1. Sustainability is development that maintains the capacity to provide non-declining per capita utility for infinity (Neumayer, 2005). Based on this definition answer the following questions:
a) What does "utility" mean in economics. How can utility be measured within the framework of neoclassical economics and ecological economics?
b) Name the two approaches in environmental economics that aim to achieve sustainable development through "providing non-declining per capita utility." Explain two major differences between the two approaches.
c) In which approach the "net investment" must be more than zero to achieve sustainability. Explain why.
d) When is a 'steady state equilibrium' (stationary economy) reached under a neo-classical paradigm? Can sustainability be achieved under that state of equilibrium?
e) Ecological Footprint methodology allows assessment of which kind of sustainability? Explain your answer.