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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.