Cleaner Technology Projects in Denmark 1996

Environment and Economy on an Industrial Level

Miljø og økonomi på brancheniveau
Arbejdsrapport nr. 58, 1996, Miljøstyrelsen

This report describes a number of interdisciplinary economic terms related to the environment. The use of this method should be seen as one of several tools to prioritise environmental improvements. The description and pricing of environmental issues should not stand alone in the prioritisation but should be included in the overall consideration with other significant aspects before a final weighing of the enterprise. The use of these terms is illustrated for selected industries.

The purpose of describing and relating environment and economics to each other on an industry level is:
To suggest, from calculations of the socio-economic effects, which priority to give to different aspects of the environmental efforts between industries and within each industry;
To facilitate the estimation of how each industry contributes to environmental costs and how it will be affected by green taxes etc.

The descriptions of environment, working environment and economics are based on figures from 1991. It is therefore possible that the industries have undergone some changes.

The report contains information about environment, work environment and economics in the following industries:
Slaughterhouses
Foundries
Freight transportation
Wholesale business
Retailing

The report contains a definition and a description of the following terms: external costs, reduction costs and production costs.

The most important aspects of environmental politics, including discharge of C02, SO2 and NOx, water consumption/waste water, solid waste, working environment and hazardous substances, have been studied in relation to the selected industries. Furthermore, for each industry a scenario has been set up describing the economic and environmental consequences of existing and future taxes, bans, etc.

Finally, for each of the selected industries, the report contains "industry profiles" of economic aspects related to the environment which provide a comprehensive description of environment and working environment conditions within each industry plus an estimate of the socio-economic effects hereof. The industry descriptions are based on easily accessible data and information and in some cases on interviews with relevant persons.

It is the main conclusion of this project that the present work dealing with relations between environment, work environment and socio-economy at the level of the industry is meaningful as it facilitates the establishment of a comprehensive picture that can be useful in several connections. Among other things, the methodology can be used by industries and environmental authorities as a tool for establishing a common basis for industry level agreements.

It is, however, also concluded that some problems in relation to pricing the environment still exist and the methodology used to estimate external costs is uncertain. However, one should see the development of the methodology as an iterative process. The use of this methodology creates an overview that can be used to identify areas where more knowledge is needed.

Author/ institution

Christian Balder, Michael Munk Sørensen og Anders Stouge, COWI

This report is subsidised by the National Council for Recycling and Cleaner Technology.

ISSN no. 0908-9195
ISBN no. 87-7810-664-8