Handbook for a Sustainable Economy
Authors: Roberto Bermejo
2014

     Offers a far-reaching, closely detailed and highly critical analysis of the conventional economy approach to the “environmental problem”
     Explains and develops the concept of bio mimicry in pursuit of environmental sustainability and provides tools that are necessary to build it
     Offers a broad and detailed view of today’s fossil fuel energy economy and of alternatives based on renewable energy, hydrogen and improving efficiency

Since the 1992 World Scientists’ Warning to Humanity, the looming prospect of Earth’s changing climate has inspired a broad movement dedicated to a sustainable future. In this Handbook, the author explains the elements of a sustainable economy, the development of which must be undertaken if we are to retain our civilization.

The first section offers a critical analysis of orthodox economical thinking, and the tools used by the conventional economy to solve the “environmental problem.” The author examines the theory and tools of Environmental Economics addressing the commodification of nature, and offers analysis of the theoretical and practical contradictions which arise from attempts to combine environmental protection and free trade.

Part II discusses the principles and tools needed to build a sustainable economy, including the concept of biomimicry as a guiding principle of sustainability, a brief description of the adaptive cycle of ecosystems, and explains the concept of transformability and the factors that determine it. Discussion includes a broad evaluation of the capacity for transformation of National Sustainable Development Strategies, and an analysis of the essential requirements of ecology-based tax reform. Also included is a critical vision of the dominant paradigm of science and technology.

The third section explores sustainable production and consumption, discussing energy, transport, the circular economy of materials, and sustainable consumption. Included are a detailed analysis of factors that determine the limits of fossil fuels, a description of the peak oil structural effect and its sectoral impacts, an overview of a sustainable electric system, and a review of biofuels, electricity and hydrogen. The author concludes that only hydrogen associated to fuel offers a sustainable alternative to oil. Discussion includes a view of the structural causes of the current high-level consumption model through the lens of motivation, provision and access systems, and a detailed description of policies that must be adopted as part of a sustainable consumption strategy.

The final chapter undertakes the task of analyzing the capability of our societies to transform themselves to reach sustainability. The author broadly evaluates each factor, as a prior step to carrying out an overall evaluation, and demonstrates that in order to accomplish a comprehensive analysis, a multidisciplinary group is necessary.

Content Level » Professional/practitioner

Keywords » Biomimicry - environmental economics - sustainable economy - sustainable future - sustainable production and consumption


Related subjects » Environmental / Development / Agricultural Economics - Geology - Renewable and Green Energy - Social Sciences - Special types of Materials - Sustainable Development

Part I Critical Review of the Orthodox Economy
1 Paradigms................................................................... 3
1 The Collision Process with Nature Is Ignored.......................... 3
2 Presentation and Critique of the Dominant Paradigm.................. 4
2.1 View of Nature and of the Position of Mankind in It............ 5
2.2 Linear and Mechanistic Thinking................................. 6
2.3 The View of Human Beings: ‘Homo Economicus’.............. 7
2.4 View of the Economy............................................. 12
3 Sustainability Paradigm................................................. 15
2 The Commodification of Nature and Its Consequences................ 19
1 The Efficiency of a Free Market........................................ 19
2 The Emergence of a Capitalist Market and the Consequences........ 21
3 The Commodification of Nature........................................ 22
4 Free Market and Natural Resources.................................... 24
4.1 The Impact on Natural Resources by Establishment
of a Capitalist Market............................................. 24
4.2 The Scarcity of Resources in Classical
and Neoclassical Thought......................................... 29
3 Foundations and Instruments of Environmental Economics.......... 35
1 Polluter Pays Principle.................................................. 36
2 The Theory of Environmental Valuation............................... 37
3 The Externality Concept................................................. 38
4 Internalisation of Externalities.......................................... 40
4.1 Environmental Valuation Methods................................ 40
4.2 Analysis............................................................ 42
4.3 It Is Not Possible to Measure the ‘Environmental Optimal’..... 44
5 Market Tools for Internalising Externalities............................ 45
5.1 Environmental Taxes.............................................. 46
5.2 Marketable Pollution/Emission Permit Systems................. 48
4 Free Market and Sustainability........................................... 53
1 Contradictions Between Nature Monetisation
and Economic Liberalisation............................................ 53
2 Contradiction Between Liberalisation and Sustainability.............. 54
3 The Contradictions Between the GATT-WTO
System and Sustainability............................................... 56
3.1 The GATT-WTO System.......................................... 56
3.2 The Sources of Contradiction..................................... 57
4 Contradiction Between WTO Rulings and Multilateral
Environmental Agreements............................................. 60
4.1 Multilateral Environmental Agreements (MEA)................. 60
4.2 Outcomes.......................................................... 61
5 Government Proposals to Change the WTO’s Role
in Order to Protect Nature............................................... 62
5.1 Acknowledgment of Principles................................... 62
5.2 Regulatory Framework............................................ 63
5.3 Financing.......................................................... 65
5.4 Institutions......................................................... 66
6 The Retreat of Globalization............................................ 66
5 Sustainable Development in the Brundtland Report
and Its Distortion........................................................... 69
1 Introduction.............................................................. 69
2 Developmental Economics.............................................. 70
3 Sustainable Development According to the Brundtland Report....... 71
4 Orthodox Interpretations of the Concept
of Sustainable Development............................................. 74
4.1 The Theory of the Sustainability Triangle........................ 74
4.2 The Theory of Dematerialization................................. 76
5 Concluding Remarks.................................................... 81
Part II Principles and Instruments for Sustainability
6 Sustainability of Social-Economical Systems............................ 85
1 Introduction.............................................................. 85
2 Sustainability of Complex Adaptive Systems of Nature............... 86
2.1 Abiotic Functions.................................................. 87
2.2 Biotic Function.................................................... 88
2.3 Functions of Maintenance of Vital Constants.................... 92
3 Unsustainability of the Capitalist System.............................. 93
4 Sustainability Principles................................................. 94
7 Transformability............................................................ 99
1 Adaptive Cycle of Ecosystems.......................................... 99
2 Applicability to Socio-economic Systems of the Concepts
and Factors of the Natural Adaptive Cycle............................. 103
2.1 The Usefulness of the Adaptive Cycle for
Socio-economic Systems.......................................... 103
2.2 The Resilience Concept........................................... 105
3 The Transformability of Socio-economic Systems..................... 106
3.1 The Concept of Transformability................................. 106
3.2 Transformability Factors.......................................... 108
4 Conclusion............................................................... 111
8 Instruments for Sustainability: Strategic Planning
and Ecological Tax Reform................................................ 113
1 Genesis and Premises of the Strategic Planning of Sustainability..... 113
1.1 Analysis of the Fulfilment of the Premises
in the Case of the NSDS .......................................... 114
1.2 The SDS of the European Union.................................. 118
2 Environmental Tax Reforms and Ecological Tax Reform............. 120
2.1 Environmental Tax Reforms...................................... 120
2.2 Concepts of Fiscal Reforms in Relation to Sustainability....... 121
2.3 Overview of the Development of an ETR........................ 125
3 Forecast Evolution of the ETR.......................................... 128
9 Science and Technology for Sustainability............................... 129
1 Criticism of the Paradigm of the Current
Dominant Science and Technological Model.......................... 129
2 Towards a Science for Sustainability................................... 135
3 Towards Sustainable Technological Systems........................... 139
3.1 Overview of Some Concepts and Technologies
Which Are Placed in the Fieldof the Dominant Paradigm...... 140
3.2 Analysis of Transforming Concepts and Technologies.......... 144
Part III Sustainable Production and Consumption
10 The Limits of Fossil Fuels.................................................. 151
1 Peak Oil.................................................................. 152
1.1 Reserves............................................................ 152
1.2 The Main Agents.................................................. 153
1.3 Supply.............................................................. 155
1.4 Demand............................................................ 156
1.5 Prices............................................................... 158
1.6 Peak................................................................ 160
1.7 Extra-Geological Limiting Factors............................... 163
2 Peak Natural Gas........................................................ 164
3 Peak Coal................................................................. 168
4 Fossil Fuels and Climate Change....................................... 170
11 Repercussions of the End of the Oil Age................................. 173
1 The Geostrategic Struggle for the Control of Essential Resources.... 173
1.1 US.................................................................. 174
1.2 Russia.............................................................. 175
1.3 European Union................................................... 176
1.4 China............................................................... 177
1.5 The Foreseeable Future........................................... 177
2 Analysis of the Current Crisis and of the General Impact
of Peak Oil............................................................... 178
2.1 Causes of the Crisis and of the Unequal Impact
on Different Countries............................................. 178
2.2 Analysis of the Economic Impact of Peak Oil................... 180
3 Structural Effects........................................................ 185
3.1 Trade............................................................... 185
3.2 Financial........................................................... 187
3.3 International Monetary System (IMS)............................ 188
4 Sectoral Effects.......................................................... 190
4.1 Industry............................................................ 190
4.2 Agriculture......................................................... 192
12 Towards Sustainable Transport at the End of the Fossil
Fuel Era...................................................................... 195
1 The Dominant Transport Model........................................ 196
1.1 The Consolidation Process........................................ 196
1.2 Wide Range of Applications of the Dominant
Transport Model Between Countries............................. 198
2 Transport Economics.................................................... 201
3 Changes in the Transport Model Due to Escalating Oil
Prices Produced During the 2002–2008 Period........................ 203
4 Critical Analysis of the EU Transport Strategy........................ 207
5 Some Proposals for Advancing Towards Sustainable
Transport in the EU...................................................... 212
13 Solar Economy Elements.................................................. 215
1 Introduction.............................................................. 215
2 Expansion Strategies of Renewable Energies.......................... 217
3 Efficiency................................................................. 221
4 Main Technological Systems............................................ 221
4.1 Wind................................................................ 221
4.2 Photovoltaic........................................................ 225
4.3 Solar Thermal Power.............................................. 228
5 Grids and Energy Storage............................................... 231
14 Renewable Hydrogen Economy........................................... 235
1 Agro-fuel................................................................. 235
2 Renewable Electricity – Electric Car................................... 240
3 Hydrogen................................................................. 241
4 Fuel Cells................................................................ 242
4.1 Strategies for Fuel Cell Expansion............................... 243
4.2 Fuel Cell Development............................................ 245
15 Societies in Energy Emergency........................................... 251
1 Origin, Development and Characteristics............................... 251
2 Comparative Analysis of the Two Movements......................... 254
3 Steps in the Process of Designing and Implementing Strategies...... 257
3.1 Resolutions and Declarations..................................... 258
3.2 Analysis of Vulnerability.......................................... 259
3.3 Contingency Plans................................................. 261
3.4 Strategies........................................................... 262
4FinalRemarks............................................................ 268
16 Circular Economy: Materials Scarcity, European Union
Policy and Foundations of a Circular Economy......................... 269
1 Concepts and Principles for a Circular Economy...................... 269
2 Analysis of Critical Metals.............................................. 271
2.1 Geological Scarcity................................................ 272
2.2 Other Scarcity Factors............................................. 275
2.3 Recycling.......................................................... 278
3 Analysis of Non-metallic Materials..................................... 279
3.1 Material from Construction and from Demolition............... 279
3.2 Materials and Substances from the Chemical Industry.......... 280
3.3 Materials from the Petrochemical Industry....................... 281
3.4 Agro-materials..................................................... 282
4 The EU’s Broad Policy on Materials................................... 284
5 Basis for a Circular Economy Strategy................................. 286
17 Industrial Ecology.......................................................... 289
1 The Industrial Ecology Concept........................................ 289
2 Material Flow Analysis and Accounting
of Socioeconomical Systems............................................ 291
2.1 Methodology....................................................... 291
2.2 European Union Metabolism: Material Flow Accounts......... 294
3 Industrial Symbioses.................................................... 297
3.1 The Concept and Overall Perspective of the Field............... 297
3.2 Terms Used in the Application of Industrial Symbiosis......... 298
3.3 The Role of Government Policy in the Promotion
of Industrial Symbiosis............................................ 300
3.4 Industrial Ecosystem Taxonomy.................................. 302
18 Basis for an Eco-effective and Integrated Product Strategy........... 309
1 Integrated Product Policy................................................ 309
1.1 Overview........................................................... 309
1.2 Contribution to the IPP of Extended Producer Responsibility.. 311
xvi Contents
2 Inputs for an Integrated and Eco-effective Product Strategy.......... 315
2.1 Overview........................................................... 315
2.2 Product-Service Systems.......................................... 316
2.3 Design of EC-Efficient Products by Means
of the “Intelligent Material Pooling” Methodology.............. 327
19 Sustainable Consumption.................................................. 329
1 An Unsustainable, Unfair and Pathological Model of Consumption.. 329
2 Systems That Determine Consumption Patterns....................... 330
2.1 Motivation Systems............................................... 331
2.2 Systems of Provision.............................................. 334
2.3 Systems of Access................................................. 337
3 Elements of a Sustainable Consumption Strategy...................... 338
3.1 General Aspects................................................... 338
3.2 Actions on Motivation Systems................................... 340
3.3 Actions on Provision Systems.................................... 341
3.4 Actions on the Access Systems................................... 350
Part IV Evaluation of Transformability
20 Overall Evaluation of Transformability and Its Trend................. 355
1 Potential.................................................................. 356
1.1 Natural Potential................................................... 356
1.2 Potential from Social Sources..................................... 357
2 Connectivity.............................................................. 360
2.1 Hierarchy........................................................... 361
2.2 Fluxes.............................................................. 362
2.3 Paradigms.......................................................... 364
3 Panarchy.................................................................. 365
4 An Attempt to Evaluate Global Transformability and Its Trend....... 366
Bibliography...................................................................... 369