11th GCET

Market Instruments & Sustainable Economy

Bangkok, November 3-5, 2010

Ana Yábar Sterling Pedro M. Herrera

Complutense Univ. of Madrid UNED

A sustainable Economy (1)

An economy to be sustainable requires, at least:– Economic: stable and healthy – Social: fair and job creative– Environmental: less intensive in the use of

natural resources and pollution

= an economy set in a sustainable development path (long term perspective)

A sustainable Economy (2)

Economic development, since autumn 2008, isn't:– a continuous and smooth process – able to assure population higher and better quality of life

The traditional economic growth system, also can reverse because of bad practices and imbalances:– in supply and demand, – in savings and spending, – in loans and investment

Imbalances can lead to economic crashes, recessions and depressions

A sustainable Economy (3)

Most of industrialized countries have decades of experience on how to achieve a more sustainable economy – trying to transform what they produce and how

they produce it

Big changes have been accounted for:– in production technologies – in consumers goods & services preferences

A sustainable Economy (4)

All sectors of the economy have been making efforts to grow with less environmental impact and greater resilience to future environmental challenges– including adaptation to climate change, material

scarcity (water included) and emergencies

But, after the economic crash we know:– it was not enough to support strong business

investment, new opportunities & resiliency to long term challenges

A sustainable Economy (5)

We discovered that economic, social and environmental systems must all be kept in relative equilibrium and also balanced with each other, to be sustainable

Still we have a huge gap of knowledge to fill in this questions, as wide are the possibilities for GCET to contribute

This is the major reason to chose this Lemma for 12th GCET:

Market Instruments & Sustainable Economy

We need to fill several gaps (1)

We do not know much about:

– When the critical threshold of these systems will be reached and exceeded

– Which are the conditions to be satisfied for considering that green growth is the actual path of socioeconomic evolution, or not, in defined nations or regions

We need to fill several gaps (2)

We do not know much about:

– How relevant the transition from the traditional growth system to a Green Economy would be for delivering sustainable development and long term growth.

• which are the best indicators to use for assessment on the competitiveness challenge, the eco-efficiency aim,……

We need to fill several gaps (3)

We do not know much about:– Haw many infrastructure and existing

practices are unsustainable• and haw much social and economic investment

would be necessary to replace them

– The extent of culture as a sustainability pillar for some emerging economies

• and, also for many industrialized countries where the biggest cultural industries are located

We need to fill several gaps (4)

So, We need to intensify research and efforts for:– a better selection on the market instruments mix

and strategies for a sustainable economy– working harder in:

• the effects of taxes, charges, incentives and particular markets understanding to cope with that big theme

• and also, social scientists should devote more inputs trying to make the research and policy interface more efficient

• (Cicerone: Is not enough to achieve wisdom but to learn haw to use it)

On 12th GCET Lemma

12th GCET in Madrid, 2011 is a great opportunity to contribute to the sustainability aim – It joints very talented people and interesting research

papers – It makes possible to combine different experiences

We (Pedro M. Herrera an Ana Yábar), in charge of organizing 12th GCET:– Had to accept that it was necessary to reduce

contributions topics within the big lemma: • Market instruments & sustainable economy

– So, finally, decided to choose 5 sub lemmas in order to concentrate participant’s research papers

Lemma subtopics

1. International sustainability and human security

2. Industrial transformation pro sustainability in the context in the context of economic crisis

3. Market instruments to foster sustainable technology and renewable energy

4. Sustainable urban mobility and transport

5. Emission trading schemes & environmental

tax reform to sustainable economy

International sustainability and Human Security (1)

Often, environmental reasons are underneath the extreme insecurity and vulnerability of millions of people – Population grows faster in poorest countries. – Also, the rhythm of natural resources destruction (major force for

massive migration flows, hunger, malnutrition & cultural shocks)

This opposite path is fully unsustainable from human security point of view – It is getting worst because of climate change (CC) impacts– International forecasts estimates premature global deaths due to CC:

500,000 people in twenty years ahead– Efficient and fair instruments, strategies and policies for CC

adaptation are relevant for global human security challenge

International sustainability and Human Security (2)

Also the contemporary social preferences in favour of urbanization (in 2050, around 5.3 billions would live in cities) is getting more importance form IS & HS point of view – to select the best market instruments to cope with cities

sustainability minimum criteria is today a great topic for social scientist

Energy, food and water security, also matters– not only for moral considerations but, also – for the length for global risk increases, to be focused

from political, socio-economic, sanitarian and cultural perspectives

International sustainability and Human Security (3)

The topic called IS & HS, is, certainly a huge row to amalgamate some innovative papers and contributions – The questions just mentioned are examples for papers

and debates

All of them and some more would feet under the Lemma: Market Instruments & Sustainable Economy which gives us an exceptional cover for questions that we expect to deal with during 12 th. GCET, next year in Madrid

Industrial transformation “pro S” in the context of economic crisis (1)

EU Sustainable Consumption and Production and Sustainable Industrial Policy Action Plan (July, 2008) was published at the end of a quite long period of regular and positive growth processes in Europe and other industrialized countries

this Action Plan, in parallel shows that EU countries were evolving trough industrial transformation processes up to production and consumption sustainability

Industrial transformation “pro S” in the context of economic crisis (2)

Innovation is one Area of Action essential to reach smarter consumption, better products and leaner and cleaner production

Innovation and some other challenges faced by industrial production in the context of S. aim demands huge funds– Are they enough funds for greening the economy in

the actual economic crisis context? – The frequent complaints about the potential delay for a

green industrial transformation due to the global Financial and Economic crisis, are they right?

Industrial transformation “pro S” in the context of economic crisis (3)

Business and Industry, including multinational companies, have a huge role to play in – promoting and achieving world-wide industrial

transformation & SD– reducing impacts on the environment and resources

by using more efficient manufacturing processes and producing less waste

Businesses can also promote fair employment, solving a big social problem of the industrialized world, nowadays

But we have to deal with important barriers

Industrial transformation “pro S” in the context of economic crisis (4)

Money matters quite a lot in removing barriers and filling gaps

– Supply-side barriers, related mainly to Industrial Sectors,

– Systemic barriers to reduce the lack of alternatives, the weakness of effective instruments to greening the economy, the subsidies still alive for non sustainable products, etc.

Industrial transformation “pro S” in the context of economic crisis (5)

We will be able to share and discuss in Madrid, during the 12th. GCET on:– Innovation policy, initiatives, funding, networks, etc.

that ought to be sustainable– Legal, economic, sociological and educational

instruments (product labelling, eco-design requirements for energy using products….) for greening the economy

– Initiatives to foster sustainable business and sustainable jobs in order to a faster crisis take off

– the role of environmental taxes and other market instruments oriented to sustainable industrial transformation in crisis periods

Industrial transformation “pro S” in the context of economic crisis (5)

At the end of our meeting next year in Madrid, we could be as famous as Rubini or Krugman (why not?)

It is possible depending on the success of our conclusions, at the end of 12th GCET in Madrid, about these type of issues which are relevant nowadays and some other subjects

Pedro M. Herrera would present next some reflexions on the rest of lemma subtopics

WEB GCET12

http://www.seatra.org/EnvironmentalTaxation/