Eco-investing: Financing sustainable economic development

Many Canadian communities are facing resource depletion and high unemployment as a result of a model of economic development which has consistently promoted large capital-intensive, resource-based companies. A new model of sustainable community development is required which incorporates ecological, economic and social concerns. One aspect of sustainable community development is the use and promotion of locally-based and controlled financing mechanisms, including community loan funds, community bonds, and peer lending circles providing micro-credit. Widely successful across the USA and Canada, these 'alternative' financing mechanisms use local control and a proximity to local ecosystems to foster small businesses which are less resource-intensive and create long-term jobs within communities. Improving these financing tools through broader government facilitation of them as innovative public policy instruments, and the incorporation of specific ecological lending and investment screens, could dramatically further the development of healthy communities.     

Economic instruments for sustainable community development

Abstract

In recent years there has been increasing interest in the use of so‐called ‘economic instruments’ in environmental policy. Economic instruments influence the behaviour of economic agents by providing financial incentives for environmentally improved behaviour, or disincentives for damaging behaviour. This paper explores the use of economic instruments in the field of sustainable community planning and development. It does so in the wider context of how environmental economic policy is made. The focus of this paper is to examine the role of policy instruments in community planning, and to review the different types of instruments that are available to policy‐makers. Numerous examples of the various instruments at the community level are described. It is widely believed that policy making should occur at the lowest or most local level possible while maintaining effectiveness. A system of government that does not give adequate legal power to local governments, and does not allow local governments considerable flexibility in the use of funds, cannot be expected to achieve all community objectives. Central governments must give local governments permission to take measures towards sustainable community planning, even though that requires giving them power to address broader issues. At the same time, when issues that should be addressed at national and international levels are not addressed, local governments may be able to take action individually. Given the general reluctance (and perhaps inability) of governments at all levels today to consider non‐economic and, particularly, non‐market policy instruments, it is pragmatic as well as timely to improve our understanding of economic instruments for sustainable community development.     

Economic instruments for sustainable community development

In recent years there has been increasing interest in the use of so-called 'economic instruments' in environmental policy. Economic instruments influence the behaviour of economic agents by providing financial incentives for environmentally improved behaviour, or disincentives for damaging behaviour. This paper explores the use of economic instruments in the field of sustainable community planning and development. It does so in the wider context of how environmental economic policy is made. The focus of this paper is to examine the role of policy instruments in community planning, and to review the different types of instruments that are available to policy-makers. Numerous examples of the various instruments at the community level are described. It is widely believed that policy making should occur at the lowest or most local level possible while maintaining effectiveness. A system of government that does not give adequate legal power to local governments, and does not allow local governments considerable flexibility in the use of funds, cannot be expected to achieve all community objectives. Central governments must give local governments permission to take measures towards sustainable community planning, even though that requires giving them power to address broader issues. At the same time, when issues that should be addressed at national and international levels are not addressed, local governments may be able to take action individually. Given the general reluctance (and perhaps inability) of governments at all levels today to consider non-economic and, particularly, non-market policy instruments, it is pragmatic as well as timely to improve our understanding of economic instruments for sustainable community development.     

STATE POLLUTION CONTROL PROGRAMS - A REVIEW1

ABSTRACT: This review of state pollution control programs suggests that states have brought imaginative thought to environmental programs. While manpower and funds have been concentrated in such traditional areas of concern as air and water quality enforcement, many states have attempted to defray the industrial costs of pollution control by increasing public waste treatment facilities, providing tax incentives for pollution control equipment and authorizing pollution control revenue bond financing.     

Environmental management information systems: New tools for measuring performance

Successful implementation of environmental management information systems (EMIS) has become essential to the success of total quality environmental management (TQEM) programs. Effective TQEM programs will be early indicators of which companies survive and thrive in today's competitive business environment. Highly competitive industries such as chemicals, electronics, and oil and gas are becoming very effective in cooperating to develop metrics, models, and tools that are based on business processes rather than regulatory edicts. Now electric power companies, newly exposed to market competition, are starting to develop and implement these metrics, standards, and tools. That industry provides a model for joining TQEM and EMIS.     

Mobilization of innovation and investment resources for environmental management in Russian federation regions

Investments in environmental management and environmental protection have a decisive influence on the future of a region and its place in the economic development of the country as a whole. In this article, the principal differences between investment in environmental management and the financing of other projects are discussed. It is proven that, at present, the investment policy in the field of environmental protection of a region is oriented primarily toward current results. In such cases, it is possible to achieve only short‐term goals, and ultimately, to miss the prospect of further conservation of resources. Hence, short‐term investments in environmental protection activities and the achievement of rapid results are replaced by the commitment to promising, long‐term strategic growth. This article notes that the most effective form of implementing environmental monitoring is through environmental auditing, as auditing is performed at the expense of customers and does not require public financing. Furthermore, the effects of implementing environmental policies based on the results of environmental auditing can be even more significant than the results achieved under the State's environmental protection measures     

The Employment and Productivity Effects of Environmental Taxation: Additional Dividends or Added Distractions?

Claims of employment and productivity gains from environmental taxation are examined in the context of recent policy developments which have extended the traditional role of economic instruments in environmental regulation. Although the general existence of such spin-offs cannot be established, the debate has clarified guidelines for designing and implementing specific environmentally based taxes to help deliver sustainable development. Recent UK tax proposals have started to draw on the flexibility of fiscal instruments to tackle environmental problems. Innovations include earmarking taxes to fund allied spatial and sectoral programmes, recycling revenues to provide fiscally neutral improvements in tax efficiency and using taxation to help promote eco-efficiency.     

Risk of public disclosure in environmental farm plan programs: Characteristics and mitigating legal and policy strategies

Although various studies have shown that farmers believe there is the need for a producer-led initiative to address the environmental problems from agriculture, farmers in several Canadian provinces have been reluctant to widely participate in Environmental Farm Plan (EFP) programs. Few studies have examined the key issues associated with adopting EFP programs based on farmers’, as opposed to policy makers’, perspectives on why producers are reluctant to participate in the program. A study adapting Van Raaij’s (1981) conceptual model of the decision-making environment of the firm, and prospect theory on value functions associated with the gains and losses from risky choices can be used to characterize how farmers perceive potential risks in environmental farm planning. This framework can be used to assert that farmers are concerned about risks of public disclosure of potentially incriminating environmental information from farms because the EFP program requirements for identification and extensive documentation of farm information is perceived by farmers as facilitating the accessibility of environmental information to the public, and public investigative efforts. Although the EFP program does not explicitly generate information about the environmental conditions of a farm nor the disclosure of such information to the public, it creates the possibility of generating and divulging potentially incriminating information that the farmer may want to treat as confidential. Yet, alone, these risks of public disclosure concerns should not prevent farmers from participating in the EFP. Awareness of and participation in environmental farm planning can be increased if farmers and policy makers understand what the risks are, and how they arise. Aspects of the EFP process that have the potential to generate risk of public disclosure concerns relate to farm reviews, documentation and record keeping, and corrective action plans. There are legal and policy instruments that can offer various forms of protection and help minimize such risks, and these need to be assessed.     

Competition,Sustainability and Packaging Policy in the UK

This paper examines the use of economic instruments in the implementation of environmental policy, based upon a recent study into the European Union Packaging and Packaging Waste Directive (94/62/EC). It explores the introduction of competitionbased models in the UK implementation of the Directive, and assesses their ability to achieve positive environmentaloutcomes in a cost-efficient manner. Several problems for the competition model are discussed, particularly the fear of profiteering within marketbased systems by some economic operators; the behaviour of economic operators towards non-profitable market segments; the ability of free-market models to engender public participation in recycling programmes; and the failure of private sector solutions to consider the full environmental costs of packaging. Neo-liberalist competitive models do not address such problems convincingly, and therefore continued government intervention is required if the UK is to meet its targets under the EU Directive. Whilst economic instruments and competition provide avenues for a more effective environmental policy, there is a continuing need for government regulation rather than unquestioning faith in the benefits of the free market.     

Integrated economic-ecological analysis and evaluation of management strategies on nutrient abatement in the Rhine basin

Management of river basins involves the making of informed choices about the desired levels of economic activities and ecosystem functioning in the catchment. Information on the economic and ecological effects of measures as well as their spatial distribution is therefore needed. This paper proposes the following instruments to support decision-making in river basins: (1) the linking of models and indicators to describe the economic and ecological effects of management actions and their spatial distribution and (2) an extended evaluation framework that aims to evaluate management actions on three objectives for sustainable river management. These are cost-effectiveness, spatial equity, and environmental quality. This paper illustrates the potential of these instruments for river basin management by a case-study on nutrient management in the Rhine basin. In this case-study four nutrient abatement strategies are formulated, based on policies of the International Commission for the Protection of the Rhine and the North Sea Commission. These strategies are analysed and evaluated on their contribution to the three management objectives. Results show that none of these strategies score highest on cost-effectiveness, spatial equity and environmental quality simultaneously. It appears that cost-effectiveness is in conflict with environmental quality, whereas spatial equity and cost-effectiveness show quite close correspondence. This means that a trade-off has to be made between costs and spatial equity on the one hand, and environmental standards on the other hand. This paper offers a framework to make these trade-offs more explicit and provides quantitative information on cause-effect relationships, economic and environmental effects and the spatial distribution of these effects for various management strategies. This information can be particularly useful in the development of compromises required to establish international agreement and co-operation.     

气候投融资加速发展新生态研究

应对气候变化实现碳达峰、碳中和目标需要海量的资金投入并将为中国带来巨大的气候资金缺口,解决这一难题亟须大量的资金投入和高效的投融资手段。2020年以来我国气候投融资顶层文件相继出台,尽管气候投融资体系和试点工作的研究逐渐丰富,但是气候投融资理论研究仍然落后于地方和金融机构的相关实践。本文聚焦于气候投融资体系中存在的标准不统一、机制不灵活、信息不对称、数据不可靠等关键问题,梳理气候投融资加速发展所需的关键要素,讨论气候投融资加速发展的预期目标,提出一套结合数字科技应用的气候投融资加速发展新生态体系及其标准体系、技术体系、数据体系的构建方案,旨在引导和鼓励资金流向技术先进、示范创新、气候效益显著的绿色低碳项目,为气候投融资试点和“双碳”政策落地,提供理论支撑和政策参考。     

Quantifying Long-term Environmental Regulatory Risk for Brownfields: Are Reopeners Really an Issue?

Brownfields are potentially contaminated sites that often present economic development opportunities that require financing. State environmental voluntary clean-up programmes (VCPs) offer closure letters as a way for developers to obtain assurance that their clean-up was completed properly and is 'bankable'. However, there is still fear among lenders about the potential for these closed remediated sites to be reopened and therefore negatively affect the value of the real estate as collateral. While it is believed to be an infrequent act, there has been no comprehensive study of reopeners, and therefore of the effectiveness of VCPs available. This study seeks to quantify the incidence of reopeners in the USA through a systematic inventory of VCP administrators. The authors initially find that among the 46 states with VCPs, only 12 cases were reopened out of 11 497 closed environmental cases, a reopener rate of between 0.1% and 0.2%. However, reopener rates may increase with more vigorous enforcement and over the passage of time. This information means that brownfield deals can go forward with confidence, and that the risk of reopeners can now be quantified, allowing cheaper insurance and more assurance that negative outcomes can be avoided.     

Effective EU and Member State policies for stimulating CCS

Although CO₂ capture and storage (CCS) is widely recognised as an option to mitigate climate change, consistent and effective EU policies to advance CCS are still absent. This paper discusses policy instruments for advancing large-scale deployment of CCS in the European Union, and evaluates them in a multi-criteria analysis. The EU Emissions Trading Scheme (EU-ETS) is a cost-effective instrument for limiting greenhouse gas emissions, but it is questionable whether its currently limited time horizon and short-trading periods will lead to substantial CCS diffusion. Complementary policies at the EU and the Member State level may repair this and provide sufficient incentives for CCS. Potential policies include financial instruments such as investment subsidies, a feed-in scheme, or a CO₂ price guarantee, as well as a CCS mandate or a low-carbon portfolio. These policy options differ with respect to their environmental effectiveness, possible interaction with the EU-ETS, costs and financial risk involved, and their competition with other mitigation options. Interactions between Member State policies and the EU-ETS are smaller in scope than those of EU-wide policies, but they are more likely to lead to displacement of financial resources from other low-carbon technologies. In addition, national policies may pose a significant part of the financial risk of CCS operations with Member States, reducing the operator's incentive to innovate. Overall, structural policies at the EU level, such as a mandate or a low-carbon portfolio standard would be more conducive for realising large-scale deployment of CCS across the EU as well as more acceptable to environmental organisations.     

A Disturbance Index for Karst Environments

Karst environments, unique from other environments, require their own disturbance index. Karst resources are increasingly disturbed by a variety of processes related to social, physical, and economic factors. Recent studies have begun to qualify and quantify these disturbances, yet their focus has been limited to one or two factors such as biotic, geomorphic, or economic impacts. A more holistic approach, addressing economic, scientific, and cultural factors, is needed, to effectively assess the threats to karst areas. Currently, there is no efficient method to measure, compare, and contrast the disturbance of karst environments. We propose a hierarchal and standardized environmental disturbance index as a tool to measure regional impacts and highlight the areas of the karst system that require more protection or study. Addressed categories of disturbance include cultural, biotic, atmospheric, hydrological, and geomorphologic impacts.     

Efficient use of energy and materials: progress and policies

There is a growing awareness of the serious problems associated with the provision of sufficient energy to meet human needs and to fuel economic growth world-wide. This has pointed to the need for energy and material efficiency, which would reduce air, water and thermal pollution, as well as waste production. Increasing energy and material efficiency also have the benefits of increased employment, improved balance of imports and exports, increased security of energy supply and adopting environmentally advantageous energy supply. A large potential exists for energy savings through energy and material efficiency improvements. Technologies are not now, nor will they be, in the foreseeable future, the limiting factors with regard to continuing energy efficiency improvements. There are serious barriers to energy efficiency improvements, including unwillingness to invest, lack of available and accessible information, economic disincentives and organizational barriers. A wide range of policy instruments, as well as innovative approaches have been tried in some countries in order to achieve the desired energy efficiency improvements. These include: regulation and guidelines; economic instruments and incentives; voluntary agreements and actions; information, education and training; and research, development and demonstration. An area that requires particular attention is that of improved international co-operation to develop policy instruments and technologies to meet the needs of developing countries. Material efficiency has not received the attention that it deserves. Consequently, there is a dearth of data on the qualities and quantities of final consumption, thus, making it difficult to formulate policies. Available data, however, suggest that there is a large potential for improved use of many materials in industrialized countries.     

Studies on Agri-environmental Measures: A Survey of the Literature

Agri-environmental measures (AEM) are incentive-based instruments in the European Union (EU) that provide payments to farmers for voluntary environmental commitments related to preserving and enhancing the environment and maintaining the cultural landscape. We review the AEM literature and provide an overview of important research topics, major research results and future challenges as discussed in the available literature concerning these measures. This review contributes to the existing literature by attempting to equally consider ecological and economic perspectives. The reviewed articles are analyzed regarding their regional focus, topics and methods. The analytical section of the article seeks to discuss commonly asked questions about AEM on the basis of results from reviewed studies. The vast amount of available literature provides valuable insights into specific cases and reveals a complex picture with few general conclusions. The existing research is usually either biased toward ecological or economic perspectives and fails to provide a holistic picture of the problems and challenges within agri-environmental programming (e.g., multiple measures, multiple target areas, legal aspects, financial constraints, transaction costs). Most empirical studies provide detailed insights into selected individual measures but are incapable of providing results at a level relevant to decision-making, as they neglect the role of farmers and the available AEM budget. Predominantly economic approaches often only consider rough assumptions of ecological and economic processes and are also not suitable for decision-making. Decision-support tools that build on these disciplinary results and simultaneously consider scheme factors and environmental conditions at high spatial resolution for application by the responsible authorities are rare and require further research.     

政府环保类引导基金的运行管理模式研究

本文基于国内已有的相关政府引导基金和环保基金的运行管理模式,经分析和比较提出适合中央和地方层面环保类引导基金的运行管理模式。除了要符合基金运作的一般规律,本文认为中央层面设立政府环保类引导基金适合契约制形式,引导基金内只有中央财政出资,按照母基金参股子基金的方式来运作,同时达到撬动社会资本和引入先进基金管理公司的目的;地方层面设立相应基金适合采用有限合伙制形式,直接吸引社会资本与政府共同建立引导基金,投资方式以直接投资为主、参股子基金为辅,可以发挥金融机构的融资优势和环保类专业机构的技术和经验优势。     

Options for National Parks and Reserves for Adapting to Climate Change

Past and present climate has shaped the valued ecosystems currently protected in parks and reserves, but future climate change will redefine these conditions. Continued conservation as climate changes will require thinking differently about resource management than we have in the past; we present some logical steps and tools for doing so. Three critical tenets underpin future management plans and activities: (1) climate patterns of the past will not be the climate patterns of the future; (2) climate defines the environment and influences future trajectories of the distributions of species and their habitats; (3) specific management actions may help increase the resilience of some natural resources, but fundamental changes in species and their environment may be inevitable. Science-based management will be necessary because past experience may not serve as a guide for novel future conditions. Identifying resources and processes at risk, defining thresholds and reference conditions, and establishing monitoring and assessment programs are among the types of scientific practices needed to support a broadened portfolio of management activities. In addition to the control and hedging management strategies commonly in use today, we recommend adaptive management wherever possible. Adaptive management increases our ability to address the multiple scales at which species and processes function, and increases the speed of knowledge transfer among scientists and managers. Scenario planning provides a broad forward-thinking framework from which the most appropriate management tools can be chosen. The scope of climate change effects will require a shared vision among regional partners. Preparing for and adapting to climate change is as much a cultural and intellectual challenge as an ecological challenge.     

乡镇经济生态化与生态环境协调发展研究——以浙江省丽水市为例

丽水市乡镇工业崛起迅速,乡镇经济发展成绩明显,但经济增长方式仍以粗放型为主,环境污染出现了蔓延。技术落后、自主创新能力不足,资金短缺、融资困难,行政生态环境有待完善三方面因素阻碍了丽水市乡镇经济生态化建设。为了促进乡镇经济生态化与生态环境协调发展,针对上述问题提出了以优化产业结构、完善金融服务、加快服务型政府建设为基础,以循环经济、特色经济、生态旅游等生态经济化为发展模式,以生态资源有偿使用、生态环境补偿机制为保障的对策。     

The use of regulatory taxation as a policy instrument for sustainability transitions: old wine in new bottles or unexplored potential?

The burgeoning literature on sustainable transitions links persistent environmental problems to the functioning of socio-technical systems. Conventional policy instruments, such as environmental taxation, are often rejected by transition scholars but in-depth studies on their potential are scarce. This paper explores the potential of the instrument of environmental taxation for influencing sustainability transitions. The multi-level perspective and the multi-phase perspective from transition thinking and the social practices approach are combined with the environmental economics theories of Pigou and Coase. Our analysis shows that the highest impact of regulatory taxation will be realised at the end of the take-off phase and in the acceleration phase of a transition. Although important barriers exist and many conditions apply, regulatory environmental taxation, especially as part of a smart policy mix, has more potential for contributing to sustainability transitions than hitherto assumed.