Environmental Policy and Technological Innovation

Technological change is undoubtedly one of the keys to ensuring that economic growth and environmental improvements co-exist. As such it is vitally important that environmental policies and policy instruments provide the right incentives for the development and diffusion of ‘environmental’ technologies.

As part of its work on decoupling environmental pressures from economic growth, the OECD’s Environment Directorate has launched a project on the effects of public policy on technological innovation with the aim of improving the design, implementation and evaluation of environmental policies. Drawing upon patent data, the links between public policy and technological change are being examined.

As a prerequisite for any such work, appropriate indicators need to be developed. This underlying developmental work includes:

• Development of the methodological basis for indicators of invention and transfer and the associated programming of extractions from PATSTAT.
• Development of patent search strategies for various areas of ‘environmental’ technologies.
  

In the analytical work, data on selected OECD countries is analyzed to study innovation effects of alternative policy instruments (such as emission or technology standards, investment incentives, taxes, tariffs, and tradable permits).

• More generally, recent work has analyzed the characteristics of environmental policy framework (stringency, predictability, flexibility) that may be amenable, or not, to induce innovation and technology transfer;
• Dedicated work in energy and climate change mitigation technologies has been undertaken, including a study on the determinants of inventive activity in renewables and a study on the determinants and consequences of international technology transfer.
  

Innovation in Climate Change Mitigation Technologies, Compared to All Sectors

OECD 2010. OECD Project on Environmental Policy and Technological Innovation.
Based on data extracted from the EPO Worldwide Patent Statistical Database (PATSTAT).
Transfer of wind power technologies from Annex I to non-Annex I countries: 1988-2007

OECD 2009. OECD Project on Environmental Policy and Technological Innovation.
Based on data extracted from the EPO Worldwide Patent Statistical Database (PATSTAT).

Assets and Access Poverty

Poverty is more than a lack of income. It is a deprivation of and lack of access to essential assets. These assets fall into the categories of human capital, physical capital, natural capital, financial capital, and social capital. The idea is to start thinking about poverty as deprivation of these essential assets, and to highlight the role poverty reduction role to be played by improving access.[adb.org]

Human Capital

Human capital is defined as the skill, knowledge, and good health that together allow people to work and earn a living. The two most important human capital investments are in education and health. Human capital expands the opportunities and choices people have, and this in turn can impact economic growth. The WHO (World Health Organization) Commission on Macroeconomics and Health confirms the link between human capital and macroeconomic performance. Empirical evidence bears out that countries with the weakest conditions of health and education have a much more difficult time achieving sustained growth than do countries with better conditions of health and education (WHO, 2001).

Physical Capital

Physical capital comprises the basic infrastructure and services that help to keep people out of poverty. Essential infrastructure and services include access to roads and affordable transportation, adequate shelter/housing, potable water supply and sanitation, affordable energy, and communications. The lack of these types of infrastructure is a core dimension of poverty. Without adequate access to services such as water and energy, health can deteriorate and people are forced to spend more time in nonproductive activities like collecting water and fuel wood. Without access to affordable transportation, the poor might opt to keep their children at home rather than send them to school. This in turn prevents human capital formation and perpetuates poverty.

Financial Capital

Financial capital denotes the financial resources that people are able to access. DFID (Department of International Development) defines two main sources of financial capital: available stocks (such as savings, or credit) and regular inflows (the most common types, aside from wage earnings, are pensions and other transfers from the state, and remittances) Financial capital is thought to be the most versatile of the five categories of assets, since it can be turned into other types of capital, but it is also the asset that tends to be least available to the poor (DFID, 1999). Increased access to financial capital for the poor can be supported in a number of ways.












Natural Capital

Natural capital comprises a variety of resources, from intangible public goods such as the atmosphere and biodiversity to divisible assets used directly for production. As explained by DFID (1999) the relationship between natural capital and vulnerability to poverty is particularly pronounced. Many of the shocks that devastate the livelihoods of the poor are processes that destroy natural capital, such as fires that destroy forests, or floods that destroy agricultural land. Natural capital is particularly significant to those who derive all or even part of their livelihoods from resource-based activities, like farming, fishing, and so on. But it is vital for everyone – health and therefore human capital are compromised in areas where air quality is poor.

Social Capital

Social capital comprises the social resources upon which people are able to draw. These social resources are developed through networks and connectedness, membership of groups and organizations, and relationships of trust, reciprocity, and exchanges that facilitate cooperation and can provide informal safety nets among the poor (DFID, 1999). Social capital is based on relationships. As Portes (1998) defines it: social capital stands for the ability of actors to secure benefits by virtue of membership in social networks or other social structures”. Portes clarifies the distinction between social and other forms of capital. “Whereas economic capital is in people’s bank accounts and human capital is inside their heads, social capital inheres in the structure of their relationships. To possess social capital, a person must be related to others, and it is these others, not himself, who are the actual source of his or her advantage.” Participation is a key ingredient of social capital.

Participation—involving people in decision-making on issues that directly affect them—builds social capital, and social capital stocks directly improve people’s welfare. This has been empirically demonstrated by Grootaert (2002) who studied social capital and poverty in Indonesia to conclude that membership of local associations correlates positively with household welfare. Main findings included that social capital reduces the probability of being poor and that the returns to household investment in social capital are higher for the poor than for the population as a whole. There is thus a high potential pay-off to the poor from participating actively in local associations and creating social capital.

Environmental Problems In The Philippines

WWF For A Living Planet

Saving Precious Remains

There are few signs today of the Philippines' once sprawling rain forests. With a growing trend in human population, it is hoped that the country's marine environment will not suffer the same fate.

Overfishing and Destructive Fishing

Fishers in the Philippines are increasingly coming home with pitiful catches. Of a number of factors which have led to this situation, one stands out: over-fishing in many areas. According to the Asian Development Bank (ADB), there has been a drop of 90% in the quantity of marine organisms that can be trawled in some traditional fishing areas of the Philippines.

This isn’t just a question of declining fish stocks and biodiversity, but also of social impacts and economic losses. Mismanagement of fisheries resources is estimated to cost US$ 420 million annually in lost revenues.

At the root of the overfishing problem is weak fisheries management, ineffective policies and poor enforcement of fishery laws.

Coastal Infrastructure Development

Coastal zone development has been particularly damaging to the Philippines’ marine environment, especially to coral reefs, mangroves, and sea-grasses.

As populations have increased, so have their needs for construction materials and living space. Excavation, dredging, and coastal conversion to accommodate coastal development have seen corals being extracted for reclamation and construction, especially in coastal villages.

Mangroves have particularly suffered from coastal development, notably at the hands of the aquaculture industry. In the Philippines, aquaculture has reduced mangrove stands to only 36% of 1900 levels.

Deforestation

After decades of deforestation, which has left about 3% of the original cover, forests continue to be under threat from agriculture and urbanization, illegal logging and forest fires.

Sustained forest loss in the Philippines is causing severe soil erosion, and is threatening the country’s rich biodiversity. This is particularly worrying as many of the Philippines’ species, which depend on these forests, are endemic (they cannot be found anywhere else in the world). For example, of 180 native terrestrial mammal species here, about 61% are endemic.

Inconsistent laws, inadequate regulations, weak enforcement and lack of funding are making forest conservation a major challenge.

Pollution

Only about 10% of sewage in the Philippines is treated or disposed of in an environmentally sound manner. The rest goes back to nature – usually the sea.

In this context of poor waste treatment and high population growth, water pollution is a growing problem for the country’s groundwater, rivers, lakes, and coastal areas. Polluting industrial material is also found in abandoned mining areas, with mercury pollution affecting water bodies in these areas.

These problems are unfolding in a context of poor planning, and weak management and enforcement of regulations.

The Boy Who Harnessed the Wind

William Kamkwamba, from Malawi, is a born inventor. When he was 14, he built an electricity-producing windmill from spare parts and scrap, working from rough plans he found in a library book called "Using Energy" and modifying them to fit his needs. The windmill he built powers four lights and two radios in his family home.

Now at 22, William Kamkwamba, who speaks at TED, here, for the second time, shares in his own words the moving tale of invention that changed his life. You can view the video of his inspiring life story and innovative invention.

http://www.ted.com/talks/william_kamkwamba_how_i_harnessed_the_wind.html

The Necessary Revolution

I have always been a follower of Peter Senge’s books since I learned about the concepts and possibilities of “learning organization” and “systems thinking”. These philosophies, from my own perspectives - are important disciplines and building blocks of corporate sustainability and innovations. It creates an environment of creativity and relentless human development in the business community. It is the primary principle of a revolutionary management philosophy. In his book The Fifth Discipline he proposes that a systems thinking method would help a corporation to become a learning organization. He suggested an integrated corporate framework, which is structured around "personal mastery," "mental models," "shared vision," and "team learning. He describes requisite disciplines, of which systems-thinking is the fifth.

In his new book “The Necessary Revolution: How Individuals and organizations are working together to create a Sustainable World”, he and his colleagues again proposes a timely hypothesis that introduces ways and shows experiences of organizations in contributing to the contemporary issues of global warming, climate change, and unbalance consumption of world resources. It complements his early opinions on sustainability and proposes some thesis on how we can contribute in our own ways to help a better world. These are concepts that are inter-related with the the triple-bottom line theories of economic growth, social development, and environmental sustainability. It is an indispensable reference and guide to corporations and concern individuals that wants to make a difference while towards the community and at the same time achieving its business goals and profit objectives.

Product Description of the book, “The Necessary Revolution” From Amazon.com

Imagine a world in which the excess energy from one business would be used to heat another. Where buildings need less and less energy around the world, and where “regenerative” commercial buildings – ones that create more energy than they use – are being designed. A world in which environmentally sound products and processes would be more cost-effective than wasteful ones. A world in which corporations such as Costco, Nike, BP, and countless others are forming partnerships with environmental and social justice organizations to ensure better stewardship of the earth and better livelihoods in the developing world. Now, stop imagining – that world is already emerging.

A revolution is underway in today’s organizations. As Peter Senge and his co-authors reveal in The Necessary Revolution, companies around the world are boldly leading the change from dead-end “business as usual” tactics to transformative strategies that are essential for creating a flourishing, sustainable world. There is a long way to go, but the era of denial has ended. Today’s most innovative leaders are recognizing that for the sake of our companies and our world, we must implement revolutionary—not just incremental—changes in the way we live and work.

Brimming with inspiring stories from individuals and organizations tackling social and environmental problems around the globe, The Necessary Revolution reveals how ordinary people at every level are transforming their businesses and communities. By working collaboratively across boundaries, they are exploring and putting into place unprecedented solutions that move beyond just being “less bad” to creating pathways that will enable us to flourish in an increasingly interdependent world. Among the stories in these pages are the evolution of Sweden’s “Green Zone,” Alcoa’s water use reduction goals, GE’s eco-imagination initiative, and Seventh Generation’s decision to shift some of their advertising to youth-led social change programs.

At its heart, The Necessary Revolution contains a wealth of strategies that individuals and organizations can use — specific tools and ways of thinking — to help us build the confidence and competence to respond effectively to the greatest challenge of our time. It is an essential guidebook for all of us who recognize the need to act and work together —now — to create a sustainable world, both for ourselves and for the generations to follow.

What is Green Technology

Strategy and Leadership for Clean and Sustainable Communities

The term "technology" refers to the application of knowledge for practical purposes.

The field of "green technology" encompasses a continuously evolving group of methods and materials, from techniques for generating energy to non-toxic cleaning products.

The present expectation is that this field will bring innovation and changes in daily life of similar magnitude to the "information technology" explosion over the last two decades. In these early stages, it is impossible to predict what "green technology" may eventually encompass.

The goals that inform developments in this rapidly growing field include:

Sustainability - meeting the needs of society in ways that can continue indefinitely into the future without damaging or depleting natural resources. In short, meeting present needs without compromising the ability of future generations to meet their own needs.

"Cradle to cradle" design - ending the "cradle to grave" cycle of manufactured products, by creating products that can be fully reclaimed or re-used.

Source reduction - reducing waste and pollution by changing patterns of production and consumption.

Innovation - developing alternatives to technologies - whether fossil fuel or chemical intensive agriculture - that have been demonstrated to damage health and the environment.

Viability - creating a center of economic activity around technologies and products that benefit the environment, speeding their implementation and creating new careers that truly protect the planet.

Examples of green technology subject areas

• Energy - perhaps the most urgent issue for green technology, this includes the development of alternative fuels, new means of generating energy and energy efficiency.
• Green building - encompasses everything from the choice of building materials to where a building is located.
• Environmentally preferred purchasing - this government innovation involves the search for products whose contents and methods of production have the smallest possible impact on the environment, and mandates that these be the preferred products for government purchasing.
• Green chemistry - the invention, design and application of chemical products and processes to reduce or to eliminate the use and generation of hazardous substances.
• Green nanotechnology - nanotechnology involves the manipulation of materials at the scale of the nanometer, one billionth of a meter. Some scientists believe that mastery of this subject is forthcoming that will transform the way that everything in the world is manufactured. "Green nanotechnology" is the application of green chemistry and green engineering principles to this field.
  

Criticism on Environmental Technology

Extreme radical environmentalism, exhibited in publications such as Green Anarchy, criticizes the concept of environmental technology. From this viewpoint, technology is seen as a system rather than a specific physical tool. Technology, accordingly, requires the exploitation of the environment through the creation and extraction of resources, and the exploitation of people through labor, specialization and the division of labor. Thus, no “neutral” form of technology; things are always created in a certain context with certain aims and functions. Green technology is rejected as an attempt to reform this exploitative system, merely changing it on the surface to make it seem environmentally friendly, despite continued unsustainable levels of human and natural exploitation [Source Wikipedia]

The statements above might be true to some extent but, the main thesis of using technology is to address the degrading environmental sustainability. I believe that with the proper processes and intentions environmental technologies will be an inherent weapon towards sustainable development.