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2005 Environmental Sustainability Index Benchmarking National Environmental Stewardship. Millennium Challenge Corporation June 24, 2005. Designing & Building an Indicator. Daniel C. Esty Yale University. 2005 Environmental Sustainability Index Partners. Constructing the ESI. - PowerPoint PPT Presentation
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2005 EnvironmentalSustainability
Index
Benchmarking National Environmental Stewardship
2005 EnvironmentalSustainability
Index
Benchmarking National Environmental StewardshipMillennium Challenge
CorporationJune 24, 2005
Millennium Challenge Corporation
June 24, 2005
Daniel C. EstyYale UniversityDaniel C. EstyYale University
Designing & Building an IndicatorDesigning & Building an Indicator
2005 Environmental Sustainability Index
Partners
Constructing the ESI
76 variables
21 indicators
5 components
ESI Score
equally weighted average
•Nitrogen dioxide concentration•Sulfur dioxide concentration
•Surface water availability
•Developed area
•Forest cover change
•Malnutrition
•Corporate sustainability (Dow Jones)•Corporate sustainability (Innovest)•ISO 14001 certified companies
•Intergovernmental environmental activities•Role in intl. environmental aid
Air Quality
Land
Water Quantity
Reducing Ecosystem Stress
Reducing Waste & Consumption Pressures
Basic Human Sustenance
Environmental Governance
Private Sector Responsiveness
Participation in International Collaborative Efforts
•Transboundary sulfur dioxide spillovers
Reducing Transboundary Environmental Pressures
•Particulate concentration•Indoor air quality
•Wilderness area
•Groundwater availability
•Acidification
•Safe drinking water supply
•Civil and political liberties•Sustainable development data gaps•International environmental engagement•Environmental knowledge creation•Democratic institutions•Local Agenda 21 initiatives
•Private sector environmental innovation•Participation in Responsible Care Program
•Participation in intl. environmental agreements
•Polluting-goods imports
•Ecoregions at risk•Threatened birds•Threatened mammals
Biodiversity •Threatened amphibians•National Biodiversity Index
•Suspended solids•Phosphorus concentration Water Quality
•Dissolved oxygen•Electrical conductivity
Environmental Systems
•Coal consumption•Nitrogen oxide emissions•Sulfur dioxide emissions
•Population growth
•Ecological Footprint•Waste recycling rates
Reducing Air Pollution
Reducing Population Pressure
Reducing Water Stress
•VOC emissions•Vehicles in use
•Total fertility rate
•Hazardous waste generation Reducing Stresses
•Deaths from intestinal infect. diseases•Child mortality rate
•Casualties due to environmental disasters
Environmental Health
Exposure to Natural Disasters
•Child mortality due to respiratory infections
•Environmental Hazard Exposure Index
Reducing Human Vulnerability
Energy Efficiency
Science and Technology
•Energy efficiency •Renewable energy production
Greenhouse Gas Emissions •Greenhouse gas emissions / GDP •Greenhouse gas emissions / capita Global Stewardship
Social and Institutional Capacity
76 Variables76 Variables 21 Indicators21 Indicators 5 Components 5 Components
•Pesticide consumption•Area under water stress
•Industrial organic effluents•Fertilizer consumption
Natural Resources Management•Overfishing•Sustainably managed forests•Market distortions
•Salinization due to irrigation•Agricultural subsidies
•Gasoline price•Corruption•Government effectiveness•Protected land area•Environmental governance•Strength of rule of law
•Innovation capacity•Digital Access Index•Female primary education
•University enrollment•Research scientists
• NO2 concentration
• SO2 concentration
• Particulate concentration
• Indoor air quality
Environmental Systems
VariablesVariables IndicatorIndicator ComponentComponent
Air Quality
Indicator Construction
1 Finland
2 Norway
3 Uruguay
4 Sweden
5 Iceland
6 Canada
7 Switzerland
8 Guyana
9 Argentina
10 Austria
137 Yemen
138 Kuwait
139 Trinidad & Tob.
140 Sudan
141 Haiti
142 Uzbekistan
143 Iraq
144 Turkmenistan
145 Taiwan
146 North Korea
Top TenTop Ten Bottom TenBottom TenOther CountriesOther Countries
11 Brazil
31 Germany
33 Russia
36 France
45 U.S.A.
65 U.K.
93 South Africa
95 Mexico
101 India
133 China
ESI Rankings
Key to Policy Leverage
• Peer groups
• Multiple perspectives– income-based– geographic– political / trade groupings– statistically derived
ESI Country Scores by Quintile
Bottom Quintile
4th Quintile
3rd Quintile
2nd Quintile
Top Quintile
Cluster Analysis: ESI Characteristic-Based Country Groupings
Why Measure?
• Better policy management
• Improved performance and results
• Benchmarking – shows what is possible
• Competitiveness pressure– leaders and laggards– best practices
Application in MCC Context
• Supports merit-based aid
• Helps clarify what is “meritorious”
• Makes decisionmaking more objective
But note:
• No purely “objective” criteria
• Data limitations are significant
• Measurement challenges should not be an excuse to withhold aid
Elements of effective and credible index
1. Theoretical foundation
2. Openness about strengths and weaknesses
3. Transparent methodology
4. Published data
5. Crosscheck – peer review
6. Sensitivity analysis (JRC)
MCC Issues to Consider
• Environment is a hard topic to capture– multidimensional issue– divergent priorities and values
• Companies invest in measurement– so should MCC
• A sound analytic framework cannot be developed on the cheap
What to Measure?• Choices
– Outcomes– Inputs (efforts)– Processes– Trends
• Targets– Absolute– Relative
• How to fill data gaps
MCC Evaluation of Options• Seek a credible capacity to deliver
• Emphasize an operational set of indicators
• Stress experience and a proven track record
• Look for a clear action blueprint– What issues to track– Where data will come from– How to check/verify data– Strategy for revising and updating
Sensitivity Analysis
• Checks the robustness of the rankings
• Evaluates sensitivity to the assumptions and aggregation methods utilized
The 2005 ESI is available at:
www.yale.edu/esi