New Economic models in the 21st century-sustainability

Lecture 3

Pre-industrial economy

-trade

-sustenance

-demand and accessibility

-locally developed

The Modern Economy as Historical Construct

There is nothing timeless about the modern economy. in relative terms, it is a recent invention.

Traditional Linear Model

Take-Make-Use-Dispose

Traditional Linear Model (characteristics)

-Production of goods and services - raw materials

-Growth is based on quantity, profit (sales)

-Single-use items

-Disposal in land-fields

Circular Economic Model

Circular Economy

• Make things last longer/maximize usage

• Aim to minimize continuous use of natural resources and waste

• Involves a system of net reductions at the organizational supply chain and industrial levels.

• Use what we already have to convert it into new things

• DECOUPLE GROWTH and PRODUCTION from a dependence on natural resources

3 main principles of circular economy

• reduce GHG emissions

• Reuse the product → keep the energy already invested in it → reduce the need for new energy and materials.

• sequester carbon

Benefits of Circular Economy

• Consumption of new materials could be reduced by more than half by 2050

• Eliminate tons of material waste globally in the next 5 years

• Waste disposal generates jobs

• When lots of people live in cities, it is easier to collect, recycle, and treat used materials on a large scale.

Circular Economy can help address annual GHG production by reducing emissions from…

key industrial materials such as: steel, aluminum, plastics, cement

Biobased polymers and 95% recycling can help what?

Circular economy

Some limitations of circular economy

• Businesses depending on other businesses → If one company needs another company’s waste/materials, problems can happen if the supply stops.

• Accounting for reused products → Businesses need to figure out how to record the value of reused or recycled items.

• Different design systems → Companies need to make products in ways that work well with other companies’ products or systems.

• Sorting waste → It can be difficult and expensive to separate different types of waste for recycling.

Green Economy

Improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.

Goals of green economy

• Reduce carbon emissions and pollution

• Enhance energy and resource efficiency

• Prevent the loss of biodiversity and ecosystem services

Through public and private investments

Green economy and UN sustainable developments goals

• Protecting natural capital (geology, soil, air, water, living things-ecosystem services)

• Transforming economies into drivers of sustainability (mitigate urbanization and climate change)

• Policy choices highlighted by UNEP (environmental sustainability investments, promoting sustainable production and consumption, inclusivity)

Bioeconomy

Industries should use renewable materials from nature, with science and new technology helping turn them into useful products.

The bioeconomy covers all sectors and systems that rely on:

biological resources

The systems that bioeconomy covers can be:

• land and marine ecosystems and their services

• all primary and production sectors

• all economic and industrial sectors that use biological resources and processes for food, feed, bio-based products, energy, and services

Two pillars of bioeconomy:

• New discoveries and technology in biology can change and improve how products are made.

• Use renewable materials from nature instead of fossil fuels, for both energy and making products.

Knowledge based bioeconomy

vision of achieving economic growth through high-tech industries, which need investment in innovation and skilled labor.

Two pillars related to bioeconomy

• Resource substitution (1st decade 21st century)→ fossil energy to resource subst.

• Biotechnology innovation perspective (2nd decade 21st century) → new technologies, Paris agreement = innovation for sustainable development.

What do circular economy, green economy, and bioeconomy have in common?

• All remain predicated on economic growth, substitute a linear economic model→ rethink economic growth

• All focus in environmental impacts such as reducing demands on natural resources and waste streams.

Importance of bioeconomy for rural communities

• Improve economic situation of rural population→reduce rural exodus and overpopulation of megacities

• Replace/argument many products in the construction and assembly processes as well as consumable products.