Anders L HöglundMScEngPhys
Vice President
The Swedish Sustainable Economy Foundation
tssef.se
2The Swedish Sustainable Economy Foundation – tssef.se
What feature does a bicycle and a JAS-fighter plane have in common?
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Political and democratical road blocks
Weak and insufficient economic drivers
Insecurity about suitable numbers and indicators
Insecurity about suitable control instruments
Too much focus on GNP-growth
The Swedish Sustainable Economy Foundation – tssef.se
Obstacles on the path to sustainability
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Sufficiently strong economic drivers
Political and democratical acceptance
Means of hedging against risk
Internalization of externalities
The Swedish Sustainable Economy Foundation – tssef.se
Conditions for an efficient and viable solution
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Suggestions for an efficient and sustainable solution
Flexible control fees as economic drivers for internalization of externalities in the economy
A sufficiently large repayment of the fee income for democratic acceptance
A futures market to reveal abatement costs and as an instrument to hedge against risk
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Why a control fee?
• Because it can be made adjustable and sufficient
• Because it can be made simple and efficient
• Because it can be made transparent and traceable
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Why a repayment?
• To secure democratic acceptance
• To stimulate sustainable growth
• To make the control fee 'budget neutral'
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Why a futures market?
• Because it is known, established and effective
• Because it has a proven hedging function
• Because it can reveal abatement costs
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Problem areas for efficient use of control fees
CO2-emissions from fossil fuels
Harmful emissions from vehicles
Depletion of non-renewable natural resources
Extraction of harmful metals and minerals
Production of harmful chemicals
Unsustainable use of fresh water resources
The Swedish Sustainable Economy Foundation – tssef.se
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Advantages and added value from flexible control fees
• Economic drivers for sustainability
• Increased purchasing power and benign demand
• Increased investment and reduced unemployment
• Acceptance thanks to repayment of fee income
• Risk reduction thanks to fee futures markets
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Risks and threats when the need for stabilizing feedback is ignored
Real estate bubbles
Financial crises
Environmental degradation
Loss of resources
Systemic collapse
Large scale famine
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Thank You!
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