SEA Working Paper 98/01 - Abstract
The Economics and Application of Sustainability Indicators in Agriculture
Nicole A. Glenn and David J. Pannell
Agricultural and Resource Economics, The University of W.A., Nedlands, 6907
Abstract
In recent years, the concept of "sustainability indicators" has become prominent in agricultural science. The idea is that particular characteristics of resources are monitored and recorded, with the intention that this information proves an aid for decision making by farmers and/or policy makers. A great many sustainability indicators have been proposed by agricultural scientists. However there is no guidance currently available as to which of the possible sustainability indicators provide information of economic value. In this paper we present a conceptual framework for economic valuation and prioritisation of sustainability indicators. The framework is based on Bayesian Decision Theory, particularly its use to calculate the value of information under conditions of uncertainty. We present an illustrative numerical example. Based on this example and the theoretical framework, we identify a number of important insights about the practical use of sustainability indicators.
Citation: Glenn, N.A. and Pannell, D.J. (1998). The Economics and Application of Sustainability Indicators in Agriculture, Paper presented at the 42nd Annual Conference of the Australian Agricultural and Resource Economics Society, University of New England, Armidale, Jan 19-21, 1998. (SEA Working Paper 98/01, Agricultural and Resource Economics, University of Western Australia)
Later revised version:
Pannell D.J. and Glenn N.A. (2000). A Framework for Economic Evaluation and Selection of Sustainability Indicators in Agriculture, Ecological Economics 33(1): 135-149.
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