In: Economics
If we were to try to implement the economic concept of sustainability, we would face some important sources of uncertainty. Describe these areas of uncertainty and how they might limit our ability to implement sustainable policies.
Uncertainties pertinent to the environmental context of economies and its sustainability have implications for precautionary policies. Three types of uncertainty are acknowledged: uncertainty due to ignorance, model uncertainty and parameter uncertainty.
Consequently, four categories of uncertainty form the backbone
of our framework:
Inherent uncertainties
Scientific uncertainty
Social uncertainty
Legal uncertainty
Below, we elaborate on the four categories of uncertainties,
followed by an identification of
strategies for dealing with them.
1. Inherent Uncertainty—“We Cannot Know (Exactly)
The first category of uncertainty is inextricably connected to the
inherent unpredictability of
the system under study. In many systems, the impact of a plan can
vary because the physical size
of the potential disturbance varies per location or over time,
because the systems or populations
that are affected have a diverse sensitivity to the disturbance,
because other issues or trends that
are at play modify the impact of the plan under study, or because
the system exhibits some level of
chaotic behavior. Note that this can relate to the environmental
system,
as well as the social, legal, or political systems. However, such
aspects are already largely covered
under the social and legal uncertainties in the later
subsections.
Inherent uncertainties may manifest themselves in SEA in various
ways, some of which are
listed below.
Because of variability of the system, the appropriate system
boundaries regarding time and spatial
scales are unknown or unclear, or the vulnerability of the
system(s), populations, or individuals
impacted varies. It may be possible to give “likely” bounds, but
the precise impacts in practice will
vary, and outliers cannot be ruled out. Examples include
variability in local weather conditions,
in local activities, or in the way local plants and animals might
respond to the effects of a plan in
the environment. For SEAs, it means that the exact magnitude and
full range of environmental
impacts of an activity cannot be known. Our knowledge of the
natural system determines how
we represent these properties in assessments, and how we design
tools to evaluate impact.
In understanding environmental processes, it is important to study
the relationships between
cause and effect. Cause-and-effect mechanisms can only be
established if these relationships are
well understood. In the case of very complex systems and issues,
such as climate change, this is
difficult to establish, and the system may exhibit “chaotic”
behavior. As a consequence, assessing
the impact of a future activity in SEAs can become very difficult,
especially in complex systems
and for long-term impacts.
Uncertainties also arise in the assessment of cumulative
effects.Noise pollution is a good
example for cumulative effects. If an activity takes place on a
larger scale, other existing sources
of noise have to be taken into account to study the total impact of
noise. Different sources of noise
reinforce each other, called accumulation. Noise increase from the
assessed activity might seem
irrelevant, yet, in total, it could mean a significant increase in
noise pollution in the area. It can
be difficult to understand how natural phenomena reinforce
themselves. Consequently, the full
impact of an activity in an existing situation with multiple
sources and burdens may not be clear,
and it can be difficult to attribute reported problems to a
specific activity.
Often, inherent uncertainties exist in combination with scientific
uncertainties that can be reduced through more research. For
instance, the range of variability may not be known at first. The
variability can then be better characterized and bounded (reducing
knowledge uncertainty about the variability), but the physical
source remains. For example, uncertainty around climate-change
effects can be reduced by improving data analysis, models, and
parameters.
However, despite improvements to models, there will always be some
uncertainty inherent to the natural and
socio-economic systems involved which we cannot remove. The
reducibility of uncertainty strongly
relates to determining how we deal with uncertainty .
Scientific Uncertainty—“Our Information and Understanding Could Be
Wrong or Incomplete”
Scientific uncertainty entails having limited or incorrect
information about phenomena.
This relates to “epistemic” or knowledge uncertainty .
Reasons include technical issues such as faults in models or data,
and problems in the translation of the
practical problem into the scientific problem. This might, at least
in theory, be reduced by performing
additional research , for example, the design and selection of
indicators and criteria for assessment.
Technical problems are associated with data and models. More often
than not, impact predictions
are made using models, rather than actual measurement, or model
extrapolations based on a limited
set of measurements. This is especially the case when predicting
air quality, changes in water systems,
or noise pollution in large-scale projects. Model outcomes are used
to compare alternatives and
determine a preferred alternative with the least significant
effects. Uncertainties may emerge in the
following ways:
Models are simplified abstractions of the real world, and are,
therefore, never fully accurate .
Uncertainties can occur in the model structure, variables, and
parameters . Similarly, many
assumptions are made in the modeling process, e.g., in designing a
model or combining models
in a model chain, where different researchers might make different
choices . That models
make simplifications and assumptions is, in itself, not necessarily
bad—it is a necessary aspect
of generalizing and applying knowledge of environmental processes
to evaluate new situations
(i.e., not yet existing in exactly the set-up proposed). Rather,
one should relate models to model
and knowledge quality and to the fitness of the model for the
purpose for which it is
Sustainability , used in the assessment . Often, generic models are
developed and used in SEAs to find
consistency in the research methodology, and thus, overcome
uncertainty due to limitations in
models. Interactions and variables that are unique to the situation
might be overlooked.
Models use the input of data. Uncertainty about data can occur due
to limited access to
information, measurement errors, type of data, and presentation of
data . Also,
data might become invalid in the long term due to greater
variability, depending on the time
horizon that is selected. Limitations in data seriously influence
the impact prediction that is the
outcome of the model.
Data on baseline conditions is a specific issue. Baseline
conditions include the developments,
impacts, and environmental dynamics that would occur without the
proposed activity.
Baseline conditions are a critical starting point in SEAs, as they
provide the benchmark against
which assessments are predicted. Measurement errors occur in
baseline data .
The translation of problems, as defined by policy-makers and
planners for scientific problems,
is a second source of scientific uncertainty:
Uncertainties can occur in the choices of data, methods,
parameters, and statistics, in other words,
the assessment framework. Science is looking for measures to
represent phenomena. It applies to
SEAs in the sense that indicators are selected to study
environmental effects, which may not be
the best representation of the real environment .
Furthermore, projects and activities may change, and impacts that
are attributable to them change
as well .
When determining change and impact, we need to determine past,
present, and future activities
for the development at issue. To create an inventory of all
activities, a large amount of effort
and input is needed from different stakeholders. Future activities
are especially difficult to include,
since they occur over a longer time scale, influenced by many other
factors.
The distinction between inherent and scientific uncertainties is
not always clear, and both types of
uncertainty can be related (e.g., our inability to predict how
complex systems develop or behave may
result in both types of uncertainty).
Social Uncertainty—“We Do Not Agree on What Information Is or
Will be Relevant”
Social uncertainties refer to doubts or ambiguity about information
by actors involved in an
SEA, or in the policy or plan at issue. It is caused by differences
in human values and interpretations.
The role of social uncertainties in environmental research was only
recently recognized, and the
challenge is to account for human input in the decision-making
process. This relates in particularly
to the “ambiguity” type of uncertainty, as discussed in the
typologies , as well as, to some
extent, to variability (e.g., variability of social values) and
knowledge (limited information on the social
perception of the activities proposed, or lack of accounting for
social aspects in the scientific analyses)
uncertainty. Some examples of social uncertainties in SEAs include
the following:
Stakeholders, as well as decision-makers and researchers in SEAs
have different values, interests,
and perceptions of environmental components . Examples are
conflicts of interest regarding
the objects to be studied, and different world views regarding what
is important. It influences
the framing of the problem, and therefore, the scope of the
assessment. It also entails a subjective
selection of criteria and indicators. The assessment of system
boundaries and impacts are a result
of negotiations between stakeholders.
The political climate influences whether an environmental problem
is addressed, and which
alternatives are considered and selected . Political groups or
lobbyists can have a large
influence on the outcome of the decision-making process. They can
also demand to study
specific environmental aspects, such as health or sustainability.
It depends on the societal
context and the period. It could also mean that politicians pursue
political goals, and overrule
environmental issues.
Knowledge frames and capacities of stakeholders are strongly
related to inherent and scientific
uncertainty. It entails our understanding of the environmental
processes at hand, but it also
entails an understanding of what information is delivered in SEAs.
This depends on the capacities
and skills of responsible persons such as policy makers and project
managers. Similarly,
the frames of the analysts and competent authorities play a role in
shaping the scientific analysis
in the ; issue-framing plays a key role in setting the research
questions and boundaries,
strongly impacting what is analyzed and how, and consequently, the
results of the analysis .
Social uncertainty can exist in the project design for the SEA
process, e.g., organizational factors,
procedures, resources, and coordination among stakeholders .
The implications of social uncertainty could be legal uncertainty
(see below), which suggests our
distinction in forms of uncertainty is mainly an analytical
one.
4. Legal Uncertainty—“We Do Not Know What InformationWe Should
(Legally) Provide”
Legal uncertainty has to do with the decision-making context. It
relates to ambiguity in the
uncertainty typologies discussed, as well as, to some extent, to
variability (e.g., in legal
rulings and perceptions), and knowledge (e.g., lack of clear
criteria or legal precedents) uncertainty.
Decisions that are made in an SEA need to be justified, and
decision-making approaches depend
on goals, performance measures, and assessment criteria . For
example, new legislation
on specific environmental aspects could pose uncertainty about how
to include this in the SEA
process. Legal uncertainty in that respect relates to what one
“could or should have known”
before implementing the project to due diligence, as elaborated
below.
The decision-making context poses uncertainty as to what
information the SEA needs to deliver.
The task of supplying information is imposed on the initiator of
the policy or plan . Often,
legal guidelines exist to address the type and amount of
information that needs to be delivered
in SEAs to make a decision. However, uncertainty increases when the
decision-making context
changes due to new (environmental) legislation or revisions of
existing legislation.
The institutional context influences rights and responsibilities,
and shapes the degree of power and
influence. This also relates to how responsibilities and
definitions, for instance, the definition
of the “precautionary principle”, are embedded in national or
European Union (EU) law or
international agreements. Such differences can lead to different
levels of proof that are required
before allowing a plan, or to demanding precautionary
risk-mitigation actions, and who should
bear the burden of proof .
Furthermore, De Marchi describes legal uncertainty as the future
contingencies or personal
liability for actions or inactions. The people involved in an SEA
process, including the initiator,
consultants, and decision-makers, are primarily concerned with
making their assessments and
decisions appear defensible and politically palatable. Providing
information about significant
impacts in a worst-case scenario, or uncertainties in the
assessment can have consequences for the
public image, social trust, legitimacy, and political
acceptability. The public can use this kind of
information to appeal to a proposal, or at least policy-makers feel
that this is the case.