Abstract

The concept of sustainable development has evolved to encompass three major points of view: economic, social and environmental. Meanwhile, energy has emerged as one of the key resources whose use affects the economic, social and environmental dimensions of sustainable development. In recent times, growing energy demand has also become associated with global climate change, which poses an unprecedented challenge to humanity. Given the wide-ranging potential impacts of energy production and consumption on sustainable development, this paper reviews the linkages between these two topics. A case study is presented based on the application of sustainomics principles, including multi-criteria analysis, to assess the sustainable development implications of hydroelectric power generation in Sri Lanka. Three key variables, (electricity supply costs, numbers of people resettled, and biodiversity loss) are selected, to represent the economic, social and environmental dimensions. This type of analysis helps policy-makers to compare project alternatives more easily and effectively. The simple graphical presentations are more readily comprehensible, and identify the sustainable development characteristics of each scheme quite clearly. The multidimensional analysis supplements the more conventional cost benefit analysis based on economic analysis alone.