Sustainable national income: information for attaining sustainability

Abstract

PurposeThis paper aims to provide information about which conditions green supply chains have to fulfil in order to attain an environmentally sustainable situation.Design/methodology/approachThe paper describes a macro economic analysis in which, first, the non‐human – made physical surroundings is described as a collection of possible uses, or environmental functions, on which human life is entirely dependent. Second, the possibilities and impossibilities of evaluating environmental functions are described. Third, it is stated that competing functions are by definition economic goods. Fourth, the concepts of national income (NI) ex asymmetric entries and the environmentally sustainable national income (eSNI) are formulated. Fifth it is shown why the estimate of eSNI has to be realised with the aid of an economic model. Sixth, it is argued why there is no conflict between environmental conservation and employment. Finally, the relation of this analysis and supply chains is given.FindingsThe results of an environmentally sustainable production level (the eSNI) is given, both for The Netherlands and for the world. It is found that a series NIs ex asymmetric entries and a series of eSNIs alongside the standard NI would greatly ameliorate the information about the inevitable choices between the growth of production and safeguarding vital environmental functions for future generations.Originality/valueBoth the concepts presented and the results of the estimates are original.