University of Macerata DEFINING GREEN SECTOR: A PRE-REQUISITE TO ANALYZE CHINA-EUROPE COOPERATION IN THE GREEN INDUSTRIES http://www.poreen.eu/ Federico Salvatelli University of Macerata It is a first step of a wider research to analyze green definition, this study is covered in a eu funded project called poreen College of Business, Bryant University November 13 – 15 Providence, RI - USA

The importance of green sector TABLE OF CONTENT Goal of the study The importance of green sector The problem of definition: review of main contributions from 1999 to 2013 A temptative classification of economical activities starting from th italian classification Future steps of research In this section i explain the table of te content, and than, how can we use the definiton to create a real output

Green sector What Why ? is it ? Energy consumption is unsestainable over time; the renewable energy sector has created 2,3 milion of jobs in the world renewable energies, reduction in CO2, green building, clean energies, treatment of waste and wastewater management, sustainable agriculture, fisheries and forests… We start from the idea of green sector To respond to this question…. It is not only an opportunity to improve the qality of life but it is a way to creat jobs, the study shows About what it is green, we have in mind a general idea, but to understan better the meaning of green it is necessary to analyze in depth the literature

The issue of definitions THE ENVIRONMENTAL GOODS & SERVICES INDUSTRY “manual for data collection and analysis” (OECD Eurostat, 1999) THE ENVIRONMENTAL GOODS AND SERVICES SECTOR “a data collection Handbook” (Eurostat, 2009) THE GREEN TECH MARKET IN CHINA “report” (EU SME Centre, 2011) LOW CARBON ENVIRONMENTAL GOODS AND SERVICES (LCEGS) “report 2011/2012” (Department for Business, Innovation and Skills – LONDON, 2013) I present you these 5 handbook with the aim to get similarities and differences

OECD definition The environmental goods and services industry consist of activities which produce goods and services to measure, prevent, limit, minimise or correct environmental damage to water, air and soil, as well as problems related to waste, noise and eco-systems. This includes cleaner technologies, products and services that reduce environmental risk and minimise pollution and resource use (OECD 1999) It was published by …. It represents the mother of the green definition… It is important to have a focalization on the last sentence of the slide, because it is very useful for us. The words minimise and reduction represents the features of green good or service

Environmental technologies Eurostat definition Specific services Adapted goods Eurostat Methodologies and Working papers - 2009 It represent an evolution from the past definition Eurostat introduces 4 different outlook SPECIFIC SERVICES: the aim of it is environmental protection or resource management. For example the solar panel, with the aim to create clean energy ADAPTED GOODS: in this case we consider goods that are less polluting than equivalent goods which furnish a similar utility. Their primary use is not Environmental protection or resource management. CONNECTED PRODUCTS: In particular, it should be noted that products are considered as connected when they serve a specific function even though they are not the output of the activities characteristic of the function. For example the installation of environmental technology when the installer is specialized, the installer of solar panel. ENVIRONMENTAL ACTIVITIES: are technical processes, installations and equipment (goods) and methods or knowledge (services), the technical nature or purpose of which is environmental. For exampe technical processes, methods or knowledge uses in production processes which are less polluting or more resource intensive than the equivalent average technology used by national producers. For example the differences between cars with fuel engines and electric cars or Hydrogen cars. Connected products Environmental technologies

EU SME center definition It follows the definiton of green but we have an immediate categorization, we are able to catagorize if a good or service could be green or not

Department for B&I - UK At last it is very important to evaluate the study of…. It is innovative because because we have an immediate categorization The past definition do not explain better the borderline activities, and for these reason it is necessary to cooperate with professionial in the field of engineering to have a better solution and avoid confusion of differetn activities. Now, it is necessary to use this firts work and have a real output

WE FOUND ABOUT 100 INDICATORS Methodology Bottom-up data model Classification of economic activities from the ATECO list High level of detail: six digit code FROM detailed analysis TO synthetic analysis Start from the italian classification, ateco list, it is a classification… I started from it not because i am italian but because the codes that are covered in it are most detailed if we compare this classification with other european classification, we see that there are the 6 digit codes and the other european classification has 4 digit codes. In this case I could use bottom up aanalysis with the aim to avoid confusion of green definition, despite this precision there are a lot of activities that we consider borderline. About the methodology, I started fro detailed anaylisis but during the work I discovere that I was creating a non real classification beacuse i covered about 80/90% of total codes, to avoid the problem, I changed the approach and i used a syntethic analysis…. WE FOUND ABOUT 100 INDICATORS

TRADITIONAL INNOVATIVE methodology Traditional because use paste deinition Innovative because i used ateco list

The Focus – deep analysis GREEN BUILDING NUCLEAR ENERGY As i said there are diffrent types of activities that we consider borderline, two secific case look GB and NE In the first case building has been build with the aim to avoid heat dispersion but to achieve the goals it could be necessary to destroy forest and three, at this point, what i sthe best solution for te environment?? On the other hand, NE are green for Oecd … but for natural institution, they are not green also in this case, how can we consider it?

Compare Chinese classification with European classification; Future steps Compare Chinese classification with European classification; Select relevant subsectors to analyze Chinese FDI in the green sector; Analyze FDI flows; Survey European and Chinese firms. The next studies areThe next studies are Compare, beacuse it is necessary to have an idea of green chinese sector, i have a cooperation with another chinese phd he is working on the green definiton and at the end we wil compare the two areas Select which firms are green , following the categorization and use the data to analyze fdi, analyze green FDI from china to eu Survey to study better the opportunities and obstacle of firms that enter iin a new market

ECONOMIC GROWTH IS IMPORTANT FOR EACH OF US, BUT IF WE DON’T THINK ABOUT HOW WE ARE DESTROYING THE WORLD, THE MONEY WILL NO LONGER SERVE FOR NOTHING