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					South West England
the place for
Environmental Integration
23rd February 2006



Nigel F Jump
Chief Economist
South West of England Regional Development Agency
South West England
GDP & GVA
- incomplete measures of output
- let alone total well-being.

Nevertheless…
GVA per head                      2002 EU rank
                                  €‟000 EU=100

Glos, Wilts, & N Som              28.4   130
Dorset & rest of Somerset         20.2    96
Devon                             19.1    89
Cornwall & Isles of Scilly        15.4    70
South West England                23.1   107
South West England
Sub-regional shares of SW GVA, 2003 (%)

    Gloucestershire, Wiltshire & North Somerset   53.9%

   Dorset & Somerset     21.1%

 Devon   17.9%


                                 Cornwall & Isles of Scilly   7.1
Markets & the Environment
 Prices allocate resources efficiently
 But market failures exist
        power
        information
        property rights
        rigidities
        state intervention
 Externality social costs &benefits
       wrongly or not priced
       opportunity costs
 Markets are imperfect but least worst

 Need to improve measurement -
       “Gross Sustainable Welfare”
Markets & the Environment
Scarcity - change - pace?
       short termism & absolute loss
       time & space trade-offs
Institutional Failures
        regulation - bureaucracy – taxation
Labour & Resource productivity
      - relative v absolute problem
      - driven by technology/demographics
      - sustainable consumption & production
Strong economic case
      - Env. service flow = $33 trillion p.a.
      - “Wild” net losses = $250bn p.a.
Monetary Valuation


           Total Economic Value



                            Non-use
     Use Value               Value


 Market      Non-     Intrinsic   Bequest
            market
Policy Issues

Polluter pays principle
Taxes/subsidies
- encourage „goods‟ / discourage „bads‟
Permits - regulation - campaigns - standards
Iterative processes
- SD indicators - options markets - discount
rates
Appropriate level of intervention?
Revenue recycling & hypothecation?
UK Sustainable Development

UK’s 5 Principles of Sustainable Development

   Sustainable Economy




                             Strong, Healthy & Just Society




    Good Governance




                            Living Within Environmental Limits




     Sound Science
SW Environment Driver
 3 linked RES drivers
   - skills, innovation & environment
   - key to productivity - SD - prosperity chain

 Asset & flow value of environment to SW
 economy recognised by RES
       1999 - 200 businesses, 30k+ employees
               - £1.5bn+ GVA, over 100k jobs
       2004 - Env Tech - £1.4bn GVA,
               22k jobs

 Real costs of access, depletion & repair
 unknown       - but 3 planets footprint
SW Environment Driver
 Need to value:
       lifestyle choice
       environmental impact

 Quality (building), waste handling & energy use.

 Better option & risk assessment

 Procurement requirements

 Lobbying government & partners
SW Environment Driver
Comparative Advantage
     as scarcity raises potential returns

Sectors      environmental technologies
      construction, tourism, ICT, creative

Branding/Perception
      migration, entrepreneurship, leisure,
      investment – FDI, skills

Consumption         services,
     peripherality – overcome time-distance

Energy – renewables, low carbon, security
Materials – efficiency, waste, recycling
SUMMARY

Better Measures of Prosperity

Failure & Valuation

Resource Productivity

South West Environment Driver
      - opportunity, options & Risk

South West England
The Place to do Environmental Business!

				
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posted:10/19/2011
language:English
pages:13