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International economics of resource productivity... 241 – Establishing life-cycle wide processes of material efficiency e.g. by sustainable mining, more efficient production and application of materials and strategies such as & Enhancing re-use and recycling & Recapturing precious materials from previously open loop systems (e.g. critical metals, phosphorus) & Functionally integrating modules and materials in complex goods (e.g. solar cells integrated in roofs) & Increasing the lifetime and durability and offer related services – Transforming infrastructures towards a steady-state stocks society e.g. via improved maintenance systems for roads and buildings as well as developing new resourcelight buildings and transportation systems and other network goods (such as waste water systems) and, in the long run, establishing a solarised technosphere for dwellings and other systems of provision (Bringezu 2009). Such a perspective on innovation and green growth is also consistent with lead markets worldwide. In distinction to prevailing climate change diplomacy, where it is difficult to engage the emerging economies, our perspective sheds light on attractive lead markets in emerging economies because they can build upon advantages from their natural endowments and allow for the establishment of new development pathways. 11 6 Resource policies: strategic pillars and incentives Innovation and lead market perspectives are however faced with barriers and market failures (Bleischwitz et al. 2009b: 228ff); policies will be needed to manage the ensuing transition processes. Corresponding policy objectives are unlikely to be delivered by one single instrument alone. One of the key conclusions of various strands of research is that a well-designed mix of institutional change and policy instruments is better capable of governing transition strategies than single instruments (Smith et al. 2005; Bleischwitz 2007) Fig. 6. 12 Better information is crucial for sustainable resource management, especially for improving material efficiency at the business level. The issue is not the supply of information alone, but the dissemination and appropriate application of such information in daily business routines. Public programmes to promote material efficiency and resource productivity can help to improve the information base, especially in SMEs, and facilitate market entry. The German Material Efficiency Agency, the regional eco-efficiency agency of North Rhine–Westphalia and the UK Resource Efficiency Network have demonstrated good success in approaching companies and disseminating knowhow on promoting material efficiency. From a mid-term perspective, the establishment of an international database and data centre on the resource intensity of products and services is needed 11 See also the contribution Rainer Waltz in this issue (Aghion et al. 2009; OECD 2009). 12 See also the contributions by Rene Kemp and Paul Ekins in this issue.
242 R. Bleischwitz Fig. 6 Resource policy (Bleischwitz et al. 2009b: 241ff). The main objective of an international database is to provide users with validated, internationally harmonised and periodically updated data on key resources, the resource intensity and related key indicators of raw materials, semi-manufactured goods, finished products and services. Following the slogan ‘no data no market’, such data facilitates a sustainable management of material flows in value chains and economies and a dematerialisation of currently unsustainable production and consumption patterns. Over time, such an international database should also offer data on indirect resource flows as well as data on material cost structures of industries. A regulatory perspective should be emphasised. Clear long-term signals, credible commitments and strong incentives need to be given from policies. Economic incentives can play a key role by triggering markets towards eco-innovation. Taxes have the advantage of being implementable by individual governments without international agreements. All taxes are controversial, but those on recognised ‘bads’ such as tobacco, alcohol or carbon emissions may be less so than others and allow the balance of taxes to be adjusted away from others, such as on income and labour. Towards the model of a ‘Material Input Tax’, which offers theoretically convincing but less operational advantages, a real world proposal is on taxing construction minerals. Following a tax on aggregates that has been successfully implemented in the UK (EEA 2008), a construction tax could address basic materials such as sand, gravel, crushed rocks and start from a level that is approximately 30% above market price, with a stepwise increase of 3 – 5% p.a. The objective is to facilitate recycling and innovation – including system innovations such as resourcelight construction and functionally integrated building envelopes. Besides the intended steering effect, parts of the revenues could also be used to finance innovation programmes in such direction. A combination of information-based, knowledge generating incentives supported by a pricing policy can be seen as a strong momentum for increasing resource productivity. Other instruments such as standard setting may add to this. It will be important to address the international level. In this case, a 3R policy will have to address open trade for critical metals and recycling as well as to facilitate action by establishing an international contract (‘covenant’) on closing material loops for resource-intensive consumer goods. Such a covenant might include the main countries of production and final consumption of vehicles and electronic devices, and establish principles of materials stewardship, certification and responsibility. While providing investment opportunities and stability, it may also offer incentives for Developing Countries to join.
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The international economics of reso
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