Regulation in an Eco-economy
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Transcript of Regulation in an Eco-economy
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Regulation in an Eco-economy
Transforming economic drivers
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The Crisis of Markets
The Swing to Regulation
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Principles & Trends increasing economic complexity demands
more conscious involvement and direction. Planning is more, not less, important, but… The state can’t do it all. Integrated design:
• Social & environmental• Cross-disciplinary
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Trends & Principles -2 political-economic integration moves beyond the state more connected to overall rules of
economic life more connected to all stakeholders
involved [should be] part of a movement toward
direct democracy
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Knowledge-based / Quality-based development Greater focus on the ‘human factor’
• From mindless to mindful markets:• Centrality of end-use & purpose of production• Integrated design: multi-dimensional goals
Greater levels of democracy/participation• From hierarchical to decentralized regulation• From external to internal self-regulation• Greater stakeholder involvement• Greater integration with everyday exchange & civil
society• Role of The Commons: ecological, physical,
electronic; Sharing & saving
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Historical Trends in Regulation early industrialism: separation between state and
markets. Focus on production. Fordist & state-socialist industrialism:
• More concern with consumption / demand.• Need for more planning: political-economic
intervention. Today: even greater involvement of consciousness &
planning is necessary; integrated ecosystem-based design.• Post-Fordist globalization: avoidance or disguising of
conscious planning. • Suppression of new modes of mass collaboration.
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Trends in Mainstream Regulation End of pipe control and cleanup : 70s
Point Source Prevention : 80s
Consumption Patterns and Product & System Design : today
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Contending Alternatives toCommand-and-Control
Corporate critique
Regulation: costly and inefficient Trade: a panacea Avoidance of accountability Focus on single bottom line In Practice: tends to starve governments of
regulatory resources—producing a self-fulfilling prophecy
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Design Perspectiveon Regulation Commoner, Hawken, Boyd, Geiser, Stahel, etc. Need for levels of incentives/disincentives
• Regulatory pluralism From prescriptive to performance standards Democracy: inclusion of stakeholders, growth
of accountability Movement toward fundamental solutions:
1. Service economy: redefining output2. Lake economy: organic redesign
Must deal with ‘silo’ structures
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The Precautionary Principle
one of the two central principles of eco-regulation (along with the life-cycle approach)
not the basis for 70s regulatory initiatives
encourages benign materials design and use
requires product/substance bans & phaseouts
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‘Next Generation’ Regulatory Instruments…Often a confused combination of corporate and design
elements
Variations of ‘Regulatory Pluralism’ self-regulation co-regulation voluntary agreements regulatory flexibility negotiated agreements environmental partnerships informational regulation economic instruments.
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Questions about ‘Instruments’
• Do they accept or reinforce chronic underfunding of government?
• Are they based in corporate ideology (i.e. obsolete views of market forces)?
• Do they deal with fundamental problems and solutions?
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Elements of Green Economic Self-Regulation the Scale of the economy: community and bioregional
organization, harnessing technological potentials for decentralization via reutilization-industry, distributed energy-generation, eco-infrastructure, local money, co-operative consumption, etc.
Participatory democracy: Green Municipalism, participatory Green City Plans, community indicators & pattern-language development.
a Green regulatory structure: including community design pattern-languages, performance standards, product stewardship systems, product & substance bans, and other rules which encourage bioregionalism, quality and community.
Green market mechanisms: ecological tax systems, account-money & other community currencies, and a green financial infrastructure.
Knowledge as a regulatory force: via resource inventories, eco-accounting, product information & labelling, and community indicators.
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‘Surrogate Regulators’ community groups, NGOs buyers / suppliers investors financial institutions insurance companiesQuestion: are these surrogates, or just
vital elements of regulation today?
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Possible Instruments in the Integrated Product Policy (IPP) Toolbox
Instrument IncludingVoluntary instruments Voluntary agreements
Self-commitmentsIndustry awards
Voluntary information instruments Eco-labels, Product profilesProduct declarations
Compulsory information instruments Warning labels, Information responsibility, Reporting requirements
Economic instruments Product taxes and chargesSubsidiesDeposit/refund schemesFinancial responsibility
Regulatory instruments Bans/phase-outsProduct requirementsMandatory take-back
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Extended Producer Responsibility (EPR) designing ownership patterns to achieve
stewardship a positive form of accountability that can
“change the DNA” of corporate entities closes loops and encourages service
production takes different forms in different
industries and situations.
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Varieties of EPR• liability where responsibility for environmental damages
caused by a product—in production, use, or disposal—is borne by the producer;
• economic responsibility where a producer covers all or part of the costs for managing wastes at the end of a product’s life (e.g. collection, processing, treatment or disposal);
• physical responsibility where the producer is involved in the physical management of the products, used products or the impacts of the products through development of technology or provision of services; one common expression of this would be…
• ownership where the producer retains ownership of the product over it entire service life, and
• informative responsibility where the producer is required to provide information on the product and its effects during various stages of its life cycle.
(Thorpe and Kruszewska,1999; Linquist, 1998)
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Expressions OF EPR
Product take back for waste management Life-cycle partnerships for waste management Materials selection Materials management Extended environmental management programs Leasing systems Delivering service and function instead of products Design-for-the-environment programs Environmental purchasing
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Frontiers of EPR
Braungart’s Intelligent Product System1. Consumables2. Products of Service3. Unmarketables
Product-Service Systems… typically tries to facilitate:
--sale of the use of product (rather than the product itself); --operational leasing, rather than ownership by consumers--repair rather than throwaway relationships
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Strategic Modes of Regulation Civil Society-based Certification systems Ecological Tax Reform / tax shifting Subsidies / green scissors Green Procurement EPR legislation Guidelines for Green Finance: green
development plans, etc.
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Sector-based Action green belts building codes / zoning renewable portfolio standards &
standard offer contracts product & substance bans, etc.
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Other Resources Conroy Powerpoint: Branded: How the Certification Revolution
Facilitates New Ethics in International Affairs
Braungart : Cradle to Cradle design
McDonough on Cradle to California