Property rights & resource management ASPO conference 2003, Paris Dr Paul E. Metz INTEGeR… consult, NL

The equitable allocation – per capita equal – of environmental user rights 1. a conditio–sine–qua–non for fairness, human rights and sustainable globalisation 2. creates ownership, which brings stewardship and a self-interest to conserve this capital

INTEGeR... consult - for ASPO - May 2003 Paris The 3 economic factors Natural capital Nature Planet Natural capital Nature Planet Human capitalLabour People Human capitalLabour People Financial capital Money Profit Financial capital Money Profit Scarcity -> prices -> substitution

INTEGeR... consult - for ASPO - May 2003 Paris Who owns Nature ? Theocracy – God, but who takes care ? Theocracy – God, but who takes care ? Feudalism – the King or Sheik Feudalism – the King or Sheik Oligarchy – an Elite of friends of King Oligarchy – an Elite of friends of King Socialism – States on behalf of citizens Socialism – States on behalf of citizens Liberalism – Citizens have equal rights Liberalism – Citizens have equal rights Best fit for democracy & free market ?

INTEGeR... consult - for ASPO - May 2003 Paris Natural capital Natural resources Natural resources Finite reserves, stocks, ‘trees’ Finite reserves, stocks, ‘trees’ Traditional ‘hard’ commodities – tonnes Traditional ‘hard’ commodities – tonnes Environmental resources Environmental resources Renewable flows, harvests, ‘fruits’ Renewable flows, harvests, ‘fruits’ New ‘soft’ commodities – certificates, money-like New ‘soft’ commodities – certificates, money-like

INTEGeR... consult - for ASPO - May 2003 Paris Oil and air comparable ? O I L O I L geography, sovereignty simple geography, sovereignty simple global common NO (oceans ?) global common NO (oceans ?) A I R A I R Chief Seattle: How can man own the air ? Chief Seattle: How can man own the air ? global common YES global common YES AIR = supranational natural resource – UN role AIR = supranational natural resource – UN role

INTEGeR... consult - for ASPO - May 2003 Paris How to control environmental resources Ethics – “voluntarily”, “Type 2 partnerships” Ethics – “voluntarily”, “Type 2 partnerships” Legal regulation – legal standards Legal regulation – legal standards Fiscal regulation – green taxes for State Fiscal regulation – green taxes for State Resource trade regulation – cap on use, allocate/auction/give & trade resource/emission allowances – benefits … ? Resource trade regulation – cap on use, allocate/auction/give & trade resource/emission allowances – benefits … ?

INTEGeR... consult - for ASPO - May 2003 Paris Origin of financial capital Savings from income - earn enough ? Savings from income - earn enough ? Heritage - “grandfathering” Heritage - “grandfathering” Loan from friends - rich friends ? Loan from friends - rich friends ? Loan from a bank - have collateral ? Loan from a bank - have collateral ?

INTEGeR... consult - for ASPO - May 2003 Paris “Alternative” collaterals Thomas Paine 1700 society Thomas Paine 1700 society social rent – basic income social rent – basic income Henry George 1900 collective land Henry George 1900 collective land land rent – basic income land rent – basic income Amartya Sen 1980society Amartya Sen 1980society community - non-income social benefits community - non-income social benefits Mohamed Yunus1980 social group Mohamed Yunus1980 social group micro credit - loans for “have-nots” – temporary micro credit - loans for “have-nots” – temporary Governor of Alaska 1980 oil & gas rights Governor of Alaska 1980 oil & gas rights Permanent Fund- annual cheque for each citizen – forever Permanent Fund- annual cheque for each citizen – forever Hernando de Souza 1990 individual land rights Hernando de Souza 1990 individual land rights ‘normal’ credit - new land titles ‘normal’ credit - new land titles Anil Agarwal c.s user rights of nature Anil Agarwal c.s user rights of nature - Earth dividend - for each citizen – forever – worldwide - Earth dividend - for each citizen – forever – worldwide

INTEGeR... consult - for ASPO - May 2003 Paris Creation of Wealth Citizens need access to capital Citizens need access to capital Collateral needed ? Natural resources ! Collateral needed ? Natural resources ! Spreads capitalism democratically : Bush “the oil belongs to the people of Iraq” Spreads capitalism democratically : Bush “the oil belongs to the people of Iraq” Kyoto until 2012 : grandfathered emission quota –> without Dev Countries - USA out Kyoto until 2012 : grandfathered emission quota –> without Dev Countries - USA out Kyoto after 2012 : equity-based, attracts Dev Countries -> USA will follow.... Kyoto after 2012 : equity-based, attracts Dev Countries -> USA will follow....

INTEGeR... consult - for ASPO - May 2003 Paris Earth Dividend Only states can organise “the economy” Only states can organise “the economy” Privatise exploitation global commons within sustainable, dynamic limits Privatise exploitation global commons within sustainable, dynamic limits Private companies compete on ‘good’ efficiency, not on ‘bad’ speculation Private companies compete on ‘good’ efficiency, not on ‘bad’ speculation All citizens are shareholders – cannot sell their share, but are free to go to best buyer for their annual ‘coupon’ All citizens are shareholders – cannot sell their share, but are free to go to best buyer for their annual ‘coupon’

INTEGeR... consult - for ASPO - May 2003 Paris Benefits of Earth Dividend Allocated rights : self-interest to protect Allocated rights : self-interest to protect Applies the Polluter Pays Principle Applies the Polluter Pays Principle Makes emission trade a ‘fair’ trade Makes emission trade a ‘fair’ trade Rewards non-pollution with income Rewards non-pollution with income Is instrument for Sustainable Globalisation Is instrument for Sustainable Globalisation Less-corrupt growth “bottom-up” in SMEs Less-corrupt growth “bottom-up” in SMEs Compatible with free market & democracy & decolonisation – ends “climate slavery” Compatible with free market & democracy & decolonisation – ends “climate slavery”

INTEGeR... consult - for ASPO - May 2003 Paris What does it mean ? IPCC-climate vs. IEA & ASPO scenario’s IPCC-climate vs. IEA & ASPO scenario’s 2 billion non-emitting poor ( ‘no access’ ) 2 billion non-emitting poor ( ‘no access’ ) each 2 ton euro 5,- ( no USA) = 20 billion euro/yr additional ‘ODA’ each 2 ton euro 5,- ( no USA) = 20 billion euro/yr additional ‘ODA’ ditto, with euro 10,- : 40 billion ditto, with euro 10,- : 40 billion 10 or 20 euro /year /capita extra for investment in emission-free machines 10 or 20 euro /year /capita extra for investment in emission-free machines CO2 is only a start, the first ‘common’ CO2 is only a start, the first ‘common’

INTEGeR... consult - for ASPO - May 2003 Paris Research agenda Involve mainstream economists Involve mainstream economists Ethics & political economics ! Ethics & political economics ! Price formation of public goods Price formation of public goods Analyse Alaska Permanent Fund Analyse Alaska Permanent Fund Basic Income, Socio-Eco Tax Reform, Tobin Tax vs ‘charity’ social security

INTEGeR... consult - for ASPO - May 2003 Paris Contact Dr Paul E. Metz INTEGeR… consult, NL Projects“Entrepreneurs for Equity” “Make emission trade a FAIR trade”