mineral exploitation and fuelwood harvesting 17/. Industrialized countries

have taken the lead in pursuing energy-use reduction strategies.



       Policy challenges are:



-      Improving energy-efficiency in the production of goods and services,

       including within the energy sector itself;



-      Increasing the share of energy from renewable resources;



-      Reducing negative environmental impacts from energy use, including

       greenhouse gas emissions; and 



-      Promoting access to commercial energy to facilitate economic

       development in poor and rural communities. 





       Key indicators are:





------------------------------------------------------------------------

Indicator                       Comments

------------------------------------------------------------------------

Annual energy       - Indicator for chapter 4 in the WPISD. 

consumption per     - Increased energy consumption, particularly

capita (toe)        in industrialized countries, is a major

contributor

                    to global warming. However, the effects on global

                    warming depend on the energy source. Therefore, the

                    indicator can be broken down by source (e.g. coal,

                    hydro, nuclear, fossil fuels, other renewables).

                    - In developing countries, the lowest-income

                    countries are often also those with the lowest per

                    capita energy consumption, and social indicators such

                    as infant mortality and life expectancy (included in

                    the WPISD under chapter 6) improve with increased per

                    capita income and energy consumption.

                    - Focus is on primary energy. 

                    - Could be broken down by income groups.

                    - Data should be available in the short term. 

-------------------------------------------------------------------------

Intensity of energy - Monitors energy use per unit of production/service.

use (toe/unit of    - Selected sectors will include agriculture,

production for      food processing, transport, and several other

selected sectors)   manufacturing and service sectors.

                    - Can be used for measuring fulfilment of targets

                    requiring Factor 4 or 10 energy productivity

                    increases.

                    - The WPISD includes the indicator Energy use in

                    agriculture under chapter 14.

                    - Data should be available in the short term. 

------------------------------------------------------------------------

Share of renewable  - Indicator for chapter 4 in the WPISD,

energy in total     formulated as Share of consumption of

energy consumption  renewable energy resources.

(%)                 - Monitors the use of renewable energy sources.

                    - Has an important communicative value.

                    - Nuclear energy should not be considered as a

                    renewable energy source. Fuelwood should be included

                    in "renewables".

                    - Data should be available in the short term. 

------------------------------------------------------------------------

Emissions of        - Chapter 9 of the WPISD includes the indicator

greenhouse gasses   Emissions of greenhouse gasses (annual emission

(annual emission    levels of carbon dioxide, methane, and nitrous

levels in gigagrams oxide). 

of CO2 equivalents) - For monitoring the contribution of fossil

                    fuels to global warming. The indicator can also be

                    broken down by sector (e.g. industry, transport,

                    agriculture, and construction), in order to identify

                    priority policy targets.

                    - An indicator of CO2 emissions per unit of primary

                    energy can be used for approximating decarbonization.

-------------------------------------------------------------------------

Energy prices       - In combination with disposable income,

(US$ per unit of    reflects the "affordability" of energy,

energy)             for monitoring the extent to which energy becomes more

                    or less costly over time.

                    - The indicator also reflects the margins for price

                    increases to influence consumption.

                    - It is difficult to develop an indicator or

                    meaningful proxy for monitoring the internalization

                    of external costs, such as an indicator of energy

                    price as percentage of full cost or share of energy

                    tax over total energy price. Problems are 

                    data-availability and comparability among countries.

                    - Data should be available in the short term. 

------------------------------------------------------------------------





2.5.2    Materials, material flows and waste



       Despite rising levels of consumption of materials such as minerals,

metals, chemical products, fertilizers, and industrial and construction

materials, there is no short-term prospect of scarcity. Proven reserves

of the majority of important metals and minerals, for example, have risen

since 1970 18/.



       Materials intensity (materials required for constant economic

output) has fallen in industrialized countries at nearly 2 per cent per

year since 1971, mainly due to more efficient technologies and structural

economic changes.



       Though information about material flows is weak for most countries,

the intensity of use of relatively unprocessed commodities (e.g. lumber,

concrete, and iron) seems to have declined, with a shift towards

materials with a higher value-added (aluminum, plastics, and composites).

Moreover, the number of materials in circulation has increased

dramatically. For example, an estimated 90,000 chemicals are now in

commercial use. 



       The health and ecological effects of this large quantity and variety

of materials are an increasing concern 19/. Once released into the

environment, chemicals may combine with other chemicals to form new

compounds, or degrade to other, potentially more harmful ones. Many

pollutants, for example heavy metals, are persistent in the environment

and can be stored in living tissue, accumulating in the food chain to

highly toxic concentrations 20/. The consequences of releases of

persistent or bioaccumulative toxic materials, heavy metals and

persistent organic pollutants (POPs) are subject to increasing

attention.



       The volume of municipal wastes in OECD countries has grown from

347 million tonnes in 1980 to 484 million tonnes in 1995 21/. Changing

consumer behavior (e.g. the shift to highly packaged convenience food),

economic growth, and the increase of single-person households are chiefly

responsible for this trend. 



       The amount of waste generated per capita in the OECD was 410

kg/capita in 1980 and 510 kg/capita in 1995. Figures show that about

1/2 - 2/3 of this amount is generated at the household level 22/. 



       The per capita municipal waste generation in industrialized

countries is about five times higher than that in developing countries,

although the latter is expected to double in volume in the current

decade 23/. With a few exceptions, OECD countries are now showing

significant improvements in waste recycling, in spite of the relative

weakness of markets for recycled products and the lack of reprocessing

facilities.



       In recent years, discussions about materials have focused on

material flows and "throughputs". Various research institutes,

including the Wuppertal Institute and the World Resources Institute, consider

the total material flow as a measure of environmental disturbance. The

reduction of material flows is therefore seen as a means for reducing

the pressure of human activities on the global environment. 



       Efforts have also been made to distinguish material flows on

the basis of criteria such as the spatial area affected by the flow and

the potential for environmental harm 24/.



       Several measures for assessing the economic intensity of

material flows have been developed. One such measure is the material input 

per unit service (MIPS), the material inputs necessary for the production,

distribution, use, redistribution and disposal of a given good,

considered with respect to the service provided to the end-user.

Another is the cost per unit service (COPS). Both were developed by the

Wuppertal Institute.



       The World Resources Institute (WRI) developed, in cooperation

with the Wuppertal Institute and several other organizations 25/, a

refinement of the MIPS,  entitled the "Total Material Requirement

(TMR)" of an industrial economy. The TMR measures the total use of natural

resources that national economic activity requires. 



       Measures such as the GDP do not include the movement or processing

of large quantities of materials that have no economic value. National

economic accounts fail to capture many activities with environmental

consequences, in part because the natural resources involved do not

become commodities that are bought and sold. In the countries studied by

the WRI (Germany, Japan, the Netherlands and the United States), the 

"hidden material flows" associated with extractive activities, harvesting

of crops, construction and dredging make up 55 to 75 per cent of the TMR.





       Policy challenges are:



-      To decrease intensities of material use in production and

       consumption;



-      To reduce the negative environmental and health effects of

       resource use; and



-      To progressively dematerialize consumption - defined as a

       reduction of anthropogenic material flows, or as a reduction in per

       capita use of materials.





       Important indicators are:





-------------------------------------------------------------------------

Indicator                               Comment

-------------------------------------------------------------------------

Intensity of        - Indicator for chapter 4 in the WPISD.

material use        - Monitors material use per unit of 

(tons/m3 per        production/service (for selected sectors).

unit of             - Can be used for measuring achievement of

production)         efficiency targets (e.g. Factor 4 or 10). 

                    - While interpreting this indicator, it should be

                    noted that the mix of materials changes over time,

                    so that the volume and impacts of these materials do

                    not necessarily stay the same.

                    - Data should be available in the short/medium term.

-------------------------------------------------------------------------

Production of       - For assessing fulfilment of targets for the

heavy metals,       reduction of the spread of dangerous and 

toxic chemicals,    environmentally harmful substances.

and persistent      - Monitors possible future health effects due to 

organic pollutants  POPs, toxic chemicals, and heavy metals.

(metric tons)       - Agenda 21 includes two chapters concerned with

                    these issues: chapter 19 (environmentally sound

                    management of toxic chemicals), and chapter 20

                    (environmentally sound management of hazardous

                    wastes).

-------------------------------------------------------------------------

Generation of       - For determining which sectors are major

solid waste by      contributors to solid waste generation, and for

sector (industry,   monitoring compliance with solid waste reduction

agriculture,        targets.

energy sector,      - Chapter 21 of the WPISD includes other important

households) (tons   indicators for monitoring waste volume and shifts

per capita per      in recycling and reuse of waste. Examples are:

annum)              Waste recycling and reuse, Generation of industrial and

                    municipal solid waste, and Household waste disposed

                    per capita.

                    - An alternative indicator for recycling and reuse

                    of waste is Material input flows avoided through

                    material recycling and reuse.

------------------------------------------------------------------------

Total Material      - Monitors total material input moved including

Requirement (TMR);  the hidden or indirect material flows required for

annual flows per    a national economy.

capita (metric      - The TMR is an indicator for the "macro" level, and

tons per capita)    can therefore be calculated at the national level.

                    - The TMR includes metals and industrial minerals,

                    construction minerals, infrastructure excavation,

                    renewables, and erosion. A considerable share of the

                    TMR is occupied by fossil fuels in some countries.

                    - TMR includes longer term investments in

                    infrastructure and buildings, and therefore goes

                    beyond "consumption". Special attention should be

                    paid to the way such investments are treated.

                    - Data should be available in the medium term. 

-------------------------------------------------------------------------





2.5.3    Water



       Worldwide water use is increasing steadily, and has nearly doubled

since 1960. Annual withdrawals reached a level of 4,138 km3 in 1990. Per

capita availability of freshwater worldwide fell from 17,000 m3 in 1950

to 7,300 m3 in 1995, primarily as a result of population growth 26/.

In developing countries, 70 to 90 per cent of water use is for

agriculture, against 39 per cent in developed countries. Water use for

industry and domestic consumption are considerably higher in high-income

countries 27/.





       There is heavy overuse of groundwater in a number of regions,

with water being pumped out faster than nature replenishes the stock.

Overpumping of groundwater has lowered water levels by tens of meters

in some places, making it increasingly difficult and expensive to pump

more water. Overuse of groundwater can have a serious effect on river

flows, and can result in sinking land above aquifers and lead to intrusion 

of salt water into aquifers near coasts 28/.



       Rivers, lakes, oceans, and underground aquifers are used as

waste-sinks. Water pollution originates from various sources, including

untreated sewage, chemical discharges, petroleum leaks and spills,

dumping in old mines and pits, and agricultural chemicals 29/. In many

areas, waste discharge has outstripped nature~s capacity to break down

wastes into less harmful elements, adversely affecting water quality

and posing risks to human health. 



       One billion people in developing countries still lack access to

adequate water supply, while 1.7 billion people lack adequate

sanitation facilities 30/. 



       Finally, water resources also host fish resources (Box 6), the

supply of which crucially depends on water quality and quantity. 





-------------------------------------------------------------------------

           Box 6 - The role of Fish in the world's food supply 



     Marine and inland fish resources are an important component of the

world's food supply. About 950 million people, mostly in developing 

countries, rely on fish for their primary source of protein. The

marine catch (representing about 78 per cent of the total) rose nearly 

five-fold between 1950 and 1989. It has dropped slightly since then, 

but the total catch has continued to rise thanks to expanded aquaculture

production.  According to a recent study, about 35 per cent of the world's

major fisheries now have declining yields, about 25 per cent are at high 

levels of exploitation, and 40 per cent still have a potential for

yield increase. 



     The main concerns in the fisheries sector are fish depletion and 

species extinction because of over exploitation, inappropriate fishing

methods, water pollution and the construction of dams. Aquaculture can

also cause environmental problems, such as salinization, pollution of 

ground and surface water, and mangrove depletion.

--------------------------------------------------------------------------





       Policy challenges are:



-      An integrated approach to water policy making, including quality

       issues (i.e. to reduce pollution of water resources, contributing

       to a solution of the water scarcity problem) and quantity issues 

       (so that the lack of water does not become a major constraint on

       development);



-      To improve the efficiency of water use in the agricultural sector

       (particularly through improved irrigation techniques and

       management), industry, and households;



-      To allocate water more rationally among users; and



-      To avoid depletion of fish stocks.





       Key indicators are:





-------------------------------------------------------------------------

Indicator                              Comment

-------------------------------------------------------------------------

Annual withdrawals  - Indicator for chapter 18 in the WPISD.

of ground and       

surface water (as % 

of available water 

supply) 31/           

-------------------------------------------------------------------------

Water availability  - Currently, no internationally agreed definition of

per capita (m3 per  water availability exists.

year)               - Water availability per capita can vary from one

                    region to another, and is therefore of less relevance

                    at the national level. The significance of the

                    indicator would be increased, if disaggregated by

                    regions, such as watersheds. 

                    - Indicator can be related to indicators for water

                    demand per capita and for water supply per capita.

-------------------------------------------------------------------------

Intensity of        - Monitors efficiency of water use for selected

water use           sectors (e.g. several industrial and services 

(m3 per unit of     sectors).

production)         - In using the above indicator of annual withdrawals

                    of ground and surface water as percentage of

                    available water supply (particularly if disaggregated

                    locally), one can decide if the intensity of water

                    use of particular sectors is sustainable, and

                    identify priority sectors for water conservation

                    (given country-specific characteristics such as

                    financial coping capability 32/).

                    - Indicator for residential water use per household

                    is included under buildings and housekeeping.

                    - Can be used for measuring achievement of targets

                    requiring quantified water productivity increases.



                    - Data should be available in the short term. 

-------------------------------------------------------------------------

Sectoral            - Indicator for determining major contributors

contribution to     to water pollution. 

water pollution     

(nutrients)         

(industry,          

agriculture,        

households)         

(per capita)    

-------------------------------------------------------------------------

Access to safe      - Indicator for chapter 6 in the WPISD.

drinking water      - Approximation of the potential for health effects

(% of population)   due to polluted drinking water.

-------------------------------------------------------------------------

Stock of marine     - Indicator for chapter 17 in the WPISD.

species relative    

to stock for 

maximum 

sustainable yield 

(%)    

-------------------------------------------------------------------------





2.5.4                Land



       Land resources contribute not only to agricultural and forest

production, but also to renewable energy and biodiversity stocks and

water resources. Both the quantity and quality of land resources are

important as a measure of the ability of land resources to fulfil

economic, social and ecological functions 33/. 



       One of the important functions of land is to ensure food security,

a function that is threatened by shifts in land use towards urbanization,

infrastructure, and the provision of non-food products and services (e.g.

recreation, paper, fibers, biomass energy); and by unsustainable

agricultural practices. Land is an increasingly scarce resource,

fulfilling a large variety and an increasing number of vital and

competing functions.



       At present, slightly less than 1.5 billion ha of arable land is

in use, currently about 0.28 ha per capita 34/. Each year, an estimated

0.5 to 1 percent of arable land is lost due to desertification, erosion,

or salinization and once degraded, soil is often impossible to

rehabilitate.



       Demand for food production has led to a steady increase in

cropland. By the early 1990's, almost 40 per cent of the Earth's land 

surface had been converted to cropland and permanent pasture, largely 

at the expense of forests and natural grassland. The most dramatic changes 

are occurring in developing countries, where it is estimated that from 

1960 to 1990, one fifth of all natural tropical forest was cleared for

cultivation. 



       Agricultural practices can cause a wide variety of environmental

problems, depending on geographical factors, soil type, and the scale or

intensity of the activity. Intensified agriculture can result in

pesticide and fertilizer contamination, soil erosion, soil and water

pollution, and biodiversity loss.



       Conversion of land from forest to agriculture is expected to

continue: recent estimates suggest that nearly two thirds of tropical

deforestation - some 12 million hectares per year - is due to farmers

clearing land for agriculture 35/. Deforestation is a major threat,

since forests are not only an important source of goods and services,

but also valuable as regulators of global climate, as repositories of

species, and as protectors of soil and water resources. 



       In 1990, forests and other wooded land covered 5.1 billion ha,

about 40 per cent of the earth's land area. Between 1980 and 1990, the

world's forest and other wooded land area declined by 2 per cent - or 100

million hectares 36/.





-------------------------------------------------------------------------

                    Box 7 - Ecological Footprint



     In order to illustrate the unequal worldwide consumption of

the goods and services deriving from land resources, Rees and

Wackernagel (1994) developed the concept of the "Ecological

Footprint". The latter can be defined as the area of land

required by a given group of people (household, city, or country)

to provide the goods and services it consumes, and to assimilate

its waste products, wherever that land may be located. 



     For example, it was reported by researchers that the

aggregate consumption of wood, paper, fibre, and food by the

inhabitants of 29 cities in the Baltic Sea drainage basin

appropriated an ecosystem area 200 times larger than the cities

themselves. In another study, it was estimated that London's

ecological footprint for food, forest products, and carbon

assimilation occupied 120 times the surface area of the city

proper (Rees, "Reducing the Ecological Footprint of Consumption",

1995). 

----------------------------------------------------------------------





       Policy challenges are:



-      To maximize the productive uses of land, including provision of

       renewable and non-renewable resources, urban space, industrial

       estates, infrastructure, critical natural ecosystems and recreation,

       with multiple uses where possible;



-      To halt and reverse land degradation due to erosion,

       desertification, salinization, deforestation, and other causes;



-      To reduce environmental damage due to intensified agricultural

       practices; and



-      To establish stronger links between land use planning policies

       and other policies.



       Possible indicators are:





-------------------------------------------------------------------------

Indicator                                Comment

-------------------------------------------------------------------------

Land use (per     - Monitors land use (including forestry,

capita and as     agriculture, settlements, infrastructure, recreation),

% of total land   and changes in land use patterns.

area)             - Strong links exist with the transport sector, in

                  particular in the area of spatial planning for

                  transportation infrastructure in urban areas (see

                  2.6.1).

                  - Data should be available in the short term.

-------------------------------------------------------------------------

Land use change   - Indicator for chapter 10 in the WPISD.

(% change of      - The above indicator, if measured at different time

each category     intervals, will provide similar information.

of land use to    

another land      

use per unit      

of time)          

-------------------------------------------------------------------------

Changes in land   - Indicator for chapter 10 in the WPISD.

conditions (the   - Changes are disaggregated by type and geographic

extent and        location, and in the condition, suitability, and

magnitude of      nature of the land resource.

improvement and   - Strong links exist with the transport sector, in

deterioration in  particular in relation to increases in fragmented areas

land condition    and impervious surfaces (see 2.6.1).

changes)          

-------------------------------------------------------------------------





2.6    Indicators for consumption clusters



       In order to develop and implement the most effective policies for

making consumption and production patterns more sustainable, policy

makers need to know why and how consumers and producers make choices and

decisions. Understanding these decision making processes will indicate

the most effective  leverage points for policy design. In combination

with information on resource use, data on how consumers and producers

fulfil needs and functions is essential.



       Consumers can find various ways to fulfil their needs. The need for

mobility or access, for example, can be satisfied by taking a bus, a

train, private car, bicycle, or by walking. The demand for communication

can be satisfied, in some cases, by taking these modes of transportation

(thereby also satisfying the demand for mobility), but also by means of

a telephone call, or by sending a message through electronic mail.



       As mentioned in section 2.4, policy makers have become more

interested in the motivations behind consumer behavior, such as saving

time, saving money, following fashion trends, or enjoying life. These

motivations, however, are difficult to measure. Several "consumption

clusters" are considered here, with consumer "needs" and functions as a

basis. The clusters selected include mobility, consumer goods and

services, buildings and housekeeping, food, and recreation. 



       While comments are made for each cluster with regard to

possible motivations behind current consumption trends, the focus is on

measurable aspects of these trends and on the potential for changing to more

sustainable consumption patterns ("lifestyles"), without reducing the

satisfaction or quality of life of the consumer.





       The indicators listed under the consumption clusters reflect

current consumption patterns, their main direct or indirect effects on

resource use and the environment, and indications of shifts in these 

patterns towards more sustainable ones.



       Sometimes, more sustainable consumption patterns can be

achieved through a shift to communal activities or from buying products to

services (e.g. the use of public transport instead of private cars, or

the use of a laundry service instead of buying a washing-machine).

Alternatively, a consumer can choose a good or service produced or

provided in a more sustainable manner than a competing product or

service on the basis of an eco-label. A recent UN report, "Unlocking Trade

Opportunities", illustrates this with case studies, in particular

where developing country producers have been able to benefit from new export

opportunities 37/. Consumers, producers, and the retail sector can

also enhance sustainable consumption by extending product life, and

reducing resource waste through increased use of product repair and exchange

services 38/.





2.6.1    Mobility



       Motor vehicle stocks increased by about 50 per cent in OECD

countries over the period 1980-1995, while the worldwide increase has

amounted to 57 per cent. The number of passenger cars in use increased

by about 47 per cent in OECD countries, and road traffic volumes (of

motor vehicles) increased by about 84 per cent over the same period of

time 39/. Vehicle stocks have also increased in many developing

countries. In China, for example, the number of passenger vehicles

almost tripled between 1988 and 1994, and the number of trucks increased by

76 per cent over the same period 40/. Between 1960 and 1990, world wide

air transport increased ten-fold, and the sector is still rapidly

growing 41/. Current trends also show that the energy intensity in the

transportation sector is increasing, especially due to increasing use

of planes, high-speed trains, and larger and heavier vehicles.



       Energy consumption and CO2 emissions are among the most serious

of the many traffic-induced environmental problems. The sector also

contributes substantially to other types of air pollution, particularly

nitrogen oxides, sulphur dioxide, volatile organic compounds, small

particles and smog. The extent to which the transportation sector

contributes to air pollution depends on the size, type, and efficiency

of the vehicles used. The sector can also have important effects on the

quality of life, for example, through the generation of noise,

congestion and accidents. As was mentioned in section 2.5.4, increased 

traffic and transport infrastructure can also strongly affect land 

quality and land use, e.g. through the fragmentation of land and 

increases in impervious land surfaces. 



       In the transport sector, energy efficiency gains are being

offset by volume increases. Technological developments, such as catalyc

converters or improved energy efficiency, have are not been sufficient

to reduce environmental damage arising from transportation.

 

       Land use planning, combined with regulatory, social, and

pricing measures, including transport prices that also reflect environmental

and social costs, are necessary to move toward more sustainable

transportation systems.



       The car represents more than merely a means of transport. For

some, car ownership reflects social status, for others, a sense of freedom

or privacy. Motivations behind the choice of taking the car rather than

using public transport are also more complex than simply the need for

mobility, or the price of gasoline as compared to the price of a bus-

or train-ticket. More knowledge about the complex reasons underlying

transport behavior is needed for policy making in the transportation

sector.



       In the era of the "information super highway", new means of

communication and an improved communication and information

infrastructure can affect the use of transportation. Activities such

as teleworking, teleconferencing, teleselling and teleshopping, for

example, can reduce the need for mobility. Rapid developments in this 

area may well benefit policy making targeted at reducing the environmental

impacts of mobility. However, increased communication also appears to

stimulate increased travel for business and leisure. The identification 

of the consequences of information technologies deserves increasing

attention.



       Another important aspect of transportation that is important

for changing consumption and production patterns (particularly of food and

consumer goods) is freight transport. The shipment of products or

commodities over very long distances for processing, assembly, and

distribution is not efficient from an environmental perspective.

Further work in this area is needed to address the key freight issues for

policy makers (e.g. the price of gasoline).



       Policy challenges are:



-      To shift towards more energy and material efficient technologies and

       practices in the transport sector through spatial planning, urban

       design, and by enhancing the capacity of existing infrastructure;



-      To reduce the need for travel and transport; and



-      To increase understanding of the motivations behind choices of means

       of transportation.



       Agenda 21 has no chapter on transport. As a result, the WPISD only

includes one indicator directly related to the sector (Per capita

consumption of fossil fuel by motor vehicle transport, under chapter 7). 



       Therefore, discussions on indicators for chapter 4 provide an

opportunity to consider indicators for transport, in particular those

that concern travel behavior. In selecting additional indicators for the

transport sector, attention should be given to the considerable work that

was already carried out in this area, both at the national level and

through international organizations.



       The most important mobility related indicators for decision makers

are concerned with travel mode (including fuel-efficiency, size, and

environmental impact of types of vehicles), distance traveled,

frequency of travel, and the time individuals spend traveling.



       Important indicators are:





-------------------------------------------------------------------------

Indicator                               Comment

-------------------------------------------------------------------------

Number of road    - Monitors the total number of vehicles, and 

vehicles (total   motorization.

and per capita)   - The indicator should be broken down into types of

                  vehicles, and into categories reflecting 

                  fuel-efficiency of vehicles (gas-mileage). Vehicles

                  could also be classified on the basis of atmospheric

                  emissions generated.

                  - OECD indicator for the integration of environmental

                  concerns into transport policies.

                  - Data should be available in the short term.

-------------------------------------------------------------------------

Distance          - Monitors the use of different modes of transport

traveled per      (foot, bicycle, train, boat, car, bus, plane).

capita by mode    - More detailed indicators for monitoring transport

of transport (km) are: Average distance from home to super-markets,

                  Average distance home-work, or Average distance

                  traveled from home to collect fuelwood. These

                  indicators should include indicators for frequency of

                  travel and voluntary trips as opposed to necessary

                  trips. 

                  - Data should be available in the short/medium term.

-------------------------------------------------------------------------

Atmospheric       - Indicator used by the OECD.

emissions of      - For monitoring compliance with CO2, NOx, and VOC 

pollutants from   reduction objectives.

the transport     

sector (tonnes    

per unit of       

GDP or per capita)

-------------------------------------------------------------------------

Freight traffic   - Monitors freight volume and reflects environmental

by mode of        impact.

transport         - Total volume and changes in freight traffic by

(tonne-km per     mode of transport are directly linked to energy price,

capita)           geography, and infrastructure. However, international

                  freight traffic may be difficult to address at the

                  national level under the umbrella of "changing

                  consumption and production patterns".

-------------------------------------------------------------------------

Per capita        - Indicator for chapter 7 in the WPISD.

consumption of    

fossil fuel by    

motor vehicle     

transport         

(liters)          

-------------------------------------------------------------------------

Fuel price        - Indicates extent of cost internalization in the

taxation (by      transport sector. 

fuel type) (% of  - Other policy indicators relating to mobility are:

fuel price)       Subsidies for public transport, and Ratio of public to

                  private public transport in urban areas. 

-------------------------------------------------------------------------

Number of         - Monitors the potential for electronic communication.

computers per     However, while computer use can in theory replace 

1000 inhabitants  travel, empirical evidence confirming this is currently

and/or            lacking. Further work on the impacts of factors such

connections to    as telecommuting and electronic commerce is needed.

the internet            

-------------------------------------------------------------------------





2.6.2                Consumer goods and services



       Consumers need and want goods and services for eating, cleaning,

dressing, home decorating, leisure activities and for numerous other

purposes. The choice of replacing an old product by a new one can be made

because the old product cannot be repaired or reused, for reasons of

aesthetics or fashion, for convenience, or because the product is

considered obsolete from a technical standpoint. Consumer goods and

services, and trends in their production, delivery, design, durability,

and disposal are a major factor in sustainable development in both the

developed and developing world.



       Goods purchased by consumers range from tools and appliances,

clothing and footwear, and toiletries, to cosmetics, books, and

furniture. In 1993, world wide production of shoes amounted to about 4

billion pairs, that of bed linen to about 700 million units, and that of

washing powders and detergents to 13 million metric tons. In the same

year, the worldwide production of hardware was estimated at about

750.000 metric tons, that of sewing machines at 15 million units, and 

that of washing machines for household use to about 45 million units 42/.

Production volumes of most consumer goods are increasing. The annual

growth in the world production of refrigerators for household use, for

example, was 3.4 percent from 1984-1993, and of fabrics 2.8 per cent.



       Consumers directly and indirectly contribute to environmental

effects throughout a product~s life-cycle. Direct energy consumption

is particularly high for products for lighting, heating and cooling

homes, and for cooking and storing food. In many OECD countries, the number

of products using electricity in the household is still rising, and

consumers increasingly buy both second pieces of equipment (e.g. a

second television set) and new types of products they did not own before

(e.g. micro-wave ovens) 43/.



       Another consumer good involving direct consumer impacts on the

environment in the use and disposal phases, and indirectly in the

production phase, is paper. The pulp and paper industry is not only the

major worldwide consumer of wood (the industry uses roughly one third of

the global industrial wood harvest - excluding fuelwood), but it ranks

third in terms of financial turnover and in the top 10 industries that

emit greenhouse gasses (carbon dioxide and methane). Moreover, when

paper is bleached with chlorine gas, highly toxic dioxins can be released

into the environment (Box 8).





----------------------------------------------------------------------

                Box 8 - Distribution of Paper Use



     Paper use reflects economic development. Current paper

consumption  (1993) in developed countries is 152 kg per person per 

year, and in developing countries only 12 kg per person per year. The 

amount of paper used reflects demand for paper for reading and writing,

especially in developing countries. More than a billion adults are still

illiterate and over 100 million children worldwide receive no primary

education.  The demand for pulpwood for paper is expected to double 

in the next 50 years (WBCSD, "A Changing Future for Paper," 1996).

-----------------------------------------------------------------------





       Media and advertising have an important impact on the purchase

of goods and services 44/. Advertising in particular strongly affects

motivations underlying consumption trends and therefore plays an

important role in shaping consumption and production patterns.



       Several studies indicate that consumption and production patterns

can be made more sustainable by substituting certain services for goods

with the same function fulfilled (e.g. clean clothes or a cut lawn) with

less environmental impact and increased quality of life 45/. According

to recent analyses by the business community, customers~ long-term

loyalty seems to be geared towards a service offered rather than to the

provision of a product 46/. 



       In some cases, purchasing services can be environmentally

preferable compared to the purchase of corresponding products. Reduced

environmental impacts have been documented for services like dining in a

restaurant, providing floor-covering, employing a decorating firm, or 

using a laundry service, as opposed to eating at home, or buying carpeting,

do-it-yourself equipment or a washing machine.



       Policy challenges are: 



-      To reduce energy and material inputs relative to the service

       provided to the consumer, thereby minimizing negative

       environmental impacts resulting from production, distribution, 

       use, and disposal;





-      To extend the length of product life and to optimize product

       design for durability, repair, remanufacturing, and recycling;



-      To encourage reuse, repair, remanufacturing, and recycling of

       products by promoting repair and exchange centers, or the sorting

       and composting of waste; 



-      To stimulate the production and consumption of environmentally

       preferable consumer goods, e.g. through the use of eco-labels;



-      To encourage shifts from goods to services with clear

       environmental, social, and economic benefits; and



-      To increase understanding about the factors that influence

       purchase and disposal of consumer goods, and about the role of 

       media and advertising in shaping consumption patterns. 





       The most important information that policy makers concerned

with more sustainable goods and services need is data and indicators on

trends in sales of selected consumer goods and in shifts towards more

sustainable behavior of consumers and producers, the average length of

product life, and the role of marketing and advertising. 





       Possible indicators are:





------------------------------------------------------------------------

Indicator                             Comment

------------------------------------------------------------------------

Retail sales of   - Monitors retail sales of electronics,

of selected       home-appliances, and clothing.

goods per         - Interesting areas for further research are more

capita (total     detailed studies on indicators of material throughput

expenditure or    and the energy intensity of selected durable and 

in physical       non-durable consumer goods.

terms)            - Depending on the product category, the indicator can

                  be expressed in terms of total expenditure or in

                  physical terms (volume).

                  - Short term/medium term data-availability.

------------------------------------------------------------------------

Average length    - Monitors durability of selected consumer goods.

of product life   - More work is needed on this type of indicator.

for major         Product lifetime can be an ambiguous indicator, in part

consumer          because new products can be better than older products 

durables (e.g.    from an environmental perspective (more efficient and

refrigerator,     cleaner). Also, the lifetime of a product can be 

washing-machine,  influenced by fashion, which is hard to distinguish

TV, car)          empirically from the -technical lifetime~ of the product.

                  - Attention should be given to the environmental

                  effects of the product throughout its life-cycle. 

                  - Alternative indicators are: Actual product lifetime

                  as compared to technical lifetime, Guarantee period of

                  a product, and Frequency of model change.

-------------------------------------------------------------------------

Market share of   - Monitors social and environmental interest and 

more sustainably  awareness of consumers and producers. 

produced goods    - Indicator needs further development. It might cover

and services (%)  the following groups of goods and services:

                    1. Environmentally friendly (or preferable) products,

                       including eco-labelled products;

                    2. Reused and recycled products;

                    3. Services replacing products while generating

                       positive environmental effects.

-------------------------------------------------------------------------

Per capita        - Reflects potential for less paper-intensive 

paper             communication. 

consumption 47/   - Relates to water pollution and waste volume.

                  - Might be supplemented by indicator of paper

                  recycling. 

                  - Indicator reflects development. 

-------------------------------------------------------------------------

Advertising       - Indicator of role of media and advertising in shaping

indicator         consumption and production patterns.

(to be determined)- The role of advertising in influencing lifestyles,

                  both in industrialized and in developing countries,

                  requires more attention for assessing the impact of

                  advertising in stimulating more or less sustainable

                  consumption, and for analysing the opportunities that

                  advertising gives as a tool in policy making. 

------------------------------------------------------------------------

Private final     - For measuring trends in private consumption levels.

consumption       - Increasing/decreasing expenditure on certain product

expenditure       groups indicate changes in consumption patterns.

(index and by     - This indicator is of relevance for other consumption 

product group)    clusters as well.

-------------------------------------------------------------------------

Public final      - Indicator of the level of public consumption.

consumption       - May be compared to total consumption (public and

(total)           private).

-------------------------------------------------------------------------





2.6.3                Buildings and housekeeping



       Housekeeping, i.e. the use and management of commercial and

residential buildings, requires energy for heating, cooling, lighting,

food storage and preparation, washing and other functions. It also

involves a significant consumption of water and of construction

materials. Choices with regard to the type of materials and the

quantities of energy and water used can be made on the basis of cost-

considerations, the availability of and information about alternatives,

and incentives to use them. Similar choices and considerations intervene

when a new building is constructed.



       The outcomes of these choices and decisions can be measured by

tracking trends in commercial and residential energy use, in the

production and use of energy and water saving devices, and in the use

of environmentally friendly materials.



       Approximately 36 per cent of world primary energy is consumed

by commercial and residential buildings, while levels of use are

substantially higher in industrialized countries. In both residential

and commercial buildings, the growth rate of energy use in developing

countries (respectively 5.7 and 6.7 per cent per year) has surpassed

that in industrialized countries (respectively 1.4 and 2.6 per cent per

year) in recent years 48/. Energy use in residential buildings is about

twice that of commercial buildings worldwide, though the energy demand in

commercial buildings has grown more rapidly than demand in residential

buildings for the past two decades 49/. 



       In industrialized countries, population increase, decreasing

household size, and an increased demand for various residential services

such as air conditioning, appliances, and space and water heating have

contributed to an increase in energy use in residential buildings. 



       In developing countries, higher incomes, urbanization and

population growth, and the shift away from traditional fuels are major 

factors leading to higher demand for commercial energy in the residential

sector 50/. Some of the above factors, in combination with an increase

in the demand for services such as electric heating, computers, and

other office equipment have contributed to growth in energy use in

commercial buildings, both in industrialized and developing countries.



       The technical potential for energy efficiency improvement in

residential and commercial buildings is considerable (estimates for

the United States range from 27 to 48%, for some European countries

between 42 and 76%, and for some developing countries from 31 to 56 

per cent) 51/.



       One way of enhancing energy-efficiency in residential and commercial

buildings is the use of more efficient technologies and practices for

buildings, including proper orientation, adequate insulation levels,

high-quality windows, and building management and control systems 52/.

In developing countries, ample room exists for efficiency improvements

in connection with electricity use, e.g. for lighting and refrigeration.

Examples from the noncommercial sector are the improvement of the

efficiency of traditional appliances such as wood or kerosene stoves 53/.



       Energy consumption in residential and commercial buildings also

depends on consumer behavior, including, thermostat settings, frequency

of use of appliances and equipment, use of lighting, and use of windows

and outside doors. Consumers can sometimes also decide to switch to

alternative energy sources, such as solar photovoltaics, wind power, or

ethanol fuel. The use of solar-cookers is an example from the alternative

energy sector in developing countries. Consumer education as to ways to

conserve energy and reduce energy bills can assist in reducing energy

consumption.



       The residential and commercial sectors are modest users of water,

accounting for roughly 10% of current global consumption (see 2.5.3). In

many OECD countries, the magnitude of household water use has remained

stable since the end of the 1980s. However, demand is rising in some

countries, in particular in countries experiencing rapid urbanization.

In most cases, personal hygiene requires the highest amount of water.

Important issues are an improved assessment of water use and water

consumption needs, and better housekeeping involving the correction of

inefficiencies in water delivery and use. Improvements in water using

appliances can also contribute to water conservation.



       The housing sector uses building materials and generates waste.

Much progress can still be made in diminishing the use of environmentally

unfriendly and unhealthy materials and products (e.g. paints, stains,

and adhesives containing VOCs), and the generation of waste, for example

through the use of more durable and long-lasting materials (e.g.

ceramic floors), in order to minimize future replacement. 



       Measures aimed at increased use of collective facilities (e.g.

collective laundries) can also contribute to resource conservation.

House-keeping measures for the avoidance of waste are also important. 



       Even though this section has mainly focused on resource consumption

in residential and commercial buildings, the choices households and

commercial entities face prior to occupying a building are also of

interest to policy makers.



       For example, households and companies need to select an appropriate

location. The location of a building relative to transportation

facilities and to energy distribution and communication grids can have

an important effect on the types and amount of resources consumed. The

extent to which shops, means of public transportation, schools, and

other important facilities are accessible in turn determines a whole range

of other choices, including those related to mobility. The increased

integration of environment and sustainability in spatial planning and

decision making provides many opportunities for policy makers in

developing more sustainable housing.



       Decisions are also taken with respect to purchasing or renting

an existing house or building or constructing a new one. Financial and

other considerations play a role here. Control over architecture, design,

and decoration increases when the decision to construct a new building is

made. Considering the life-span of a house, decisions made at the

drawing board on design and material use have large impacts on the degree of

sustainability of housing facilities.





       Policy challenges are:





-      To increase understanding of the motivations underlying housing and

       house-keeping choices;



-      To enhance the efficiency of energy and water use in housing by

       using more efficient technologies and practices for buildings, by

       improving housekeeping, and by increasing, where possible, the use

       of renewable energy sources; 



-      To integrate environmental considerations in architecture and the

       design of homes and appliances; and



-      To increase the use of low-emission, less toxic and durable

       materials and products, and to minimize waste by using recyclable

       materials.





       Key indicators are:



-------------------------------------------------------------------------

Indicator                          Comment

-------------------------------------------------------------------------

Residential energy   - Monitors total water and energy use in

and water use per    households due to consumer behavior, housing

household (toe       equipment, and housing design and construction.

and liters)          - Closely linked to indicators for intensity of 

                     water use (See section on Water - 2.5.3) and 

                     energy consumption (See section on Energy - 2.5.1). 

                     - Chapter 18 of the WPISD includes the indicator

                     Domestic consumption of water per capita. 

                     - In developing countries, particularly in rural

                     areas, where there is inadequate access to clean

                     water and commercial energy, it may be desirable to

                     increase residential water and commercial energy

                     consumption. 

                     - Data should be available in the short term. 

-------------------------------------------------------------------------

Average household    - Monitors the number of persons per household.

size (number of      - Data should be available in the short/medium

term.

persons)       

-------------------------------------------------------------------------

Use of recycled      - Monitors trends in more sustainable

construction.

materials in         - Close links exist with sections 2.5.2

(Materials)

construction (%)     and 2.6.2 (Consumer goods and services). 

-------------------------------------------------------------------------



2.6.4                Food



       Apart from the fact that food fulfils basic nutritional needs,

the consumption of food is intertwined with cultural habits and values,

and culinary tastes and preferences. The choice of where one eats, for

example at home or in a restaurant, is determined by similar motivations,

together with time-availability for unpaid work and financial

considerations. If the consumer prepares food at home, preparation-time,

taste, availability, food price and quality, household-size, and health

become important factors for selecting food-products. 



       Food consumption patterns contribute to environmental problems

through energy and chemical use, intensified land use, and waste

generated in the food production processing industry. 



       Food consumption patterns such as high consumption of meat and

dairy products, elaborately packaged products, intensively grown produce, 

or frozen foods have environmental consequences, and may contribute to

problems such as acidification, water pollution, climate change, and

waste generation. Moreover, as was already mentioned in section 2.6.1,

transport of food products over long distances can have significant

environmental impacts. 



       Dietary preferences tend to change with increasing income in

favor of meat and dairy products, which require much more land than grains

and vegetables. Land in developing countries is now increasingly being

used for growing grain feed, fodder and forage for livestock in order to

export meat to industrialized countries.



       Most consumers in industrialized countries can now enjoy a wide

variety of food from all over the world at all times of the year, and

the demand for semi- or fully prepared meals has risen 54/. Food

processing can contribute to environmental problems. For example, energy use

for fish processing increases when the fish is frozen. Frozen food

generally has a high energy requirement for freezing and for keeping frozen

until it is consumed.



       An increasing number of consumers are interested in food produced

with more environmentally friendly agricultural practices allowing for

a reduced use of chemical fertilizers and pesticides (e.g. integrated

pest management). Though it may not be possible to extend the area used

for organic agriculture and other more environmentally sustainable

practices substantially, the potential for extending such practices could

be assessed. Developing countries can benefit from shifts towards an

increased demand for organic agriculture by increasing their exports of

organic agricultural commodities such as coffee and fruit 55/.





       Policy challenges are:



-      To increase understanding of the underlying reasons for trends

       in food consumption;



-      To shift demand toward more resource-efficient foods;



-      To encourage the consumption of food grown with a minimum of

       environmentally harmful fertilizers or pesticides; 



-      To stimulate the market for more sustainably produced foods, in

       particular from developing countries; and



-      To minimize waste generation resulting from food consumption.





       Key indicators are:



-------------------------------------------------------------------------

Indicator                                Comment

-------------------------------------------------------------------------

Daily caloric   - Monitors the average caloric intake per capita.

supply per      - Indicator can be specified for specific groups

capita          in the society with different per capita incomes.

(Calories/      - The WPISD includes two indicators for chapter 6

capita/         (promoting human health), that are of relevance for 

day)            food consumption: Proportion of potentially hazardous

                chemicals monitored in food, and Nutritional status of

                children.

-------------------------------------------------------------------------

Market share    - Monitors social and environmental interest and

of more         awareness of consumers and producers.

sustainably     - Alternative indicators suggested during the Workshop

produced food   on indicators for chapter 4 were: Share of resource

(%)             intensive food production, and Share of food from

                resource intensive production.

                - Indicator needs further development. The indicator

                might follow a sliding scale of more sustainably produced

                food, and might be measured through labels and product

                information. It should be a rough estimate of market

                share without requiring agreement on a precise definition

                of sustainably produced food. It can therefore include

                organically produced food and food produced with more

                environmental, social, and economic benefits than its

                shelf counterparts.  

                - The WPISD includes two indicators for chapter 14

                (promoting sustainable agriculture and rural

                development): Use of agricultural pesticides, and Use of

                fertilizers.

-------------------------------------------------------------------------





2.6.5                Recreation



       Leisure and recreation involve different types of activities,

including travel, staying in hotels and resorts, skiing, sailing,

fishing, reading, watching TV, camping, and motor touring. The trends in

the types of activities undertaken depend on factors such as available

income, time, cultural background, and personal preferences. 



       The determining factors driving consumer choice and behavior in

leisure activities are rarely included in policy analyses. In order to

measure trends and track effectiveness of policy implementation, data on

what portion of the day is taken up by work, un-paid work, and leisure

is important. 



       In addition, the percentage of disposable income spent on leisure

goods and services also gives policy makers a reading of the perceived

need for leisure, and the importance attached to leisure as part of a

consumer's day.



       Leisure activities have differing degrees of environmental impacts.

These impacts can either be caused directly by the activity itself (e.g.

jet-skiing, hiking, golf, skiing), or more indirectly by the need for

travel to remote destinations.



       Certain types of recreation activities have a potentially positive

effect on the environment, and tend to improve the broader social and

economic aspects of sustainable development. Eco-tourism, hiking, and

wildlife safaris, for example, have increased the demand for nature

conservation and enhanced environmental planning and management, often

providing income for local populations. The largest and most serious

negative environmental impacts are due to growth in air and car travel

to holiday destinations, and the growth in mass tourism causing water

pollution and land degradation, particularly in coastal zones.



       Some trends in developed countries indicate that an increased

per capita disposable income combined with limited time available for

leisure can lead to farther and faster travel to leisure destinations. 



       Travel and tourism has become the world~s largest industry,

accounting for over 10 percent of world economic activity and providing

direct or indirect employment to over 250 million people. It is one of

the fastest growing economic sectors, with international tourist

arrivals growing by 5 per cent each year. In 1996, the World Tourism

Organization estimated that international arrivals worldwide reached almost

600 million. It is estimated that this figure will increase by over 50% by

2010 56/.



       At present, 15 of the top 20 countries in terms of tourist

revenues are developed countries (representing 60 per cent of the total

market). The five leading tourism destinations in developing countries in

terms of numbers of international arrivals are the Caribbean, China,

Malaysia, Mexico, and Turkey, with about 11 per cent of the income share 57/. 



       Two broad types of tourism can be distinguished: mass tourism,

which makes up the bulk of today's industry and is characterized by package

arrangements, and alternative tourism, including trekking, hiking,

diving, and bird and animal watching. 



       Though alternative tourism is growing at 5 to 10 percent per

year, the World Tourism Organization estimates that the maximum share of

alternative tourism achievable is 10 percent 58/. Even though

alternative tourism activities, and in particular the sub-set "eco-

tourism", are generally less harmful for the environment than mass

tourism, the goal of sustainable tourism applies to both categories. 



       Eco-tourism may not only be more sustainable than mass tourism,

but can also provide revenues for maintaining areas of particular

environmental importance. Carefully managed tourism to habitats with

unusual wild animals or plants or other special characteristics can be

crucial to providing the financial resources for preserving those

habitats.



       Policy challenges are:



-      To understand the factors and motivations determining the time

       and money spent on various leisure activities;



-      To minimize resource degradation and pollution from leisure and

       recreation activities by improving resource management and

       spatial planning, and providing adequate facilities and consumer

       information; 



-      To encourage recreation activities that are less harmful for the

       environment; and



-      To develop eco-tourism and nature-based tourism, which can provide

       financial support for local populations and the conservation of

       natural resources and biodiversity.



       As in the case of the transport sector, it should be noted that

Agenda 21 has no separate chapter on tourism and/or recreation.

Therefore, the WPISD only includes one indicator that could be related

to the effects of recreation on the environment, i.e. Protected area as

percent of total area (chapter 15, conservation of biological diversity).

Tourism is, however, one of the 15 programme areas of the Programme of

Action for the Sustainable Development of Small Island Developing

States.



       Policy making on this issue needs additional analysis and should

address in particular aspects of resource intensity for selected

recreation activities. Currently, it seems most important for policy

making to have information on time and spending on recreational and other

activities. This information would help to determine where to apply

measures most effectively.





       Important indicators are:



-------------------------------------------------------------------------

Indicator                            Comment

-------------------------------------------------------------------------

Contribution of    - Indicator for the dependence of the economy

tourism/           on revenues from tourism/recreation, and possibly

recreation to      of the vulnerability of both the economy and the

the economy        environment to fluctuations in tourism/recreation

(revenues from     activities.

tourism/           

recreation as      

percentage of GDP)  

-------------------------------------------------------------------------

Time spent on      - Monitors time-allocation and distribution,

leisure, paid and  and reflects lifestyles.

unpaid work, and   - See also 2.6.1 (Mobility).

traveling (hours   - The policy application of this indicator needs 

per capita per     further development. 

day)               Interesting areas for research are the relationship

                   between time spent on particular activities and

                   lifestyles, consumer satisfaction, as well as the

                   distribution of work.

                   - Short term/medium term data-availability. 

-------------------------------------------------------------------------

Spending on        - Monitors the demand for recreation activities.

recreation as      - Short term/medium term data-availability.

percentage of 

disposable 

income (%)            

-------------------------------------------------------------------------

Land used for      - Is included in the land use indicator (2.5.4).

recreation 

purposes as 

share of total 

land area     

-------------------------------------------------------------------------

Site stress        - The indicator or index could include, for selected

indicator/index    important recreation and tourism sites, indicators of

                   site stress (e.g. Number of visitors per year/peak

                   month), use intensity (e.g. Persons per hectare, Type

                   of activity, Frequency of activity).

                   - The World Tourism Organization is currently

                   developing such an Index.

-------------------------------------------------------------------------

Share of           - Monitors trends in demand for alternative

tourism.

alternative        - Social and economic aspects of tourism should not

tourism over       be overlooked.

total tourism (%)           

-------------------------------------------------------------------------





3      INDICATORS FOR MEASURING CHANGES IN CONSUMPTION AND PRODUCTION

       PATTERNS



3.1    Approaches to indicator classification and use



       The most commonly used framework for developing environmental

indicators, the Pressure-State-Response (PSR) framework, was developed

by the OECD in the early 1990's. In reaction to an increasing interest

in the measurement of environmental damage and in evaluating the

effectiveness of environmental policy measures, the OECD Council approved

a Recommendation on Environmental Indicators and Information, instructing

the OECD Environment Policy Committee to (...) -further develop core sets

of reliable, readable, measurable and policy-relevant environmental

indicators~ (...). In 1993, the OECD Group on the State of the

Environment conducted a series of Workshops, developed a common

conceptual framework, and defined a core set of indicators, using the

Pressure-State-Response (PSR) framework. 



       The PSR framework is based on the idea that human activities exert

pressure on the environment (represented by pressure indicators), thereby

changing the quality of the environment and the quantity of natural

resources (represented by state indicators). Society responds to these

changes through environmental, economic and sectoral policies

(represented by response indicators). Policy responses affect individual

and collective actions (I) to mitigate, adapt to or prevent human-induced

negative i