Subsidized bread is a giffen good

Paper 3.3 Resource Conservation-Related Information

MaRess - content of the WP3 final report

Raimund Bleischwitz, Bettina Bahn-Walkowiak, Henning Wilts

Wuppertal Institute for Climate, Environment and Energy GmbH

Klaus Jacob, Florian Raecke, Stefan Werland

Research Center for Environmental Policy, Free University of Berlin

Jan Bethge

Center on Sustainable Consumption and Production

Klaus Rennings

Centre for European Economic Research

Joachim Sanden

Leuphana University of Lüneburg

Resource policy for design

the framework

Final report on WP3

Final report of work package 3 of the project

"Material efficiency and resource conservation" (MaRess)

Wuppertal, December 2010

ISSN 1867-0237

page 1

Resource efficiency paper 3.13


Contact to the authors:

Prof. Dr. Raimund Bleischwitz

Page 2

MaRess - content of the WP3 final report

Wuppertal Institute for Climate, Environment and Energy GmbH

42103 Wuppertal, Döppersberg 19

Tel .: +49 (0) 202 2492 -183, Fax: -198

Mail: [email protected]

Dr. Klaus Jacob

Research Center for Environmental Policy, Free University of Berlin

Ihnestrasse 22

14195 Berlin

Tel .: +49 (0) 30 838 54492

Mail: [email protected]


MaRess - content of the WP3 final report

Final report of WP3

"Resource policy for shaping the framework conditions"

Table of Contents

A. Resource Efficiency Paper 3.11: “Resource policy for shaping the

Framework "- Summary (German summary,

September 2010)

B. Resource Efficiency Paper 3.12: “Resource Policy to Design Framework

Requirements: Executive Summary "(English summary, November

2010)

C. Resource Efficiency Paper 3.1: “Analysis of options for action in the area

Resource Policy "(milestone for AS3.1, June 2009)

D. Resource Efficiency Paper 3.2: "Resource Policy - A New Policy Field"

(Milestone for AS3.2, December 2010)

E. Resource Efficiency Paper 3.3: „Resource protection-relatedInformation-

and certification obligations in supply chains (RIZL) in the ICT sector ”(milestone

to AS3.2, December 2010)

F. Resource efficiency paper 3.4: "Instruments of a product -

Input regulation: The example of dynamic standard setting / resources

Top Runner "(milestone for AS3.2, December 2010)

G. Resource Efficiency Paper 3.5: “A Covenant to Close International

Material cycles in the field of old car recycling ”(milestone for AS3.2, December

2010)

H. Resource Efficiency Paper 3.6: “Differentiated VAT rates for

Promotion of a more resource-efficient consumption "(milestone for AS3.2,

December 2010)

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MaRess - content of the WP3 final report

I. Resource Efficiency Paper 3.7: “A building materials tax to increase resource efficiency

in the construction sector "(milestone for AS3.2, December 2010)

J. Resource Efficiency Paper 3.8: “Innovation policy instruments for promotion

of material efficiency and resource conservation ”(milestone to AS

3.2, December 2010)

K. Resource Efficiency Paper 3.9: “Export promotion in the field of recycling and

Efficiency technology "(milestone to AS3.2, December 2010)

L. Resource Efficiency Paper 3.10: “Elements of a resource policy for a

sustainable phosphorus management and a reduction in phosphorus imports "

(Milestone to AS3.3, December 2010)


Raimund Bleischwitz, Bettina Bahn-Walkowiak, Henning Wilts

Wuppertal Institute for Climate, Environment and Energy GmbH

Klaus Jacob, Florian Raecke, Stefan Werland

Research Center for Environmental Policy, Free University of Berlin

Jan Bethge

Center on Sustainable Consumption and Production

Klaus Rennings

Centre for European Economic Research

Resource policy for design

the framework

Summary

Summary of the results of the work package 3

of the "Material Efficiency and Resource Conservation" project

(MaRess)

Wuppertal, September 2010

ISSN 1867-0237

page 1

Resource efficiency paper 3.11


Contact to the authors:

Prof. Dr. Raimund Bleischwitz

Wuppertal Institute for Climate, Environment and Energy GmbH

42103 Wuppertal, Döppersberg 19

Tel .: +49 (0) 202 2492 -183, Fax: -250

Mail: [email protected]

Dr. Klaus Jacob

Research Center for Environmental Policy, FU Berlin

Ihnestrasse 22

14195 Berlin

Tel .: +49 (0) 30 838 54492

Mail: [email protected]

Page 2


MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

Table of Contents

Resource policy for design

the framework

Summary

1 Tasks and goals of resource policy ___________________________3

2 The proposals for resource policy instruments for

Design of the framework conditions at a glance ____________________7

2.1 Resource protection-relatedInformation- and certification obligations in

Supply chains (RIZL) in the ICT sector _____________________________________7

2.2 Instruments of product input regulation: the dynamic example

Standard setting / resource top runner _____________________________8

2.3 Differentiated VAT rates to promote a

More resource-efficient consumption_____________________________________9

2.4 Introduction of a building materials tax Increase in resource efficiency in

Construction area _____________________________________________________10

2.5 A covenant to close international material cycles in the area

Old car recycling__________________________________________________11

2.6 Innovation policy instruments: a GreenTech Fund and

Lighthouse projects _______________________________________________12

2.7 Export promotion in the field of recycling and efficiency technology _______________13

3 Conclusion ______________________________________________14

4 Literature _______________________________________________________16

page 1


Illustrations

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MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

Fig. 1: Valley of Death ______________________________________________12

Fig. 2: Recommendations for action for the further development of export promotion

according to fields of activity in the overview ___________________________14

Fig. 3: Allocation of resource policy instruments in MaRess WP3 to levels

the value chain _______________________________________ 15


MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

1 Tasks and goals of resource policy

Natural resources are the basis of all economic activity. No economy can

it is possible to do without raw materials - including tertiarization or use

of Information- and communication technologies open up new sources of added value,

but do not lead to an absolute reduction in raw material consumption.

The use of raw materials is meanwhile in a worldwide network of supply relationships

embedded. The turnover in raw materials is increasing rapidly and is recorded

more and more distant mining regions and production sites. So are always new

Products created; at the same time the global market penetration and thus increase

the quantities of goods produced. For raw material producers the development of

Sources of raw materials and global trade are often associated with new prosperity.

The current use of raw materials and especially non-renewable ones

However, raw materials is not sustainable. When removing metal ores, coal

or oil, building materials and other materials often cause serious environmental pollution.

In addition to the increasing use of land and nature are with

Transport, processing of the raw materials and the use of the products made from them

Products Emissions of pollutants and greenhouse gases as well as energy and water consumption

connected. And finally, enormous flows result from the material flows

Waste quantities.

The current use of raw materials does not only come up against ecological limits. Also

economic limits become recognizable: In the case of individual metals, for example those currently

in the Information- and communication technology seem indispensable,

the currently recoverable limits of natural occurrences are visible. At

While other materials are abundant, the rapidly growing

Demand, strong concentration of deposits in individual countries and mining companies

or dependence on by-products in funding

but at rapidly increasing prices. On the other hand, however, also exist

Considerable economic opportunities for a more efficient use of raw materials:

Numerous studies show that resource efficient products as well as recycling technologies

show considerable growth potential worldwide.

It is not for nothing that the federal government has formulated the goal of increasing raw material productivity

Double: By 2020, every euro of added value should be half of the remaining

Abiotic raw materials used in 1994 are generated. So much for one

leads to an absolute reduction in the use of raw materials, this would mean considerable environmental relief

connected at all points in the value chain. The ones with resource savings

associated costs for changes to products and processes

would be compensated in many cases by the reduced material consumption.

As with the use of energy, there is also considerable unused in the use of raw materials

Efficiency potential.

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MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

According to economic theory, this potential for efficiency should therefore be tapped

to gain competitive advantages. Also scarcity of resources

would be reflected in the price and trigger innovations that are scarce

Use or substitute materials more gently. From that perspective, it should

restrict a resource policy to reducing harmful environmental impacts into the

Include (internalize) prices of resource use, but otherwise

to leave the allocation of goods to the market and pricing mechanisms.

Dealing with scarce resources would be most efficient through the market

respectively.

But research shows that this is not the case. There will be no efficiency potential

exhausted, scarce materials not substituted. They also fall in resource use

above all the extraction of raw materials and the associated environmental damage

(negative externalities) and the geographic and temporal use is often far

apart. In many cases there is a lack of knowledge about environmental damage or

about possibilities of avoidance as well as about suitable intelligent incentives.

The sustainable use of resources - material efficiency and resource conservation

- faces a number of obstacles. These include:

• External effects: There is the possibility of resulting from the use of resources

Environmental damage, for example, during dismantling and through environmentally hazardous

Externalize recycling practices. These costs are not borne by the beneficiaries

the use of resources, but imposed on the general public. The

a lack of internalization of environmental costs is an expression of market and political failure.

Informationdeficits: wearing within companies Informationdeficits over

Potential savings and uncertainties about future market developments and

Commodity prices lead to a lack of innovation. In addition, the widespread

short-term perspective of economic actors on reporting years or short

Product cycles Shortages for a number of metals foreseeable in the medium term

and minerals in corporate planning. Further along always arise

increasingly complex production chains and short product life cycles Informationdeficits

on the material composition of preliminary products that

Origin and degradation conditions of raw materials used or the whereabouts

of old devices. Another source is the lack of information on the part of market participants

of market failure.

• Unused innovation potential: In many sectors, there is so far unused

Innovation potential in the development and dissemination of resources in a more resource-efficient way

Products. The reasons for this lie on the one hand in the incentive structure of innovations

(unforeseeable risks, lack of capital, spill-over effects, lack of

Infrastructures, etc.) and on the other hand also in the positive externalities: The

The benefits of the innovations are incurred for society. Accordingly, there are too few

Incentives for private actors, especially for more far-reaching system innovations.


MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

The following target dimensions can be derived from the obstacles identified

Derive resource policy.

1. Sustainable, environmentally friendly use of resources: This is particularly important

about avoiding negative externalities along the value chain.

This includes the maintenance of ecosystem functions and -

services, for example through the extraction of raw materials or the

improper disposal of old devices are at risk. The lowering of the

Material intensity and avoidance of loss of resources through closing

of material cycles and the establishment of efficient recycling structures

further central starting points for reducing the environmental impact

represent.

2. Security of supply: For a large number of raw materials are medium-term

Shortages foreseeable. These include in particular some rare metals,

that are relevant for future technologies. Even for metals, for which there is sufficient

Occurrences are rapidly rising or highly volatile prices in commodity markets

to observe. Resource policy therefore also aims to get through

Development of efficiency potentials to reduce raw material consumption and

thus contributing to security of supply. The above closing of

Material cycles and optimized recycling are also important further starting points for this.

3. By stimulating economic modernization effects, competitiveness

domestic industries are secured in the future. To

are political, legal and economic incentives in favor of oneself

sustaining development and expansion of green future technologies for

Material efficiency and resource conservation necessary. These include both the

Promotion of product and further system innovations as well as support

in the diffusion of innovations into the mass market. A total of

can formulate visions of sustainable resource use (Bringezu 2009)

and opened up through eco-innovations. In the area of ​​material and

In terms of resource efficiency, there is potential for innovation that has not yet been exploited

become.

There is no single policy instrument that covers all problem structures, goals and types of actors,

Resource types etc. would be equally suitable. Instead is a

Policy mix necessary that overcomes the various obstacles, the innovation phases

taken into account and meet future global challenges.

The policy instruments proposed here fall into the following categories

group:

• Regulation: regulatory instruments offer the state the opportunity to

directly on the design of products and the flow of production processes

have an effect (e.g. in the form of prohibitions or quality specifications)

and thus to reduce or prevent undesired environmental effects, or if necessary

To charge compensation to the polluter. There are a downside to this

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MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

the high Information- and legitimation requirements. Therefore becomes binding

Regulatory law with instruments of self-regulation on hybrid forms of governance

connected (Hey et al. 2007). In MaRess WP3, the instrument “Dynamic

Standard setting / resources for top runners ”for this group of instruments.

Another form of regulation is the linking of Informationobligations

for producers with market access for their products. Through the complex

Character of product life cycles and non-transparent supply chains

Information about the raw materials contained in products and their origin

not available or only available to a very limited extent. Such information is essential for effective

Regulation, however, is essential. Information generating tools

thus on the one hand form the basis for regulation (e.g. material bans or substitution obligations)

and on the other hand, the behavior of producers and consumers

influence.

• Economic Incentives: Taxes and levies can be used for short-term

To bring about price changes for certain resources and thus price signals

to send to producers and consumers. Rising resource prices

can induce innovations and thus have a positive effect on the economic sector in the medium term

Development. These incentives can be created through fiscal instruments

be made more stable and more predictable.You can save resources

Innovations help increase demand and market penetration. Farther

they serve to internalize negative externalities. The effect of fiscal

Instruments is differentiated in MaRess AP3 based on the building materials tax and the

VAT illustrated.

• Economic incentives can also directly affect innovation promotion and the

Aiming diffusion of innovations on the mass market. The state can do this

Use the entire range of innovation policy instruments, be it direct ones

Project funding, the provision of venture capital or the promotion of

Networks or clusters. In addition to the supply-side innovation policy is also

the support of the diffusion into the mass market makes sense. Export promotion is

a possible tool to support demand for innovation. in the

MaRess AP3 will therefore also become the German export promotion practice for the area

Recycling and efficiency technology examined.

• Private regulation and negotiation of standards: Given the limited

(Territorial) scope of state intervention can be between state contracts

and private actors (so-called covenants) represent a possibility of cross-border

Control material flows and a large number of actors along

of the product life cycle for improved material stewardship.

Such a procedure is presented using the example of old car recycling,

whereby the covenant contribute to the closure of material cycles and loss of resources

should avoid.

The goal of a resource policy is to set the framework for economic activity

in such a way that incentives are efficient and sustainable

environmentally compatible handling of resources and search processes for res-


MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

resource-saving technologies are set in motion. The target dimensions are here

“Avoidance of negative environmental effects”, “Security of supply” and “Realization

of competitive advantages ”at the center of resource policy. The conception

such a role for the state is possible in the face of increasingly globalized production chains

and product life cycles necessarily beyond the national framework

and must take into account the framework conditions created by the uniform

European market and international agreements are set. Insist in it

Obstacles and opportunities at the same time. On the one hand, large areas of many are more relevant

Policies including environmental policy, but also trade, economic and innovation policies

Europeanized, which makes it difficult to go it alone nationally. In addition, the

Environmental impacts of resource use (e.g. from the extraction of raw materials or the

Disposal of old devices) also in countries other than those of consumption

Products made from the raw materials. On the other hand, it grows out of internationalization

the chance that innovations will create further international markets. So far

Environmental aspects in the mechanisms of world trade and standardization of

Products and services are integrated, potentially even emerge from them

mutual reinforcement (Oberthür / Gehring 2006, Gehring 2007, Bleischwitz

et al. 2009). Environmental technologies that are technically and economically feasible

have demonstrated, also often meet a high demand in important

Emerging Markets (Walz 2010).

In MaRess AP3, instruments of a resource policy were developed that target the

Aim to create appropriate dynamic framework conditions. Here was

exemplary approach and various governance approaches, political and problem areas

deepened. There are environmental, economic and innovation policy instruments

discussed the economic incentives, regulatory approaches, self-regulation

and use informational governance mechanisms. The instruments in the

The following have been subjected to a comprehensive impact assessment.

The ecological, economic and social aspects as well as the

legal and political feasibility into account. For the impact assessment it is

It is necessary to relate the instruments to specific material flows and industries. Aim this

It is the approach to the effectiveness and necessity of resource-political control

to demonstrate and to present exemplary impact assessments.

2 The proposals for resource policy instruments

for the design of the framework conditions at a glance

2.1 Resource protection-relatedInformation- and certification obligations

in supply chains (RIZL) in the ICT sector

Missing information about environmental pollution along global value chains

are a central obstacle to an effective resource policy. To this problem

a knowledge-generating policy instrument entitled "Res-

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MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

resource protection-related Information- and certification obligations in supply chains "

(RIZL) proposed and exemplified for cell phones with the "rare" contained therein

Metals ". RIZL combines approaches of self-regulation and knowledge generation

with regulatory approaches and comprises three elements: 1. Information,

2. Substitution, 3. Certification. The aim is to generate knowledge about global

Material flows and the limitation or reduction of using them especially outside

environmental impacts associated with the European Union, often in developing countries.

RIZL also provides basic information and points of contact

also ready for other instruments.

The fulfillment of Informationobligations of the producers becomes a prerequisite for

market access ("No data no market"). These Informationobligations affect them directly

The materials used in the respective product and their environmental impact.

These obligations start with the extraction of raw materials and thus at the beginning of the value chain.

However, information on the proportion of recycled material should also be provided

to be provided. All resource-related information should be in a product data sheet

to be provided. In the case of the Information- and communication technologies

(ICT) is particular because of its environmental impact and scarcity

the input of "rare metals" is important.

For "particularly problematic" materials, the product manufacturer should be involved

it can be determined whether these are in the relevant product groups by a less

environmentally intensive material can be substituted. Products that are substitutable, especially

Contain problematic materials should no longer have access to the market.

A list of particularly problematic materials is to be kept by an authority

become. This list will gradually emerge based on the knowledge gained by the

Informationobligations of the producers is generated. For metals that are considered "special

problematic "and cannot be substituted, there is a

Duty to reduce the environmental impact. The aim is to use the mining in mines

to promote comparatively lower environmental impacts and these effects as well

to continuously reduce. The effectiveness of appropriate mitigation measures

should be guaranteed with the help of a certification system. It should be added that

At the same time, there are incentives to lower the material intensity, e.g. in product design

should be.

The application of RIZL to products / material flows must be gradual and

take place in dialogue with stakeholders. Companies can proactively agree to the agreed upon

next regulatory step by specially initiated network organizations

anticipate when comparable transparency and results are achieved.

2.2 Instruments of product input regulation: the dynamic example

Standard Setting / Resource Top Runner

The instrument provides that for certain particularly scarce or environmentally intensive

Metals a minimum proportion of recyclates must be used in devices of the ICT.

Compliance with the minimum standard is a prerequisite for market access and


MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

must be designed as a European regulation. The objectives of regulation are

Increasing the recycling rate as a means of reducing the use of primary material

for particularly environmentally intensive metals such as gold, silver or platinum group metals.

By the instrument aims to create incentives to include waste equipment in the recycling process

feed (generation of demand for secondary material), added

there are legal waste regulations for waste electrical equipment (EC directive on electrical and

Electronic waste equipment (WEEE) and the German Electrical and Electronic Equipment Act).

At the same time, the approach creates an incentive to control the valuable metals

Total global cost of materials.

Specifically, manufacturers must submit a product data sheet for each model (see Chapter 2.1),

that contains the amount of certain materials used. Since there are no metals

it has to be considered whether they were obtained from recyclate or from ores are material flows

so far not traceable along the production chain. To this problem

to remedy, certificates are to be issued for recycled metals. Producers

must prove for each model that they or the relevant pre-producers

their need for certain materials (e.g. gold, palladium, indium etc.) at least

obtain a certain percentage from secondary material. The certificates

are issued by accredited recycling companies and along the production chain

passed on.

The definition of the standards can be designed as a top runner approach. There

the minimum quota to be met is based on those on the market

Products with the highest material-specific proportion of secondary material. The in

Recyclate proportion achieved in this group is subsequently considered a binding minimum requirement

used for all devices in the product group. Such approaches have the advantage

initiate an efficiency race between sellers of products while the

the technical feasibility of the minimum requirement has been proven beyond doubt. they have themselves

for energy-consuming products e.g. in the Japanese top runner program

proven. Here, however, there is an autonomous trend towards economical products, the

from the expected ongoing consumption costs for consumers and

the purchase decisions derived therefrom. Since such ongoing material costs

For consumers, however, there must be incentives for higher material efficiency

are generated exogenously and should primarily start with the producers

(e.g. through the announcement that a top runner approach will be introduced in some time).

Incentives for the constitution of material responsibility at the

Interface to the waste area (e.g. through standards for 'Design for Recycling').

2.3 Differentiated VAT rates to promote a more resource-efficient

Consumption

Aim of a redesign based on criteria of material efficiency and resource conservation

of the Value Added Tax (VAT) system is a fundamental signaling effect

the short-term sales figures of environmentally friendly ones through preferential pricing

Stimulates products and services and, in the medium to long term, aims to

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MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

to promote innovations and market developments. It becomes both a macroeconomic one

as well as a reorientation close to the consumer. This should provide incentives

be created to produce more resource-efficient and less polluting products

and to make services in general relatively cheaper, so as well

To facilitate the purchase decision for low incomes (e.g. organic products, energy-efficient

white goods, energy advice and renovation).

In addition to product, product group-specific or sectoral reductions or increases

of VAT rates are intended to revise existing distortions and inconsistencies

towards revenue-neutral financing of VAT reductions in others

Contribute areas in the sense of an ecological financial reform.

Under the German system, the VAT exemption of

international flights, the abolition of the reduced VAT rate for conventional

produced food (with a reduced tax rate for organically produced

Food) or, alternatively, the abolition of the reduced VAT rate for resource-intensive

Food such as meat and dairy products, the introduction of the discounted

VAT rate on intra-community and international rail transport, the

Introduction of a reduced VAT rate on domestic rail traffic as well as the

Introduction of a reduced VAT rate on resource-efficient service-intensive

Trade (and thus the full scope of the

VAT Directive (COM (2008) 428) proposed. Be for the European level

the extension of the directive proposed the introduction of a reduced rate

VAT rate on recognized labeled products (such as Blue Angel /

"Resource Angel") as well as the introduction of a reduced VAT rate on energy

/ to enable water- / material-efficient household appliances (A ++). Like a discount

the tax rate on secondary raw materials or products, the secondary raw materials

use, is sensibly possible, requires further discussion.

2.4 Introduction of a building materials tax Increase in resource efficiency

in construction

There will be a uniform federal consumption tax on extraction and import

suggested by primary building materials. A primary building materials tax is a fiscal policy one

Instrument that also serves to raise funds from the state, but as a steering tax

how the mineral oil tax should create an incentive for consumption as a whole

to lower. The funds that arise flow into the federal budget and can

can thus be used for a purpose. The taxable persons are the companies extracting raw materials,

the price increases in the value chain caused by the tax

will pass on. The tax should initially be from the date of introduction

at least 2.00 for every tonne of sand, gravel, crushed stone and limestone extracted

be. Because the primary building materials tax is a clear signal to reduce consumption physically

should set, the quantity tax is given preference here. Out

For this reason, long-term tax increases with a


MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

Progression of 5% per year should be planned for the immanent real reduction

to counteract the quantity tax.

Relocation processes of the quarrying sector and the subsequent ones

Production stages abroad are due to such a building material tax

not to be expected. This is all the more true when a nationwide standardization of

country and district-specific regulations are implemented so far. However, it is expected

an increasing use of recycling and secondary raw materials for the construction sector.

Relocations of operating facilities of the sector are also due to the high transportation costs

unlikely. At the same time, compensation should be provided for mining areas

in order to internalize the environmental follow-up costs and regional innovation potential

to tap into.

2.5 A covenant to close international material cycles in the area

Old car recycling

End-of-life vehicles contain a large number of substances that are compared to recycling

Primary route saves a considerable amount of resources, including but not limited to steel, copper

Platinum Group Metals (PGM). The end-of-life vehicle regulation therefore stipulates that manufacturers

Must guarantee recycling rates of 85%, from 2015 even 95%. However, will

only about a sixth of all vehicles at the end of their life are actually recycled in Germany.

Most vehicles are exported as used vehicles in advance and

end up as waste in countries outside the EU that do not have these recycling guidelines

grab more. There - if at all - only the main mass flows (especially steel)

won back.

The central approach of the incentive mechanism examined here is negotiation

a contract based on private law - a covenant - between automobile manufacturers

and suppliers, the recycling industry and the responsible public authorities

in the exporting and destination countries. This should have long-term goals for increasing resource efficiency

through high-quality recycling of end-of-life vehicles. The

Contracting parties, industrial companies or their associations, undertake to

ambitious resource protection goals, the states guarantee for the term of the contract

stable and supportive framework conditions. In contrast to voluntary agreements

the covenant should in principle also be enforceable in court, at the same time

Procedures for dispute resolution and sanction options effective in the contract

provided if contractual partners fail to meet their obligations.

Germany could take the initiative for such a covenant in the EU.

With such a covenant there would be the chance to create a framework

To largely close material cycles on an international level. The distribution

the existing costs and benefits along the value chain could be im

Contract can be regulated flexibly. The extended responsibility of producers for the

physical and financial effects of their products at the end of their use phase

no longer undermined by exports. This would mainly serve to strengthen one

Design for recycling real incentives.

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MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

2.6 Innovation policy instruments: a GreenTech Fund and lighthouse projects

Innovation policy instruments represent a means to make the introduction more resource-efficient

Support products and processes. Environmental innovations in general

and innovations to increase resource efficiency in particular are from

affected by a “double externality”: imitators benefit as free riders from innovative ones

Activities of individual companies, which leads to first-movers advantages

cannot be realized (spill-over effects). In addition, there is an improved environmental quality

does not only benefit the innovator, but is a public good. Therefore do not take place

Investing in environmental innovations or staying below the economic level

desirable levels. State intervention to promote environmental innovations

are therefore necessary to overcome this market failure.

An analysis of national funding programs for promoting innovation has shown that

Resource efficiency has not yet been addressed as a separate topic. In addition

It has been shown that innovation policy instruments mainly focus on the first

aim of the three innovation phases (invention) in the form of direct project funding.

The subsequent phases of market introduction and diffusion, however, are so far

little noticed. The lack of support leads to a funding gap

in the transition from public to private financing ("valley of death"),

through which many innovations are not realized (see Fig. 1).

Fig. 1: Valley of Death

Source: Murphy / Edwards 2003


MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

In MaRess AP3, instruments were therefore used to bridge this "valley of death"

examined. This includes, in particular, the short-term provision of risk capital

Through the state. The establishment could increase the promotion of material efficiency

of a specific “Green Tech Fund” for material efficiency innovations

or by establishing material efficiency as a sustainability criterion

in technology-open funds.

Another instrument to support the diffusion of material efficiency

Innovations is the promotion of so-called lighthouse projects. It is stimulated

Lighthouse projects in a national strategy similar to "Transition Management" in

the Netherlands - i.e. the planned transition to sustainable management in

some core areas - to create. Last but not least, such projects could serve to

Encourage imitation and promote acceptance. Starting points for this are with

the high-tech strategy and the master plan for environmental technologies.

Other innovation policy instruments can also be used, be it project funding,

Cluster formation, innovation workshops (Lemken et.al 2009) or incentives for

Research institutes.

2.7 Export promotion in the field of recycling and efficiency technology

For German companies exist in the field of export of recycling and disposal technologies

considerable economic potential. To develop this

Corresponding institutional framework conditions are required for German companies

provide effective support in their export business.

Based on the work of the "Export Initiative Recycling and Efficiency Technology" (RE-

Tech) five fields of action (capacity building, information about target markets

and information for target markets, networking, sales support and financing

and risk protection) identified at different life cycle phases

and each contain different instruments. These were i.a.

through surveys of companies, associations and scientists

examined their acceptance and effectiveness. Overall, the reviews show and

Discussions of instruments for export promotion in the field of recycling and efficiency technology,

that the instruments identified by the RETech initiative are very high

Have significance for the export opportunities of companies and in the overall picture

be judged very positively. Nevertheless, weaknesses could also be identified,

from which the need for action was derived (see Fig. 2).

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MaRess - WP3 “Resource Policy for the Design of Framework Conditions”: Summary

Fig. 2: Recommendations for action for the further development of export promotion according to fields of action

in the overview

Source: MaRess MS3.2

3 Conclusion

MaRess AP3 examines the effects of various control approaches in resource policy.

The starting point is the analysis of the barriers and mechanisms

the market failure in terms of sustainable use of resources. The work