APPENDIX 7
Opportunities for Change
Consultation Paper on a Revised UK Strategy for Sustainable Development
RESPONSE FROM ECONOMIC AND SOCIAL RESEARCH
COUNCIL (ESRC) GLOBAL ENVIRONMENTAL CHANGE PROGRAMME
INTRODUCTION
1. The Economic and Social Research Council
(ESRC) established the Global Environmental Change Programme in
1991 to investigate: the social and economic drivers of environmental
change; the impacts of environmental change on society; and the
policies and measures that address environmental problems. The
concept of sustainable development has been at the heart of the
research effort. Projects have been concerned with actions which
work towards sustainable development at the local, national, regional
and global scales. The scope of the Programme's activities is
similar to that of the Opportunities for Change consultation
document.
2. The Programme has funded over 130 individual
projects. Empirical studies have assessed progress towards sustainability
in communities, in the business sector and through the development
of public policies and services. Interdisciplinary projects with
a natural science component have allowed a better understanding
of the links between environmental sustainability and social vulnerability
to emerge. Some work has sought a better understanding of how
social justice, environmental sustainability and economic development
underlie the concept of sustainable development.
3. The Programme's work falls under five
broad themes:
— attitudes and behaviour is
concerned with individual actions, participation and social vulnerability;
— business and the environment
is concerned with corporate behaviour and the contribution of
technology;
— environmental policy concerns
policy instruments and institutional aspects of policy-making;
— the international issues theme
is concerned with international co-operation and agreements and
with links between trade, globalisation and environmental policy;
and
— sustainability and resource management
is concerned with natural resource sectors (forests, agriculture,
water), sustainable cities and conceptual approaches to sustainable
development. Much of this work is interdisciplinary.
HOW THIS
RESPONSE WAS
DEVELOPED
4. This response synthesises the findings
from recent economic and social research. We have tried to avoid
"expert judgements". Value judgements made by experts
are no more or less valid than those of anyone else. We have attempted
to assemble evidence-based research findings which cast light
on: effective means of motivating action; what works and what
does not; good practice in business, communities and policymaking;
and links and tensions between the different aspects of sustainable
development.
5. The Programme runs networking and communication
activities which engage current researchers, those who have previously
conducted research within the Programme and non-academics who
are potential "users" of research findings. These activities
enable insights and conclusions to emerge atthe Programme level.
Through these activities, conclusions relevant to the questions
in the consultation document have already emerged.
6. In some areas, research is relevant to
the issues raised in the consultation document, but the specific
questions posed by the government have not been addressed. In
other areas, a consensus within the research community has not
been reached. In these cases, the Global Environmental Change
Programme convened meetings specifically to discuss the consultation
document and debate the degree to which research has provided
guidance on the issues raised.
7. The response first considers the framing
of sustainable development in the consultation document and the
approach to indicators and targets. It then takes each of the
five consultation themes in turn.
FRAMING SUSTAINABLE
DEVELOPMENT
8. The consultation document has admirably
cast the complex and multi-faceted concept of sustainable development
in terms of four basic objectives. Conceptual work on the underlying
principles of sustainable development (social justice, environmental
sustainability, economic progress) helps to amplify some aspects
of the Government's vision.
9. The novelty of the sustainable development
concept lies in the recognition that economic and social progress
depends on a sustained and sustainable natural environment. Protection
of the natural environment is therefore more than an option which
enhances quality of life as suggested in paragraph 7 of the consultation.
It is the prerequisite of sustained human development.
10. The emphasis on "higher living
standards" and "economic growth" over-emphasises
material consumption as an indicator of welfare and underplays
"quality of life" issues. For example, the quality and
nature of employment matters as well as economic activity as measured
by conventional indicators such as GDP.
11. The "prudent use of natural resources"
is an essential component of sustainable development. Several
specific principles underlie "prudent use": enuring
that renewable resources are in fact renewed; closing material
loops through recycling activity; and avoiding the loss of "irreplaceable"
environmental assets including particular species and unique habitats
and landscapes.
12. The idea of "environmental citizenship"
needs to be central to a sustainable development strategy. For
example, only environmentally-informed citizens will see the need
to avoid waste. In a broader sense, environmental issues are a
useful ground on which to develop the Government's theme of citizenship
in terms of rights and responsibilities.
13. The precautionary principle must underpin
any sustainable development strategy. Serious environmental problems
are often characterised by periods of latency, with effects becoming
evident only long after the original drivers have begun to operate.
Unintended consequences, uncertainties, and contradictions may
arise from the introduction of new technologies. Often the problem
runs deeper than simple uncertainty or risk. Some situations are
characterised by a state of "ignorance". Here, we do
not know the nature of the possible consequences quite apart from
the statistical probability of their outcome. One example relates
to the possibility of intellectual decline resulting from neurotoxins
or the dietary absence of vital micro-nutrients caused by human-caused
environmental change.
INDICATORS
AND TARGETS
14. The research conducted under the Global
Environmental Change Programme does not point towards any specific
key indicators of sustainable development. The Programme has worked
together with the charity Forum for the Future to develop criteria
for the inclusion of specific projects/initiatives in the Forum's
"best practice sustainability directory". Work conducted
on people's understanding and perceptions of environmental change
points strongly towards two general conclusions.
15. First, there is a need to construct
indicators which connect in a meaningful way with the quality
of people's lives as they themselves perceive them. People do
not respond well to findings or facts which are remote or abstract.
For example, quantitative measures of the concentrations of pollutants
in the atmosphere may not be meaningful to the lay person. Trends
in the number of GP consultations, or other health indicators,
related to air quality effects would be more meaningful.
16. Second, indicators (paragraph 16) and
targets (paragraph 15) ought to be closely related. Indicators
will be a more powerful communication tool if they are used to
measure progress towards targets. Research has shown that people
are more likely to take personal responsibility for their actions
if they have a high degree of trust in local and national government.
Linking key indicators and targets can be more than a good management
tool. It could lever up efforts across society by giving people
a sense that their own actions are part of a larger effort in
which government is playing its full part.
SUSTAINABLE GOODS
AND SERVICES
Sustainable Production
17. The Global Environmental Change Programme
has conducted a range of research concerning the interaction between
the business sector, Government and public agencies. The business
sector is far from homogeneous. The three main characteristics
which distinguish different segments of business are: (a) the
location along the supply chain; (b) the size, ownership and sophistication
of the firm; and (c) the production sector. Government-business
engagement is vital, but a range of approaches will be needed.
18. Much of business remains unfamiliar
with the concept of sustainable development. In some sectors,
such as water or forestry which are concerned with the management
of renewable natural resources, the concept of sustainability
is meaningful in a business sense. Some major companies have begun
to grapple with the difficult challenges which sustainable development
implies, taking increasing cognisance of the social dimensions.
But for many small and medium-sized enterprises (SMEs) concerned
with immediate survival, the concept is abstract and remote from
day-to-day experience. A broad-based set of activities designed
to raise awareness and understanding of sustainable development
is required. It is vital that sustainable development is characterised
in terms which are readily understood and which are meaningful
in relation to everyday activties. These messages could be targeted
at employees, who can help to effect change from within, as much
as at senior management.
19. For many companies, sustainable development
is synonymous with environmental protection which in turn is linked
to regulation, waste minimisation and eco-efficiency. Awareness
activities should stress that there is more to sustainable development
than eco-efficiency measures, although these have a vital role
to play. Moving towards sustainable development will imply significant
market changes. Companies need to consider how these will change
the very nature of their businesses, creating opportunities as
well as threats.
20. Setting long-term targets (20-30 years)
in partnership with business would be helpful in establishing
a more certain environment in which business can invest. These
horizons will be particularly helpful for larger companies which
operate with long investment cycles and have the capacity to formulate
longer-term plans. Targets will give the necessary confidence
that investments in more sustainable technologies and processes
will be rewarded in the marketplace.
21. However, 20-30 year horizons are unimaginably
long for many smaller companies. Here, different approaches will
be needed. Shorter-term interim targets, with say a five-year
horizon, can be set in association with longer-term targets. These
could engage a wider range of companies as well as helping to
monitor progress towards longer-term goals. In general, SMEs will
need support in terms of information, technical assistance and
perhaps financial support (see "sending the right signals"
below).
22. One way of engaging SMEs in sustainable
development is through the supply chain. Work conducted under
the Global Environmental Programme has documented progress in
this direction and has helped to promote best practice through
UMIST's Environmental Supply Forum. Government has a role to play
by: (a) incorporating sustainable development criteria into its
own purchasing arrangements; (b) promoting voluntary, information
based instruments such as BS7750, EMAS or the ISO 14000 series
of standards; and (c) promoting environmental purchasing as part
of its sustainable development strategy.
23. Another way of encouraging SMEs is by
spreading best practice through regional networks. These will
probably need to be initiated or facilitated by public authorities
and there may well be a case for financial support from the public
sector. Best practice information is likely to spread most effectively
if transmitted through peer groups. Small firms operating in the
same region often share major customer firms. Regional networks
could help to reinforce environmental purchasing.
24. Partnership is only one possible form
of engagement between government and business. It may be desirable,
but it will not always be appropriate or feasible. In some cases,
poor environmental performance, sometimes wilfully so, on the
part of companies will require environmental agencies to adopt
a formal regulatory stance. It will occasionally be necessary
to resort to prosecution. In other cases, government has a role
to play in facilitating actions by business—for example,
by providing information or financial assistance through tax allowances.
Sustainable Consumption
25. There has been less research which has
addressed the promotion of sustainable patterns of consumption.
However, the Programme, together with the OECD Environment Directorate,
ran a workshop in 1996 on individual travel choice which addressed
many relevant issues. The following paragraphs draw on that workshop
and other relevant Programme work.
26. Patterns of consumption are more than
the aggregation of individual choices. Individual choices are
framed by social, economic, cultural and geographical factors.
Wider networks and infrastructures define the range of possibilities
within which individual choice can be exercised. Sometimes these
wider factors are sufficiently constraining that the reality at
the individual level is one of "no choice". For example,
a parent with young children and no local shop is unlikely to
see any alternative to car use. There is a double challenge in
promoting sustainable consumption. First, individuals must be
motivated to exercise choice in more sustainable ways. Second,
the wider conditions which frame individual choices must be addressed.
The latter challenge will engage policymakers, planners and producers
as well as organisations representing consumers.
27. At the individual level, information
has an important role to play in influencing choice. The key questions
are: what information is needed; how should it be presented; and
when should it be provided. Information should be targeted, relevant
and effective. It should enable individuals to understand the
consequences of their choices in terms of impacts on quality of
life for themselves, their family and the larger community. Information
must also be available about alternative goods or services which
will allow people to meet similar aspirations.
28. Information will be more effective if
it is used to guide "non-habitual" consumption decisions.
In taking major purchase decisions about homes, cars and appliances,
people exercise more thought and can take account of a wider range
of factors. Information could come through environmental audits
conducted by home lenders, vehicle advertising and appliance labelling.
Influencing these key "non-habitual" consumption decisions
can have positive impacts over a period of years.
29. Changing "habitual" patterns
of consumption which are closely tied to lifestyle is an even
bigger challenge. It is important to demonstrate the feasibility
of alternative patterns of behaviour, for example in relation
to transport and mobility. Showing that walking, cycling and the
use of public transport are feasible could help some segments
of the population to shift towards a more sustainable pattern
of mobility. People become locked in to unsustainable patterns
of behaviour. Effective information provision for children and
young adults who have yet to establish fixed patterns of behaviour
is a priority which could yield longer-term benefits.
30. Consumers have a limited capacity to
absorb detailed environmental information about goods at the point
of sale. Manufacturers have long recognised the strength of "brand
values" and the importance of building trust between consumers
and producers in influencing consumption behaviour. This approach
could be built upon, perhaps by encouraging manufacturers to bring
sustainability into brand image, providing clearer guidelines
on sustainability criteria or by continuing to promote credible
eco-labelling approaches.
31. Information, however well targeted,
is not sufficient by itself to change consumption patterns. Before
they act on information, people need to feel that they are making
a difference. The propensity of individuals to change their consumption
patterns will be greatly enhanced if they believe that they are
part of a larger societal effort involving government, regulators,
planners and companies. These groups help to define the context
within which individual choices are exercised.
32. Public and private bodies can influence
consumer choice in a variety of ways: incorporating sustainability
into brand values; taking planning decisions which do not lock
people into unnecessary car journeys; and promoting products with
smaller ecological footprints. The market transformation approach
outlined in the consultation document is very promising and would
be supported by insights of social science research. It represents
an "integrated" approach which takes account of the
need to influence individual choice while changing the wider context.
It could work well for "non-habitual" consumption decisions
relating to homes, cars and appliances. It would be vital to bring
consumer groups into such exercises and to ensure that individual
initiatives address well-defined product markets. In that sense,
a business sector approach would be most appropriate.
33. Finally, there is continuing need to
integrate sustainability concerns into all policy areas. Too often,
policies put in place for good reasons of their own have unanticipated,
negative environmental consequences. If sustainability concerns
are addressed from the the start, it may be possible to mitigate
negative impacts. For example, decisions relating to educational
choice, in the UK and elsewhere, have resulted in childdren travelling
farther to school with a consequent increase in car use. Not only
does this have negative environmental consequences in the short-term,
it is building up car dependency in a new generation. If sustainability
concerns had been addressed from the start, increased choice could
have been linked to the provision of more sustainable transport
alternatives.
BUILDING SUSTAINABLE
COMMUNITIES
Where we live and work
34. Land use planning is an important testing
ground for sustainable development because it demands the translation
of abstract principles into operational policies and decisions
in a visible political forum. Sustainable development can be seen
as a means of integrating economic and environmental initiatives
at the local authority level. However, the reality is that there
are very different interpretations of what constitutes "the
environment" among practitioners in economic development
and environmental departments. In economic development, it is
understood in terms of two main issues: physical improvements
to the local environment that bolster traditional approaches to
economic development; and as a necessary part of complying with
European Union funding requirements.
35. The planning system has an extraordinary
potential to shape our lives and make them more sustainable. However,
planning changes need to be part of a comprehensive policy package
in combination with regulation, fiscal instruments and information/dissemination.
The effectiveness of the whole is likely to be greater than the
sum of the parts.
36. Local authorities need a clearer vision
of what is meant by sustainable local economy and how it might
be achieved. Integrated economic and environmental methodologies
are needed for appraising plans and setting priorities. As the
consultation document suggests, guidance needs to be better linked
to examples of practical application. This would help to overcome
the current situation where initiatives are piecemeal rather than
part of an authority-wide response. The Global Environmental Change
Programme has collaborated with the charity Forum for the Future
to develop criteria for the inclusion of specific projects/activities
in the Forum's "best practice sustainability directory".
Predict and Provide
37. There is a need to take greater account
of demand-side considerations ("demand side management")
in generating environmentally benign solutions to urban infrastructure
provision. In the past, new urban infrastructure has been built
within a "predict and provide" framework, generally
without any explicit consideration of environmental effects. Demand
side management approaches attempt to avoid environmentally and
economically expensive infrastructure investments by managing
the demand placed on urban networks. The "predict and provide"
approach is now giving way to a demand-side approach in the provision
of utility services such as gas, electricity and water. The "predict
and provide" approach is also in retreat in terms of transport
provision. However, "predict and provide" thinking persists
in relation to new housing.
38. Greater attention to the economic costs
of network expansion can lead to more flexible styles of infrastructure
management. However, any environmental gains need to be balanced
with awareness of the potential social costs. The shift from traditional
to flexible patterns of infrastructure provision may increase
social exclusion, with selective provision resulting in vulnerable
communities being bypassed.
39. The office property business provides
a good example of how supply-oriented development strategies can
conflict with environmental sustainability. Property agents influence
the level of specification to which commercial premises are built.
Features such as air conditioning are routinely included where
good design could achieve the same ends. Supply-orientation has
driven specifications higher. Negotiations over office space become
locked into a circular process whereby received wisdom about economics
and markets drives design values. The application of conventional
risk assessment techniques often curbs environmental innovation,
generating controversies over the value of features such as energy
efficiency. Environmental trade-offs are seldom addressed directly.
For example, the desire of planners and the occupier to protect
the facade of buildings undergoing re-development has diminished
developer's ability to innovate in heating, ventilating and insulation.
40. In commercial building refurbishment
and design, guidelines are needed which will mesh the desires
and objectives of occupiers, developers and investors. Good practice
in sustainable development needs to become part of professional
training.
41. In developing plans for new housing,
sustainable development considerations need to be placed firmly
in their specific local context. For example, there can be no
automatic presumption that new housing on brownfield sites is
automatically preferable to new build in rural areas—or
vice versa. Building in rural areas has implications for landscape,
water resources and social character. On the other hand, brownfield
sites can be extraordinarily rich in wildlife. As well as enhancing
urban biodiversity, such sites can be a vital resource for urban
recreation and environmental education, particularly when local
people are involved in the management of the site.
Participation and decision making
42. Considerable efforts are being invested
in Local Agenda 21 initiatives that produce relevant information
for local communities and encourage participation in policy and
practical action. Local Agenda 21 is providing a focus for the
work of previously isolated local groups although the level of
genuinely active local environmental citizenship is still modest.
43. Processes around Agenda 21 are important,
but matching new policies are also needed. The role of local government
is vital in this respect: the process cannot all be "bottom-up".
Local leadership and a high political profile for local sustainable
development initiatives are needed to encourage participation.
A local authority's influence and expertise in Agenda 21 initiatives
are valued by residents. While challenging, Local Agenda 21 can
be a useful way of raising people's awareness of global sustainable
development through local issues. Local Agenda 21 can also provide
a new way for local government to connect with people as part
of the renewal of local democracy.
44. The National Forest is a good example
of a rural project that seeks to incorporate the principles of
sustainable development, providing a focus for Local Agenda 21
activities. While there has been an understandable emphasis on
tree planting in the early stages, the project's potential contribution
to the economic and environmental rehabilitation of the local
area has generated wider support. However, extra burdens have
fallen on particular departments of local authorities and partnerships
have been slow to develop with the private and voluntary sectors.
Both the positive and negative lessons from such initiatives need
to be disseminated.
45. There is a need to cast the language
of Local Agenda 21 in terms that everyone can understand. Not
everyone is yet familiar with the concept of "sustainable
development". There is also a need to extend participation
beyond selected "insider" groups and link Local Agenda
21 better to economic planning and development. It would be helpful
to "benchmark" successful activities in different local
areas.
MANAGING THE
ENVIRONMENT AND
RESOURCES
Energy and Climate Change
46. Dealing with energy and climate change
is a wide-ranging policy challenge cutting across all sections
of society. Specific policy instruments and approaches are addressed
in other parts of this response including those on sustainable
goods and services, building sustainable communities and sending
the right signals.
47. Generic conclusions deriving from research
include: the importance of target-setting (including interim targets);
the need for clear policy goals to focus and co-ordinate the activities
of a diverse range of groups; the role of technological innovation
in enhancing renewable energy use and energy efficiency over the
long-term; and the benefits of reflecting the external costs of
energy use through price signals. work within the Programme has
assessed the distributional implications of raising the price
of energy to householders. This has concluded that poorer households
would be affected relatively more than higher income households.
However, many of the negative impacts could be mitigated by recycling
revenue and targeting energy efficiency expenditure on vulnerable
groups.
Countryside, land and wildlife
48. The Common Agricultural Policy (CAP)
is probably the most significant influence on farming and, consequently,
its impacts on habitats and wildlife. Current policies inflate
land prices, drive the process of farm intensification and reduce
rural employment. The CAP encourages farmers to use their land
in such a way as to reduce or completely exclude habitats for
wildlife. However, experience with the introduction of sustainable
agricultural techniques indicates that policy changes could improve
both farm incomes and wildlife conservation.
49. The Programme has conducted research
on farms that have converted to organic farming. This research
has shown that, once the conversion process is over, profit and
employment levels can increase dramatically. Organic farms can
be 15 per cent more profitable than a comparative conventional
farm, and would be around 30 per cent more profitable if all current
subsidies were removed. Organic farms also support more wildlife
species, enhance soil fertility, maximise the recycling of nutrients
and produce less water and air pollution. However, the process
of conversion to organic remains financially difficult, largely
due to the capital requirements associated with the use of different
cultivation techniques. There is therefore a case for a support
scheme for sustainable agriculture techniques to reflect social
and environmental benefits as well as further support for conversion
to organic farming.
SENDING THE
RIGHT SIGNALS
Economic Instruments
50. The Programme's business researchers
and economic modellers met specifically to address the issue of
economic instruments and sustainable development. Both groups
saw economic instruments in general, and environmental taxes in
particular, as having a key role to play. The Programme will respond
in more detail to the consultation by the Marshall task force
on industrial energey use. However, tax measures need to be introduced
not on their own but alongside other supporting instruments. The
precise construction of appropriate packages of measure will depend
on which industries or groups of consumers are being targeted.
51. Changing the price of goods and services,
so as to reflect their environmental impacts better, is an essential
component of a sustainable development strategy. Environmental
taxes sent messages which permeate throughout the economy, encouraging
a wide range of appropriate responses: changing production methods;
switching to less polluting inputs; and reducing demand for goods
which have significant negative impacts throughout all stages
of production. Taxes also ensure that different people are exposed
to the same price signal, leading to more cost-effective ways
of achieving a given environmental goal.
52. Although environmental taxes have been
adopted in a number of European countries, few have been set at
a level intended to reflect the cost of environmental damage.
A possible exception is the UK's landfill tax. It is worthwhile
striving to make environmental taxes reflect estimates of environmental
damage ("externalities"), but this may not always be
possible or appropriate when parallel policy instruments are in
play.
53. A more ambitious move towards environmental
taxation raises questions about offsetting tax measures and macro-economic
consequences. Much of the economic modelling carried out within
the Programme has rested on the assumption that the introduction
of environment taxes would be revenue neutral, as was the case
with the landfill tax. On this assumption, the economic models
suggest that the impact of environment taxes on overall GDP would
be very small. However, if the cost of labour were to be reduced,
for example by reducing employers' national insurance contributions,
a shift towards environmental taxation would be associated with
a substantial increase in overall employment.
54. Unlike regulation, environmental taxes
create incentives for continous improvement in environmental performance,
stimulating technological innovation. Innovation incentives would
be enhanced if some revenue from environmental taxes were recycled
to support innovative activity, through tax incentives for research
and development, support for demonstration activities and information
dissemination. The benefits of innovation will accumulate over
the long-term as new processes, goods and services are developed.
55. Innovation can be promoted even if environmental
taxes are initially quite low, as long as revenues are recyled
to provide positive incentives and tax levels are adjusted dynamically
to reflect learning experience. A "carbon" tax of as
little as £1/tonne—approximately equivalent to 0.1
pence per litre of oil—would raise £150m per year,
sufficient to fund an ambitious programme of research, development
and demonstration for renewable technologies. Modest tax measures,
introduced at an early stage, may avoid the need for more stringent
measures in the longer term if the development of innovative new
technologies is induced.
56. Most small and medium-sized businesses
in the industrial and service sectors have little incentive to
seek out measures which will reduce energy use and hence lead
to lower greenhouse gas emissions. Energy forms a low proportion
of their overall costs. Environmental taxes levvied on energy
use, preferably modulated according to the polluting characteristics
of the fuels concerned, would send a signal about the priority
attached to energy saving and create incentives to seek out cost-effective
efficiency measures. At the same time, many such companies lack
the technical capacity to reduce energy use. Broad-based tax measures
need to be enhanced by more targeted supportive measures, including
network-building among energy/environment managers, supply of
information, technical assistance and tax allowances for qualifying
investments. Many smaller firms could experience net gains from
a tax package which reduced labour costs and supported energy
saving activity.
57. Introducing environmental taxes raises
concerns about the international competitiveness of industries
with greater environmental impacts vis-a"-vis industries
in countries which do not take comparable measures. The evidence
from economic modelling is that the UK economy as a whole would
not be disadvantaged by a shift to environmental taxes. However,
some basic industries—for example metals or chemicals—could
be disadvantaged at the sectoral level. Again, the evidence from
economic analysis is that, even in these sectors, factors such
as exchange rates and labour costs are more important determinants
of competitiveness. The range of activities significantly exposed
to international competition is considerably less than those covered
by Integrated Pollution Prevention and Control for example. If
energy taxes were to start at a low level, there might be no need
to exempt energy intensive companies. If exemptions are deemed
necessary, they need not extend beyond a relatively small number
of activities in basic industries.
58. Price signals, alongside other measures,
could play a role in stimulating greater energy efficiency in
the household sector. As with small businesses, the capacity and
motivation to exploit cost-effective energy saving opportunities
is often lacking. Price signals can help to bring these opportunities
to people's attention, while parallel measures would be required
to support individual actions. Given current patterns of expenditure
on energy and other goods, higher energy prices by themselves
will stretch income inequalities in the UK. However, measures
to mitigate these effects are available. These include payments
made directly to vulnerable groups (cold weather payments) and
recycling revenue in the form of support for energy efficiency
measures targeted at lower income households. Energy taxes or
other price-related measures could provide the funds to enable
an expansion of such activity.
59. Taxing domestic energy use would be
one way of sending a price signal. Another is through levies on
gas and electricity via utility regulation. With extended energy
efficiency standards of performance (SoP) such as those operated
by OFFER, more funds could be created for energy efficiency support.
Such an arrangement provides assurance that revenues are recycled
to support energy efficiency and may therefore command wider support.
60. The research community has so far paid
relatively little attention to other market instruments such as
emissions trading. In general, economic modellers have judged
that fiscal measures would provide a more consistent long-term
signal concerning environmental externalities and would be more
effective in stimulating innovation. On the other hand, emissions
trading could offer more assurance about the achievement of medium-term
commitments, such as those established under the Kyoto protocol.
More research is needed to understand better the economic and
institutional aspects of emission trading at the national and
international levels.
Regulation
61. Regulation must undoubtedly play a significant
part in the future sustainable development strategy. Most companies
still cite regulation as being a main driver for improved environmental
performance. But there are ways of making the many forms of regulation
in place more effective and reducing the tendency for over-prescriptive
regulation to induce people and companies to take insufficient
responsibility for their own actions.
62. More work could be carried out to create
better links between regulatory approaches such as IPPC and "voluntary"
environmental standards such as EMAS and the ISO 14000 series.
There is a great deal of synergy between public regulation and
private initiatives which could work to the benefit of both.
63. The economic regulation of utilities
could be used to generate "ear-marked" revenues to promote
sustainable development projects and activities. "Standards-based"
regulation can be used to exclude the most poorly performing products
from a market. The market transformation approach discussed above
provides an institutional framework for integrating standards-based
and other approaches.
64. The Building Regulations provide another
opportunity to promote sustainable development objectives. The
recent move from prescriptive to performance-based modes of regulation
has involved more organisations and offers greater flexibility
in compliance. This also provides new possibilities for government
to engage with industry in broad-ranging debates about future
targets. Currently, the Building Regulations cover only new build.
Extending them to cover existing buildings would bring them to
bear, for the first time, on the bulk of energy consumption in
the sector. This would provide significant and additional opportunities
to build sustainability considerations into the housing sector.
65. Programme research has cast doubt on
the efficacy of regulatory approaches in some areas. Integrated
Pollution Prevention and Control (IPPC) may become an effective
mechanism for balancing different local environmental concerns.
However, it may not be best for dealing with regional and global
problems such as acid rain or climate change. Securing cost effective
abatement of greenhouse gas emissions across the UK as a whole
would probably be best promoted through market-based mechanisms
(taxes or emission trading) which would allow cost-effective approaches
to emerge at the national level. The IPPC regime could perhaps
be used to define the baseline allocation of emission quotas from
which a trading regime could operate. The conclusion of Programme
researchers who have "shadowed" Environment Agency inspectors
is that the Agency may have neither the resources nor the detailed
technical knowledge to set requirements for energy efficiency
or greenhouse gas emissions for specific plants. At a broader
level, there are fundamental challenges involved in reconciling
an "integrated", locally oriented control regime such
as IPPC with "single issue" national/global commitments
such as those relating to climate. More research is required in
this area.
Regulation
61. Regulation must undoubtedly play a significant
part in the future sustainable development strategy. Most companies
still cite regulation as being a main driver for improved environmental
performance. But there are ways of making the many forms of regulation
in place more effective and reducing the tendency for over-prescriptive
regulation to induce people and companies to take insufficient
responsibility for their own actions.
62. More work could be carried out to create
better links between regulatory approaches such as IPPC and "voluntary"
environmental standards such as EMAS and the ISO 14000 series.
There is a great deal of synergy between public regulation and
private initiatives which could work to the benefit of both.
63. The economic regulation of utilities
could be used to generate "ear-marked" revenues to promote
sustainable development projects and activities. "Standards-based"
regulation can be used to exclude the most poorly performing products
from a market. The market transformation approach discussed above
provides an institutional framework for integrating standards-based
and other approaches.
64. The Building Regulations provide another
opportunity to promote sustainable development objectives. The
recent move from prescriptive to performance-based modes of regulation
has involved more organisations and offers greater flexibility
in compliance. This also provides new possibilities for government
to engage with industry in broad-ranging debates about future
targets. Currently, the Building Regulations cover only new build.
Extending them to cover existing buildings would bring them to
bear, for the first time, on the bulk of energy consumption in
the sector. This would provide significant and additional opportunities
to build sustainability considerations into the housing sector.
65. Programme research has cast doubt on
the efficacy of regulatory approaches in some areas. Integrated
Pollution Prevention and Control (IPPC) may become an effective
mechanism for balancing different local environmental concerns.
However, it may not be best for dealing with regional and global
problems such as acid rain or climate change. Securing cost effective
abatement of greenhouse gas emissions across the UK as a whole
would probably be best promoted through market-based mechanisms
(taxes or emission trading) which would allow cost-effective approaches
to emerge at the national level. The IPPC regime could perhaps
be used to define the baseline allocation of emission quotas from
which a trading regime could operate. The conclusion of programme
researchers who have "shadowed" Environment Agency inspectors
is that the Agency may have neither the resources nor the detailed
technical knowledge to set requirements for energy efficiency
or greenhouse gas emissions for specific plants. At a broader
level, there are fundamental challenges involved in reconciling
an "integrated", locally oriented control regime such
as IPPC with "single issue" national/global commitments
such as those relating to climate. More research is required in
this area.
Environmental Education
66. Public willingness to accept more responsibility
for changing to environmentally sustainable practices has been
shown to depend on four factors: belief in a moral duty of care;
ability to exercise choice over the expenditure of time and money;
confidence that the actions undertaken will be effective; and
conviction that environmental responsibilities are being assumed
equally across all sectors of society. Where people have a strong
sense of trust in government and institutions they are likely
to be more willing to embrace change.
67. Effective education and communication
is at the heart of all three approaches which can be adopted to
achieve new sustainable futures: reliance on individual self-motivation;
directed policies and; cross-sectoral partnerships. Future communication
strategies are likely to be effective only if they involve doing
as well as saying.
68. Research conducted within the Programme
has shown that environmental education can help to build a more
sustainable future while introducing young people to wider concepts
of citizenship. However, it would be wrong to see environmental
education as a solution in itself. Over-emphasising education
for the young can draw attention away from the on-going responsibilities
of adults.
69. Children are very concerned about the
natural environment. However, wider influences, including the
media, can induce a sense of helplessness about the actions which
they can take. The media tends to focus on high-profile problems,
such as deforestation, for which children can blame other groups.
Environmental education through schools can help to establish
links between children's own actions and wider environmental consequences,
engendering a greater sense of personal responsibility. Such education
needs to give young people the tools and self-confidence to think
about solutions rather than simply handing out prescriptions.
70. Environmental education can be greatly
enhanced by hands-on experience, for example through the use of
urban wildlife sites as an educational tool. Environmental education
will also be more effective if it is firmly located in the wider
community with participation from families and voluntary groups.
71 The Global Environmental Change Programme's
more detailed findings on environmental education are being fed
in to the Holland Panel on Education for Sustainable Development.
72. The incorporation of sustainable development
considerations into professional training and education, for architects
and engineers for example, would also enhance longer term progress.
Access to Environmental Information
73. Access to environmental information
is a key way of involving and informing people. Research has confirmed
the important role played by NGOs as bridges between citizens
and the state in this respect. Nevertheless, officials within
public bodies are not as aware of legislation on access to information
as they might be. Attention needs to be paid to the collection,
organisation and holding of information. Assistance in obtaining
information is needed, either through designated information officials
or through specialised centres. This would enhance people's trust
in public bodies.
INTERNATIONAL CO-OPERATION
AND DEVELOPMENT
74. A significant proportion of the Programme's
activities has addressed the question of sustainable livelihoods
in developing countries and how these concerns can best be addressed
in aid and investment activities. Work has addressed technology
transfer through multinational companies as well as through bilateral
and multilateral aid. Several Programme research teams have individual
links to the Department for International Development in relation
to issues addressed in the International Development White Paper.
75. The Kyoto Protocol to the Framework
Convention on Climate Change sets a number of challenges in relation
to international co-operation and development. The Clean Development
Mechanism provides a route through which additional funding might
be channelled to projects promoting sustainable development overseas.
The Government should ensure that domestic policies for meeting
Kyoto commitments provide incentives for companies to make appropriate
investments overseas while gaining credit at home. The Government
should also work to ensure that the rules governing the Clean
Development Mechanism allow only projects which contribute to
sustainable development in the broadest sense. this would reflect
the ultimate goals expressed in Article 2 of the Framework Convention.
Projects should not only be cost-effective in reducing greenhouse
gas emissions or enhancing sinks. They should take account of
social and environmental consequences in the localities in which
investment takes place.
76. The Programme's work has documented
the social and environmental impacts of the overseas activities
of multinational companies. This would support the contribution
which schemes such as the Ethical Trading Initiative might make.
The continuing lack of public trust in many large companies suggests
that the involvement of NGOs will be vital in lending credibility
to such schemes and ensuring that they can influence the purchasing
decisions of consumers.
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