The Economic Dimension of Sustainable Lifestyles

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University ofMacedonia
Eftichios Sartzetakis

• The Economic Dimension of Sustainable Lifestyles
• Presented at the conference
• The Dimensions of Sustainable Lifestyles
• ??t?ß???? 2004

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Sustainable Development

• 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.
• 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.
• K. Green, A. McKeekin and A. Irwin,
  Technological Trajectories and RD for
  Environmental Innovations., Futures, Vol
  261036-52.

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Sustainable Lifestyles

• 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
• 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
• 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 ?"

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The issues in developing countries

• The case of a cotton farmer in Africa
• 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.
  
• 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.

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The issues in developing countries

• Let assume that he turns to milk production
• 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
• As a result, most of the developing countries
  consume milk powder imported from Europe, and
  they do not produce any fresh milk

Euro-cow 2 / day
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Lifestyles in developed countries

• 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)

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Creating Sustainable Lifestyles

• 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.

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Creating Sustainable Lifestyles

• 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
  per year which corresponds to five trees! Many
  people use more.
• To balance your industrial responsibility for CO2
  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.

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Creating Sustainable Lifestyles

• 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

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Creating Sustainable Lifestyles

• Finally,
• Don't give up.
• Every little bit counts.
• Never feel as though you don't count. You do!

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How to achieve these goals

• Cooperation between all players

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Government intervention

• Government intervention
• Liability rules
• Taxes, tradable permits, direct intervention
• Corporate responsibility
• Voluntary agreements
• Ecolabelling
• Subsidization of green technologies

Polluter pay principle
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Restructuring of the tax system
Government Revenues
Direct taxation (distortionary)
Indirect taxes (distortionary and Corrective)
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Restructuring of the tax system
Government Revenues
Direct taxation (distortionary)
Indirect taxes (distortionary and Corrective)
Green taxes (corrective)
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Restructuring of the tax system
Government Revenues
Direct taxation (distortionary)
Indirect taxes (distortionary and Corrective)
Green taxes (corrective)