United Nations
Commission on Sustainable Development

Background Paper


                      Measuring Changes in 
               Consumption and Production Patterns


                   Background Paper for the 
              Workshop on Indicators for Changing 
              Consumption and Production Patterns 
                  New York, 2-3 March 1998


            Division for Sustainable Development, 
          Department of Economic and Social Affairs
                       United Nations


                                                      Draft, January 1998   


                           CONTENTS


       List of ANNEXES

                                                                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         2

       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 targets                       11

       2.4   Trends and developments in policy making            14

       2.5   Indicators for key resources and associated
             environmental issues                                15

             2.5.1   Energy                                      16
             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                 28

             2.6.1   Mobility                                    29
             2.6.2   Consumer goods                              31
             2.6.3   Buildings and house-keeping                 34
             2.6.4   Food                                        37
             2.6.5   Recreation                                  39
             

3      INDICATORS FOR MEASURING CHANGES IN CONSUMPTION 
       AND PRODUCTION PATTERNS                                   42

       3.1   Approaches to indicator classification and use      42

       3.2   A core set of indicators for Changing Consumption
             and Production Patterns                             44

             3.2.1   Selection of a core set of indicators       44
             3.2.2   The provisional core set of
                     indicators for  Changing
                     Consumption and Production Patterns         46


TABLE 1:  Indicators proposed for the provisional core set in 
          the Driving Force - State - Response framework         52 

REFERENCES                                                       53

List of ANNEXES
             
ANNEX 1   Example methodology sheet

ANNEX 2   Indicators for Chapter 4 of Agenda 21, "Changing
          Consumption and Production Patterns", as identified in
          the CSD Work Programme on Indicators of Sustainable
          Development

ANNEX 3   Some issues and discussions linked to changing
          consumption and production patterns

ANNEX 4   CSD Working List of indicators of Sustainable
          Development

ANNEX 5   Participants in the "consultative round"


1            OBJECTIVES AND CONTEXT


1.1          Introduction

       This paper, "Measuring Changes in Consumption and Production
Patterns" is a background paper for the Workshop on Indicators for
Changing Consumption and Production Patterns to be held in New York on
2-3 March 1998.

       The paper is intended to start a discussion on measuring changes
in consumption and production patterns. It proposes a provisional core
set of indicators, which could serve policy makers in formulating
policies and monitoring the effectiveness of policy implementation.

       The first section of the report includes a brief introduction on
the objectives, context and process, aimed at selecting a core set of
indicators for changing consumption and production patterns. Mention
is made of 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 Commission on Sustainable Development (CSD).

       The second section 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 introduces possible indicators for the key resources energy,
materials, water, and land; and for the "consumption clusters"
mobility, consumer goods, buildings, food, and recreation.

       Finally, the third section of this background paper contains
information relating to approaches to indicator classification and
use, selection criteria and a proposed core set of indicators for
changing consumption and production patterns, currently including 19
indicators.

       The main objective of this first phase is to consult key actors,
concerned with "Changing Consumption and Production Patterns", as well
as indicator experts, on what indicators would best reflect the main
issues and concerns related to changing consumption and production
patterns.

       The primary intended users of the indicators are policy makers in
governments at the national level. However, many other partners, such
as local governments, NGO■s, 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 intended for use primarily
at the national level. However, the problems addressed are of local,
national, transboundary or global nature. 

       The criteria used for selecting the preliminary core set of
indicators reflect the relevance of the indicators to measuring
changes in consumption and production patterns as well as the criteria
identified in the WPISD. A further examination of the measurability
and data availability of the proposed indicators, and an assessment of
the compliance to the Bellagio principles 1/, will be made later in
the process. 
       
       The outcome of the workshop to be held in New York on 2-3 March
1998, including a provisional core set of indicators for changing
consumption and production patterns, will serve as an input to the
work in the context of the Work Programme on Indicators of Sustainable
Development of the CSD. Similar to the indicators selected and
developed for the WPISD, the indicators for changing consumption and
production patterns will require the development of methodological
descriptions and some degree of testing by organizations and/or
governments. If this is feasible, the provisional core set of
indicators for changing consumption and production patterns will serve
as an input to the revision of the CSD indicators of sustainable
development in 1999-2000.

       Furthermore, the outcome of the workshop will be an input to the
debate in the context of the implementation of the CSD International
Work Programme on Consumption and Production Patterns and will be made
available to the Commission on Sustainable Development, at its seventh
session, in which a major review of chapter 4 of Agenda 21, "Changing
Consumption and Production Patterns", will take place.

       The final report of the workshop, including an executive summary,
policy conclusions and recommendations, a provisional core set of
indicators and a list of participants, will be made available after
the Workshop.

       
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 also stresses that "although consumption patterns are
very high in certain parts of the world, the basic consumer needs of a
large section of humanity are not being met. 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 at the national level, 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) of the
Commission on Sustainable Development 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 and other major
groups, a preliminary working list of 134 indicators of sustainable
development was 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, as well
as the agencies involved in the development of the 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,
based on the work done to date. The working list of indicators is
currently being tested in various 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 mentioned earlier, Agenda 21 recognized that -a major cause to
the continued deterioration of the global environment is the
unsustainable patterns of production and consumption, particularly in
industrialized countries■.

        In order to facilitate decisions that encourage changes in
consumption and production patterns, information on the issues of
concern should be available to decision makers at all levels.
Economic, social and environmental data of relevance to 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, which does not provide the decision-maker with
aggregated information on the overall picture and the main issues of
concern. Therefore, more aggregated information, in terms of
indicators and a common set of core indicators for changing
consumption and production patterns, is needed to facilitate decision-
making 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 2 and 4). The indicators
were identified by the key actors involved in the process, but it was
recognized that for these issues few suitable indicators exist, and
further indicators may therefore be needed to address the issues 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,
specifically identified the need to further identify and develop
indicators addressing the key issues for changing consumption and
production patterns.

       Responding to the above, a draft background paper entitled -
Measuring Changes in Consumption and Production Patterns■ was prepared
on the basis of a literature review of recent developments both in the
consumption and production debate and in indicator classification and
design. This paper was subsequently sent to policy makers and other
experts in NGO■s, 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. 

       The current paper is based on the consultative round. It is
intended to be a basis for discussion among policy makers and other
interested partners of a provisional core set of indicators. The
objectives of this process, leading to the identification of a
provisional core set of indicators for changing consumption and
production patterns, are presented in Box 2.


---------------------------------------------------------------------
                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;

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


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 disrupted 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 life styles 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 would 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 3), it is difficult to find some 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, for example, Norway, the Republic of Korea,
Netherlands, Brazil and Australia), international organizations (such
as UNEP and OECD), major groups (business and industry, NGO■s 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 previously mentioned consultative round, many experts
recognized that focusing on changing consumption patterns as well as
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 focus simultaneously on economic
       instruments and on behavior-related social policies, such as
       information dissemination and eco-labeling;

-      the sustainable consumption and production approach encourages
       actors to optimize energy and material use;

-      the focus on changing consumption and production patterns allows
       for considering 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
(3.2.2), should reflect these actions, as it distinguishes the topic
from other sustainable development issues. 

       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.


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 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. 

     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 entire range. Its focus will be that of chapter 4
of Agenda 21, which, while noting that poverty results in certain
kinds of environmental stress, emphasizes that "the major cause of the
continued deterioration of the global environment is the unsustainable
pattern of consumption and production, particularly in industrialized
countries".


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/. 


---------------------------------------------------------------------
                       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, but does
not necessarily imply a reduction of per capita resource use, which is
also desirable from an environmental point of view. The question
remains, therefore, if increasing eco-efficiency can lead to a
reduction of per capita 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 ( "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.
-  "Factor 4" and "Factor 10" goals, requiring respectively a four-
fold and ten-fold increase in average resource productivity in
industrialized countries, are advocated by some proponents of eco-
efficiency. 
--------------------------------------------------------------------

     
     According to some, the eco-efficiency strategy should 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/.

     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 his "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 intended to indicate 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 indicators of the core set are 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. Compared to more traditional
approaches to environmental policy making, where the main objective
was to minimize environmental damage resulting from resource use,
current policy approaches are increasingly directed at consumers■
demand and satisfying demand with less resource input and waste
output. 

     One reason for the interest in this approach as a complement to
more traditional approaches, 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 the use of environmentally damaging goods and services.
Market distortions, such the absence of well-defined property rights,
environmentally harmful subsidies, inefficient public investments, or
environmentally harmful policies in other areas, are increasingly
recognized as factors which magnify harmful environmental impacts. 

     There are many examples of the successful removal of distortions,
including reduction or elimination of agricultural fertilizer and
pesticide subsidies, and reductions in currency over-valuation. There
are fewer success stories from removal of distortions 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,
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 generally
characterized by more self-regulation by consumers and the private
sector. This means that governments determine policy targets, whereas
the other actors involved are responsible for the implementation of
instruments for complying with these targets in accordance with  their
financial and institutional capacity and time availability. An example
of a policy instrument in this context is a voluntary agreement
concluded between partners from the public and the private sector.

     In designing policies for changing consumer behavior, there is a
need for greater understanding of the motivations behind consumer
behavior. 

     Many policies used to change the behavior of individuals 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 provides a
basis for selecting indicators for monitoring changes in consumption
and production patterns. Clearly, the idea is to consider, on the one
hand, the resources the use of which should be minimized (2.5), and on
the other hand, the consumer "needs" or functions that are to be
satisfied through the use of these resources.

     In this section, the use of key resources, including energy,
materials, water and land are considered in more detail. For each
resource, possible indicators are suggested for monitoring use of
those resources. Consumption clusters including mobility, consumer
goods, 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, 2.4 and 3.1), the appropriate chapter of
Agenda 21 is indicated.

     In sections 3.1 and 3.2, some of the indicators mentioned below
are selected for the core set (3.2.2), and presented in an indicator-
framework (the Driving Force-State-Response framework), on the basis
of clearly defined selection criteria (3.2.1). For convenience, the
core set indicators are already marked in bold in the following
sections.


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. Renewable energy sources
provide a small proportion of total energy supply. 

     The main environmental concern associated with growing energy
consumption, mostly of fossil fuels, is the continuing rise of
atmospheric CO2 concentrations contributing  about 60 per cent 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). 

     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 so-called "global
warming indicator" enables companies to measure their output of carbon
dioxide from fossil fuel consumption, whether in 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, so
that companies least able to curb their emissions should incur
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, remote location, or both, 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 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 for producing goods and services;

-    increasing energy from renewable resources;

-    reducing negative environmental impacts from energy use, including
     greenhouse gas emissions; and 

-    avoiding that the lack of commercial energy impedes economic
     development in poor segments of the society.

     Possible indicators are:
     

----------------------------------------------------------------------
Indicator
annual energy consumption per capita (toe)

Comment
- Indicator for chapter 4 in the WPISD 
- considered by most of the participants of the consultative round as
one of the indicators for changing consumption and production patterns
- Increased energy consumption, particularly  in industrialized
countries, is a major cause to global warming
- in developing countries, lowest-income countries are often also
those with the lowest per capita energy consumption, and social
indicators such as infant mortality and life expectancy improve with
increased per capita income and energy consumption
----------------------------------------------------------------------
Indicator
energy intensity of production (toe/unit of production for selected
sectors, including agriculture, food processing and transport, and
several manufacturing and services sectors)

Comment
-  for monitoring energy-efficiency; hence can be used for measuring
fulfilment of targets requiring Factor 4 or 10 energy productivity
increases
----------------------------------------------------------------------
Indicator
share of consumption of renewable/non-renewable energy resources (%)

Comment
- indicator for chapter 4 in the WPISD
- for monitoring fulfilment of policies requiring a percentage of
energy supply from renewable sources
----------------------------------------------------------------------
Indicator
emissions of greenhouse gasses from energy use (annual emission levels
in gigagrams of CO2 equivalents)

Comment
- for monitoring the contribution of fossil fuels to global warming
- for measuring compliance with CO2 reduction objectives
----------------------------------------------------------------------
Indicator
CO2 emissions per unit of primary energy

Comment
- for monitoring decarbonization
----------------------------------------------------------------------
Indicator
sectoral contribution (industry, transport, agriculture, and
construction) to emissions of greenhouse gases (annual emission levels
in gigagrams of CO2 equivalents)

Comment
- for identifying priority policy targets 
----------------------------------------------------------------------
Indicator
energy price as percentage of full cost

Comment
- for monitoring internalization of external costs
- In the short term, this indicator may be replaced or
complemented by "energy prices and taxes by energy types"
----------------------------------------------------------------------


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 rapidly 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 heavy commodities (e.g. lumber,
concrete, and lead) 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 emerging 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 (POP■s) 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 ź - 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, though 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, more than
previously, 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. In spite of the fact that a
direct link between material flows and environmental stress is not
always evident in these analyses, efforts have been made to
distinguish material flows on the basis of criteria such as -
mobilization■ (i.e. the spatial domain affected by the flow) and -
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 (or 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 (or COPS). Both were developed by
the Wuppertal Institute.

     The World Resources Institute (WRI) developed, in cooperation with
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.

     Possible indicators are:


----------------------------------------------------------------------
Indicator
intensity of material use per unit of production (Kg/tons/m3 per 1 000
US$)

Comment
- indicator for chapter 4 in the WPISD 
- for measuring fulfilment of targets requiring Factor 4 or 10
material productivity increases
- considered by most of the participants of the consultative round as
one of the indicators for changing consumption and production patterns
----------------------------------------------------------------------
Indicator
production of heavy metals and persistent organic pollutants (metric
tons)

Comment
- for assessing fulfilment of targets for the reduction of the spread
of dangerous and environmentally harmful substances
- indicates possible future health effects due to POP■s and heavy
metals
----------------------------------------------------------------------
Indicator
generation of solid waste by sector (industry, agriculture, energy
sector, households) (tons per capita per annum)

Comment
- for determining which sectors are major contributors to solid waste
generation, and for monitoring compliance with solid waste reduction
targets    
----------------------------------------------------------------------
Indicator
total material requirement (TMR); annual flows per capita (metric tons
per capita) or Material Input per Unit Service (MIPS) (kilograms or
tonnes)

Comment
- since the TMR is a refinement of the MIPS, selecting both indicators
would involve duplication
- Since a considerable share of the TMR is occupied by fossil fuels
(at least in some countries), the indicator could possibly also fit
under energy in this paper (however, it is currently classified under
"materials", since the TMR also includes components such as metals and
industrial minerals, construction minerals, infrastructure excavation,
renewables, and erosion))
----------------------------------------------------------------------
Indicator
waste recycling and reuse

Comment
- indicator for chapter 21 in WPISD
- could be replaced by an indicator on waste minimization in the
longer term
- waste recycling rates can be specified for paper, glass, batteries,
PVC bottles, metals, and other waste streams
- this indicator can be used for measuring fulfilment of targets
requiring specific percentages of recycled and reused products
----------------------------------------------------------------------
Indicator
household and municipal waste generation

Comment
- indicators for chapter 21 in WPISD 
----------------------------------------------------------------------
Indicator
Policy indicators, which could be (I) tax rates on natural resource
use as compared to tax on services or (ii) raw material taxes as
percentage of total taxes or (iii) indicator for extended producer
responsibility (to be determined)

Comment
- to reflect policy measures encouraging dematerialisation, focusing
on inputs into the production process
----------------------------------------------------------------------


2.5.3           Water

     Total worldwide water use has increased steadily, and 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 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 a heavy overuse of underground water sources 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 flow, can result in the sinking of land above
aquifers, and can 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 towards 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.

     Possible indicators are:


---------------------------------------------------------------------
Indicator       
annual withdrawals of ground and surface water (as % of available
water supply) 31/

Comment
- indicator for chapter 18 in the WPISD 
---------------------------------------------------------------------
Indicator
intensity of water use 
- for industry and agriculture (liters per unit of output)
- for households (liters per capita per day)

Comment
- this indicator can be used for measuring fulfilment of targets
requiring quantified water productivity increases 
- in combination with the above indicator of annual withdrawals of
ground and surface water as percentage of available water supply, one
can determine if the intensity of water use of particular sectors in a
county can be considered as sustainable (given country-specific
characteristics such as financial coping capability 32/)
- indicator for household water use also included under buildings and
housekeeping 
---------------------------------------------------------------------
Indicator
sectoral contribution to water pollution (nutrients) (industry,
agriculture, households) (per capita)

Comment
- indicator which can be used for determining which policy target
groups are major contributors to water pollution 
---------------------------------------------------------------------
Indicator
percentage of the population with access to clean drinking water (%)

Comment
- approximation of the potential for health effects due to polluted
drinking water
---------------------------------------------------------------------
Indicator
ratio of water price to the total cost for water supply and sewage
treatment (water prices for various users/sum of capital and
operational costs)

Comment
- approximation of the extent to which external costs are internalized
----------------------------------------------------------------------
Indicator
stock of marine species relative to stock for maximum sustainable
yield (%)

Comment
- indicator for chapter 17 in the WPISD
----------------------------------------------------------------------


2.5.4           Land

     Land resources contribute not only to agricultural and forest
production, but also to energy and biodiversity stocks, and water
resources. Therefore, the "quantity" of land resources is as important
as its quality, i.e. 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. 

     Currently, slightly less than 1.5 billion ha of arable land is in
use, i.e. 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. Arable land per capita is also being reduced by
population growth 35/.

     Demand for food production has led to a massive increase of
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 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 36/. 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 37/.

     Land is a scarce resource, fulfilling a large variety and an
increasing number of vital and competing functions, and the
consumption of its production is distributed unequally worldwide (see
Box 7).


----------------------------------------------------------------------
                     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, 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
land use (e.g. forestry, agriculture, settlements and infrastructure,
water, recreation) (per capita and as % of total land area) 

Comment
- provides information on the contribution to land use of various
categories
---------------------------------------------------------------------
Indicator
land use change (% change of each category of land use to another land
use per unit of time)

Comment
- indicator for chapter 10 in the WPISD 
- in addition to changes in arable and permanent crop land, and wooded
areas, land used for recreation, infrastructure, and nature
conservation to be included (to be consulted with FAO)
----------------------------------------------------------------------
Indicator
changes in land conditions (the extent and magnitude of improvement
and deterioration in land condition changes)

Comment
- indicator for chapter 10 in the WPISD 
----------------------------------------------------------------------
Indicator
infrastructure expenditure (ratio of total expenditures in US dollars
by all levels of government on infrastructure services during the
current year, and the urban population)

Comment
- Indicator for chapter 7 in the WPISD
- indicator developed by HABITAT
- the indicator reflects the yearly expenditures on infrastructure,
which strongly interacts with new land development and construction,
and with improved access to services by households
----------------------------------------------------------------------
Indicator
- use of (agricultural) pesticides and fertilizers

Comment
- indicators for chapter 14 in the WPISD
----------------------------------------------------------------------
Indicator
subsidies for agricultural inputs (% of their price)

Comment
- indicates to which extent the use of agricultural inputs is
encouraged by the existing policy structure
----------------------------------------------------------------------


2.6        Indicators for consumption clusters

     After examination of ways to reduce resource use, in order to
satisfy consumers■ "needs" or functions, it now becomes interesting to
consider these in more detail. Consumers can find various ways to
fulfil functions. The function of mobility, for example, can be
satisfied by taking a bus, a train, or a private car. The demand for
communication can also be satisfied, in some cases, by taking a bus,
train, or car (thereby also satisfying the demand for mobility), but
also by giving somebody a telephone call, or by sending a message
through electronic mail.

     As was mentioned under 2.4, policy makers have become more
interested in the motivations behind consumer behavior, such as
striving for freedom, gaining time, spending less money, or following
fashion trends. One of the difficulties is that these are difficult to
measure. Therefore, several "consumption clusters" are considered in
this paper, with consumer "needs" and functions as a basis. The
clusters selected include mobility, consumer goods, housing, food, and
recreation. 

     Even though for each cluster comments are made with regard to
possible motivations behind current consumption trends, the focus is
more on measurable aspects of these trends, and on the potential for
changing to more sustainable consumption patterns ("lifestyles") in
these clusters, without reducing the satisfaction or quality of life
of the consumer.

     The indicators selected for consumption clusters reflect current
consumption patterns, their main direct or indirect environmental
effects, and indications of shifts in these patterns towards more
sustainable ones.

     Sometimes, more sustainable consumption patterns can be achieved
through an increase in communal activities or a shift 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 deliberately choose to
buy a good or service produced or provided in a more sustainable
manner than a competing product or service, for example 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 38/. 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 39/.


2.6.1           Mobility

     Motor vehicle stocks have 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. In the OECD, road traffic
volumes (of motor vehicles) increased by about 84 per cent over the
same period of time 40/. 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 41/. Between
1960 and 1990, world wide air transport was multiplied by ten, and the
sector is still rapidly growing 42/. Current trends also show that
the energy intensity 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
strongly contributes to other types of air pollution, particularly
through emissions of nitrogen oxides, sulphur dioxide, VOCs, small
particles and smog, and to noise. The sector can also have detrimental
effects on the quality of life, for example, through congestion and
accidents. 

     In the transport sector, energy efficiency gains are being offset
by volume increases. Technological developments, such as catalyc
converters or improved energy efficiency, are not sufficient to solve
environmental problems arising from transportation. Land use planning,
combined with regulatory, social, and pricing measures, including
transport prices that reflect full social costs, are necessary to move
toward more sustainable transportation systems.

     The car seems to represent more in our society than only a means
of transport. For some, car ownership reflects social status, for
others, a sense of freedom or privacy. In the same vein, motivations
behind the choice of taking the car rather than using public transport
are also more complex than the need for mobility only, 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 highway, new means of communication
and an improved communication and information infrastructure could
contribute to a decrease in transport dependence. Clearly, activities
such as teleworking, teleconferencing, teleselling and teleshopping
would reduce the need for mobility. Rapid developments in this area
may well benefit policy making targeted at reducing the environmental
impacts of mobility. The identification of the consequences of future
developments deserves increasing attention.

     Policy challenges are:

-    to shift towards more energy and material efficient technologies
     and practices in the transport sector, by enhancing the capacity
     of existing infrastructure (e.g. improving the capacity of
     existing railways), and by urban design that reduces the use of
     motor vehicles (e.g. through physical planning measures such as
     the creation of car-free zones);

-    to reduce the need for travel; and

-    to increase understanding of the motivations behind choices of
     means of transportation.


     Possible indicators are:


----------------------------------------------------------------------
Indicator
number of road vehicles (by type and fuel)

Comment
- OECD indicator for the integration of environmental concerns into
transport policies
----------------------------------------------------------------------
Indicator
number of passenger miles/km per capita by mode of transport

Comment
indicator for trend in transport dependence of passengers
----------------------------------------------------------------------
Indicator
atmospheric emissions of pollutants from the transport sector

Comment
- indicator used by the OECD
- allows to measure compliance with CO2, NOx, and VOC reduction
objectives
----------------------------------------------------------------------
Indicator
freight traffic by mode of transport (tonnes, km)

Comment
- indicator reflecting production aspects of transportation
----------------------------------------------------------------------
Indicator
consumption of fossil fuel by motor vehicle transport (liters per
passenger mile/km)

Comment
- indicator for chapter 7 in the WPISD (though expressed in liters per
capita)
----------------------------------------------------------------------
Indicator
fuel price taxation (by fuel type) (% of fuel price per liter)

Comment
- indicates to which extent external costs are internalized
----------------------------------------------------------------------
Indicator
the time per person per year spent traveling

Comment
- see 2.6.5 
----------------------------------------------------------------------
Indicator
number of computers per 1000 inhabitants and/or connections to the
internet

Comment
- may indicate the potential for electronic communication, and for a
reduced need for transport
- policy relevance and impact on transport dependence may be further
explored 
----------------------------------------------------------------------


2.6.2           Consumer goods

     Consumers need and want goods to get dressed, decorate their
homes, prepare food, maintain their garden, read, wash their clothes,
and for numerous other purposes. The choice of replacing an old
(durable) product by a new one can be made because the old product
cannot be repaired or reused, because the consumer follows a trend or
fashion, or because the product is considered obsolete from a
technical standpoint. Similar and other motivations underpin the fact
that consumers often buy various products of the same type (e.g. a
second video or TV). Consumer goods, and trends in their production,
design, durability, and disposal play a major and increasing role 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, the yearly 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 43/. Production volumes of many consumer goods are
increasing. For example, the annual growth in the world production of
refrigerators for household use was 3.4 percent from 1984-1993, and of
fabrics 2.8 per cent.

     Consumers directly and indirectly contribute to environmental
effects throughout the product■s life-cycle, particularly in the end-
use phases. An example is the use and subsequent disposal of consumer
goods such as electric appliances (e.g. for lighting, heating and
cooling homes, or for cooking and storing food). 

     In many OECD countries, the number of applications for electricity
in the household is still rising, and consumers now increasingly tend
to buy both a second piece of equipment (e.g. a second television set)
and a new type of equipment they did not own before (e.g. micro-
wave) 44/.

     Another example of a consumer good, where consumers contribute
directly to environmental effects in the use and disposal phase, 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 fuel wood), but it ranks third in terms of billion US$
turnover and in the top 10 of industries that emit gases (carbon
dioxide and methane) that enhance the greenhouse effect. Moreover,
when paper is bleached with chlorine gas, highly toxic dioxins can be
released into the environment (see 
also Box 8). 


---------------------------------------------------------------------
                 Box 8 - Distribution of Paper Use

     Paper use is an area that has also invited reflections on
distributional issues. Current paper consumption (1993 figures) 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, in
particular in developing countries, reflects often the demand for
paper needed in reading and writing. More than a billion adults are
still illiterate and over 100 million children worldwide receive no
primary education. The demand for pulpwood (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 45/. Advertising in particular
strongly affects many of the above discussed motivations
underlying consumption trends, and therefore plays an important
role in changing consumption and production patterns.

     Policy challenges are: 

-    to increase understanding about the factors that influence
     purchase and disposal of consumer goods, and about the role of
     media and advertising in this respect;

-    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 products■ life, and to optimize product
     design for durability, repair, remanufacturing, and recycling;

-    to encourage reuse, repair, remanufacturing, and recycling of
     products (e.g. through the organization of repair and exchange
     centers, or the composting and sorting of waste); and

-    to stimulate the production and consumption of environmentally
     preferable consumer goods (e.g. through the use of eco-labels).


     Possible indicators are:


----------------------------------------------------------------------
Indicator       
per capita ownership of selected commodities per household (e.g.
radio, (color)-TV, refrigerator, video, washing-machine, dryer, micro-
wave) (units per capita)

Comment
- together with the technological advances allowing for increased
energy efficiency of appliances, this indicator gives an approximation
of the environmental effect of electricity use by households 
----------------------------------------------------------------------
Indicator
average length of product life for major consumer durables (e.g.
refrigerator, washing-machine, TV, car)

Comment
- indicator for success in optimizing product design for durability
- requires careful selection of products 
----------------------------------------------------------------------
Indicator
percentage of products recycled through deposit refund systems or
other recycling programmes (bottles, cans, car batteries, cars, and
large household goods) (%)

Comment
- measure for the effectiveness of Deposit Refund Systems
----------------------------------------------------------------------
Indicator
per capita paper consumption 46/

Comment
- indicator reflects the possibility of a shift away from a volume
approach (selling more paper) towards one that seeks to meet or
service the needs of people even if this means selling less paper
- gives some indication of the contrast between per capita paper
consumption in developed and developing countries
----------------------------------------------------------------------
Indicator
media/advertising indicator (per capita private expenditures on
advertising - radio and television)

Comment
- gives some indication as to how media and advertising are used for
influencing consumption and production patterns
- has an influence on most of the consumption trends mentioned in the
context of the consumption clusters
- policy relevance to be further explored 
----------------------------------------------------------------------
Indicator
circulation of daily newspapers per 1,000 population

Comment
- indicator reflects the importance of paper use for the dissemination
of information, and could also give an indication of the literacy of a
country 
----------------------------------------------------------------------
Indicator
market share of eco-labeled products (%)

Comment
- indicator for the order of magnitude of the consumption of
environmentally preferable products
- requires careful selection of eco-labels to ensure consistency  
----------------------------------------------------------------------
Indicator
private final consumption expenditure (index and by product group)            

Comment
- indicator measuring annual growth in private consumption levels 
- increasing/decreasing expenditure on certain product groups may
provide an indication of changes in consumption patterns
----------------------------------------------------------------------
Indicator
public final consumption (total)

Comment
- provides an indication of the level of  public consumption 
- may be compared to total consumption  (public and private)
----------------------------------------------------------------------


2.6.3           Buildings and house-keeping

     Both households and commercial entities face several choices when
selecting appropriate housing. First, in the selection of the
location, considerations with regard to access to and from the
building and the costs thereof, are important. The extent to which
shops, means of transportation, schools, and other important
facilities are accessible in turn determines a whole range of other
consumer 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.

     Second, decisions need to be taken as to purchasing or renting an
existing house or building; or constructing a new one. Financial and
other considerations play a role here. It is obvious that the 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.

     Third, housekeeping, i.e. the use and management of commercial and
residential buildings requires energy (for heating, lighting, and
cooling) and water, and involves the utilization of materials. Choices
by the user 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, that all affect the
environment, can be measured, for example, by tracking trends in
commercial and residential energy use, in the production and use of
energy and water saving devices, or in the use of environmentally
friendly materials.

     Approximately 36 per cent of world primary energy is consumed by
commercial and residential buildings. Both in 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
the one in industrialized countries (respectively 1.4 and 2.6 per cent
per year) over the same period 47/. 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 48/. 

     In industrialized countries, population increase, a decreasing
household size, and an increased demand for various residential
services such as air conditioning, appliances, space and water
heating, seem to have contributed to an increase in energy use in
residential buildings. 

     In developing countries, a higher income level, increasing
urbanization and population growth, and the substitution away from
traditional fuels continue to be major factors that lead to a higher
demand for purchased energy in the residential sector 49/. 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 (estimations for
the US range from 27 to 48%, for some European countries between 42
and 76%, and for some developing countries from 31 to 56 per cent). 

     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 50/. 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 kerosine stoves 51/.

     Energy efficiency in residential and commercial buildings can also
be enhanced through improved housekeeping (through switching off
machines that are not in use, for example) or through switches to
alternative energy sources,

such as solar photovoltaics, wind power, or fuel ethanol. The use of
solar-cookers is an example from the alternative energy sector in
developing countries.

     The commercial and residential sectors are the smallest 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
remained stable since the end of the 1980's. 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, including
reducing leakages and improving the efficiency of use.

     Finally, the housing sector involves the use of 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 VOC■s), and the
generation of waste, among others through the use of more durable and
long-lasting materials (e.g. ceramic floors), in order to minimize
future replacement. 

     Measures aiming at an increased use of collective facilities (e.g.
collective laundromats) are also worth mentioning in this respect.
Housekeeping measures for the avoidance of waste are again of
importance in this respect. 

     Policy challenges are:

-    to increase understanding about 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 aspects 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.

     Possible indicators are:


----------------------------------------------------------------------
Indicator
growth rate (residential and commercial) in buildings energy use (for
selected types of use, e.g. cooking, heating, and cooling, if
applicable)

Comment
- indicator for the attention to be paid by policy makers to energy
use in the housing sector, as compared to other sectors
----------------------------------------------------------------------
Indicator
total energy and water use per household

Comment
- indicator for the efficiency of water and energy use of households
- closely linked to indicators for intensity of water use (water) and
energy consumption (energy)                                        
----------------------------------------------------------------------
Indicator
average household size (number of persons)

Comment
- indicator for the ease at which water and energy devices can be used
communally
----------------------------------------------------------------------
Indicator
use of recycled materials in construction (%)

Comment
- indicator for trend towards more sustainable construction
----------------------------------------------------------------------
Indicator
percentage of households with water meters (%)

Comment
- indicates progress with regard to the monitoring of household water
use, and the potential for a "feed-back" mechanism to the consumer
----------------------------------------------------------------------
Indicator
subsidies for efficient building technologies and practices, and
water/energy saving devices (e.g. energy-efficient windows,
insulation, fluorescent lamps) and environmentally friendly building
materials

Comment
- approximation of the extent to which efficiency improvements are
encouraged
- to be determined
----------------------------------------------------------------------


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 selection of the location
where one decides to eat, 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. Media and advertising also seem to play an
important role in influencing these decisions.

     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 those 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, climate change, and waste generation. 

     Dietary preferences tend to change with increasing wealth 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. Meanwhile, poor groups in
developing countries are unable to maintain the minimum daily caloric
intake required for staying in good health.

     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 52/. Food
processing can contribute to environmental problems. For example, the
energy use for fish processing increases when the fish is frozen.
Frozen food generally has a high energy requirement for freezing and
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 through
increasing their export shares of agricultural commodities such as
organic coffee and fruit 53/.

     Policy challenges are:

-    to increase understanding about 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; and

-    to stimulate the market for more sustainably produced foods, in
     particular from  developing countries.

-    to minimize waste generation resulting from food consumption

     Possible indicators are:


----------------------------------------------------------------------
Indicator
daily calorie supply per capita

Comment
- indicates if the average caloric intake per capita is more than
sufficient or insufficient
- indicator can be specified for specific groups in the society with
different per capita income
----------------------------------------------------------------------
Indicator
per capita consumption of meat and dairy products (kg or liters per
capita)

Comment
- indicator for the importance of the trend towards an increased
consumption of meat and dairy products 
----------------------------------------------------------------------
Indicator
per capita consumption of processed food

Comment
- to be determined
- an example from the fisheries sector could be "fish consumed
directly versus fish used industrially - as a percentage of catch"
----------------------------------------------------------------------
Indicator
share of organically grown produce over total agricultural produce (%)

Comment
- indicates shift in consumer demand towards more sustainably grown
agricultural products
- closely linked to indicator "market share of eco-labeled products
(consumer goods) 
----------------------------------------------------------------------


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.

     These 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, skiing), or more indirectly by the need 
for increased 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 safari■s, for example, have increased the demand for nature
conservation, and enhanced environmental planning and management,
thereby often providing some form of income for local populations and
communities. 

     Clearly, 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 less time available for leisure
can lead to increased  further and faster travel to leisure
destinations. 

     Tourism, as a very specific type of leisure activity has become
the world■s largest industry, accounting for over 10 percent of world
economic activity and providing direct or indirect employment to over
200 million people. It is one of the fastest growing economic sectors,
with international tourist arrivals growing by 3 per cent each year in
the early 1990's. In 1993, the World Tourism Organization estimated
that international arrivals worldwide reached 500 million. It is
estimated that this figure will nearly double by 2010 54/.

     At present, 15 of the top 20 countries in terms of tourist
revenues are developed countries (representing 60 per cent of the
total market), whereas the leading tourism destination countries in
terms of numbers of international arrivals are developing countries,
with about 11 per cent of the income share (Caribbean, China,
Malaysia, Mexico, and Turkey) 55/. 

     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 56/. Even though
alternative tourism activities and in particular the sub-set -eco-
tourism■, are 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 underlying time and
     money spent on various leisure activities, in comparison to paid
     and unpaid work;

-    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 communities, local populations, and the
     conservation of natural resources and biodiversity.

     Possible indicators are:


----------------------------------------------------------------------
Indicator
contribution of tourism/recreation to the economy (revenues from
tourism/recreation as percentage of GDP)

Comment
- indicator for the dependence of the economy on revenues from
tourism/recreation, and possibly of the vulnerability of both the
economy and the environment to fluctuations in tourism/recreation
activities
----------------------------------------------------------------------
Indicator
time spent on leisure, paid and unpaid work, and traveling (hours per
capita per day)

Comment
- indicator for time spent on leisure and recreation activities
- a recent study in the Netherlands collected data on leisure
activities for various age-categories 57/
- time allocation by women and men could be taken into account, since
this could influence the type of leisure activities undertaken
- see also 2.6.1
----------------------------------------------------------------------
Indicator
dollars spent on recreation as percentage of disposable income (%)

Comment
- indicator for the demand for and importance of recreation activities
in the economy 
----------------------------------------------------------------------
Indicator
land used for recreation purposes as share of total land area

Comment
- indicator could be combined with land use indicator (2.5.4)
----------------------------------------------------------------------
Indicator
site stress indicator/index

Comment
- the indicator or index could include, for selected important
recreation and tourism sites, indicators reflecting site stress (e.g.
number of visitors per annum/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
----------------------------------------------------------------------
Indicator
share of alternative tourism over total tourism (%)

Comment
- reflects potential for increase of alternative tourism
----------------------------------------------------------------------
Indicator
policy indicators such as (i) a planning process indicator or (ii) a
development control indicator

Comment
- the World Tourism Organization developed these two indicators: 
- the planning process indicator concerns the existence of organized
  regional plan for tourist destination regions, and 
- the development control indicator involves the existence of an
  environmental review procedure or formal controls over development
  of site and use densities
----------------------------------------------------------------------


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 and presenting
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, general 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 impacts on the environment, ii) to halt or
reverse environmental damage already inflicted, and iii) to preserve
and conserve natural resources 58/.

     In establishing the Work Programme on Indicators of sustainable
Development,  the Commission on Sustainable Development has adopted
the PSR framework developed by the OECD, while going beyond
environmental aspects, and identifying three further dimensions of
sustainable development, namely social, economic, and institutional
aspects. 

     In this expanded version of the framework, called the -Driving
Force-State-Response■ (DSR) framework, the concept of pressure has
been replaced by that of "driving forces", in order to accommodate the
inclusion of social, economic, and institutional aspects of
sustainable development. The term "driving force" indicates an impact
on sustainable development, that can be either positive or negative.
Indicators in the "state" category gives an indication of the state of
sustainable development, and response indicators indicate societal
responses to changes in sustainable development. In the DSR framework
there is no implied causal relationship between indicators in the
various cells, neither horizontally nor vertically.  

     Other frameworks have been developed and used by, for example, the
United Nations Statistical Division, UNEP and the European Environment
Agency. However, these frameworks are very similar to the PSR and the
DSR frameworks, and indicators developed and used in these and other
contexts could easily be placed within the DSR framework.
 
     The recently initiated work on "Sustainable Consumption
Indicators" of the OECD is structured around the following major
themes deriving from the PSR framework: environmentally significant
consumption trends and patterns; interaction between consumption
trends and patterns and the environment and natural resources; and
economic and policy aspects. This is very much in line with the DSR
framework and the key resources and consumption clusters outlined in
this paper.

     The DSR framework allows for all aspects of sustainable
development to be presented, and it is simple and easy to understand
and use, Furthermore, the use of the DSR framework allows for the
indicators to be easily incorporated into the set of indicators of
sustainable development of the CSD Work Programme on 
indicators of Sustainable Development, and are in line with frameworks
used by other organizations and governments.

     Research, development and experience in the scientific community,
governments and organizations may result in the development of more
advanced analytical frameworks that more accurately reflect the
complex dynamics of changing consumption and production patterns. In
the longer term, the use of such frameworks should be carefully
considered.


3.2        A core set of indicators for Changing Consumption and
           Production Patterns


3.2.1      Selection of a core set of indicators

     For the selection of the provisional core set of indicators, from
the indicators outlined in this paper as well as other possible
indicators, two sets of indicator selection criteria are proposed. A
first set of criteria are based on key considerations from the
consumption-production angle, and the second set comprising of
criteria that have been used for the selection of indicators used in
the context of the CSD Work Programme on Indicators of Sustainable
Development . Both sets are depicted in Box 9.

     With regard to the second set of selection criteria, it should be
noted that it is not yet feasible, at this stage, to fully comply with
the Bellagio-principles, or to provide information on the data
availability and quality.


---------------------------------------------------------------------
                           Box 9

          Consumption-Production Selection Criteria

     The core-set of indicators for measuring changes in consumption
and production patterns should:
-  give an equal weight to all key resources, in particular those
reflecting use intensity,  and consumption clusters (representing
various types of end-use) described in the paper, that are susceptible
to policy intervention and relate to critical environmental trends;
-  include, in particular, those indicators that simultaneously cover
various key resources and consumption clusters, while also allowing
for (crosscutting) indicators that do not fit into any of these
categories;
-  reflect chapter 4, and in particular the ■added value■ of the
production-consumption topic;
-  reflect concepts which are widely used in sustainable development
policy analysis (e.g. eco-efficiency);
-  include indicators that allow monitoring of progress towards short
term and long term targets and objectives (e.g. quantified targets for
emission reduction, or targets for resource productivity increase -
e.g. Factor 4 or 10);
-  take into account the institutional capacities and programmes of
major institutions and actors; and,
-  be consistent with and complementary to a possible wider framework
of indicators and indices.

                  Indicator-Selection Criteria

     The indicators selected for the core set should be:
-  primarily national in scale or scope (countries may also wish to
use the indicators at state or provincial levels;
-  relevant to the main objective of assessing progress towards
sustainable development;
-  understandable, that is to say simple, clear and unambiguous;
-  realizable within the capacities of national governments, given
their logistic, time, technical and other constraints;
-  conceptually well founded;
-  limited in number, remaining open-ended and adaptable to future
developments;
-  broad in coverage of Agenda 21, and all aspects of sustainable
development (only relevant in relation to coverage of chapter 4 of
agenda 21)
-  representative of international consensus, to the extent possible;
and 
-  dependent on data that are readily available or available at a
reasonable cost to benefit ratio, adequately documented, of known
quality and updated at regular intervals.
-------------------------------------------------------------------


3.2.2      The provisional core set of indicators for Changing Consumption and

      
     Production Patterns

     This section includes a first proposal for a provisional core set
of indicators for changing consumption and production patterns.
Following the arguments in section 3.1, The Driving Force-State-
Response framework is used for categorizing and presenting the core
set of indicators. It should be noted, that the social-economic-
environmental-institutional classification used in the context of the
CSD Work Programme on Indicators of Sustainable Development (WPISD),
is not reflected here. According to the WPISD, indicators for chapter
4 of Agenda 21 are all categorized in the economic category. The
indicators proposed here are all of relevance to the economic
category, but many indicators are also relevant to the environmental,
social and institutional categories. 

     From a substantive point of view, however, the selection of the
core set was conducted relatively independently. The core set does not
include all the indicators selected for chapter 4 under the WPISD
framework, but comprises some indicators selected for other chapters
of Agenda 21. Attention has also been paid towards establishing, to
the extent possible, a balance among Driving force, State, and
Response indicators.

     As in the WPISD framework, the core set is intended to allow
governments to choose which indicators to use at the national level.
Therefore, the consumption-production related environmental concerns
reflected by the indicators do not necessarily need to be of equal
importance in each county. The selection of core indicators focuses on
those goods and services whose consumption and production have high
environmental impact and seem particularly susceptible to public
policy intervention.

     The core set of indicators to be selected for the topic of
changing consumption and production patterns will be an input to the
WPISD, and the revision of its indicators for sustainable development
in 1999-2000.

     The indicators selected for the core set should be of relevance
for industrialized and developing countries, and for countries with
economies in transition. They may help policy makers in industrialized
countries to choose appropriate policy measures aiming at eco-
efficiency improvements and the achievement of more sustainable
consumption practices and lifestyles. For developing countries and
economies in transition, the indicators could be used to track the
development of consumption and production patterns, without impeding
the development process. The suggested indicators can in most cases be
applied at a global, regional, national, and local scale, depending on
the objective for which they are used.

     Furthermore, the core set of indicators is provisional, and should
evolve over time in a dynamic process, in accordance with changes in
priorities relating to consumption and production patterns. Moreover,
in order to reflect, for example, the motivations underlying current
consumption patterns, thought could be given to different types of
indicators, based on surveys and questionnaires. For example, the
World Tourism Organization developed 2 questionnaire-based indicators
for specific tourism sites: "Consumer Satisfaction", reflecting the
level of satisfaction of the visitors of the site, and "Local
Satisfaction", expressing the level of satisfaction of the local
population 59/.

     On the basis of the criteria summarized in Box 9, the provisional
core set of indicators represented in a Driving force, State, Response
framework in Table 1, includes the following 19 indicators:

-    4 indicators for the resource energy:


----------------------------------------------------------------------
Annual energy consumption per capita (toe per capita)

Driving Force Indicator for chapter 4 in the WPISD
- Increased energy consumption, particularly in developed countries,
is a major cause to global warming
- particularly in low-income countries, the indicator is linked with
various social indicators
- may have implications for other policies
- provides links with the resources energy and materials, and with all
consumption clusters
----------------------------------------------------------------------
Energy intensity of production (toe/unit of production for selected
sectors, including agriculture, food processing, and transport, and
several manufacturing and services sectors)

State
- indicator can be used for monitoring fulfilment of eco-efficiency
targets, such as targets requiring Factor 4 or 10 efficiency increases
- provides links with the resources energy and materials, and with all
consumption clusters
----------------------------------------------------------------------
Energy price as percentage of full cost (%)

Response
- for monitoring internalization of external costs
- provides links with the resources energy and materials, and with
most of the consumption clusters
----------------------------------------------------------------------
Share of consumption of renewable/non-renewable energy resources (%)          

       
State Indicator for chapter 4 in the WPISD
- for monitoring fulfillment of policies requiring a percentage of
energy supply from renewable resources 
- main implications for the resources energy and materials, and
consumption clusters mobility and housing 
----------------------------------------------------------------------


-    2 indicators for the resource materials, material flows and waste:


----------------------------------------------------------------------
Intensity of material use per unit of production (kg/tons/m3 per 1000
US$)

State Indicator for chapter 4 in the WPISD
- indicator can be used for measuring fulfilment of eco-efficiency
targets, such as targets requiring Factor 4 or 10 efficiency increases
- provides links with the resources energy and materials, and with
most of the consumption clusters
----------------------------------------------------------------------
Total material requirement (TMR); annual flows per capita (metric tons
per capita) or Material Input per Unit Service (MIPS) (kilogrammes or
tonnes)

Driving Force
- since the TMR (developed by the World Resources Institute and
others) is a refinement of the MIPS, selecting both indicators would
involve duplication
- both indicators measure the total use of natural resources that
economic activity requires
- main implications for energy and materials as resources, and all
consumption clusters
----------------------------------------------------------------------


-    1 indicator for the resource water:


----------------------------------------------------------------------
Intensity of water use for industry and agriculture, and for
households (liters per capita per day or per unit of output)
     
Driving Force
- indicator can be used for measuring fulfilment of targets requiring
quantified water productivity increases
- in combination with the WPISD indicator "annual withdrawals of
ground and surface water as percentage of available water supply", one
can determine if the intensity of water use of particular sectors in a
county can be considered as sustainable
- indicator is of relevance for water as a resource, and the
consumption clusters consumer goods, housing, food, and recreation
----------------------------------------------------------------------


-    1 indicator for the resource land:


----------------------------------------------------------------------
Land use change (% change of each category of land use to another land
use per unit of time)                                              

Driving Force Indicator for chapter 10 in the WPISD

- in addition to changes in arable and permanent crop land, and wooded
areas, land used for recreation, infrastructure, and nature
conservation to be included (to be consulted with FAO)
- indicator covers land as a resource, and the consumption clusters
mobility, food, housing, and recreation
- may have implications for other policies
----------------------------------------------------------------------


-    2 indicators for the consumption cluster mobility:


----------------------------------------------------------------------
Number of passenger miles/km per capita (by mode of transport)

Driving Force
- indicator for trend in transport dependence (for passengers)
- indicator covers the resources energy, materials, and land, and most
consumption clusters
----------------------------------------------------------------------
Number of computers per 1000 inhabitants and/or connections to the
internet

Response
- indicates the potential for electronic communication, and for a
decrease in transport dependence in the future
- indicator links resources such as energy and materials with
consumption clusters mobility and housing 
----------------------------------------------------------------------


-    4 indicators for the consumption cluster consumer goods:


----------------------------------------------------------------------
Per capita ownership of selected commodities per household (e.g.
radio, (color)-TV, refrigerator, video, washing-machine, dryer, micro-
wave)(units per capita)

Driving Force
- may have implications for other policies
- main implications for the resources energy and materials, and the
consumption clusters housing and consumer goods
----------------------------------------------------------------------
Media/advertising indicator (per capita private expenditures on
advertising - radio and television)

Response
- gives some indication as to how media and advertising are used for
influencing consumption and production patterns
- has an influence on most of the consumption trends mentioned in the
context of the consumption clusters
----------------------------------------------------------------------
Market share of eco-labeled products (%)

Response
- indicator for the order of magnitude of the consumption of
environmentally preferable products
- main implications for energy and materials as a resource, and the
consumption cluster consumer goods
----------------------------------------------------------------------
Average length of product life for selected products (e.g.
refrigerator, washing-machine, TV, car) (years)

Response
- indicator for success in optimizing product design for durability
- main implications for materials as a resource, and the consumption
cluster consumer goods
----------------------------------------------------------------------


-    2 indicators for the consumption cluster buildings and
     housekeeping:


----------------------------------------------------------------------
Average household size (number of persons)

Driving Force
- indicator for the ease at which water and energy can be used
communally in the housing sector
- main implications for energy, materials, and water as a resource,
and the consumption cluster housing
----------------------------------------------------------------------
Total energy and water use per household (toe and liters per household
per year)

Driving Force
- indicator for the efficiency of water and energy use of households 
- main implications for energy and water as a resource, and the
consumption cluster housing
----------------------------------------------------------------------


-    1 indicator for the consumption cluster food:


----------------------------------------------------------------------
Share of organically grown produce over total agricultural produce (%)

Response
- indicates shift in consumer demand towards more sustainably grown
agricultural products
- main implications for energy, materials and land as a resource, and
the consumption cluster food
----------------------------------------------------------------------


-    2 indicators for the consumption cluster recreation:


----------------------------------------------------------------------
Dollars spent on recreation as percentage of disposable income (%)

Driving Force
- indicator for the demand for and importance of recreation activities
in the economy
- main implications for the consumption cluster recreation
----------------------------------------------------------------------
Time spent on leisure, paid and unpaid work, and traveling (hours per
capita per day) 

Driving Force
- indicator for time spent on leisure and recreation activities
- time allocation by women and men could be taken into account, since
this could influence the type of leisure activities undertaken
- main implications for all resources and the consumption cluster
recreation
---------------------------------------------------------------------


Table 1         Indicators proposed for the provisional core set
                in the Driving Force - State - Response
                framework


---------------------------------------------------------------------
                      CATEGORY: KEY RESOURCES 
---------------------------------------------------------------------
ISSUE CHAPTER 4 OF AGENDA 21: Energy

DRIVING FORCE INDICATORS
-Annual energy consumption per capita

STATE INDICATORS
-Energy intensity of production
-Share of consumption of renewable/non-renewable energy resources

RESPONSE INDICATORS
-Energy price as percentage of full cost
----------------------------------------------------------------------
ISSUE CHAPTER 4 OF AGENDA 21:  Materials and waste

DRIVING FORCE INDICATORS
-Total material requirement (TMR); annual flows per capita or Material
Input per Unit Service (MIPS)

STATE INDICATORS
-Intensity of material use per unit of production                  
---------------------------------------------------------------------
ISSUE CHAPTER 4 OF AGENDA 21: Water

DRIVING FORCE INDICATORS
-Intensity of water use (industry, agriculture, households) (litres
per capita per day or per unit of output)
---------------------------------------------------------------------
ISSUE CHAPTER 4 OF AGENDA 21: Land

DRIVING FORCE INDICATORS
-Land use change
---------------------------------------------------------------------
                 CATEGORY: CONSUMPTION CLUSTERS
---------------------------------------------------------------------
ISSUE CHAPTER 4 OF AGENDA 21: Mobility

DRIVING FORCE INDICATORS
-Number of passenger miles/km per capita

RESPONSE INDICATORS
-Number of computers per 1000 inhabitants and/or connections to the
Internet
---------------------------------------------------------------------
ISSUE CHAPTER 4 OF AGENDA 21: Consumer goods

DRIVING FORCE INDICATORS
-Per capita ownership of selected commodities per household
     
RESPONSE INDICATORS
-Media/Advertising indicator
-market share of eco-labelled products 
-Average length of product life
---------------------------------------------------------------------
ISSUE CHAPTER 4 OF AGENDA 21: Buildings and housekeeping

DRIVING FORCE INDICATORS
-Total energy and water use per household
-Average household size
---------------------------------------------------------------------
ISSUE CHAPTER 4 OF AGENDA 21: Food

RESPONSE INDICATORS
-Share of organically grown produce over total agricultural produce 
---------------------------------------------------------------------
ISSUE CHAPTER 4 OF AGENDA 21: Recreation

DRIVING FORCE INDICATORS
-Dollars spent on recreation as percentage of disposable income
-Time spent on leisure, paid and unpaid work, and travelling
---------------------------------------------------------------------
                                           
                                           
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                                ANNEX 1


                       Example Methodology Sheet

----------------------------------------------------------------------
                      ANNUAL ENERGY CONSUMPTION
----------------------------------------------------------------------
                Economic - Chapter 4 - Driving Force
----------------------------------------------------------------------
1.  Indicator

(a)Name:  Annual energy consumption per capita.
(b)Brief Definition: The amount of energy - liquid, solid, gaseous or
electricity - used by an individual in a given year in a given
geographical area.
(c)Unit of Measurement: Gigajoules.

2.  Placement in Framework

(a)  Agenda 21:  Chapter 4:  Changing Consumption Patterns.
(b)  Type of Indicator:  Driving Force.

3.  Significance (Policy Relevance)

(a)  Purpose:  The purpose of this indicator is to measure energy
consumption.

(b)  Relevance to Sustainable/Unsustainable Development:   Energy use
is a key aspect of consumption and production.  Traditionally energy
has been regarded as the engine of economic progress. However, its
production, use, and byproducts have resulted in major impacts on the
environment.  The decoupling of energy use from development represents
a major challenge of sustainable development. The long term aim is for
development and prosperity to continue through gains in energy
efficiency rather than increased production.

(c)    Linkages to Other Indicators:  This indicator is closely linked
with many other economic and environmental indicators, such as
population growth, transport fuel consumption, environmentally
adjusted domestic product, proven energy reserves, consumption of
renewable to non-renewable energy resources, land use change, energy
use in agriculture, emissions of greenhouse gases, production of ozone
depleting substances, generation of waste, etc. 

(d)  Targets:  Not available.

(e)   International Conventions and Agreements:  Not available.


4.   Methodological Description and Underlying Definitions

(a)   Underlying Definitions and Concepts:  The elements comprising
this indicator are production, population and consumption data. The
data on production refer to the first stage of production.  For
example, for hard coal the data refer to mine production; for crude
petroleum and natural gas, to production at oil and gas wells and
processing plants; for electricity to the gross production of
generating plants.  The data on consumption refer to "apparent
consumption" and are derived from the formula which takes into account
production, imports, exports, and stock changes.

(b)  Measurement Methods:  This indicator is computed by calculating
the ratio of consumption of energy in a specific area/country/region
to the population in that area/country/region.

(c)  The Indicator in the DSR Framework:   This indicator represents a
major Driving Force within the economy.

(d)  Limitations of the Indicator:  Since this indicator is calculated
by the aggregation of different consumption data within an
area/country/region it may not accurately measure variations in the
rates of consumption within that area/country/region.   This can lead
to invalid calculations and  interpretations,  and mis-allocation of
resources.  
     The indicator is not as sensitive a measure of energy intensity
and efficiency as some others, for example environmentally adjusted
domestic product.

(e)  Alternative Indicator Definitions:   Disaggregation of the
indicator into sectoral components such as agriculture or
manufacturing, would permit assessment of energy requirements per unit
of output.  On the other hand, total energy consumption, provides a
more direct measure of production patterns and the implications for
the environment, while energy consumption as per unit of Gross
Domestic Product provides a better reflection of energy efficiency.

5.   Assessment of the Availability of Data from National and
International Sources

Energy commodity data for production and consumption, and population
data are regularly available for most countries at the national level;
and for some countries, at the sub-national level. Both types of data
are compiled by and available from national statistical offices and
country publications.     

6.   Agencies Involved in Development of Indicator

(a)  Lead Agency:  The lead agency is the United Nations Statistical
Division, department of Economics and Social Information and Policy
Analysis (DESIPA).  The contact point is the Director, Statistics
Division, DESIPA;  fax no. (1 212) 963 9851. 

(b)  Other Organizations: Other organizations involved in the indicator
development include: national statistical offices, the International
Energy Agency, the Organisation for Economic Co-operation and
Development ( OECD), and  Eurostat.

7.   Further Information

United Nations.  Energy Statistics Yearbook.
----------------------------------------------------------------------


                               ANNEX 2

Indicators on Chapter 4, "Changing Consumption and Production
Patterns" as identified under the Work Programme on Indicators of
Sustainable Development


---------------------------------------------------------------------
Definition of indicator:  Annual energy consumption per capita
(Gigajoules)

Category: Economic

Type of indicator:  Driving Force

Lead Organizations:  DESIPA
---------------------------------------------------------------------
Definition of indicator:  Proven mineral reserves (tons) 60/

Category:  Economic

Type of indicator:  State

Lead Organizations:  DDSMS
---------------------------------------------------------------------
Definition of indicator:  Proven fossil fuel energy reserves (oil
equivalents)

Category:  Economic

Type of indicator:  State

Lead Organizations:  DESIPA
---------------------------------------------------------------------
Definition of indicator:  Lifetime of proven energy reserves (years)

Category:  Economic

Type of indicator:  State

Lead Organizations:  DESIPA
----------------------------------------------------------------------
Definition of indicator:  Share of natural-resource intensive
industries in manufacturing value added (%)

Category:  Economic

Type of indicator: Driving Force

Lead Organizations:  UNIDO
----------------------------------------------------------------------
Definition of indicator:  Intensity of material use (kg/tons/m3)

Category:  Economic

Type of indicator:  State

Lead Organizations:  UNCTAD
----------------------------------------------------------------------
Definition of indicator:  Share of consumption of renewable energy
resources (%)

Category:  Economic

Type of indicator:  State

Lead Organizations:  DESIPA
----------------------------------------------------------------------
Definition of indicator:  Share of manufacturing value-added in gross
domestic product (%)

Category:  Economic

Type of indicator:  State

Lead Organizations:  UNIDO
----------------------------------------------------------------------


Notes:

DESIPA     United Nations Department for Economic and Social Information
           and Policy Analysis (now United Nations Department of Economic and
           Social  Affairs (DESA))

DDSMS      Department for Development Support and Management Services
           (now United Nations Department for Economic and Social
           Affairs(DESA))

UNIDO      United Nations Industrial Development Organization

UNCTAD     United Nations Conference on Trade and Development


     ANNEX 3    Some issues and discussions linked to changing
                consumption and production patterns

----------------------------------------------------------------------
Trade and the Environment

     The trade-environment "debate" can be subdivided into 2
categories: (a) the impact of trade on the environment, and (b) the
impact of environmental protection measures on trade. In relation to
changing consumption and production patterns, there may be possible
conflicts between trade policies and policies aimed at changing
current consumption and production patterns - and the consequences
thereof for developing countries (e.g. effects of policies such as
eco-labeling initiatives, voluntary industry agreements, or policies
aimed at dematerialization), and the possible advantages for
developing countries of fair trade and trade in environmentally
friendly products sold on Western consumer markets.

Technology 

     The technological factor of the consumption-production debate is
of particular importance in changing production patterns. It covers a
large range of issues, including R&D, cleaner production processes,
dematerialization of consumption, eco-efficiency and resource
productivity improvements, and technology transfer to developing
countries.  Policies aimed at promoting these technological changes,
and helping small scale industries to cover the costs of adopting
cleaner and more efficient technologies are receiving increasing
attention. 

Health

     Causal links between consumption-production related human
activities in areas such as water use, agricultural land use, energy
use, transportation, and industrial practices - and ambient and indoor
air quality, water and soil quality, the intensity of radiation, and
food quality are subject of much research. However, more analyses are
needed in order to determine the effects of consumption production-
induced environmental changes on the frequency and emergence of health
problems such as hormone disruption, lung and cardiovascular diseases,
tropical diseases, cancer, poisonings, and reproductive and
immunological disorders. Health considerations are already an
important driving force for changes in consumption patterns in a
considerable number of countries (e.g. increasing interest in
■organic■ food), and could very well become an even more important
consideration in the future. 

Human Settlements

     It is interesting to focus on metropolitan areas, cities, and
towns, in relation to consumption and production patterns; not only
because of the density of consumption-related activities taking place
in cities (ranging from transportation, water and energy use, and
waste generation), and because cities provide an important leverage
point for achieving change, but also because cities are often
characterized by a large population exerting pressure on a relatively
small land-area.

Employment

     Since unemployment is a major problem in many industrialized
countries, the "jobs-versus-environment" debate receives considerable
attention. Some claim that changes in consumption and production
patterns will lead to employment creation, since they will trigger
investment in more efficient equipment and services, raising overall
economic productivity. In addition, policies such as an ■ecological
tax reform■, support for technological innovation, and more
environmentally friendly procurement policies would generate new jobs.
Others, however, assume that the costs incurred by the changes would
slow down overall economic growth and employment creation. These
negative effects on employment would still be reinforced by the
"migration" of inefficient enterprises to foreign countries.
-----------------------------------------------------------------


                            ANNEX 4

   CSD Working List of Indicators of Sustainable Development 
                    (as of September 1996)


----------------------------------------------------------------------
                          CATEGORY: SOCIAL
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 3: Combating poverty

DRIVING FORCE INDICATORS
-Unemployment rate

STATE INDICATORS
-Head count index of poverty
-Poverty gap index
-Squared poverty gap index
-Gini index of income inequality
-Ratio of average female wage to male wage                         
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 5: Demographic dynamics and
sustainability

DRIVING FORCE INDICATORS
-Population growth rate
-Net migration rate
-Total fertility rate

STATE INDICATORS
-Population density
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 36: Promoting education, public
awareness and training 

DRIVING FORCE INDICATORS
-Rate of change of school-age population
-Primary school enrolment ratio (gross and net)
-Secondary school enrolment ratio (gross and net)
-Adult literacy rate

STATE INDICATORS
-Children reaching grade 5 of primary education
-School life expectancy
-Difference between male and female school enrolment ratios
-Women per hundred men in the labour force

RESPONSE INDICATORS
-GDP spent on education
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 6: Protecting and promoting human
health

STATE INDICATORS
-Basic sanitation: Percent of population with adequate excreta
disposal facilities 
-Access to safe drinking water   
-Life expectancy at birth
-Adequate birth weight
-Infant mortality rate 
-Maternal mortality rate
-Nutritional status of children

RESPONSE INDICATORS
-Immunization against infectious childhood diseases
-Contraceptive prevalence
-Proportion of potentially hazardous chemicals monitored in food
-National health expenditure devoted to local health care
-Total national health expenditure related to GNP
--------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 7: Promoting sustainable human
settlement development

DRIVING FORCE INDICATORS
-Rate of growth of urban population
-Per capita consumption of fossil fuel by motor vehicle transport
-Human and economic loss due to natural disasters

STATE INDICATORS
-Percent of population in urban areas
-Area and population of urban formal and informal settlements
-Floor area per person 
-House price to income ratio

RESPONSE INDICATORS
-Infrastructure expenditure per capita
--------------------------------------------------------------------
                       CATEGORY: ECONOMIC
--------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 2:  International cooperation to
accelerate sustainable development in countries and related domestic
policies

DRIVING FORCE INDICATORS
-GDP per capita
-Net investment share in GDP
-Sum of exports and imports as a percent of GDP

STATE INDICATORS
-Environmentally adjusted Net Domestic Product 
-Share of manufactured goods in total merchandise exports
-------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 4: Changing consumption patterns

DRIVING FORCE INDICATORS
-Annual energy consumption 
-Share of natural-resource intensive industries in manufacturing
value-added

STATE INDICATORS
-Proven mineral reserves 
-Proven fossil fuel energy reserves
-Lifetime of proven energy reserves
-Intensity of material use
-Share of manufacturing value-added in GDP
-Share of consumption of renewable energy resources
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 33: Financial resources and mechanisms

DRIVING FORCE INDICATORS
-Net resources transfer / GNP
-Total ODA given or received as a percentage of GNP

STATE INDICATORS
-Debt / GNP
-Debt service / export

RESPONSE INDICATORS
-Environmental protection expenditures as a percent of GDP
-Amount of new or additional funding for sustainable development
---------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 34: Transfer of environmentally sound
technology, cooperation and capacity-building

DRIVING FORCE INDICATORS
-Capital goods imports
-Foreign direct investments

STATE INDICATORS
-Share of environmentally sound capital goods imports

RESPONSE INDICATORS
-Technical cooperation grants
----------------------------------------------------------------------
                     CATEGORY: ENVIRONMENTAL
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 18: Protection of the quality and
supply of freshwater resources

DRIVING FORCE INDICATORS
-Annual withdrawals of ground and surface water
-Domestic consumption of water per capita

STATE INDICATORS
-Groundwater reserves
-Concentration of faecal coliform in freshwater
-Biochemical oxygen demand in water bodies

RESPONSE INDICATORS
-Waste-water treatment coverage
-Density of hydrological networks
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 17: Protection of the oceans, all
kinds of seas and coastal areas

DRIVING FORCE INDICATORS
-Population growth in coastal areas
-Discharges of oil into coastal waters
-Releases of nitrogen and phosphorus to coastal waters

STATE INDICATORS
-Maximum sustained yield for fisheries  
-Algae index    
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 10: Integrated approach to the
planning and management of land resources

DRIVING FORCE INDICATORS
-Land use change

STATE INDICATORS
-Changes in land condition

RESPONSE INDICATORS
-Decentralized local-level natural resource management
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 12: Managing fragile ecosystems:
combating desertification and drought

DRIVING FORCE INDICATORS
-Population living below poverty line in dryland areas

STATE INDICATORS
-National monthly rainfall index
-Satellite derived vegetation index 
-Land affected by desertification                                  
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 13: Managing fragile ecosystems:
sustainable mountain development

DRIVING FORCE INDICATORS
-Population change in mountain areas

STATE INDICATORS
-Sustainable use of natural resources in mountain areas
-Welfare of mountain populations                                   
---------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 14: Promoting sustainable agriculture
and rural development

DRIVING FORCE INDICATORS
-Use of agricultural pesticides
-Use of fertilizers
-Irrigation percent of arable land
-Energy use in agriculture

STATE INDICATORS
-Arable land per capita
-Area affected by salinization and waterlogging

RESPONSE INDICATORS
-Agricultural education       
---------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 11: Combating deforestation

DRIVING FORCE INDICATORS
-Wood harvesting intensity

STATE INDICATORS
-Forest area change

RESPONSE INDICATORS
-Managed forest area ratio
-Protected forest area as a percent of total forest area
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 15: Conservation of biological
diversity

STATE INDICATORS
-Threatened species as a percent of total native species

RESPONSE INDICATORS
-Protected area as a percent of total area
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 16: Environmentally sound management
of biotechnology

RESPONSE INDICATORS
-R & D expenditure for biotechnology 
-Existence of national biosafety regulations or guidelines
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 9: Protection of the atmosphere

DRIVING FORCE INDICATORS
-Emissions of greenhouse gasses
-Emissions of sulphur oxides
-Emissions on nitrogen oxides
-Consumption of ozone depleting substances

STATE INDICATORS
-Ambient concentrations of pollutants in urban areas

RESPONSE INDICATORS
-Expenditure on air pollution abatement
----------------------------------------------------------------------
Chapter 21: Environmentally sound management of solid wastes and
sewage-related issues

DRIVING FORCE INDICATORS
-Generation of industrial and municipal solid waste
-Household waste disposed per capita

RESPONSE INDICATORS
-Expenditure on waste management
-Waste recycling and reuse
-Municipal waste disposal
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 19: Environmentally sound management
of toxic chemicals

STATE INDICATORS
-Chemically induced acute poisonings

RESPONSE INDICATORS
-Number of chemicals banned or severely restricted
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 20: Environmentally sound management
of hazardous wastes

DRIVING FORCE INDICATORS
-Generation of hazardous wastes
-Imports and exports of hazardous wastes

STATE INDICATORS
-Area of land contaminated by hazardous wastes

RESPONSE INDICATORS
-Expenditure on hazardous waste treatment
----------------------------------------------------------------------
Chapter 22: Safe and environmentally sound management of radioactive
wastes

DRIVING FORCE INDICATORS
-Generation of radioactive wastes
----------------------------------------------------------------------
                     CATEGORY: INSTITUTIONAL
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 8: Integrating environment and
development in decision-making

RESPONSE INDICATORS
-Sustainable development strategies
-Programme of integrated environmental and economic accounting
-Mandated Environmental Impact Assessment
-National councils for sustainable development
----------------------------------------------------------------------
Chapter 35: Science for sustainable development

STATE INDICATORS
-Potential scientists and engineers per million population

RESPONSE INDICATORS
-Scientists and engineers engaged in R & D per million population
-Expenditure on R & D as a percent of GDP
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 37: National mechanisms and
international cooperation for capacity-building in developing
countries
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 38: International institutional
arrangements                                                       
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 39: International legal instruments
and mechanisms

RESPONSE INDICATORS
-Ratification of global agreements
-Implementation of ratified global agreements
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 40: Information for decision-making           

      
STATE INDICATORS
-Main telephone lines per 100 inhabitants
-Access to information

RESPONSE INDICATORS
-Programmes for national environmental statistics
----------------------------------------------------------------------
CHAPTERS OF AGENDA 21:  Chapter 23-32: Strengthening the role of major
groups

RESPONSE INDICATORS
-Representation of major groups in national councils for sustainable
development
-Representatives of ethnic minorities and indigenous people in
national councils for sustainable development
-Contribution of NGOs to sustainable development
----------------------------------------------------------------------


             Annex 5: Participants Consultative Round

Participants to the Consultative Round were:

-    Helene Bank, Norwegian NGO Forum for Environment and Development, Norway
-    Manus van Brakel, Milieudefensie, Amsterdam, Netherlands
-    Rae Kwon Chung, Permanent Mission of the Republic of Korea, New York, USA
-    Robert Donkers, European Commission, Brussels, Belgium
-    Jeremy Eppel, OECD, Paris, France
-    Claude Fussler, Dow Europe, Horgen, Switzerland
-    David Gershon, Global Action Plan, Woodstock, USA
-    Paul Hofseth, Ministry of Environment, Oslo, Norway
-    R. Hull, European Commission, Brussels, Belgium
-    Sitanon Jesdapipat, Thai Environment Institute, Bangkok, Thailand
-    Pavel Kasyanov, Ministry of Environmental Protection and Natural
     Resources, Moscow, Russia
-    Jaeyun Ko, Ministry of Environment, Seoul, Korea
-    Marie Kranendonk-Schwartz, ANPED, Utrecht, Netherlands
-    Ritu Kumar, UNIDO, Vienna, Austria
-    Ing Hoc Lim, Ministry of Environment, Pnom Penh, Cambodia
-    Alex Mc Gillavry, New Economics Foundation, London, UK
-    Yannick Glemarec, UNDP China, Beijing, China
-    Bedrich Moldan, Charles University, Prague, Czech Republic
-    Chris Morrey and Andrew Randall, Department of the Environment, London,
     UK
-    Bruce Nordman, Berkley National Laboratory, California, USA
-    Hans Opschoor, ISS, The Hague, Netherlands
-    Kirit Parikh, Indira Ghandi Institute of Development Research, Bombay,
     India
-    Istvan Pomazi, Chief Adviser Ministry for Environment and Regional
     Policy, Hungary
-    Mark Radka, Industry Programme Officer, UNEP (Regional Office for
     Asia/Pacific), Bangkok, Thailand
-    Bob Slater, Environment Canada, Ottawa, Canada
-    Joachim H. Spangenberg, Wuppertal Institute for Climate, Kolomb, Germany
-    Walter Stahel, Institut de la Duree, Geneva, Switzerland
-    Patricia Vasquez, Directors, Trade and Environment Concerns, FLASCO,
     Buenos Aires, Argentina
-    Rosa Anna Weiss, Federal Ministry of Environment, Vienna, Austria
-    Czeslaw Wieckowski, Director Environmental Policy Department, Ministry of
     Environmental Protection, Natural Resources, and Forestry, Warsaw, Poland
-    Keimpe Wierenga, European Environment Agency, Copenhagen, Denmark


                                   NOTES:

1/     See Peter Hardi■s contribution in: Moldan and Billharz, "Sustainability
Indicators - Report of the Project on Indicators of Sustainable
Development", 1997.

2/     Commission on Sustainable Development, Fourth session, (18 April - 3
May 1996), "Changing Consumption and Production Patterns", Report of the
Secretary-General, E/CN.17/1996/5.

3/     In the "menu" (or core set) of indicators as included in the WPISD,
indicators are grouped in categories covering the social, economic,
environmental, and institutional aspects of sustainable development, and
placed within a Driving Force-State-Response Framework. The indicators are
also related to chapters of Agenda 21. More information about the WPISD
is available on the internet (http://www.un.org/dpcsd/dsd/isd.htm).

4/     For more information about the indicator framework used, reference is
made to paragraph 3.1 of this paper.

5/     The process was launched at a Workshop in Ghent, Belgium (20-22
November 1996): "Launching the Testing of Indicators of Sustainable
Development". This Workshop was followed by a regional consultative
meeting on Environmentally Sound and Sustainable Development Indicators
in Bangkok, Thailand (26-29 November 1996), and two regional Workshops
on Indicators for Sustainable Development: for Latin America and the
Caribbean Region (San Jos‚, Costa Rica, 10-12 March 1997), and for
Africa (Accra, Ghana, 3-6 June 1997).

6/     "Report of Expert Workshop on Methodologies for Indicators of
Sustainable Development", (5 -8 February 1996), Glen Cove, Long Island, New
York.

7/      "Sustainable Consumption and Production",  OECD, 1997. The term eco-
efficiency was coined by the Business Council for Sustainable
Development (BCSD) in "Changing Course", its report to the United Nations
Conference on Environment and Development in Rio and discussed further at the
OECD Workshop on Sustainable Consumption and Production in Rosendal, Norway,
on 2-4 July 1995.

8/     "Sustainable Consumption and Production: Clarifying the Concepts",
OECD, 1995.

9/     "The Carnoules Declaration", Factor 10 Club, Wuppertal Institute, 1994.

10/    "Factor Four - Doubling Wealth, Halving Resource Use", von Weizs„cker,
Lovins, and Lovins, 1997.

11/    Programme for the Further implementation of Agenda 21, adopted by the
Special Session of the General Assembly. See United Nations, General
Assembly, Nineteenth special session, Overall Review and Appraisal of
the Implementation of Agenda 21, A/S - 19/29, 27 June 1997. 

12/    "Sustainable Consumption and Production", OECD, 1997, op.cit.

13/    "Sustainable Consumption and Production.", OECD, 1997, op.cit.

14/    "Critical Trends - Global Change and Sustainable Development", op.cit.

15/    "Potentials and Policy Implications of Energy and Material Efficiency
Improvement", United Nations, 1997.

16/    "Critical Trends - Global Change and Sustainable Development", op.cit.

17/    "World Resources 1994 - 1995, A guide to the Global Environment.", 
1994.

18/    "Critical Trends - Global Change and Sustainable Development", op.cit. 

19/    "Critical Trends - Global Change and Sustainable Development", op.cit.

20/    "The best of both worlds - Lifestyles in the 21th Century", Ministry of
Housing, Physical Planning, and the Environment of the Netherlands, 1993.

21/    OECD Environmental Data Compendium 1997 - Organization for Economic
Cooperation and Development, Paris, France.

22/    Calculations based on OECD Environmental data, Compendium 1997.

23/    "Changing Consumption Patterns in Human Settlements: Waste
Management", UNCHS (Habitat) Settlement Infrastructure and Environment
Programme (SIEP), 1997.

24/    "Resource Flows - the material basis of industrial economies", World
Resources Institute, et. al, 1997.

25/    I.e. the Wuppertal Institute, the Netherlands Ministry of Housing,
Spatial Planning, and Environment, and the National Institute for
Environmental Studies (in Japan).

26/    "Critical Trends - Global Change and Sustainable Development", op.cit.

27/    Commission on Sustainable Development, E/CN.17/1996/5/Add.1.

28/    "Comprehensive Assessment of the Freshwater Resources of the World",
World Meteorological Organization, et. al., 1997.

29/    "Comprehensive Assessment of the Freshwater Resources of the World",
op.cit.

30/    Commission on Sustainable Development, E/CN.17/1996/5/Add.1.

31/    One participant of the consultative round proposed the following
indicators, in order to indicate that ground and surface water use have
different replenishment times: (I) surface water/total quantity of water use
as a percentage of annual precipitation, or (ii) annual aquifer withdrawal
as a percentage of replenishment.

32/    See the Withdrawal/Availability ratios and the discussion with regard
to water stressed countries in the "Comprehensive Assessment of the
Freshwater Resources of the World", 1997.

33/    "The environment, space and living quality - time for sustainability",
Margaretha de Boer, 1995.

34/    "Sustainable Consumption - A global perspective", Friends of the Earth
Netherlands, 1996.

35/    Since the world population is likely to double to 10 billion in the
next century, the per capita availability of arable land will halve.

36/    "Critical Trends - Global Change and Sustainable Development", op.cit.

37/    For underlying definitions, see World Resources (1996 - 1997).

38/    International Institute for Sustainable Development, "Unlocking Trade
Opportunities - Case Studies of Export Success from Developing Countries",
1997.

39/    "The best of both worlds - Sustainability and quality lifestyles in the
21th Century", Ministry of Housing, Physical Planning, and the Environment
of the Netherlands, 1993.

40/    Calculations based on OECD Environmental data, Compendium 1997.

41/    China Statistical Yearbook, 1995.

42/    NCDO, 1996.

43/    In: "Industrial Commodity Statistics 1993 Yearbook", Production and
Consumption Statistics, United Nations, 1995.

44/    TNO, "Trendanalyse Consumptie en Milieu", 1996.

45/    Many of the consumption trends discussed under other consumption
domains, such as food, mobility, and recreation, are also strongly
affected by advertising.

46/    In 1993 per capita paper consumption amounted to 152 kg per person per
year in industrialized countries, as opposed to 12 kg per person per
year in developing countries. See "A Changing Future for Paper", World
Business Council for Sustainable Development, 1996.

47/    In 1992, buildings in industrialized countries consumed 58 per cent of
total world buildings energy use, followed by developing countries (22 per
cent) and economies in transition (20 per cent). 

48/    "Potentials and Policy Implications of Energy and Material Efficiency
Improvement", DPCSD, 1997.

49/    "Potentials and Policy Implications of Energy and Material Efficiency
Improvement", DPCSD, 1997.

50/    "Potentials and Policy Implications of Energy and Material Efficiency
Improvement", op.cit.

51/    See World Resources Institute, "World Resources 1994-1995".

52/    "The best of both worlds - Sustainability and quality lifestyles in the
21th Century", 1993, op.cit.

53/    "Unlocking Trade Opportunities", 1997, op.cit.

54/    World Tourism Organization, "What tourism managers need to know - A
practical guide to the Development and Use of Indicators of Sustainable
Tourism", 1995. 

55/    "Unlocking Trade Opportunities - Case Studies of Export Success from
       Developing Countries" International Institute for Environment and
       Development, 1997.

56/    "Unlocking Trade Opportunities", 1997, op. cit.

57/    "Tijd in relatie tot duurzaam consumeren", Ministry of Housing,
Physical Planning, and the Environment, 1997.

58/    OECD, 1994, op. cit.

59/    World Tourism Organization, 1995.

60/    Indicator under development.

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Date last posted: 8 December 1999 15:15:30
Comments and suggestions: DESA/DSD