Environmental Economics Lecture 12: Non-governmental economic systems

Outline Alternative economic systems:  Certifications Overview of assignments:  Extra credit  Report summary first draft Project preparation:  Interviews

What is eco-labelling? Eco-labelling is a method of identifying environmental advantages of a product or service in within a specific product/service category on a label.

Examples of environmental certifications

How does eco-labelling work? “Action at a distance:”  Allows consumers to impact production through market mechanisms  (Does not attempt to solve systematic issues)

Eco-labelling: Key features 1. Non-governmental stakeholders:  Dissatisfaction with the state “bureaucracy” and regulations 2. Added-value (expect to pay more for certified products) 3. Traceability:  Provides information about the qualities of goods and production processes 4. Relies on consumer trust

Three types Type 1:  a voluntary third party program that awards a license to use environmental labels Type 2:  informative environmental self-declaration claims Type 3:  voluntary programs that provide quantified environmental data of a product, under pre-set categories of parameters set by a qualified third party and based on life cycle assessment, and verified by that or another qualified third party

Main critiques Usually represents the most powerful industrial players:  E.g. Stalling GMO labelling in the US Imposes additional burdens to producers (usually in the Global South) Fragmented field:  Difficult to know which labels to follow

Main critiques Greenwashing: 

Group project: How would you build a robust eco-label? Include a life cycle analysis (rather than separate parts) Use an impartial third-party institution that grants and monitors certification Develop transparent criteria and independent monitoring system

History: Wine appellation system First protected vineyard zone was introduced in Chianti, Italy in The Institut National des Appellations d'Origine (INAO) was created within the French Ministry of Agriculture to manage industry in France. The legal system establishing protection of the Côtes du Rhône wine region introduced in The AOC seal, or appellation d'origine contrôlée, developed and mandated by French laws in the 1950s.

BREAK

The Big U Project & Economic Costs of Hurricane Sandy 1. Luis Bayron 2. Radka Horackova 3. Farhad Razaq 20% of your final grade To be submitted by December 2

Extra credit: SIMS fieldtrip (due Nov 18) 1) In preparation for the trip, do additional research the SIMC facility (visit and explore SIMS website and educate yourself about recycling through other websites) 2) Choose one aspect of SIMS operation (e.g. glass recycling; facility management; transportation system; history of recycling in NYC) 3) During your fieldtrip, try to learn more about this issue:  Ask questions  Take photos 4) Write a one page (single spaced) report summarizing your research. Due November 18:  Hard copy of the text is due at the beginning of class  Pictures and the text have to be uploaded to OpenLab by 11:59pm Adds up to 10 points to your exams

Project report draft (was due Nov 18) Refer to handouts for details (Open Lab, under Class Assignments)  1. Research question  2. Findings from secondary research (articles, books, institutional websites)  3. Field site and what you learned about the topic in it  4. Summary of your research findings  5. Your contribution to the research  6. Annotated bibliography

Presentations 10 minutes + 5 minutes discussion PowerPoints ( , USB) Addresses all 5 points from report summary Must attend and participate in discussing your classmate presentations on both days (5% of your class participation points)

Progress report: Field site and interview questions 1. What is your research question? 2. What field site have you chosen for your project and have you already conducted the interviews? 3. What five (5) interview questions have (will) you ask?

Study Guide Questions What is eco-labelling? What are the key features of eco-labelling? What are the main critiques of eco-labelling? How can you build a trusted eco-label? List three types of eco-labels. Explain and provide examples.