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This chapter addresses material leakage as a major problem of international open markets for used goods, in particular for used vehicles. It develops elements of an international metal covenant that should allow for a more sustainable management of global material flows in that area. The arguments in favour of such a proposal are as follows: Any regulation should actively seek for industry participation, taking advantage of business interest in supplying a sufficient amount of materials while lowering materials cost. It should also address public issues such as sustainability of recycling and waste. A first section analyses contracts as a tool to overcome knowledge problems that occur when many actors are involved. A second short section gives empirical evidence for material leakage in the case of used vehicles from Germany. A third section develops elements of an international metal covenant. A fourth section analyses potential impacts and discusses legal and institutional issues. Finally, some conclusions are drawn.
Bridging the data gap
(2004)
As illustrated by the case studies of end-of-life vehicles and waste electric and electronic equipment, the approach of an extended producer responsibility is undermined by the exports of used and waste products. This fact causes severe deficits regarding circular flows, especially of critical raw materials such as platinum group metals. With regard to global recycling there seems to be a responsibility gap which leads somehow to open ends of waste flows and a loss or down-cycling of potential secondary resources. Existing product-orientated extended producer responsibility (EPR) approaches with mass-based recycling quotas do not create adequate incentives to supply waste materials containing precious metals to a high-quality recycling and should be amended by aspects of a material stewardship. The paper analyses incentive effects on EPR for the mentioned product groups and metals, resulting from existing regulations in Germany. It develops a proposal for an international covenant on metal recycling as a policy instrument for a governance-oriented framework to initiate systemic innovations along the complete value chain taking into account product group- and resource group-specific aspects on different spatial levels. It aims at the effective implementation of a central idea of EPR, the transition of a waste regime still focusing on safe disposal towards a sustainable management of resources for the complete lifecycle of products.
The exploitation of coltan in Central Africa can be considered a case of conflict minerals due to its nature. Many international organizations and bodies, national governments and private sector organizations seek to address this conflict, in particular via transparency, certification and accountability along the material supply chain. This paper analyses the international trade dimension of coltan and gives evidence on the dimension of illicit trade of coltan. The authors start from the hypothesis that illicit trade of coltan sooner or later will enter the market and will be reflected in the statistics. The paper is structured in the following manner: first, a short section gives a profile of coltan production and markets; second, an overview of the mining situation in the Democratic Republic of Congo (DRC) and related actors. The third section addresses mechanisms, actors and measurement issues involved in the international trade of coltan. The final part draws lessons for certification and conflict analysis and offers some guidance for future research.
The paper identifies two main possible gateways to trace illegal trade in coltan: the neighboring countries, especially Rwanda, and the importing countries for downstream production, in particular China. Our estimation is that the value of such illicit trade comes close to $ 27 million annually (2009), roughly one-fifth of the world market volume for tantalum production. With regard to any certification the paper concludes that this will become challenging for business and policy: (a) Central Africa currently is the largest supplier of coltan on the world market, many actors profit from the current situation and possess abilities to hide responsibility; (b) China will need to accept more responsibility, a first step would be the acceptance of the OECD guidelines on due diligence; (c) better regional governance in Central Africa comprises of resource taxation, a resource fund and fiscal coordination. An international task force may provide more robust data, however more research will also be needed.
This paper addresses future perspectives for the management of resources on an international level. Failures of international open markets result in significant material leakage. Here, taking the example of material used vehicles, we develop elements of an international metal covenant that should allow for a more sustainable management of global material flows in that area. Our proposal is based on two principles: any regulation should actively seek industry participation, taking advantage of business interest in supplying a sufficient quantity of materials while lowering materials costs; and it should also address public issues such as sustainability of recycling and waste. In this paper we first analyse contracts as a tool for bridging gaps in knowledge when multiple actors are involved. We then give empirical evidence for material leakage in the case of used vehicles from Germany, before outlining the elements of a proposed international metals covenant. Finally, we analyse potential impacts and discuss legal and institutional issues.
Conflict minerals
(2012)
This book considers corporate governance of sustainability from a co-evolutionary perspective. It explores the linkages between pro-active approaches at the corporate level, market-based incentives and environmental networks involving various actors. Relevant theory on corporate governance, competition, market failures and regulatory tools is also examined. The authors go on to present an assessment methodology suitable for empirical network analysis at the meso-level, and demonstrate its application using eight case studies. Based on these research results, Raimund Bleischwitz and his team draw important conclusions regarding policy analysis, sustainability assessment and the actors involved.
This paper analyses drivers for resource use and material productivity acrosscountries. This is not only relevant in light of soaring raw material prices but also because EU policies, such as the "Thematic Strategy on the Sustainable Use of Natural Resources" (COM [2005] 670), the EU Raw Materials Initiative (COM [2008] 699) and various similar policies internationally, seek to better manage materials along their life-cycle and across economies. In order to better understand the system dynamics of material use, our paper applies methodologies of material flow analysis and regression analysis to identify the major drivers for resource use and decoupling from GDP. Drivers are understood as those factors that exert influence on human activities to use resources. A panel data set is taken for the European Union for the years 1980–2000 (EU-15) and 1992–2000 (EU-25). The main drivers of resource use were found to be energy efficiency, new dwellings and roads construction activities. Shortcomings of the methodology are also discussed.
This book presents important new research on applied eco-efficiency concepts throughout Europe. The aim of eco-efficiency is to achieve market-based measures of environmental protection, in order to enhance the prospects for sustainable development and achieve positive economic and ecological benefits. The distinguished authors discuss a number of themes surrounding eco-efficiency including the necessary conditions for technological dissemination and ecological modernization, and the role of government in enabling businesses and society to participate actively in this process. In particular, they highlight the application of existing European-based policies concerning material flows and energy. The authors also investigate some new concepts of sustainable development and provide a useful introduction to material flows analysis. In further chapters they study the emerging regulatory policies for eco-efficiency, and examine the issues of sustainable business and consumption strategies.
The book contains the proceedings of INFER annual conference 2004, organized at the Wuppertal Institute in Germany. Within the area of environmental economics, methodological issues now seem at stake. This is because recent methods and fields of economics, like institutional economics, competition (industrial) economics, and cognitive economics, should be applied and become more established within environmental economics. The different papers address this challenge via different case studies in areas such as agriculture, biodiversity, eco-taxes, subsidies, wind energy, environmental corruption, governance, contracts, international trade, human behavior, and many others.
Europe in transition : paving the way to a green economy through eco-innovation ; annual report 2012
(2013)
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.