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Historical and Technological Trajectories

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Historical and Technological Trajectories

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  1. Can Asian Green Industry Drive the Economic Recovery?International Conference on Green Industry in Asia: “Managing the Transition to Resource-efficient and Low-carbon industries”Ludovico AlcortaDirector, Research and Statistics BranchUnited Nations Industrial Development OrganizationManila, 9-11 September 2009

  2. Historical and Technological Trajectories

  3. (Jänicke and Jacob, 2009)

  4. Green and Greening Green Industry Non-hydrocarbons: renewables, ethanol, biofuels Recycling Industry-related environmental services Equipment and capital goods Emerging (?): CHP, CCS, geo-engineering Mature: pumps, boilers, motors (?) Greening Products Final: fuel efficient vehicles, light bulbs Intermediate: fuel cells, new materials (?) Processes Adoption, adaptation and systems Organizational modifications

  5. Profitability, risk and realities The greening of demand From comparative to competitive advantage The direction of innovation Ensuring dynamism The conditions for success

  6. Is green investment profitable? Low and high hanging fruit Technological complexity Hidden costs, e.g. lost output Scale Market failures, barriers and obstacles Availability of information Financial calculations and availability Organizational structure and culture Technological knowledge and risk Energy and material supply Profitability, risk and realities

  7. Manufacturing Decoupling

  8. Corporate: Iron & Steel Sector Case Studies

  9. Corporate: Paper and Pulp Sector Case Studies

  10. Growing consumer environmental consciousness, even militancy Increasing demands for additional product information Growth of public and private certification and standards Trickle-down processes through value chains Environmental branding is key to the acceptability of certain products Yet, the financial crisis has: Increased the level of unemployment and reduced disposable income Increased the role of price level as the main determinant of purchase Arguably, “enlightened” green consumers are still not a majority of the world-wide population The Greening of Demand

  11. Pricing natural resources Asia’s comparative advantage: “cheap labour” Trade-offs between greening and labour utilisation? Adding value through: Design Product attributes Sophistication Material and energy efficiency Paradigmatic shift in nature of competition at the level of the firm From comparative to competitive advantage

  12. The supply of eco-friendly products The capital vintage problem Economic recovery stimulus packages expenditure in greening? New R&D expenditure in eco-innovation? Share of innovation accounted by eco friendly products? The direction of innovation

  13. Green industries Greening industries Structural shifts and reallocation of resources Where are the investments? Policy imperatives: Dealing with resources at their opportunity costs International coordination of and vision for industrial restructuring International cooperation in transferring technology At national levels incentives need shifting towards more sustainable patterns of production and consumption without affecting local perceptions of wellbeing Ensuring dynamism

  14. Back to Jobs

  15. So, can Asian Green Industries Drive the Economic Recovery? Possibly, provided Barriers are removed Consumers are informed Corporate strategies are shifted Creativity ensues Resources are reallocated Much as it was in earlier industrial revolutions it is at the point of production where changes need to be ‘concretised’. By way of conclusions

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