sustainable economics for sustainable communities – from the macro to the micro
DESCRIPTION
Simon O’Connor, Economic Adviser with the Australian Conservation Foundation (ACF) was the speaker at a public meeting presented by Sustainable Communities on at 8pm on Thursday 27 May 2010 at Payneham Community Centre, Payneham Road, Payneham. The topic Sustainable Economics for Sustainable Communities – from the macro to the micro reflects the work he has been doing for an economic policy to be published by the ACF titled Better than Growth.TRANSCRIPT
Sustainable Economics for Sustainable Communities:from the micro to the macro
Sustainable Communities NCSP Inc. Public Meeting
ANZ Economist Saul Eslake said the destruction of homes did not count as an
economic negative.Building new infrastructure, private and public, was
new economic activity.He calculated that it could add between
$1 billion and $2 billion to GDP, or up to 0.7% of the state’s economy
Interpretation of economic tools:
Source: as quoted in The Age, Rebuilding will hand state $2 billion, March 1 2009
23,000 fewer people will be employed in the mining sector
under the proposed ETS – a fall of 11%
“ETS to Shrink Regional Growth” – regional economies will shrink by 20% over the next 40 years under the Rudd government’s ETS
Source: The Australian, ETS to Shrink Regional Growth, 26 March 2009Concept Economics, The employment effects in the Australian minerals
industry from the proposed Carbon Pollution Reduction Scheme, a report for the Minerals Council of Australia 21 May 2009
When external costs are added to electricity generation costs, renewable energy is cost competitive:
Brown coal – total cost (externality incl.) ~$90/MWh Wind – total cost (externality incl.) ~ $77/MWh
Australian Academy of Technological Sciences and Engineering
Source: Australian Academy of Technological Sciences and Engineering (ATSE) (2009) The hidden costs of electricity: externalities of power generation in Australia page iii
Better Valuation
Who’s in charge: economics or society?
“…the gross national product does not allow for
the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile.…”-- Robert Kennedy, 18 March 1968
The main culprit - GDP
GDP but without Genuine Progress
0
100
200
300
400
1951 1961 1971 1981 1991 2001
CO2 emssionsMaterial flows, totalMaterial flows, renewableLand degradationIntensive land useWater use
%
CO2 emissions
Material flows, total
Material flows, renewable
Land degradation
Intensive land use
Water use
Economic growth at what cost?
Source: Indicators of Australian Environmental Pressure 1951 – 2001 – from Hatfield-Dodds, S.(2008) ‘Economic Growth, Employment and
Environmetnal Pressure: Insights from Australian Experience 1951-2001’, Working Paper, ANU Environmental Economics Network, 18 November 2004, calculated from ASFF data CSIRO.
“Our Government has a new vision for the nation’s economic future.
…Boosting Australia’s global economic competitiveness is the touchstone of that vision.
And to boost our global economic competitiveness we must boost productivity growth.
That is the Australian Government’s central narrative on the economy.”
“The immediate and overriding priority for fiscal policy must be to support growth and jobs.”
Kevin Rudd
2008
Source: Treasury (2008) Australia’s Low Pollution Future: The economics of climate change mitigation: Summary Report page viii
0.1% GNP premium per year for a safe climate
Australian’s will have to wait an extra 6 months to be twice as rich as we are today
Australia’s “key national indicators”
• National accounts• International accounts • Consumption and investment• Production• Prices• Labour force and demography• Incomes• Housing and finance
- australian bureau of statistics
GDP – what’s the answer?
“Beyond a certain point […] ever increasing material gain can become not a gift but a burden. As people, it
makes us less happy, and the environment upon which all of us, and our economy, depend, is increasingly
degraded by it”
Source: GlobeScan Incorporated, ‘Worldwide Measures: Three Quarters Say Governments Should Look Beyond Economics and Measure Social and Environmental Progress’ (12 November 2007).
Wellbeing tools
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xxxx
From the macro, to the micro
Source: New Economics Foundation, Plugging the Leaks, accessed at www.pluggingtheleaks.org .
Sustainable local economic development?
• Diverse range of businesses.
• Positive local money and resource flows (a high local multiplier and local re-use of waste).
• Strong local asset base incl. local people's attitudes, skills and knowledge; physical, financial and natural resources.
• Responsive public and business sector working to strengthen and invest in the local economy.
• Strong community incl. local activism, leadership, volunteering, and engagement in debate.
• Sustainability and a reduced environmental footprint.
• Increased understanding of economic, cultural and ecological inter-connections that link communities, span the globe and impact on the future.
Source: New Economics Foundation, Plugging the Leaks, accessed at www.pluggingtheleaks.org .
Accessed at http://www.sclc.com.au/pdf/Green%20Jobs%20Illawarra%20Action%20Plan.pdf
