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Integrated systems analysis
(2007)
This article addresses informational barriers to energy efficiency. It is a widely acknowledged result that an energy efficiency gap exists implying that the level of energy efficiency is at an inefficiently low level. Several barriers to energy efficiency create this gap and the presence of asymmetric information is likely to be one such barrier. The article finds that problems of moral hazard and adverse selection indeed can help explain the seemingly low levels of energy efficiency. The theory reveals two implications to policies on energy efficiency. First, the development of measures to enable contractual parties to base remuneration on energy performance must be enhanced, and second, the information on technologies and the education of consumers and installers on energy efficiency must be increased. Finally, it is found that the preferred EU policy instrument on energy efficiency, so far, seems to be the use of minimum requirements. Less used in EU legislation is the use of measuring and verification as well as the use of certifications. Therefore, it is concluded that the EU should consider an increased use of these instruments.
The paper aims to shed light on the methodological challenges of GHG monitoring at local level and to give an overview on current practices. Questions addressed are as follows: How do the methodologies which underlie different GHG inventory tools differ? What are the critical variables explaining differences between inventories? Can different GHG inventory tools be compatible - and/or interoperable - and under which conditions? The first section discusses methodological challenges related to the formation of local GHG inventories. Rather than giving a comprehensive overview on methodological problems, this section mainly highlights some of the central methodological challenges posed by local GHG inventories. This overview identifies critical variables and clarifies concepts that are necessary for the understanding of the subsequent analysis. In section two, some of the most advanced GHG inventory tools are analysed and the most important differences between these tools are highlighted. The paper concludes that the methodologies are not consistent. Local GHG inventories can thus hardly be compared. The paper gives research and policy recommendations towards greater comparability and sketches the requirements of an international protocol on urban GHG inventories.
The Wuppertal Institute for Climate, Environment and Energy and the UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production (CSCP) set out to analyse Japanese dematerialisation and resource efficiency strategies within the 3R scope and searched for options of enhancing resource effi ciency strategies, commissioned by the German Federal Environment Agency. A further task of the project was to initiate a policy dialogue including stakeholders, academia, politics and Japanese and European environmental experts. The following paper summarises findings from the analyses, the results of the policy dialogues (Experts Workshop, 6 June 2007 and International Conference, 6 November 2007) and draws conclusions for a potential Japanese-European cooperation on the resource efficiency issue.
This paper focuses on market incentives by the introduction of a construction minerals tax as an example of a resource tax. Currently, various European countries levy taxes or duties on primary construction materials, but a harmonisation of the taxation is not planned. Provided the tax rate has a perceptible price effect, the taxation of a resource can foster a demand management or the reduction of the raw material consumption and the governance of side and secondary effects. A construction minerals tax can target the stimulation of demand for secondary raw materials and recycled products, and - because the reuse of construction and demolition waste has technical limits - a stronger emphasis on the conservation of buildings and infrastructures. This has positive effects on the environment and the innovation efforts and it helps to internalise externalities. Germany, used as a case study in this paper, does not raise any taxes on other raw materials than energy sources at the federal level. For this reason, potential impacts of the introduction of a construction minerals tax will be explored and the results of a simulation will be provided.
Digitalisation is taking place at a fast pace in all European countries and it is transforming the economies, societies, communication, jobs and the necessary skills for the workplace and everyday life. The Covid-19 pandemic is also accelerating digitalisation at many levels.
To address the great challenges resulting from this, the European Commission has launched the Green Deal, a long-term transformation strategy towards an innovative and sustainable society. Three important initiatives under the Green Deal are the New Circular Economy Action Plan, the Biodiversity Strategy for 2030 and the Zero Pollution Action Plan. The various strategies and action plans draw up a large portfolio of measures, instruments and milestones that are always linked to digital technologies. Ideally, these are eco-innovative and sustainable and contribute to improving living conditions in Europe.
The EIO Biennial Report 2020, which looks at a different topic every two years, considers digitalisation a major opportunity to accelerate the transition to a circular Europe. In the current report, the authors provide an overview of eco-innovation trends, illustrated by digital technology and policy practices that can further drive the circular economy.
The contribution of natural resources and ecosystems to economic processes still remains under-assessed by market evaluation and productivity analysis. Following the historical lines of the classical productivity debate ranging from the French Physiocrats to early neoclassical growth theories, the productivity concept underwent a gradual transformation from its previous understanding based on natural resources and other environmental factors to its contemporary narrow notion. This paper claims that the course of the classical debate has shaped the scope of predominant contemporary analysis. Except for some very recent findings, multifactor productivity largely focusses on a two-factor model. Material Flow Analysis (MFA) provides a useful step for widening the measurement and notion of productivity.
The article analyses Japanese approaches to dealing with eco-efficiency from an institutional perspective. Our main outlook is that though promising attempts have been made despite the overall economic crisis, a better horizontal coordination among both administrations and businesses is required. The governance processes can be analysed following approaches developed by New Institutional Economics and related policy analysis. The paper is divided into three sections. The first introduces the concept of eco-efficiency and explains the demand for regulatory policies from theories of market failures; the paper argues in favour of innovationoriented regulation. The second examines how a nation's institutional capabilities influence knowledge generation towards new solutions that sell on the markets; the "capacity-building approach" as developed by Martin Jänicke is explicitly discussed. The third section discusses contemporary Japanese policies with regard to waste, energy and material flows both on the governmental and the business level. It explains how European approaches diffuse and merge with domestic Japanese institutions. However, governance of eco-efficiency is expected to continue to differ due to ongoing national differences and specific conditions of knowledge creation.
The paper sketches out a theoretical framework for analysing the interplay between eco-efficiency, cognition and institutions. It derives from analytical shortfalls of the prevailing literature, which features strongly engineering and business economics, by using insights from New Institutional Economics, from Cognitive Sciences and, partly, from Evolutionary Economics. It emphasises the role cognition and institutions play in the adoption of "green" technologies by firms. A cognitive perspective derives from recent research on simple heuristics and context-based rationality; it is proposed that those recent findings can serve to analyse decision-making of individual actors or firms and, thus, should complement economic analysis. A second proposition is that eco-efficiency and normative rules such as a Factor Four strongly rely upon institutions, i.e. the ability of institutions to evolve over time and the development of those institutions that are most appropriate to enhance technological change. In this regard, business institutions and competition are crucial, but regulatory needs remain in order to safeguard continuity of knowledge creation. The framework allows for an analysis why overall adoption of eco-efficiency still can be considered relatively slow and why some markets and firms are far ahead. As a brief case study the article reflects upon German waste law’s ability to enhance eco-efficiency.
Ende der Arbeitsproduktivität? : Von der Produktivität der Arbeit zur Produktivität der Ressourcen
(1998)
The paper sketches out a theoretical framework for analysing the interplay between eco-efficiency, cognition and institutions. It derives from analytical shortfalls of the prevailing literature, which features strongly engineering and business economics, by using insights from New Institutional Economics, from Cognitive Science and, partly, from Evolutionary Economics. It emphasises the role cognition and institutions play in the adoption of "green" technologies by firms. A cognitive perspective derives from recent research on simple heuristics and context-based rationality; it is proposed that those findings can serve to analyse decision-making of individual actors respectively firms and, thus, should complement economic analysis. A second proposition is that eco-efficiency and normative rules such as a Factor Four strongly rely upon institutions, i.e. the ability of institutions to evolve over time and the development of those institutions that are most appropriate to enhance technological change. In this regard, business institutions and competition are crucial, but regulatory needs remain in order to safeguard continuity of knowledge creation. The framework allows for an analysis why overall adoption of eco-efficiency still can be considered relatively slow and why some markets and firms are far ahead. As a brief case study the article reflects upon German waste law's ability to enhance eco-efficiency.
Ressourcen
(2003)
The paper explores a framework for analysing governance towards sustainable development. Departing from the thesis about a possible positive role for corporate action, it refers to recent theorizing about both market and government failures. Discussing externalities, public goods, information and adaptation deficits, as well as bureaucracies' self-interest, corruption and capture of the regulator, the paper stresses the importance of governance aiming at synergies between corporate and political governance. Concerning framework conditions, it outlines principles of regulated self-regulation. Following the thesis about a positive role, the paper adds recent insights about theories of the knowledge-based firm, which help to analyse market evolution. In this context, it outlines the concept of "responsible corporate governance". Because governance involves actors in their daily operations and certainly goes beyond setting a frame, the paper finally discusses innovation-inducing regulation, serving complementary functions to a framework and business operations. The conclusion is drawn that governments' main function is to facilitate learning processes, thus departing from states' function as known from welfare economics. Thus, governance will have to be explored as collective learning, involving business, governments, and civil societies’ actors.
This article proposes a policy framework for analysing corporate governance toward sustainable development. The aim is to set up a framework for analysing market evolution toward sustainability. In the first section, the paper briefly refers to recent theories about both market and government failures that express scepticism about the way that framework conditions for market actors are set. For this reason, multi-layered governance structures seem advantageous if new solutions are to be developed in policy areas concerned with long-term change and stepwise internalisation of externalities. The paper introduces the principle of regulated self-regulation. With regard to corporate actors| interests, it presents recent insights from theories about the knowledge-based firm, where the creation of new knowledge is based on the absorption of societal views. The result is greater scope for the endogenous internalisation of externalities, which leads to a variety of new and different corporate strategies. Because governance has to set incentives for quite a diverse set of actors in their daily operations, the paper finally discusses innovation-inducing regulation. In both areas, regulated self-regulation and innovation-inducing regulation, corporate and political governance co-evolve. The paper concludes that these co-evolutionary mechanisms may assume some of the stabilising and orientating functions previously exercised by framing activities of the state. In such a view, the government's main function is to facilitate learning processes, thus departing from the state's function as known from welfare economics.
Rohstoffe - weniger ist mehr
(2007)
Die Erstellung von Gemeinschaftsgütern gilt als Problemfall für Märkte und ökonomisch handelnde Individuen. Das vorliegende Buch entwickelt einen neuen Ansatz, in dem Individuen und Unternehmen eine stärkere Rolle einnehmen. Anlass zur Markteuphorie ist jedoch nicht gegeben. Vielmehr ist es Aufgabe der Wirtschaftspolitik, solche Institutionen hervorzubringen, die das Handeln der Akteure auf direkte und indirekte Weise steuern. Dies wird im vorliegenden Buch als wissensbasierter Ansatz bezeichnet. Als Anwendungsbeispiel wird die Kreislaufwirtschaft analysiert. Ein Überblick, der die wesentlichen Thesen und Begründungsstränge enthält, führt in das Buch ein. Im folgenden Teil wird der wissensbasierte Ansatz modellhaft dargelegt. Erörtert werden die Bausteine Lernen, Kognition, Rationalität, deliberative Institutionenentwicklung und Wissen schaffender Wettbewerb. Für die Erstellung von Gemeinschaftsgütern wird ein Eigeninteresse abgeleitet, wenn der technologische und institutionelle Wandel entsprechende Signale generieren. Da beide Größen dem Einfluss von Individuen und Unternehmen unterliegen, entstehen Wechselwirkungen. Die folgenden Kapitel untersuchen den technologischen und institutionellen Wandel im Hinblick auf Potenziale zur Erstellung von Gemeinschaftsgütern. Dabei werden insbesondere neuere Unternehmenstheorien erörtert. Abgeleitet wird eine stufenförmige Grenzkostenfunktion für Institutionen und Organisationen. Ausführlich diskutiert das Buch Implikationen für die Wirtschaftspolitik. Es begründet und operationalisiert die Formulierung offener Ziele. Wirtschaftspolitik wird als Reform und Design von Institutionen konzipiert. Zu diesem Zweck werden zwölf Prüfkriterien formuliert. Dieses Konzept wird anschließend auf die Kreislaufwirtschaftspolitik übertragen. Defizite des Kreislaufwirtschaftsgesetzes (KrW-/AbfG) werden herausgearbeitet. Als Reformen präsentiert das Buch neue Ziele, Wissen generierende Institutionen und ökonomische Anreize. Insgesamt ist das Buch als theorieorientierte Analyse praktischer Probleme geschrieben. Es folgt Ansätzen der Neuen Institutionenökonomik und der evolutorischen Ökonomik. Diese Ansätze werden auf die Analyse der Erstellung von Gemeinschaftsgütern und die Erarbeitung von Lösungsoptionen angewendet.
This paper undertakes a step to explaining the international economics of resource productivity. It argues that natural resources are back on the agenda for four reasons: the demand on world markets continues to increase, the environmental constraints to using resources are relevant throughout their whole life cycle, the access to critical metals could become a barrier to the low carbon economy, and uneven patterns of use will probably become a source of resource conflicts. Thus, the issue is also of relevance for the transition to a low carbon economy. "Material Flow Analysis" is introduced as a tool to measure the use of natural resources within economies and internationally; such measurement methodology now is being harmonized under OECD auspices. For these reasons, the paper argues that resource productivity - that is the efficiency of using natural resources to produce goods and services in the economy - will become one of the key determinants of economic success and human well-being. An empirical chapter gives evidence on time series of resource productivity increases across a number of economies. Introducing the notion of "material flow innovation", the paper also discusses the innovation dynamics and issues of competitiveness. However, as the paper concludes, market barriers make a case for effective resource policies that should provide incentives for knowledge generation and get the prices right.
Die globalen Rohstoffmärkte weisen Defizite mit erheblichem Konfliktpotenzial auf. Die Bewältigung von Umweltbelastungen, Ressourcenkonflikten, illegalem Handel und Preissprüngen bedürfen einer institutionellen Ordnung. Eine global nachhaltige Ressourcennutzung erfordert verbesserte und neue Governance-Mechanismen, die sowohl privatwirtschaftliche als auch staatliche Akteure einbeziehen. Mögliche neue Governance-Ansätze wären die Gründung einer International Resource Management Agency, die Schaffung eines internationalen Metall-Covenants und eines Abkommens zum nachhaltigen Ressourcenmanagement.
Towards a resource policy : unleashing productivity dynamics and balancing international distortions
(2012)
The paper outlines guidelines and pillars of a resource policy. Two reasons favour the formulation of such policy: a demand to increase sluggish resource productivity growth as well as environmental damages occurring along material flows at an international scale. Thus, it is both the innovation and environmental perspective that legitimate policies. The paper surveys recent empirical trends. Referring to research on innovation and transition management, it develops guidelines for a resource policy, namely, market order, provision function, learning processes, market development, and orientation. It furthermore describes four instruments as potential pillars of a future policy mix: a tax on construction minerals, an ecologically differentiated VAT tax, and an international covenant for metals and an international convention for sustainable resource management. The paper finally reflects these guidelines and pillars against weaknesses and ongoing discussions of climate policy. It concludes that despite all uncertainties and complexities, a well-designed resource policy is on the verge of becoming essential for unleashing eco-innovation dynamics.
Über die Notwendigkeit einer Innovationsoffensive besteht weitgehend Einigkeit in Politik und Wirtschaft. Aber über die Richtung besteht Unklarheit. Das Buch zeigt auf, daß eine zukunftsfähige Langfristdynamik für Umwelt und Beschäftigung möglich ist. Allerdings muß das heutige Produktivitätsverständnis überwunden werden, das nahezu ausschließlich den Faktor Arbeit rationalisiert und keinen geeigneten Zugang zur Produktivität des Naturhaushaltes enthält.
Das Buch leistet einen wichtigen Beitrag zur ökonomischen Neuausrichtung des technischen Fortschritts.
Dieser Beitrag stellt Ressourcenproduktivität als Kernstrategie vor. Schließlich kann sie nicht nur als Entschlackungskur fungieren, sondern auch als Innovationsmotor. Darüber hinaus wird ein Vorschlag zu einer internationalen Konvention für ein nachhaltiges Ressourcenmanagement gemacht, das vorhandene Verzerrungen reduzieren und zur Prävention von Ressourcenkonflikten beitragen soll. Erforderlich ist eine Sichtweise, bei der Material-, Energie-, Umwelt- und Technologieaspekte einerseits und internationale Entwicklungsaspekte andererseits integriert betrachtet werden. Schließlich geht es nicht um Rohstoffe als solche, sondern um ihre Funktion für menschliche Bedürfnisbefriedigung und Wohlstand. Nötig ist ein Paradigmenwechsel, in dem ein reines Angebotsdenken - welche Rohstoffmengen werden benötigt und wie können sie beschafft werden - zugunsten einer Systemperspektive überwunden wird.
The policy framework for the promotion of hydrogen and fuel cells in Europe : a critical assessment
(2008)
This paper reviews the current EU policy framework in view of its impact on hydrogen and fuel cell development. It screens EU energy policies, EU regulatory policies and EU spending policies. Key questions addressed are as follows: to what extent is the current policy framework conducive to hydrogen and fuel cell development? What barriers and inconsistencies can be identified? How can policies potentially promote hydrogen and fuel cells in Europe, taking into account the complex evolution of such a potentially disruptive technology? How should the EU policy framework be reformed in view of a strengthened and more coherent approach towards full deployment, taking into account recent technology-support activities? This paper concludes that the current EU policy framework does not hinder hydrogen development. Yet it does not constitute a strong push factor either. EU energy policies have the strongest impact on hydrogen and fuel cell development even though their potential is still underexploited. Regulatory policies have a weak but positive impact on hydrogen. EU spending policies show some inconsistencies. However, the large-scale market development of hydrogen and fuel cells will require a new policy approach which comprises technology-specific support as well as a supportive policy framework with a special regional dimension.
Natural resources are back on the agenda. After the rise of new economic powers such as China, India, and Brazil, global competition has perceptibly increased strategic concerns as regards high commodity prices and possible supply shortages. Germany, the EU, the United States, and many others have formulated raw material strategies that put concern over access and supply at center stage - but the environmental and the socio-political dimensions are widely neglected in these strategies. This paper underlines a new dimension of international relations and pleads for new approaches, called international resource politics, which can be used for ongoing debates concerning green economy and transition strategies.