Abstract

The primary condition for a sustainable human development (SHD) uses both monetary and non-monetary indicators to determine the sustainable level of human development. As defined, this condition can be expressed in terms of the damage elasticity of human development, where damage is defined based on the non-monetary cost to the natural and social environments (NSE). A comparison between this sustainability condition and the feasibility condition of cost-benefit analysis (CBA) is useful for determining the sustainability premium or the deadweight loss. Since the cost-benefit methodology uses monetary estimates of all impacts and the primary condition for sustainable human development uses both monetary and non-monetary indicators, the two methodologies are unlikely to yield the same outcome unless there is a one-to-one relationship between monetary and non-monetary benefits and costs. Unlike the feasibility condition of CBA, the primary condition for a sustainable human development varies based on the level of human development and the damage to the NSE in any locality/country.

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