University of Macedonia Eftichios Sartzetakis The Economic Dimension

University of Macedonia Eftichios Sartzetakis The Economic Dimension of Sustainable Lifestyles Presented at the conference The Dimensions of Sustainable Lifestyles The Economic Dimension of Οκτώβ ριος 2004 Sustainable Lifestyles

Sustainable Development n “Sustainability requires alleviation of poverty, a decline in fertility, the substitution of human capital for natural resources, effective demand for environmental quality and a responsive supply. ” n n T. Panayotou, Green Markets: The economics of Sustainable Development, Institute for Contemporary Studies, 1993 “The range of products and processes that now exist –and the environmentally unfriendly approaches to production and consumption that underpin them- are the result of companies’ choices over product and process innovations made during the past 20, 50 and in some cases 100 years. ” n Ε. Sartzetakis K. Green, A. Mc. Keekin and A. Irwin, “Technological Trajectories and R&D for Environmental Innovations. ”, Futures, Vol 26: 1036 -52. The Economic Dimension of Sustainable Lifestyles 2

Sustainable Lifestyles n Agenda 21, 1992 “The major cause of the continued deterioration of the global environment is the unsustainable pattern of consumption and production, particularly in industrialised countries, aggravating poverty and imbalances” n Our Common Future, 1987 "Sustainable development requires the promotion of values that encourages consumption within the bounds of the ecologically possible and to which all could reasonably aspire“ n Only One Earth, 1972 "But suppose 7 billion try to live like Europeans or Japanese. There is no way such equations can be worked out. But what 'gives' on the collision course ? Numbers? Yes - but whose ? Consumption - Yes ? but where ? Or does the planet itself come under an increasing and irreversible pressure ? " Ε. Sartzetakis The Economic Dimension of Sustainable Lifestyles 3

The issues in developing countries n The case of a cotton farmer in Africa n He is competing with 250, 000 farmers in the US that receive more than $4 billions in subsidies, a sum greater than the value of their production. n Given the subsidies both in Europe and the USA, the world cotton price does not cover the cost of production even in Africa…. Our farmer has to relocate to find a job. Ε. Sartzetakis The Economic Dimension of Sustainable Lifestyles 4

The issues in developing countries n Let assume that he turns to milk production n In this market he competes with the European producers that receive an enormous amount of subsidies, which –as in the previous case– are allowed under the existing GATT agreements n Euro-cow € 2 / day Ε. Sartzetakis As a result, most of the developing countries consume milk powder imported from Europe, and they do not produce any fresh milk The Economic Dimension of Sustainable Lifestyles 5

Lifestyles in developed countries n n n Overconsumption of energy: In an urban environment, 82 out of a hundred journeys are by car, 12 by public transport, 6 by bicycle. Overconsumption of food Expenditure on basic health nutrition in developing countries was $13 billion, while the expenditure on pet food in Europe and USA $17 billion (According to the Human Development Report 1998, UNDP) Ε. Sartzetakis The Economic Dimension of Sustainable Lifestyles 6

Creating Sustainable Lifestyles n n n n The root cause of all our environmental problems (and probably many of our social problems too) is overconsumption and population increase Adopt children Carpool with family, neighbors and friends Cut down on meat as a protein source. Don't use antibiotics unless you absolutely must. Limit the amount of goods you buy. Do you really need twelve sweaters, twenty-three dresses, nine pairs of jeans and six pairs of boots? Educate your friends and family without pointing fingers or being obnoxious or judgmental. Ε. Sartzetakis The Economic Dimension of Sustainable Lifestyles 7

Creating Sustainable Lifestyles n n n n Don't let your car leak oil on the street or driveway. The oil washes into the oceans and rivers when it rains and harms aquatic life. Reduce fast food intake. The meat is contaminated with hormones, antibiotics and agony. Eat cage-free eggs. No animal should live like a machine to make your omelette. Buy meat that was raised on a free range and without antibiotics or hormones. The average person uses about 300 pounds of paper year which corresponds to five trees! Many people use more. To balance your industrial responsibility for CO 2 output, you need to plant forty-five trees over your lifetime. Try to choose foods that are seasonal to your area rather than imported long distances. Ε. Sartzetakis The Economic Dimension of Sustainable Lifestyles 8

Creating Sustainable Lifestyles n n n n n Use cloth napkins instead of paper ones. Use rags instead of paper towels. Bring your own bags with you to the stores. Just say No! to that extra bag. Recycle paper, glass, plastic, single-use batteries… Start a compost pile with your kitchen scraps in your yard or garden instead of landfilling. Use natural composts and fertilizers instead of commercial chemicals to nurture your garden. Carry your own mug instead of using Styrofoam. Don't water plants during the day because water evaporates more then. Replace toxic cleaning chemicals with baking soda and vinegar Ε. Sartzetakis The Economic Dimension of Sustainable Lifestyles 9

Creating Sustainable Lifestyles n Finally, Don't give up. Every little bit counts. Never feel as though you don't count. You do! Ε. Sartzetakis The Economic Dimension of Sustainable Lifestyles 10

How to achieve these goals n Cooperation between all players Ε. Sartzetakis The Economic Dimension of Sustainable Lifestyles 11

Government intervention n Polluter pay principle Government intervention n Liability rules n Taxes, tradable permits, direct intervention n Corporate responsibility n n n Voluntary agreements Ecolabelling Subsidization of “green” technologies Ε. Sartzetakis The Economic Dimension of Sustainable Lifestyles 12

Restructuring of the tax system Government Revenues Direct taxation (distortionary) Ε. Sartzetakis Indirect taxes (distortionary and Corrective) The Economic Dimension of Sustainable Lifestyles 13

Restructuring of the tax system Government Revenues Direct taxation (distortionary) Ε. Sartzetakis Indirect taxes (distortionary and Green taxes Corrective) (corrective) The Economic Dimension of Sustainable Lifestyles 14

Restructuring of the tax system Government Revenues Direct taxation (distortionary) Ε. Sartzetakis Indirect taxes (distortionary and Green taxes (corrective) Corrective) The Economic Dimension of Sustainable Lifestyles 15