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Establishing and Strengthening Markets for Resource Efficient Products and Services

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Factor X

Part of the book series: Eco-Efficiency in Industry and Science ((ECOE,volume 29))

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Abstract

Progress in improving resource efficiency is a precondition for a sustainable development on the national and global scale. At the same time, it is a key factor for competitiveness and welfare in the next decades. A proactive policy is therefore strongly needed to establish and strengthen markets for resource efficient products and services, not only for ecological but also for economic reasons. This paper gives an overview of strategies and instruments that can contribute to meet this challenge effectively. It is based on an analysis of the obstacles on the micro- and macroeconomic level hindering the increase of resource efficiency and shows that coherent, long-term and comprehensive strategies are necessary combining long-term efficiency targets as guardrails for investors and consumers with a reform of the general economic framework, institutional reforms and market specific instruments. The strategies must tackle demand side constraints as well as supply side constraints and promote the development and market diffusion of innovations.

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Notes

  1. 1.

    These numbers reflect the share of material and resource costs from the perspective of the enterprises. It should be noted that the material costs themselves include labour costs in cases where the material takes the form of semi-finished and finished products used for production. Therefore, the share of material and resource costs is essentially lower from a macroeconomic point of view.

  2. 2.

    These jobs “…are mainly for the renovation of the building stock, the uptake of products covered by eco-design and labeling measures (e.g. electric motors and drivers, refrigerators and freezers, circulators), and the improvement of energy efficiency in the manufacturing sector.” (COM 2012a, b, p. 8).

  3. 3.

    Therefore some countries (e.g. Austria and Germany) already adopted a national resource program and the European Commission developed a roadmap to raise significantly the resource efficiency up to 2020.

  4. 4.

    (UBA 2010) Schrode, A., Burger A. et al: Environmental Harmful Subsidies in Germany – Update 2010, page 40f.

  5. 5.

    In Germany, for example, the KfW Bankengruppe has taken over the function of a green investment bank. In 2010 every third euro of KfW’s promotional program flowed to climate and environmental protection – a total of EUR 25.3 billion. KfW invested EUR 8.8 billion for the energy rehabilitation of nearly 430,000 homes in 2010 alone. http://www.kfw.de/kfw/en/KfW_Group/About_KfW/thematic_dossier/Energy_turnaround_in_numbers.jsp

  6. 6.

    The valley of death is a metaphor to describe a critical stage in the innovation process when on the one hand public funding for R&D ends and on the other hand companies are confronted with high financial risks if they decide to commercialise the innovation.

  7. 7.

    Examples for the practical application of such a strategy are tax concessions on the motor vehicle tax for cars which exceed the mandatory European emission standards or low-interest loans for the construction of new energy-efficient homes and the energy-efficient refurbishment of older residential buildings.

  8. 8.

    The Netherlands e.g. already established the goal of 100 % Green Public Procurement for Federal Government and Government Agencies by 2010 (COM 2010).

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Burger, A. (2014). Establishing and Strengthening Markets for Resource Efficient Products and Services. In: Angrick, M., Burger, A., Lehmann, H. (eds) Factor X. Eco-Efficiency in Industry and Science, vol 29. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-5706-6_10

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