On the 17th of June the Swedish Sustainable Economy Foundation, a private initiative dedicated to providing alternatives to mainstream economic thinking, presented its solution to pricing pollution in their new updated and detailed white paper.
Says co-author Stephen Hinton “this is our most detailed step by step explanation to date of how a nation, state or country can put a price on pollution and plan a phase out that, rather than destroying the economy, actually builds it”.
Stephen continues: “many growing economies fear that they must push their resource use to the limit of what nature can bear in order to drive economic growth. This is far from necessary. In fact, retaining natural capital and focusing on green growth is a far better strategy for developing nations – it will allow them to leap-frog ahead of the industrialized world. Industrialized nations will find the innovations of the past, dependent on fossil fuel as they are, to be liabilities in the new economy.”
The mechanism, an adaptation of the engineering concept of fly-by-wire or control engineering, rests on the ability of authorities to raise fees on the introduction into the commercial system of material that carry the potential to pollute. By raising the introduction fee until pollution ceases, the market itself reveals the cost of pollution, by showing what it costs to not pollute.
Inventor of the mechanism, and control engineering expert Anders Höglund says, “ today the economy can be controlled by using feedback from the market and raising fees sufficiently often to make a difference. In the beginning the economic system took a long time to process information. Nowadays we have the capability to ensure it performs how we want it to”.
More information on the white paper is available on the Foundation’s home page as well a synopsis and free version. http://tssef.se/?p=605
The Swedish Sustainable Economy Foundation, established in 1995, develops and promotes systemic approaches and solutions to the challenge of developing society in a sustainable way mainly in the areas of ecology, economy and work. The Foundation takes a non-political, holistic approach to promoting these solutions through research and development, education, spread of information and various cooperation projects, including humanitarian initiatives.
Stiftelsen Hållbart Samhälle , grundades 1995 för att utveckla och främja systematiska metoder och lösningar för utmaningen att utveckla samhället på ett hållbart sätt. Uppdraget för stiftelsen är att främja utvecklingen av förutsättningar för hållbarhet – ren luft och vatten - genom tillämpning av finansiella instrument på nationell nivå och spridning av makroekonomiska systemlösningar.
Stiftelsen tar en icke-politisk, helhetssyn för att främja dessa lösningar genom forskning och utveckling, utbildning, spridning av information och olika samarbetsprojekt, bland annat humanitära insatser.