The world budget constraint

• Published in: Environment, development and sustainability development and sustainability, 2013-12, Vol.15 (6), p.1543-1553
• Main Author: Lianos, Theodore P.
• Format: Article
• Language: English
• Subjects: Animal, plant and microbial ecology; Applied ecology; Biological and medical sciences; Budget constraint; Budgeting; Consumption; Consumption patterns; Earth; Earth and Environmental Science; Ecological footprint; Ecology; Economic Geology; Economic Growth; Energy consumption; Environment; Environment and sustainable development; Environmental Economics; Environmental Management; Estimates; Footprints; Fundamental and applied biological sciences. Psychology; Global economy; Income; Natural resource management; Natural resources; Overpopulation; Per capita; Per capita output; Policies; Population; Population growth; Preserving; Production capacity; Standard of living; Studies; Sustainability; Sustainable Development; World population
• ISSN: 1387-585X; 1573-2975
• DOI: 10.1007/s10668-013-9460-2

The fact the resources of the earth are limited implies a budget constraint for the world economy, under the assumption of preserving the natural capital. Using recent data on the ecological footprint, the world product, and population, it is estimated that we are currently located in a non-feasible area. It is also estimated that if the present level of per capita product is to be sustained, the size of the world population must be reduced to 2.5 billion people. Given our natural resource endowment and the relationship between material income and happiness, suggested in recent research, there appears to be an obvious need for reconsidering our lifestyles, our consumption patterns, and our policies for population reduction.