Analysis of sustainability policy instruments in enhancing resource productivity and climate resilience with an emphasis on decoupling – case study of Nepal and Bangladesh
Bishal Baniya1, Scott Kelly2, Damien Giurco3
1Institute for Sustainable Futures (ISF), University of Technology Sydney, Australia; 2ISF, University of Technology Sydney, Australia; 3ISF, University of Technology Sydney, Australia
Developing Asian countries such as Nepal and Bangladesh have been doing well in last ten years in terms of incorporating sustainability and climate resilience aspects in both overarching and economic sector policies. GDP has increased by almost seven-fold for Nepal and Nine-fold for Bangladesh in the last 25 years, and while the absolute consumption figures of energy and material has substantially increased, energy intensity has fallen by 30 per cent and 10 per cent for Nepal and Bangladesh respectively. A similar reduction has been achieved for material intensity, however, the CO2 emissions per capita has quadrupled in the same period despite the fact that the populations in these countries has almost doubled.
This paper aims to analyse the role of sustainability policy instruments in fostering resource productivity and climate resilience through identifying a decoupling trend of energy and material productivity, and emission intensity of Nepal and Bangladesh in last 25 years. The study makes an inventory of historical data on energy and resource consumption, and CO2 emission and then use these to measure change in resource productivity and efficiency with the consideration of environmental effects using Data Envelopment Analysis (DEA) in time-varying contexts. In DEA, an output-oriented model is used with both variable and constant returns to scale using capital and labour with energy and material consumption as inputs, and GDP and emissions as desirable and undesirable outputs respectively to understand how the same productive base performed differently – that is, output varied over time due to productivity changes in the resource utilization. Preliminary research analysis indicates the rate of increase of desirable outputs is much higher than that of undesirable outputs as there has been some efforts to achieve technical efficiency and with favourable policy instruments in place.