sustainable economic growth with pollution fees
DESCRIPTION
This presentation presents an overview of the Swedish Sustainable Economy Foundation's Flexible Fee Mechanism for creating a transition to the sustainable society while retaining economic stability.TRANSCRIPT
At the start of the last century most were
convinced flying was an impossibility
In the 21st century, most are convinced transitioning to
sustainability is an
impossibility(With economic growth at the same time)
The Swedish Sustainable Economy Foundation – tssef.se
TSSEF presents an alternative view
The Swedish Sustainable Economy Foundation – tssef.se
The science gives clear objectives
CO2
Nitrogen
N
Phosphorus P
LEAKAGE=
C NON-RENEWABLES:e.g. Fossil energy
P
Can be recycled but in short supplye.g. Phosphorus
N
Abundant and should be recyclede.g. Nitrogen
MONEY LEAKS OUT TOO
Fossil fuel import:13,000,000 m3Costs: climate change
P
Import of Phosphorus18,400 tonCosts: water purification and Baltic sea clean-up
N
Nitrogen import 160 000 ton Costs: water purification and Baltic sea clean-up
Swedish agricultural land had an annual net import of about 10,600 tonnes of phosphorus corresponding to 3.2 kg phosphorous per hectareLinderholm, Kersti and Mattsson, Jan Erik (2013). Analys av fosforflöden i Sverige. Sveriges lantbruksuniversitet: rapportserie ; 2013:5
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P&N: per kilo20kr import*200kr water works**Baltic Sea clean-up 3200 kr
Sources*IVL **Sarah Säll, doktorand i miljöekonomi vid SLU
The later in the supply chain the pollutant is recycled, the more it costs
Stopping the leakage of money and resources from the nation
and the national economy, is good business and in effect grows the
economy as the money recirculates
Resources
moneyLeakage of money
Leakage of
resources
Resources
use
return
procure
money in economy
grows
Resources can remain constant
Systems that emit have been cheaper
CONTROL ENGINEERINGthe engineering discipline that designs systems to produce desired behaviors.
Typical for control engineered environments:• sensors measure the behaviour of the object being controlled• feedback to • actuators that can make corrections toward desired performance.
Control engineering is like bicycling
SYSTEM: The commericial and social system’s use of polluting substances
BEHAVIOUR DESIRED: That market forces act to transition technical infrastructure, management and praxis so emissions reach a reasonable, acceptable level.
SENSORS: Economic indicators of sales of clean tech, sales of pollutant-bearing substances, financial indicators of e.g. futures contracts and technilca indicators on emissions.
FEEDBACK: Figures are collated and fed to expert committee.
ACTUATORS: The regular import/extraction fee that is adjusted to ensure behaviour of system.
Flexible emission control fees are tariffs imposed by authorities on the import or extraction of specific substances. The purpose of the mechanism is to control the rate of phase out to keep both socio-economic and ecological stress to the minimum necessary. The level of fee imposed is flexible, i.e. adjusted regularly, based on information from a monitoring function of market behavior including the rate of abatement compared to phase-out goals and other factors. The mechanism includes economic feedback, returning fees collected to the economy via dividends or other routes. The adjustments, together with the dividend comprise a control mechanism that ensures the transition to an economic and safe use of the substance in the societal system.
Authority sets limits and phase out rates
Import/production actors
Consumers
Rate
Fee
Dividend
Service productionpurchase Technology
providersCleanTech
substance
FINANCEFutures markets
Investors etc
MEASURE
FEEDBACK
MEASURE
CORRECT-IONS
MEASUREFEEDBACK
FLEXIBLE EMISSION FEES
changes too slow:
raise the fee. too fast: lower it.
THE PHOSMARKPROJECT
• Gotland as Sweden in miniature• Investigates the circular P and N economy• Conference 2015
Maybe some government support will be needed in the
beginning of introduction of
dynamic control
The Swedish Sustainable Economy Foundation – tssef.se