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Flexible emissions fees 2011-09-15-2

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Anders L Höglund
         MScEngPhys
        Vice President


The Swedish Sustainable
  Economy Foundation
        tssef.se

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What feature does a bicycle and a JAS-
   fighter plane have in common?




                                              ...

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Obstacles on the path
                      to sustainability

          Political and democratical road blocks
        ...

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Flexible emissions fees 2011-09-15-2

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(In Swedish) presented at the Nordic Council of Minister's workshop on sustainable consumption and production, it gives a bakground to the idea of charging progressively more for substances and activities that pollute.

(In Swedish) presented at the Nordic Council of Minister's workshop on sustainable consumption and production, it gives a bakground to the idea of charging progressively more for substances and activities that pollute.

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Flexible emissions fees 2011-09-15-2

  1. 1. Anders L Höglund MScEngPhys Vice President The Swedish Sustainable Economy Foundation tssef.se
  2. 2. What feature does a bicycle and a JAS- fighter plane have in common? 2 The Swedish Sustainable Economy Foundation – tssef.se
  3. 3. Obstacles on the path to sustainability  Political and democratical road blocks  Weak and insufficient economic drivers  Insecurity about suitable numbers and indicators  Insecurity about suitable control instruments  Too much focus on GNP-growth 3 The Swedish Sustainable Economy Foundation – tssef.se
  4. 4. Conditions for an efficient and viable solution  Sufficiently strong economic drivers  Political and democratical acceptance  Means of hedging against risk  Internalization of externalities 4 The Swedish Sustainable Economy Foundation – tssef.se
  5. 5. Suggestions for an efficient and sustainable solution  Flexible control fees as economic drivers for internalization of externalities in the economy  A sufficiently large repayment of the fee income for democratic acceptance  A futures market to reveal abatement costs and as an instrument to hedge against risk 5 The Swedish Sustainable Economy Foundation – tssef.se
  6. 6. Why a control fee? • Because it can be made adjustable and sufficient • Because it can be made simple and efficient • Because it can be made transparent and traceable 6 The Swedish Sustainable Economy Foundation – tssef.se
  7. 7. Why a repayment? • To secure democratic acceptance • To stimulate sustainable growth • To make the control fee 'budget neutral' 7 The Swedish Sustainable Economy Foundation – tssef.se
  8. 8. Why a futures market? • Because it is known, established and effective • Because it has a proven hedging function • Because it can reveal abatement costs 8 The Swedish Sustainable Economy Foundation – tssef.se
  9. 9. Problem areas for efficient use of control fees  CO2-emissions from fossil fuels  Harmful emissions from vehicles  Depletion of non-renewable natural resources  Extraction of harmful metals and minerals  Production of harmful chemicals  Unsustainable use of fresh water resources 9 The Swedish Sustainable Economy Foundation – tssef.se
  10. 10. Advantages and added value from flexible control fees • Economic drivers for sustainability • Increased purchasing power and benign demand • Increased investment and reduced unemployment • Acceptance thanks to repayment of fee income • Risk reduction thanks to fee futures markets 10 The Swedish Sustainable Economy Foundation – tssef.se
  11. 11. Risks and threats when the need for stabilizing feedback is ignored  Real estate bubbles  Financial crises  Environmental degradation  Loss of resources  Systemic collapse  Large scale famine 11 The Swedish Sustainable Economy Foundation – tssef.se
  12. 12. Thank You! 12 The Swedish Sustainable Economy Foundation – tssef.se

Editor's Notes

  • Anders L Höglund born in 1948. A MScEngPhys degree from Chalmers University of Technology in 1978. Combustion research at Volvo Technology 1978 – 2003. Chief researcher at Cargine Engineering 2003 – present. Vice president of The Swedish Sustainable Economy Foundation since 1995. Active in environmental economics research since 1986.

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