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1. Does ERA contribute to economic sustainable development?. Today: UK subsidy and external cost £8045 million/year = 12% total food expenditure. External costs fall from 12 to 1-2 % of food price i f: All food organic; Subsidies agri-environmental purposes;
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Today: UK subsidy and external cost £8045 million/year = 12% total food expenditure. • External costs fall from 12 to 1-2 % of food price if: • All food organic; • Subsidies agri-environmental purposes; • Food were locally-sourced or environmentally friendly transported.
Can these figures be transformed to Swedish conditions? • £8045 M/year for UK SEK16 bn for Sweden • SEK 6.4 bn can be saved by localising production and turning it organic. • Localising the production (transport externalities) = SEK 4.2 bn • External production costs: SEK 2.2 bn • Unfortunately there are also costs involved
Socio economic efficient investments • Reductions needed to avoid a further degradation of Baltic Sea: what would this cost? Nitrogen • 50% reduction: SEK12 bn/year • Cost efficiency: Sweden 42% reduction SEK1.5bn. Phosphorous • 50% reduction: SEK 3.2 bn/year • Sweden: 19% cuts SEK 81 M.
Willingness To Pay to combat eutrophication in Baltic Sea • Population in the region: SEK 31.0 bn/year • SEK 21.8 bn for Sweden alone tax payers would experience an increased welfare fighting eutrophication.
Three main measures • Agriculture; • Municipal waste water treatment plants • (Re-)creation of wetlands as nitrogen traps. • Should share of agriculture in the mix of measures increase?
Environmentally sound agriculture contributes to the goals of: • A Non-Toxic Environment; • Zero Eutrophication; • A Varied Agricultural Landscape; • 20 % organically grown acreage; • Sustainable food production; • Sustainable rural development.
Does ERA contribute to economic sustainable development? • High WTP for improved situation at Baltic Sea • Several societal gains achieved simultaneously economically motivated with major measures aimed at organic agriculture • Less obvious that these measures should be directed towards ERA
2. Contribution to sustainable social development of ERA at Järna
Ecosystem resilience The capacity to cope with disturbances without shifting into a qualitatively different state. • Examples: • Baltic Sea, biodiversity has decreased due to pollution and over fishing. • Early in 2005 Sweden was hit by a strong storm. Large impact due to monoculture
Social resilience • The ability of human communities to withstand and recover from stresses • Joseph Schumpeter: “creative destruction” • Examples of low social resilience: • Military regiments closing down, • SAAB Automobile in Trollhättan losing a large contract to Opel • Ericsson moving production facilities to low cost countries.
Social capital • Social capital at local level => national well-being. • Four central aspects: • Trust • Norms • Reciprocity • Networks and connections
Ecological Recycling Agriculture – Järna • Diversity in production and companies => social resilience • High in trust, norms followed, reciprocity expected and well functioning networks • High social capital • Contributes to social sustainability • The companies studies show economic stability => economic sustainable development
Can this be duplicated and introduced at other regions? • Järna very special • High demand of biodynamical food • Elsewhere it is harder to obtain the same prices on food
