Measuring countries׳ environmental sustainability performance – A review and case study of Iceland

Abstract

Evaluating the environmental sustainability performance of a nation is complex. This paper considers the merits of environmental indices, and how effective they are when assessing the environmental sustainability of any nation. The simplicity and generic qualities of environmental indices currently necessitates a much broader analysis in order to evaluate any nation׳s genuine environmental sustainability credentials – ultimately the development of a synthetic Environmental Sustainability Index is required to fulfil this task. Using Iceland as a case study, this paper reviews the usefulness of four selected environmental indices (Environmental Vulnerability Index, Environmental Performance Index, Ecological Footprint and Happy Planet Index) for governance institutions when formulating reasoned responses to challenges. By adopting a holistic methodology, Iceland׳s environmental sustainability credentials are critically examined in this paper, with particular focus given to the impacts deriving from expanded renewable energy utilisation in recent years. Abundant geothermal and hydropower energy resources have been increasingly used to power heavy industry, particularly aluminium production. The wider health implications and long-term environmental sustainability consequences of renewable energy utilisation have not been analysed in depth within any of the indices. Socio-economic progress in Iceland has also been attained alongside the imposition of the highest ecological footprint of any nation in the world. As such, economic activities in Iceland have not occurred in accordance with commonly accepted notions of sustainable development, which is focused upon the reconciliation of economic, environmental and social objectives, together with recognition of current and future need across these domains.