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ENVIRONMENTAL AND THERMODYNAMIC INDICATORS IN SUPPORT OF FAIR AND SUSTAINABLE POLICY MAKING
Investigating equitable trade among Latvia, Denmark and Italy
Sergio Ulgiati, University of Siena, ItalyCatia Cialani, University of Foggia, Italy
2nd International Conference onINTEGRATIVE APPROACHES TOWARDS SUSTAINABILITY
Riga, Latvia, May 11 - 14, 2005
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In this lecture we will:
Explore the role of environmental support in the economic performance of a Nation
Explore the potentiality of the emergy approach in assessing such a performance
Use the emergy approach for an assessment of trade among Latvia, Denmark and Italy
Investigate options for implementing trade balance and equity among Nations
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Let’s start from Mineral Mining and Trading
Source: Payal Sampat, Scrapping Mining Dependence. In: The State of the World, 2003, The World Watch Institute. Pp. 110-135.
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The Point of View of the Economy: Metals and Minerals Price Index, 1960-2001
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Mineral Dependence and Poverty RatesSelected Countries, 1990s
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Money
Resources
Where does wealth come from…?
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Average Price of Exports
Terms of Trade = ----------------------------------------
Average Price of Imports
Exports: The sale of goods, services and energygoods, services and energy to buyers from other countries leading to an inflow of currency to the country
Imports: The purchase of goods, services and energygoods, services and energy from abroad that leads to an outflow of currency from a country
The Terms of Trade looks at the relationship between the money received for exports and the money paid for imports
The Terms of Trade
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SELECTED YEARS
2002200019951991 1989
0.97 1.12 1.031.010.97EXPORTS/
IMPORTS
Term
of
trade
SELECTED YEARS
2002200019951991 1989
0.97 1.12 1.031.010.97EXPORTS/
IMPORTS
Term
of
trade
The Italian Terms of Trade
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Everything in the biosphere is the product of a continuous self-organization activity, in which resources are degraded, cycled, and transformed via processes driven by solar energy, deep heat and gravitational potential.
Environmental supportEnvironmental support
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At each transformation step some energy is degraded and some is passed to the next step in the chain.
The energy chain…
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The 20th century energy food chain…
Techno-humans…
(Courtesy of Mark T. Brown, 2004)
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MATERIAL INTENSITY is the overall material input which humans move, divert or extract to make a product or provide a service (Wuppertal)
ECOLOGICAL FOOTPRINT is the amount of appropriate productivity, expressed in hectares that is needed to sustain a given process or population
(Wackernagel and Reese)
EMERGY is a measure of the global environmental support to a system, expressed in unit of solar equivalent energy (seJ) (H. T. Odum)
Environmental Accounting methods
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InputEmergy
A Output Emergy = A + B + C
TransformationProcess
InputEmergy
BInput
EmergyC
InputEmergy
A Output Emergy = A + B + C
TransformationProcess
InputEmergy
BInput
EmergyC
EMERGYEMERGY - The available energy (of one form, usually solar) required directly and indirectly to make something (seJ)
Emergy Definition
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InputEmergy
A Output Emergy = A + B + C
TransformationProcess
InputEmergy
BInput
EmergyC
InputEmergy
A Output Emergy = A + B + C
TransformationProcess
InputEmergy
BInput
EmergyC
Output = Joules or grams
Emergy Intensity =
Emergy support
Output (Joules or grams)
Emergy Intensity
The amount of emergy required to produce a given amount of mass or energy of a product(seJ/J; seJ/g; seJ/€)
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Emergy Emergy Based Based Indicators.Indicators.
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Signatures
0.00E+00
5.00E+14
1.00E+15
1.50E+15
2.00E+15
2.50E+15
SunW
ind
Rain
(che
m. p
ot.)
Rain
(geop
h. P
ot.)
Tide
Wav
es
Deep
heat
Surfa
ce ru
nin
(che
m. ..
.
Groun
d wate
r
Tops
oil
prop
agule
s
Nitrog
en
Phosp
hate
Potas
sium
Foss
il fue
ls
Electr
icity
Goods
and
Mach
in.
Labo
r and
Ser
vices
Em
erg
y p
er
Ha
pe
r y
r [s
eJ
/(H
a*y
r)]
0.00E+005.00E+141.00E+151.50E+152.00E+152.50E+153.00E+153.50E+15
SunW
ind
Rain
(che
m. p
ot.)
Rain
(geop
h. P
ot.)
Tide
Wav
es
Deep
heat
Surfa
ce ru
nin
(che
m. ..
.
Groun
d wate
r
Tops
oil
prop
agule
s
Nitrog
en
Phosp
hate
Potas
sium
Pestic
ides
Foss
il fue
ls
Electr
icity
Goods
and
Mach
in.
Labo
r and
Ser
vices
Em
erg
y p
er
Ha
pe
r y
r [s
eJ
/(H
a*y
r)]
Signature of driving emergies for 1 hectare of corn in Florida (Brandt-Williams, 2002)
Signature of driving emergies for 1 hectare of Florida mangrove ecosystem (Brown and Bardi, 2001)
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Local Non- renewable sources
EnvironmentalSystems
Economic Use
N LocalRenewable Sources
R
Purchased Resources
Services
Yield
F
Y
Yield (Y) = R+N+FEmergy Yield Ratio = Y/FEmergy Investment Ratio = F/(R+N)Environmental Loading Ratio = (F+N)/REmpower Density = (R+N+F)/area
Openness, environmental loading, density,...
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InputEmergy
A
InputEmergy
B
InputEmergy
C
Total Emergy Input= 10.8 E 24 sej/yr
Production Consumption$
$
People
Gross Domestic Product10.4 E12 $
Total Emergy = 10.8 E24 sej/ yr = 1.0 E12 sej/ $ GDP 10.4 E12 $/yr
InputEmergy
A
InputEmergy
B
InputEmergy
C
Total Emergy Input= 10.8 E 24 sej/yr
Production Consumption$
$
People
Gross Domestic Product10.4 E12 $
Total Emergy = 10.8 E24 sej/ yr = 1.0 E12 sej/ $ GDP 10.4 E12 $/yr
Emergy and Money
3.48 E+24 seJ/yr (Italy, 2002)
1.44 E+12 $/yr
2.42 E+24 seJ/$3.48 E+24 seJ/yr-----------------------1.44 E+12 $/yr
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Environmental - Economic Interface SystemEnvironmental - Economic Interface System
Wealth comes from resources, not from money
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Structure of an emergy table
1 2 3 4 5 6 Note Item Data Units Emergy intensity Solar Emergy (sej/unit) (E+15 sej/yr) 1. First item xx.x g or J/yr xxx.x xxx.x 2. Second item xx.x g or J/yr xxx.x xxx.x .. .. n. nth item xx.x g or J/yr xxx.x xxx.x
O. Output xx.xx g or g/yr xxx.x Emn
1
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Energy Systems Diagram of Italy
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Emergy Evaluation of Italy 2002
Table 1. EMERGY FLOWS SUPPORTING THE SYSTEM OF ITALIAN SOCIETY IN THE YEAR 2002
Amount Solar Ref. Solar # Item Unit (unit/yr) transformity for Emergy
(sej/unit) Transf. (sej/yr)
(All flows are evaluated on a yearly basis. Numbers in the first column refer to calculation procedures in the Appendix) Renewable inputs
1 Sunlight J/yr 1.67E+21 1 [a] 1.67E+21 2 Wind (kinetic energy) J/yr 2.65E+18 1500 [b] 3.97E+21 3 Waves (kinetic energy) J/yr 2.91E+18 30550 [b] 8.89E+22 4 Tides (geopotential energy) J/yr 3.65E+16 16842 [b] 6.15E+20 5 Earth cycle (thermal energy) J/yr 9.04E+17 34377 [b] 3.11E+22 6 Rain (chemical potential energy) J/yr 7.95E+17 18199 [b] 1.45E+22 7 Rain (geopotential energy) J/yr 3.76E+17 10488 [b] 3.95E+21
Nonrenewable inputs from within the country 9 Oil J/yr 2.26E+17 5.30E+04 [b] 1.20E+22
10 Coal J/yr 0.00E+00 3.98E+04 [b] 0.00E+00 11 Natural Gas J/yr 5.85E+17 5.22E+04 [i] 3.05E+22 12 Feldspar g/yr 3.16E+12 1.00E+09 [b] 3.16E+21 13 Marl for cement g/yr 1.36E+13 1.00E+09 [b] 1.36E+22 14 Potash, marine salts and salt rock g/yr 3.34E+12 1.00E+09 [b] 3.34E+21 15 Pozzolan g/yr 2.03E+10 1.00E+09 [b] 2.03E+19 16 Silica sand g/yr 1.34E+12 1.00E+09 [b] 1.34E+21 17 Other sand and gravel g/yr 1.91E+14 1.00E+09 [b] 1.91E+23 18 Marble in blocks g/yr 5.70E+12 1.45E+09 [b] 8.27E+21 19 Granite g/yr 2.13E+12 5.00E+08 [b] 1.06E+21 20 Sandstone g/yr 7.87E+12 1.00E+09 [b] 7.87E+21 21 Limestone g/yr 6.44E+13 1.00E+09 [b] 6.44E+22 22 Net loss of topsoil J/yr 1.23E+17 62500 [c] 7.67E+21
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Emergy Use within the country
1989 1.21E+23 10%
3.57E+23 28%
7.89E+23 62%
1995
1.01E+24 62%
4.78E+2330%
1.21E+23 8%
2002
1.64E+24 77%
3.48E+23 17%
1.21E+23 6%
Renewable sources used (sej/yr) (R)
Nonrenewable indigenous sources (sej/yr) (N)
Imported emergy (sej/yr) (F)
1984
5.37E+23 56%
3.00E+23 31%
1.21E+23 13%
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Break-down of Imports
1995
5.08E+23 55%
3.48E+23 37%
3.55E+22 4%4.04E+22
4%
1989
3.60E+23 47%
3.53E+23 47%
6.00E+21 1%
3.72E+22 5%
2002
4.13E+23 46%
4.45E+23 49%
1.76E+22 2%
3.03E+22 3%
fuels and electricitynon metallic mineralsmetallic mineralsImported goods (exc.fuels&miner.)
2000
3,79E+23 46%
3,74E+23 45%
4,04E+22 5%
3,55E+22 4%
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Emergy signature of Italy, 2002
0.00E+00
2.00E+03
4.00E+03
6.00E+03
8.00E+03
1.00E+04
1.20E+04
1.40E+04
Sunl
ight
Win
d
Rai
n, c
hem
pot
Rai
n ge
opot
Tide
Dee
p he
at
Nat
ural
gas Oil
Coa
l
Min
eral
s
Tops
oil
Impo
rts
Tour
ism
Em
erg
y (E
+20
seJ
/yr)
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Emergy Evaluation of Latvia, 2002
Note Item Raw amount Unit
Transformity
Solar Emergy
Economic product of
emergy flow
(sej/unit) (E20
sej) (E5 Em$) RENEWABLE RESOURCES
1 Sunlight 3.04E+20 J 1 3.04 680.70 2 Rain, chemical potential 2.62E+17 J 30574 80.22 17944.22 3 Rain, geopotential 1.37E+17 J 46828 64.24 14369.84 4 Wind, kinetic energy 3.67E+18 J 2513 92.27 20639.96 5 Waves 9.86E+16 J 51324 50.62 11322.76 6 Tide 1.03E+17 J 28295 29.06 6499.94 7 Earth Cycle 9.37E+16 J 5.77E+04 54.09 12099.56
NONRENEWABLE SOURCES FROM WITHIN 8 Coal 1.34E+15 J 6.72E+04 0.90 201.37 9 Dolomite 2.19E+06 g 1.68E+09 0.00 0.01
10 Clay 8.25E+07 g 1.68E+09 0.00 0.31 11 Sand 3.26E+06 g 1.68E+09 0.00 0.01 12 Gypsum 1.23E+06 g 1.68E+09 0.00 0.00 13 Limestone 3.03E+08 g 1.68E+09 0.01 1.14 14 Peat 1.11E+15 J 1.68E+04 0.19 41.55 15 Top Soil 8.66E+14 J 1.24E+05 1.08 240.92
PRODUCTION SECTORS BASED ON INDIGENOUS RESOURCES 40 Hydroelectricity 7.09E+15 J 2.77E+05 19.66 4398.61 41 Agricultural Production 2.99E+16 J 3.36E+05 100.59 22502.55 42 Livestock Production 2.65E+14 J 3.36E+06 8.90 1991.63 43 Fisheries Production 5.72E+14 J 3.36E+06 19.23 4301.91 44 Fuelwood Production 7.74E+16 J 3.14E+04 24.32 5439.73
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Imports-Exports
of Latvia, 2002
Note Item Raw amount Unit
Transformity
Solar Emergy
Economic product of
emergy flow
(sej/unit) (E20
sej) (E5 Em$) IMPORTS AND OUTSIDE SOURCES
16 Oil derived products 5.71E+16 J 1.11E+05 63.33 14166.41 17 Natural Gas 5.34E+16 J 8.77E+04 46.83 10476.97 18 Coal 1.85E+15 J 6.69E+04 1.24 277.31 19 Metals 6.49E+11 g 3.02E+09 19.61 4387.61 20 Food & agricultural products 1.83E+15 J 3.36E+05 6.15 1376.87 21 Livestock, meat, fish 3.20E+14 J 3.36E+06 10.76 2407.55 22 Plastics 9.98E+10 J 1.11E+05 0.00 0.02 23 Chemicals 1.16E+11 g 6.38E+08 0.74 165.95 24 Paper 1.39E+11 g 6.38E+06 0.01 1.99 25 Textiles 7.33E+09 g 6.38E+06 0.00 0.10
26 Mechanical & transport equipment 8.01E+10 g 1.13E+10 9.01 2016.11
27 Services in imports 7.08E+08 $ 3.11E+12 22.00 4922.43 28 Tourism 1.61E+08 $ 3.11E+12 5.00 1119.37
EXPORTS 29 Food & agricultural products 2.43E+15 J 3.36E+05 8.18 1829.90 30 Livestock, meat, fish 1.14E+14 J 3.36E+06 3.84 859.77 31 Wood 4.83E+16 J 5.86E+04 28.29 6328.63 32 Paper and paperboard 3.51E+10 g 6.38E+08 0.22 50.10 33 Textiles 1.42E+10 g 6.38E+06 0.00 0.20 34 Peat 7.55E+14 J 1.68E+04 0.13 28.37 35 Metals 6.78E+11 g 1.68E+09 11.40 2549.50 36 Chemicals 1.66E+10 g 6.38E+08 0.11 23.76
37 Mechanical & transport equipment 2.76E+10 g 1.13E+10 3.10 694.51
38 Plastics & rubber 4.94E+14 J 1.11E+05 0.55 122.61 39 Services in exports 1.25E+09 $ 4.47E+12 55.97 12520.00
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Emergy Signature of Latvia, 2002
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
Sunl
ight
Win
d
Rai
n, c
hem
pot
Rai
n ge
opot
Tide
Dee
p he
at
Fish
erie
s
Woo
d
Peat
Nat
ural
gas Oil
Tops
oil
Impo
rts
Tour
ism
Em
erg
y (E
+20
seJ/
yr)
Large dependence on:a) local renewable
inputsb) comparable
amounts of imported fossil fuels and commodities other than fuels.
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Emergy Signature of Denmark, 2002
0.00
200.00
400.00
600.00
800.00
1000.00
1200.00
1400.00
1600.00
Sunl
ight
Win
d
Rai
n, c
hem
pot
Rai
n ge
opot
Tide
Dee
p he
at
Fish
erie
s
Woo
d
Nat
ural
gas Oil
Tops
oil
Impo
rts
Tour
ism
Em
erg
y (E
+20
seJ
/yr)
Large dependence on:
a) fossil fuels (local and imported)
b) imports of goods and commodities
other than fuels.
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Emergy-based terms of trade
Total money paid
Commodities to importing country (g or J)
Money from importing to exporting country (€, $)
Emergy benefit to buyer = Emergy of traded products
Emergy of money paid
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Emergy Benefit to Purchaser...Emergy Benefit to Purchaser...
Oil trade to Italy
Price= $ 55/barrel
$ 55
(6.9 E+09 J/bbl)(9.07 E+4 seJ/J)
($ 55/bbl)(2.42 E+12 seJ/$)4.70
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Emergy Evaluation of Trade among countries, 2002
Latvia
DenmarkItaly
1 $
1 $
1 $
4.47
4.471.89
1.89
2.42
2.42
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Total imports
(g)
Energy Flow (J)
Transformity (seJ/unit)
Emergy of product
(seJ)
Monetary value (US $)
Emergy of money paid
(seJ)
Emergy Exchange
Ratio
ITALY's imports from Latvia and Denmark (2002)Imports from Latvia
Wood 9.39E+09 1.42E+14 8.85E+04 1.25E+19 3.90E+06 9.44E+18 1.33Cereals (mainly wheat) 1.49E+10 3.12E+14 1.14E+05 3.56E+19 2.49E+06 6.01E+18 5.92Peat 4.92E+10 5.15E+14 1.87E+05 9.63E+19 5.37E+06 1.30E+19 7.41Imports from Denmark
Wood 7.50E+08 1.13E+13 2.30E+05 2.60E+18 1.51E+06 3.66E+18 0.71Cereals (mainly rice) 2.35E+06 4.91E+10 9.00E+04 4.42E+15 2.51E+03 6.06E+15 0.73Peat 7.61E+09 7.96E+13 1.87E+05 1.49E+19 1.64E+06 3.98E+18 3.74DENMARK's imports from Italy and Latvia (2002)Imports from Italy
Pasta 2.20E+10 4.61E+14 4.00E+05 1.84E+20 1.83E+07 3.36E+19 5.49Wine and liquors 3.83E+10 1.34E+14 4.20E+05 5.63E+19 7.91E+07 1.45E+20 0.39Imports from Latvia
Textiles 8.70E+08 1.38E+13 3.25E+06 4.48E+19 1.71E+07 3.14E+19 1.43Plastics and rubber 8.25E+06 2.42E+11 1.33E+06 3.22E+17 2.84E+05 5.23E+17 0.61LATVIA's imports from Italy and Denmark (2002)Imports from Italy
Pasta 3.79E+09 7.93E+13 4.00E+05 3.17E+19 2.17E+06 9.69E+18 3.27Wine and liquors 1.45E+09 5.09E+12 4.20E+05 2.14E+18 3.26E+06 1.46E+19 0.15Imports from Denmark
Textiles 1.15E+09 1.82E+13 3.25E+06 5.90E+19 1.24E+07 5.56E+19 1.06Iron and steel 5.42E+05 5.46E+09 2.96E+15 2.56E+03 1.14E+16 0.26
Emergy evaluation of trade for selected products exchanged by Italy, Denmark and Latvia in the year 2002.
Trade of selected products
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2) Prices of commodities are unlikely to reflect equity of trade.
3) Trade equity requires:
1 ) Emergy should be used to help assessing and implementing fair trade
Very difficult
Possible
Prices of primary resources exported to be much higher than the present ones
Raw materials to be processed into final products at home and final product exported at higher price
Desirable
Increased international cooperation for:
Updated and reliable databases on resource exchange
Equitable Trade
Know how transfer,…etc…
Conclusions
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Equity of International Resource Exchange
“Trade and projects that unbalance local economies…and increase emergy inequity between countries, do not maximize the world economy, because they leave major sectors of the world's population in poverty, essentially outside the world economy. This pattern wastes resources into luxury and excess of the developed countries, diverting resources that used to go directly to population support (without payments)…
…This pattern is not sustainable, does not maximize world wealth and emergy, does not reinforce world production, and will not last. These patterns will become discredited as world opinion changes, as revolutions occur, and worldwide resource depletion soon cuts off the largesse of the overdeveloped countries." (H.T. Odum, 1994)
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Thanks you for your attention