Research Professorship Environmental Policy Prof. Udo E. Simonis
FS II 97-404 Industrial Metabolism Extended Definition, Possible Instruments and an Australian Case Study
by
Andria Durney
This report was prepared while on a three months’ internship at the WZB.
Wissenschaftszentrum Berlin für Sozialforschung gGmbH (WZB) Science Center Berlin Reichpietschufer 50, D-10785 Berlin ABSTRACT
The Industrial Metabolism concept is an instrument of process description useful for transforming industry into a sustainable form by basing industrial material and energy flows functions on those typical of a sustainable biological organism.
This report supports an extended definition of industrial metabolism to include considerations of the Industrial Ecology and Material Intensity Per Unit of Service (MIPS) approaches to materials accounting and sustainable development. Political, economic, technological, informational, and social instruments aimed at implementing improvements in industrial metabolism are identified and described.
An Australian case study is included to illustrate the methodology of the extended industrial metabolism concept and to highlight possible key natural and anthropological forces driving industrial material flows. Recommendations for research and priority steps of action towards improving industrial metabolism are discussed throughout the report. ACKNOWLEDGEMENTS
I would like to express my sincere gratitude to the following people without whom writing this report would not have been possible:
Professor Udo E. Simonis for providing inspiration and the opportunity to work with him at the Science Center Berlin, for his guidance and enthusiasm
Sebastian Büttner for his computer wizardry and generous assistance in editing
Petra Barsch for her support, encouragement, excellent sense of humour and impromptu German lessons
Sabrina Möller for showing me the ropes, and for her friendship (and patience!)
Frank Biermann and Carsten Helm for introducing me to Berlin and for helpful advice and support
Tanja Rauch for keeping me motivated and for making me laugh
Stephen Moore for encouraging me right from the beginning and providing valuable advice and information
Professor Robert U. Ayres, Dr. Marina Fischer-Kowalski and Professor Friedrich Schmidt-Bleek for providing generous information
Dr. Peter Mitchell for an insightful land management perspective
I would also like to thank Matthias, Ira, Kai, Martin (for the last-minute airport dash!), the Berlin Greenpeace Energy group, Frau Gillwald, Sabine, Gudrun, the UNSW SEA mob, the Berlin World Music Orchestra, and all of my friends and family. CONTENTS
1.0 Introduction...... 7 1.1 Background Information...... 7 1.2 State of the Art...... 9 1.3 Aims of the Report...... 10 2,0 The Concept of Industrial Metabolism...... 12 2.1 Current Definition of Industrial Metabolism ...... 12 2.2 Contributions from Industrial Ecology and MIPS-Concepts...... 15 2.3 Extended Definition of Industrial Metabolism ...... 21 3.0 Instruments to Improve Industrial Metabolism ...... 24 3.1 Political Instruments...... 24 3.2 Economic Instruments...... 27 3.3 Technological Instruments...... 31 3.4 Informational Instruments...... 33 3.5 Social Instruments...... 35 3.6 Further Areas of Application...... 36 4 0 An Australian Industrial Metabolism Case Study...... 38 4.1 Purpose...... 38 4.2 Methodology...... 38 4.3 Results and Discussion...... 41 4.4 Conclusions from the Australian Case Study...... 77 5=0 Genera! Conclusions and Recommendations...... 80
8.0 Statistical Sources ==«.«..«=...... ECSSXSKSSB ...... 84
7,0 Bibliography...... u...... i s s x K s e s s 88 "The major problems in the world are the result of the difference between the way nature works and the way man thinks." Gregory Bateson Lindisfarne, Long Island, 1976
1.0 INTRODUCTION
1.1 Background Information
The industrial metabolism concept was officially formulated in 1988 during the International Geosphere-Biosphere Programme conference, Tokyo, sponsored by the United Nations University (UNU), the United Nations Educational, Scientific and Cultural Organisation (UNESCO) and the International Federation of Institutes for Advanced Study (IFIAS). It continues to gain international recognition as a theoretical framework useful for investigating the material and energy flows both within industry and between industry and the natural environment. In this report although the word “material” is mainly used, energy flows are also of major importance and can, therefore, also be included in the industrial meta bolism concept. The distinction between “industry” and “the environment” is an artificial one in many regards since neither is totally independent of the other; but for the purpose of this report, “industry” will be taken to mean the processes pertaining to an industrial society which use and impact upon natural resources and ecosystems.
Theoretically, the industrial metabolism concept compares the functioning of typical industrial entities (eg. economic plants or companies) to those of typical biological organisms, each with particular inputs, outputs, regulating processes and links to the wider environment without which they can not live. This concept can be applied at different levels, including the global, national, regional, sectoral, firm, family and individual level, to give a holistic view of the impacts of industrial societies on the natural environment.
7 1.1.1 Scope of the Industrial Metabolism concept as applied so far
Industrial societies today face serious problems of resource constraints, excessive waste and pollution, and in many cases are destroying non human species and natural ecosystems. The industrial metabolism concept can be applied to improve the "metabolism" of industry so that it resembles most closely that of a sustainable biological organism, with low material input, throughput and output. It can be used as a framework to identify sources and sinks of major material and energy flows resulting both directly and indirectly from economic activities, and to estimate the magnitude, rate, composition and direction of these flows (see for example, Stigliani and Jaffe, 1993). Relative environmental impacts of such material flows can then be assessed, and further investigation can identify spatial and temporal interactions between material flows and anthropological forces which drive them. Multidisciplinary industrial metabolism studies can act as a source of information and communication for all interested groups in their efforts to transform industrial societies into ecologically sustainable forms (Fischer-Kowalski, 1996).
1.1.2 Major approaches incorporated in the Industrial Metabolism concept
Major philosophies or methodologies of environmental management are closely related to the concept of industrial metabolism, particularly:
• precautionary environmental management (O’Riordan, 1994); • preventing media-, product-, process-, time- or country-shifting of environmental problems; • reducing materials and energy consumption of industrial society; • pollution prevention; • "cradle-to-grave" methodology (Life Cycle Analysis); • reducing the dissipative use of materials and the use of toxic materials; • employing cleaner and more efficient technology; • utilising "waste" and promoting re-using, repairing, and recycling of products and materials in an effort to close material cycles.
8 1.2 State of the Art
1.2.1 Improving material accounting procedures using the Industrial Metabolism concept
Many material accounting and environmental management procedures use ad-hoc reactive procedures in attempting to alleviate already existing environmental problems, but fail to address the temporal, cumulative, socio-economic and political aspects of industrial material flows (Ayres, 1991). Applying the industrial metabolism concept can overcome such limitations and encourage pro-active environmental management, by identifying:
• social, economic and political factors influencing material flows. This information can then be used to monitor, evaluate and reassess instruments applied to improve industrial metabolism; • sources and sinks of material flows both within industry and between industry and the environment, at different levels. Using a more holistic and comprehensive model of material flows than conventional reductionist methodology can reduce the shifting of environmental problems from one country, medium, time, product or process to another; • diffuse sources of material flows which are considered to be more ecologically significant than point sources of material; and • information gaps in material flow analyses, especially regarding outputs of the industrial system.
The industrial metabolism framework is also useful since it measures materia, flows in physical units, and so can account for flows which do not have direct economic value, in contrast to materia, accounting procedures which use monetary units only. It can also simulate temporal pollutant emission trends, cumulative deposition and, theoretically, the combined material flows of all economic sectors, industrial metabolism studies can thus provide an information base for predicting and evaluating the effectiveness of proposed environmental management strategies.
9 1.2.2 Major Industrial Metabolism studies conducted so far
To date, industrial metabolism studies have focused largely on flows of individual industrial "nutrients" (such as heavy metals, hazardous wastes and chemical pollutants), with the goal of reducing chemical pollution by improving technology and restructuring the economy. The major studies listed below have concentrated on chemical element or compound flows regionally or nationally:
• Regional level: - Rhine Basin (Stigliani and Jaffe, 1993; Ayres and Simonis, 1994, chapter 6); - Swiss Lower Bünz Valley (Ayres and Simonis, 1994, chapter 8); - Theoretical METALAND region (Baccini and Brunner, 1991).
• National level: - Austria (Steurer, 1992); - Sweden (Ayres and Simonis, 1994, chapter 6) - United States (Ayres and Simonis, 1994, chapters 9-11).
1.3 Aims of the Report
The three major aims of the report are: (i) To extend the concept of industrial metabolism by considering two other major material accounting methods: Industrial Ecology and MIPS; (ii) to provide an overview of possible instruments which could be used to improve industrial metabolism; and (iii) to clarify methodology and application of the industrial metabolism concept using an Australian case study.
The report is modest in its scope and does not attempt to decree which instruments should be used nor give a complete account of Australia's industrial metabolism.
10 Considerations which are beyond the scope of this report, but which are nevertheless significant, include: • the effect on international trade relations of improving industrial metabolism by reducing raw material consumption; • the effects of import-export material flows on other countries’ industrial metabolism; • considerations of equity, employment and distribution of implement ing a more efficient industrial metabolism; • the legitimacy of non-industrial economies to strive for an ecologically and socially just world (Allenby, 1992).
11 2.0 THE CONCEPT OF INDUSTRIAL METABOLISM
2.1 Current Definition of Industrial Metabolism
Industrial metabolism has been defined as follows:
"The metabolism of industry is the whole integrated collection of physical processes that convert raw materials and energy plus labour, into finished products and wastes in a (more or less) steady-state condition." (Ayres, in Ayres and Simonis (1994:3))
Figure 1 illustrates the interactions both within industry and between industry and the environment according to the industrial metabolism concept (Ayres and Simonis, 1994). This scheme of industrial material cycles is analogous to the four-box bio-geo-chemical cycles scheme: the natural environment, raw materials, productive capital and final products are said to correspond respectively to inorganic, nutrient, biomass (living), and bio-products (non-living) material flows (Ibid, 1994).
12 Figure 1: Interactions Between Industry and the Environment According to the Industrial Metabolism Concept
respuanon, transpiration ( canon cycle, nitrogen cycle ) for Scenery; combustion » Environment conditioning « Households & > Personal consumption «
rain
Water Biota decay surface, disposal algae worms gmiinri bacteria insects orga fungi birds nisms
recychng
from Agriculture & forestry hunting, public fishing, or cahivaioo& grazing unowned on land private had common land to ground water, rain landfills, soil organisms, pests, etc. oceans photosynthesis
Source'. Ayres and Simonis (1994:4)
Major differences exist between ecologically sustainable biological systems, and environmentally-destructive industrial systems. Eliminating these differences may transform industry into an ecologically-sustainable form (see section 2.2.1). Husar (in Ayres and Simonis, 1994), for instance, shows how the large physical separation between producers, consumers and recyclers, and dominance of consumers in the industrial system is unsustainable when compared to a typical ecosystem. Table 1 lists the
13 major differences between the given industrial and sustainable biological systems as identified by Ayres and Simonis (1994):
Table 1: Major Differences Between Industrial and Ecological Systems
SUSTAINABLE BIOLOGICAL SYSTEM CURRENT INDUSTRIAL SYSTEM * sophisticated nutrient recycling by * very low level of material recycling, decomposers vast quantities of “wastes” * physical proximity of producers, * physical separation of producers, recyclers and consumers recyclers and consumers * low nutrient mobilisation rate * high nutrient mobilisation rate thus nature can not respond to disturbances in time * steady-state: compartment stocks * not steady-state: resource stocks are kept in balance on average decreasing, waste and anthropo- sphere stocks are increasing rapidly Source: Ayres and Simonis (1994)
Comparing industry to a living organism, the "nutrients" of the industrial organism are the raw materials and energy inputs used to produce certain products and services. The "wastes" of the industrial organism are all the undesired outputs of the economic system, such as pollution, and hazardous, toxic and other wastes. The industrial meta bolism concept uses materials (mass) balance principles to investigate the environmental impact of human-induced material flows, and examines material flows at all major stages in the life of a particular product, material or process as illustrated in Figure 2.
Hence the industrial metabolism framework is broader than the typical Life Cycle Analysis approach, which tends to concentrate on a rather limited number of life stages for individual products only (Bringezu, 1993c).
14 Figure 2: Major Life Stages of a Product, Material or Process Considered in the Industrial Metabolism Framework
i Exploration and Extraction
11 Manufacturing, Processing (Transformation)
ill Infrastructure: Building and Maintenance
IV Packaging
V Distribution and Trade
VI Consumption
Vll Recycling, Re-using andRepairing
Vlll Disposal and Dissipation
2.2 Contributions from Industrial Ecology and MIPS- Concepts
The following section outlines how two other major approaches to material accounting - Industrial Ecology and MIPS - can contribute to the industrial metabolism concept. These two approaches can compliment the industrial metabolism concept by enabling a broader range of material flows and related anthropological forces to be investigated.
15 2.2.1 Industrial Ecology
Industrial Ecology initially viewed the economic firm as an agent of environmental change and analyses of industrial material flows were conducted on the level of individual firms or specific industries. The industrial metabolism concept, on the other hand, views the industrial system as the focus of change for long-term planet sustainability. Socolow et al.(1994) extended the Industrial Ecology definition to include both the original Industrial Ecology concept and the industrial metabolism concept, so that global industrial material flows could be investigated and transformed through structures and institutions at all scales.
Allenby gives an even broader definition: "Industrial Ecology...is the means by which a state of sustainable development is approached and maintained" (Allenby, 1992:57). He emphasises the need for multi-disciplinary research, for encouraging local traditions, cultures and economies and for developing prioritised steps towards achieving sustainable development.
Figure 3 outlines the possible progressive transformation of industry into a sustainable form, based on the evolution of biological organisms as presented in the Industrial Ecology literature. Industry is currently at an unsustainable "Type I" stage, acting as if sources and sinks were unlimited. The long-term goal of Industrial Ecology is to transform industry into the ecologically sustainable "Type III" organism, with near-complete cycling of all materials and a population growth levelling off to carrying capacity of nature, as shown in Figure 4.
Industrial Ecology today, to my mind, is a broader concept than industrial metabolism since it aims to consider all economies - both industrialised and non-industrialised - as well as a wide range of material flow-inducing anthropological forces. Hence, industrial metabolism could be a valuable tool to use within the more comprehensive Industrial Ecology framework.
16 Figure 3: (a) Linear, (b) Quasicyclic and (c) Cyclic material flows in Ecology Types 1,11, and III
unlimited ,z ecosystem 'L unlimited resources “ ^ 1 i component waste (a)
ecosystem component
energy and limited limited waste resources
\ ecosystem ecosystem / s component component ,
(b)
Source: Socolow et al. (1994:25)
17 Figure 4: The Sustainable Type III Model of the Industrial Ecosystem
limited resources
Source: Socolow et al. (1994:27)
2.2.2 Material Intensity Per Unit of Service (MIPS)
Studies conducted at the Wuppertal Institut in Germany led by Schmidt- Bleek define an indicator called Material Intensity Per Unit of Service (MIPS) as an initial proxy to estimate and compare the ecological impacts of goods and services (e.g., Schmidt-Bleek, 1994a). The goal of these studies is to promote the "dematerialisation" of industrial society, while maintaining the standard of economic services provided.
MIPS studies to date have mainly focused on: reducing the magnitude of material flows, by a factor of ten for industrialised countries and a factor of two for "developing"
18 countries, based on their different financial and other resources (these figures have now been somewhat modified); • restructuring the economy to substitute highly material-intensive services for dematerialised services (since services, not goods, are considered most important for human economic welfare); and • including estimates of ecological rucksacks when assessing the environmental impacts of different services.
Ecological rucksacks are those material flows which occur as a result of economic activities, but which currently have no direct economic value. Examples of ecological rucksacks are listed in Table 2.
Table 2: Examples of Ecological Rucksack Material Flows
ECOLOGICAL RUCKSACK EXAMPLE
* Materials dislocated without direct Rainwater diverted by sealed economic utility surfaces, groundwater extraction to allow drilling and mining, wastes and overburden in mining
* Materials dislocated for agri Erosion from ploughed soil and cultural and infrastructural lumbering, earth displacement for purposes without forming road, tunnel and dam industrial products construction
* Geological raw materials and Sand dredging, gravel and building materials mineral extraction, energy carriers and ores
* Details of air and water flows Air and water flows occurring at all life stages of an industrial process
Source-. Schmidt-Bleek (1994a)
Translocated (or dislocated) materials are typically much greater in magnitude than material flows which directly create wealth, and have very significant impacts on the environment. Figure 5 clearly illustrates this using the example of mining in former Western Germany.
19 Figure 5: Translocated Masses During Mining in Germany (West) 1990
Source'. Schmidt-Bleek and Bringezu (1994:3)
As an indicator of environmental impact of economic services according to material intensity, MIPS has valuable contributions to make to industrial metabolism methodology. MIPS calculations estimate ecological rucksacks, the level of materials stocked in the anthroposphere, and eventually may also be able to measure the ecological impacts of exports and imports. Figures 6 and 7 indicate the detail of material flow analysis covered by MIPS studies, including ecological rucksacks.
20 Although incorporating MIPS methodology into the industrial metabolism framework may complicate calculations, in order to provide more reliable indicators of a region’s or nation’s industrial metabolism, it is useful to include estimates of ecological rucksacks, exports/imports and stocked materials. Including MIPS calculations may also help to build bridges boundaries between the industrial metabolism framework and related materials accounting procedures such as Life Cycle Analysis and Resource Intensity Analysis (Bringezu, 1993c)1.
2.3 Extended Definition of Industrial Metabolism
The industrial metabolism concept could thus be applied within the broader Industrial Ecology framework, and could include some MIPS methodology, enabling a more comprehensive analysis of human-induced material flows to be made, including those which have no direct economic value, but significant environmental impacts. An extended definition of industrial metabolism which fits within the Industrial Ecology framework and incorporates MIPS methodology could be:
Industrial metabolism is all human-induced physical processes in an industrial society which convert raw materials, energy and labour into economic products, services and wastes, including material flows which have no direct economic value, but significant environmental impacts, and/or which cross national boundaries.
1 For details of MIPS methodology see Bringezu (1993b) and Schutz and Bringezu (1993); for economic considerations of MIPS see Welfens (1993) and Hinterberger (1993); for details of system definitions see Lehmann and Schmidt-Bleek (1993) and Bringezu (1993a,b); for specific resource management questions (e.g., transport, mining, agriculture) see Kranendonk and Bringezu (1993), Liedtke (1993), Stiller (1993), Eisner (1993a,b), Schmidt- Bleek and Bringezu (1993), Liedtke et al. (1993); for resource development priorities and MIPS eco-design see Schmidt-Bleek (1993b) and Tischner and Schmidt-Bleek (1993).
21 Figure 6: Material Flows in the Anthroposphere using MIPS Methodology, Showing Sources, Sinks and Processes
r Climate GEOLOG. RAW M A T E R IA L S U P P L Y c $ Soil
{ c ) Cultivation
i ( — D
1 Transport x:
£ Sources £•
Sales-rackaging I ® Sinke ♦ ® = i © Sorting O u t Sellable SP.-Waste Product ——
^Goo Jsj Stonge
Distribution / Trade•) => D.-Waste
^ yr- f Maintenance / Sorted Out M.-Waste Repair J G o oes -> Goods
ÜjGoodsl
c Profit / Service J => S .- W a s te
22 Source: Lehmann and Schmidt-Bleek (1993:417) Figure 7; Material Flows in the Anthroposphere Including Ecological Rucksacks and Materials Recycling
INTERMEDIATE PRODUCTS RAW MATERIAL
O v e rb u rd e n
RECYCLING • ■—> R .-W a s te . b Ä
E -W a s te ~ x . I is P A .-W a s te ' J r sorting J I SORTING WASTE (re-manuraeturing) WASTE — V i ------— - S P .-W aste fc>5
S o rted O u t . G o ods
S.- W is t e
Source'. Lehmann and Schmidt-Bleek (1993:418)
23 3.0 INSTRUMENTS TO IMPROVE INDUSTRIAL METABOLISM
"Instruments" of environmental policy are “measures which are designed to help attain the objectives of environmental policy” (ECGB 1995:65). The policy instruments considered in this report are classified as economic, political, technological, informational, or social instruments. There is a growing interest in the application of new instruments, but little practical evidence exists so far on their relative effectiveness in achieving environmental policy objectives (Anderson, 1994). What is generally agreed upon, however, is that no instrument alone can achieve the desired objective, instead a certain mix of instruments is needed (Jänicke and Weidner, 1995). The mix of instruments chosen will depend on the structural, temporal, geographical, political, and social context of a certain environmental problem.
The following section outlines instruments which could be used to implement improved industrial metabolism. No attempt is made to select specific instruments for use, but a rough evaluation of factors to consider when choosing them is provided by a review of current literature.
3.1 Political Instruments
Political instruments are also termed “regulatory” or “command and control” instruments. These are the traditional tools of environmental law and government intervention and are still most commonly used today to promote the protection of the environment. Regulatory instruments can be classified according to the following (ECGB 1995, and Fisher et al., 1995): Rules'. prescribe a certain behaviour to be followed, eg. product take-back and end-life-return obligations for producers/- sellers. Prohibitions.forbtä certain types of behaviour in the interest of protecting a third party - in this case the environment, eg. banning certain types of products, substances or technologies. Standards', for products or processes. These can be technology-based orperformance-based standards, or involve bans. Another term for “uniform standards” which is frequently used is “command-and-control” regulations.
24 3.1.1 Some advantages of political instruments
Advantages of political instruments identified in the literature are that they: • produce rapid results and provide more security that environmental policy objectives will be met (as long as enforcement and implementation is adequate),which is especially important for toxic and hazardous waste management (Enquete, 1995); • have predictable outcomes (in the absence of outside forces imposing changes) and so make management easier for companies (Ibid, 1995); • have been applied to many environmental problems and are the most familiar instruments to most people (Op. cit, 1995); and • have been the main type of action in recent successful environmental policies, with governments being the main actors in two-thirds of the relative "success" cases examined (Jänicke and Weidner, 1995).
3.1.2 Some disadvantages of political instruments
Limitations of political instruments in meeting environmental policy objectives are: • expensive administration, compliance monitoring and enforcement programs (Fisher et al., 1995); • inefficient allocation of “rights” to use the environment (mainly as a sink for pollution) to interested parties (Enquete, 1995); • may not provide incentives for polluters to meet government standards in a more cost-effective manner than previously (ECGB 1995); • provide only limited incentives for polluters to reduce their pollution levels (ECGB 1995); and • standards, especially technology-based standards, inhibit innovation of cleaner technology and better environmental performance, thus dynamic incentives are needed (Fisher et al., 1995).
There are many cases where the intervention of government has actually generated pollution and exacerbated environmental problems.
25 Andersen (1994) shows that state (government) failure is as significant in generating pollution as market (economic) failures. He shows how this failure is due to the fact that both government bureaucrats and industries tend to pursue vested interests, and are also due to the similarly centralised structure of industry and government. These failures result in complex solutions to problems being ignored and preventative policies being replaced by expensive solutions designed to combat symptoms rather than causes of environmental problems (Andersen, 1994).
Discussion of such limitations is useful for addressing the different sectors of industrial society as effectively as possible, without sacrificing environmental policy objectives. Political instruments’ effectiveness can be improved by (Jänicke and Weidner, 1995): • announced intervention - creating learning situations to stimulate anticipatory action by innovators; • strategic timing of intervention; • openness and flexibility regarding situational changes and learning processes (this is thought to be well-developed in Japan); • informational intervention - since the informational dimension of instruments may be more important than their specific nature.
The Enquete Commission (1995) proposes re-regulation of licensing procedures to improve legislation and procedure efficiency in achieving environmental objectives. It recommends the following priorities for a materials control policy (to improve industrial metabolism): 1. Reduce the volume of material flows (to reduce volume and number of pollutants and other environmental impacts of material turnover). 2. Reduce material inputs and pollutant emissions of material flow processes by using closed cycles (increasing recycling, re-use, "environmentally sound" use of substances, depending on type and purpose of substance. 3. Ensure degradability of released substances. 4. Make information on hazardous properties, applications and chains of substances available or "transparent".
26 Special consideration should be given to substances which are released in very large volumes, and which are particularly damaging to the environment.
3.2 Economic Instruments
The idea of using economic instruments to meet environmental policy objectives is becoming increasingly popular, in response to recognition of state failure in this regard (eg. OECD, 1994b). Resistance against the use of economic instruments does not only come from industry, who find the command-and-control policies to be more familiar and less expensive, but also from environmentalists who fear that "pollution-pricing" will simply allow industry to pay for polluting rather than preventing pollution (Andersen, 1994). Economic instruments could be useful in achieving environmental policies, if used together with the right mixture of other policy instruments, although little empirical evidence exists regarding their performance in the complex and "imperfect" state and market situation (OECD, 1994b).
Economic instruments can be classified into the following five main groups (Tisdell, 1993): (i) Environmental (or Resource) Taxes'. Such taxes are aimed at reducing non-renewable resource use and pollution production. Optimally, the resulting revenue would be used to subsidise ecologically sustainable technologies and practices. Currently nitrous oxides are taxed in Sweden and sulfur oxides are taxed in France (OECD, 1994b). (ii) Charges: Economic charges can be introduced for the use of air, water and land as pollution and waste sinks. Emission charges are charges on the quantity and quality of pollutant emissions. Product charges are charges on highly polluting products, determined by composite materials or the product itself, and applied to the manufacturing, consumption and/or disposal phases of production. User charges and administrative charges are also possible (OECD, 1989).
27 (iii) Marketable Permits (also called "tradeable pollution permits" or "emissions trading"): These are pollution quotas, permits or ceilings allocated by a designated authority either by auction or on the basis of historical use, GNP, or per capita. The authority can offer them free of charge or for sale or lease. If one party does not pollute as much as it is permitted, it can trade or sell its permits to another polluting party, within the limits laid down by the authority (Simonis, 1994b). The United States uses this approach to reduce sulfur oxides, lead and other emissions. (iv) Deposit-Refund Systems: Such systems are designed to insure against non-compliance with an environmental requirement. To be effective the deposit should exceed the cost of preventing or “curing” environmental damage. The main objective of such systems so far is to encourage product re-use and recycling. The best-known example is deposit-refund systems for beverage containers. (v) Subsidies: With some subsidies governments and agencies pay economic actors to improve their environmental performance. Financial assistance can be given as grants, soft loans and tax allowances. Subsidies have the disadvantage of conflicting with the "Polluter Pays Principle" and many currently work against environ mental protection, for instance subsidies on coal, cattle ranching, water and fertiliser use, "below-cost" timber sales etc. (OECD, 1994b).
3.2.1 Some advantages of economic instruments
Among others the following advantages of economic instruments have been identified in the literature: • potential to raise revenue; • can provide incentives for environmentally sound behaviour; • are largely cost-effective; • give economic actors the freedom to choose how to respond to the instrument applied (except with subsidies); • allegedly have automatic adjustment, ie. in theory polluters reduce their emissions as soon as the cost of abatement equals the rate of a tax or charge.
28 3.2.2 Some disadvantages of economic instruments
Major weaknesses of economic instruments in achieving environmental policy objectives are seen to be: • inefficient in allocating "rights" to use the environment; • limited incentives to reduce pollution load; • inadequate in dealing with urgent environmental problems such as toxic wastes and irreversible developments; • frequent adverse economic side effects, such as distributional effects (Dietz and van der Straaten, 1994; for equity and social considerations see Banuri et al.,1995). • the perception of economic instruments as the “right to pollute”; and • resistance from polluters who do not want to pay additional levies.
Table 3: Necessary Conditions for Effective Use of Economic Instruments
CONDITION Knowledge • Of how economic activity affects the environment. • Of how changes in the environment affect economic activity. • Of how to formulate and implement incentive programs. • Of how to respond appropriately to regulations. Legal Structure • Ensure clear and enforceable property rights in resources. • Provide legal authority to use economic instruments. Competitive • Reasonable number of buyers and sellers. Markets • Prices are responsive to changing conditions of resource scarcity. Administrative • Capacity to design and initiate economic incentive Capacity programs. • Capacity to monitor compliance with programs. • Capacity to enforce compliance. Political • Capacity to overcome resistance to economic incentive Feasibility programs. • Responsiveness to stakeholders. Source'. Simonis (1992)
29 Tables 3 and 4 illustrate some necessary conditions and evaluative criteria for the effective use of economic instruments in environmental policy respectively. (For impacts of "uncertainty" on environmental policy using economic instruments and recommendations on which instruments to use under certain conditions see Batabyal, 1995).
Table 4: Evaluative Criteria for Economic Instruments in Environ mental Policy
CRITERIA CHARACTERISTICS Effectiveness • Degree of success in achieving environmental objectives (eg., reducing emissions to a target level). Efficiency • Degree of success in achieving objectives at the lowest possible costs. Equity • Degree of success in achieving objectives with a fair and ethical distribution of costs within the current generation and between current and future generations. Flexibility • Ability to adjust the instrument in response to changing economic, technical and political conditions. Source'. Simonis (1992)
In the literature it is generally recommended to apply an integrated set of economic instruments, and instigate an “ecological tax reform” (Weizsäcker et al., 1992). Such a reform would tax resource use (or material intensity) and “recycle” these taxes as a decrease in labour taxes. It is believed that such a reform would decrease pollution, material intensity, and unemployment. Andersen (1994), however, describes how "proper (or ordinary) green taxes”, which are not earmarked, only benefit governments financially without significantly decreasing waste. As a more effective alternative he proposes the use of "ear-marked taxes", since they do not violate the Polluter Pays Principle and are a second-best solution to user payment. (O'Riordan, 1994, provides more details on how environmental taxes can meet environmental policy objectives, Bruggink and Verbruggen, 1994, discuss how to implement ecological taxes, and Welfens, 1993, outlines how economic instruments can encourage the dematerialisation of industry.)
30 3.3 Technological Instruments
The major technological focus of industrial metabolism studies so far has been on the following strategies: • dematerialisation (e.g., Ayres, 1995 and Welfens, 1993); • recycling, re-using and repairing (e.g., Ayres and Ayres, 1994); • waste mining (e.g., Ayres and Simonis, 1994); and • reduction in dissipative use of materials (e.g., Baccini and Brunner, 1991).
Such strategies would reduce input, throughput and output of material flows, and aim to close the materials cycles, thereby reducing environmental damage while still providing desired services.
Technological instruments to improve industrial metabolism proposed include the following:
(i) "End-of-Pipe"-Technology • allowing "low-availability" use and production of cadmium-containing products, or dispose of surplus cadmium in landfills (Stigliani and Anderberg, in Ayres and Simonis, 1994); • removing sulfur from fuels and flue gases and dispose of them in landfills (Husar, in Ayres and Simonis, 1994); and • attempting to secure landfills against leaching, and form "mono landfills" to subsequently allow particular waste mining (Ayres and Simonis, 1994).
(ii) Clean(er) Technology • improving combustion technology to reduce production of nitrous oxides (Husar, in Ayres and Simonis, 1994); • improving smelters, boilers, furnaces etc. to decrease heavy metal emissions from coal and fuel oil combustion (Ayres, in Ayres and Simonis, 1994); • improving energy and fuel efficiency; • designing cars for recycling to reduce heavy metal mobilisation currently occurring with shredders (Stigliani and Anderberg, in Ayres and Simonis, 1994).
31 (iii) Structural Change • eco-restructuring, i.e. delinking basic polluting industries from the growth of the Gross National Product (Simonis, in Ayres and Simonis, 1994); • encouraging the formation of eco-industries - which use less materials, energy, land, transport, and produce less waste and risk (Jänicke et al., 1994, and Ayres, 1991); • focusing on the most efficient and least resource-intensive forms of transport, and decreasing transport activity overall (Stiller, 1993).
(iv) Material Substitution Examples outlined by Ayres and Ayres (1994) include: • substituting PVC for cast iron or copper water/sewer pipe in buildings; • replacing CFCs with HCFCs or HFCs in air conditioners and refrigerators; • substituting optical fibres (glass) for copper wire for point-to-point communications; and • substituting aromatics and alcohols (e.g. MTBE) for tetrahetyl lead as octane enhancers in gasoline. v) Eco-Product and Service Design Hinterberger et al. (1994) present a useful list of criteria for designing eco efficient products. Design/production factors considered include reduction in size, weight and land use, prioritising renewable material use and ease of recycling. Operational/maintenance factors considered are multi functionality, multi-usage, self-controlling, improved quality, reduced fashion sensitivity and longevity. Eco-efficient services are also described and include (eco)-leasing/rent, pooling and sharing, system optimisation and income-insurance.
For further details on improving recycling see Young and Sachs (1994) and OECD (1994 d); for energy efficiency applications see Schipper (1991), and Mills et al. (1991); for pollution prevention and clean(er) technology see US Congress (1994), Georg et al. (1992), OECD (1994 c), and WRI (1994, Chap. 12).
Such technological instruments would need to be used in conjunction with political, social and economic instruments to ensure that root causes of environmental problems are addressed. Andersen (1994) describes the evolution of technological environmental policy strategies, from “Removal
32 Dilution” to “Preventative Structural Changes” (although all strategies are still used in practice today). Preventative strategies1 aimed at changing technological structures are considered to be the most economically efficient and to provide the best dynamic incentives for environmental protection (Simonis, 1988, Jänicke and Weidner, 1995, and Andersen, 1994).
3.4 Informational Instruments
Informational instruments are especially important in reducing uncertainty, and improving the efficiency, comprehension and effectiveness of industrial metabolism policy strategies. They are also important in reducing the time-lag between problem recognition and control (Stigliani and Anderberg, in Ayres and Simonis, 1994). Arrangements to provide information on the quantity and composition of industrial material flows are basic to all types of informational instruments (ECGB 1995).
Informational instruments considered in this report can be classified in the following way:
(i) Data Improved and additional data on material flows at all industrial stages, at different levels and for outputs as well as inputs are necessary. Priorities for data development to improve industrial metabolism have been identified as follows: • data on the output side of material flows: especially cumulative, dissipative, hazardous and toxic wastes and long-term effects of wastes (Baccini, 1993); • information on the composition of goods: supplementing financial book-keeping with material book-keeping (Simonis 1994; Stigliani and Anderberg, 1993); • material consumption data and emission coefficients for industrial activities (Liedtke, 1993); • ecological impacts after disposal (Ayres and Ayres, 1994); • data on ecological rucksacks and translocated masses, both within a national industry and economy, and associated with exports and imports (Schmidt-Bleek, 1994).
1 For a useful outline of the differences between curative and precautionary approaches of environmental policy see Simonis (1994).
33 Indicators of ecological sustainability would also be useful for evaluating whether or not the industrial metabolism of a region or nation is improving. MIPS may provide an indication of the sustainability of certain industrial services, products and processes, and other possible indicators may include the level of recycling, the proportional use of renewable resources, or the level of biodiversity and habitat conservation within industrial society.
(ii) Research Research is needed to improve industrial metabolism methodology, to locate the driving forces of material flows, and to identify better ways and means of closing the materials cycle and reducing industrial material flows. Priority research areas are:
• locating key anthropological forces which induce material flows (Allenby, 1992); • determining the appropriate choice of policy instruments in a given context, and ways to limit their adverse side-effects; • designing methods to take into account the uncertainty inherent in studies of material fluxes (Brunner et al., 1994); • ways and means to close the material cycles (Ayres and Ayres, 1994); • the land use associated with goods and services (Liedtke, 1993); and • harmonising terminology of industrial metabolism studies with other major material accounting and life-cycle analysis approaches (Bringezu, 1993a).
(iii) Voluntary Activities
Voluntary activities may encourage a proactive approach of industry to environmental protection and provide material flows information to the government and the general public. Voluntary activities which could be used to promote a more sustainable industrial metabolism include , among others (ECGB, 1995:79):
• in-company environmental reporting systems (like life-cycle and product-line analyses); • cooperative ventures between industries, and voluntary commitments between companies and local residents; • environmental information for consumers.
34 Many authors strongly recommend to apply such informational instruments before further environmental damage occurs and without waiting for risks to be scientifically proven (precautionary approach). Informational instruments are especially important for industrial metabolism since the concept is still in the early stages of application.
3.5 Social Instruments
The term social instruments is used to cover a broad range of instruments aimed at identifying and dealing with major social forces affecting material flows and at enabling effective public participation in improving industrial metabolism. Such instruments are especially important since public pressure on government and industry, and public "will to act" are major forces determining which environmental objectives are pursued, how and with what success (Jänicke and Weidner, 1995).
Ample opportunities exist to support the transition to an ecologically sustainable lifestyle using social instruments (see for instance Seymour, 1987). Examples are: • eco-urban restructuring, including improved public transport and cycling and pedestrian access (Hahn, 1994, and Hahn and Simonis, 1994); • environmental education at all levels aimed at changes in perceptions, values and practices; • public involvement in decision-making and access to information on material flows (e.g. composition, toxicity, material intensity), and rights of legal action (ECGB 1995); and • providing infrastructure to support change in individual or household consumption patterns: institutions, information services, opportunities for shared services (such as car-pooling and the organised sharing of household equipment such as washing machines, lawn mowers, cameras etc.).
Social instruments can be used to encourage an informed change in perceptions and values, so that non-material needs - such as relaxation, recognition, meditation, etc.- can be met in a non-material manner. This would help address the underlying social causes for high and growing levels of consumption in industrialised nations (Wachtel, 1989), and would thus enhance the implementation of an improved industrial metabolism.
35 3.6 Further areas of application
Other areas exist in which the goal of reaching an ecologically sustainable industrial metabolism could be pursued, including institutions, management, industrial cooperation, employment opportunities, and environmental networks.
(i) Institutions Institutions are needed to promote education, data bases, and research centres concerning industrial metabolism. These could be used to extend exchange of information to support social transition towards sustainable consumption patterns globally. Independent institutions have proven to be very effective in implementing environmental policies, as seen in the case of Brazil dramatically reducing its pollution levels (UNEP, 1992).
(ii) Management An important case of improving industrial metabolism is for life-cycle management to replace waste management in firms, and to internalise environmental values within design and production (Socolow et al., 1994). Examples of appropriate management include good housekeeping, maintenance and operating procedures, and product and process reformulation (US Congress, 1994).
(iii) Industrial Cooperation Under industrial cooperation schemes, firms cooperate to prevent pollution, and decrease waste and material consumption. This method is growing in popularity since companies in the same industry or process can benefit from joint Research and Development grants, from sharing ideas on how to decrease waste and to increase energy and materials productivity. Industrial cooperation is currently growing in the United States and among the European countries (Socolow et al., 1994, US Congress, 1994).
(iv) Ecological Employment Opportunities Many examples of new markets and jobs for ecologically sound goods and services exist, jobs in recycling and waste management, and new services in research, education, design, and repair (Jänicke, Binder and Mönch, 1994). As mentioned earlier, shifting the burden of tax onto
36 resource use and pollution instead of labour would simultaneously increase employment opportunities and reduce environmental pollution.
(v) Networks Networks could be used to coordinate information and activities aimed at improving industrial metabolism by reducing material input, throughput and output, and improving recycling in industrial systems (e.g., Allenby, 1992). They could pressure government and industry to pursue measures to improve industrial metabolism, and provide accessible and detailed information on material flows and waste management through the Internet, for example. Such networks could cover non-govemmental organisations (NGOs), public/private partnerships, branch cooperation, and information on transnational corporations.
37 4.0 AN AUSTRALIAN INDUSTRIAL METABOLISM CASE STUDY
4.1 Purpose
The three main reasons for providing a case study of industrial metabolism in Australia are: (i) to demonstrate the methodology of the extended industrial metabolism concept at the national level; (ii) to indicate major factors influencing a nation's Industrial Metabolism; and (iii) to illustrate data and research needed to evaluate and improve a nation's industrial metabolism.
Australia is chosen for its unique physical, cultural and structural character, to emphasise the need for a specific focus of methodology and instruments for each country. Assumptions and strategies used to improve industrial metabolism in Europe can not be directly applied to Australia, due to the different anthropological and environmental characteristics of the two continents. Working towards improved industrial metabolism within nation states and regions is a vital requirement of the long term goal of global sustainable development (Toner and Doern, 1994).
4.2 Methodology
The methodology of this Australian case study is based on combining work done by authors in the field of material accounting and eco- balancing, especially Ayres and Simonis (1991), Baccini and Brunner (1991), Hall (1994), Schmidt-Bleek et al. (1993), Steurer (1992), and Stigliani and Jaffe (1993).
38 4.2.1 Steps in a national Industrial Metabolism study
Listed below are the five steps necessary to estimate the industrial metabolism of a nation, derived as a guideline from the above mentioned literature, and applying the extended industrial metabolism concept: 1. Identify and quantify the material and energy inputs from the environment to industry and the outputs from industry to the environment, within a political or regional border. Emission sources can be point sources or diffuse sources, with diffuse sources being generally more significant (Stigliani and Jaffe, 1993). Ecological rucksacks - including those of exports and imports - are important when identifying sources, inputs and outputs of human-induced material flows (Schmidt-Bleek, 1993a). 2. Trace the path of material flows within industries and between industries and the environment, using mass-balance principles, on a cradle-to-grave basis, within the given regional boundaries. 3. Calculate material stocks - that is, the materials accumulated in products and infrastructures, leading to the growth of accumulated mass in the anthroposphere (Baccini and Brunner, 1991). 4. The national material intensity - or, relating it to the material productivity - can then be found by determining the "Total Material Consumption" and "Total Material Emissions" of the nation or region (Bringezu, 1993a). Examining the level of recycling1, waste-mining, dematerialisation and dissipative use can help assess the efficiency of a nation's (region’s) industrial metabolism. 5. The nation- or region-wide material flows can then be used to identify key anthropological forces driving such flows as well as the most significant material flows, with respect to environmental impacts. This in turn can be used to assist in environmental assessment and planning towards improved industrial metabolism.
Various classifications of material inputs and outputs exist. Baccini and Brunner (1991), for instance, categorise regional material flows into "activities", "goods", and "processes", and look at inputs and outputs for each economic sector or general "activity". Bringezu (1994) identifies inputs and outputs as shown in Table 5. Ideally, a thorough study would include at least those inputs and outputs shown in that table, as well as a consideration of the chemical qualities of the material flows.
1 This term is used here to include re-using, repairing, reclaiming as well as direct recycling.
39 Table 5: General Scheme of a Material Flow Account Matrix
Matertat Moving into and out of the Economy i i l i l i .input!!» OUTPUT FROM ENVIRONMENT TO ENVIRONMENT Geological Raw Materials Overburden Deposits (including overburden) Waste deposits Building Minerals Industrial Minerals Sludges Ores Waste Water and emitted substances: Energy Carriers Waste water after sewage treatment Water Process water output Drinking water Cooling water output Process water Irrigation water not used by plants Cooling water Drainage water output Irrigation water Waste Air and emissions of: Drainage water (also from mining) Steam Air Dust Combustion Volatile Substances Respiration Soil Deposits Chemical transformation Soil Loss by Erosion Ventilation Cut Biomass not used Soil Fertiliser Soil excavation - mineral Soil “consumption” by erosion - organic Plant Biomass from Cultivation Pesticides Agriculture Explosives/Ammunition Forestry Erosion of infrastructure Horticulture Dissipative Losses of Products, e.g. Biomass from Hunting and Gathering Chemical accidents Fishery Leaking Hunting Losses by fire Logging in primary forests Littering
Total Material Consumption Total Material Emission Source-. Bringezu (1993d:255)
40 4.2,1 Towards an Australian case study
Unfortunately, in Australia data are not available in as much detail as in the United States and Europe.1 Data are also lacking globally on certain industrial outputs, especially waste flows, "ecological rucksacks", and some inputs (Stigliani and Jaffe, 1993, and Schmidt-Bleek 1993a). Given these data constraints, this case study can only provide a rough estimate of Australia’s industrial metabolism.
Major agricultural, forestry, mineral, land and water inputs are considered and outputs such as air pollution, urban solid waste and manifest hazardous waste production. The path of material flows from inputs to outputs is only described qualitatively, not quantitatively, at this stage. Some indication of the material stocks in the anthroposphere is given by the quantitative level of roads, cars, buildings, and non- perishable and non-recyclable products. A rough indication of Australia’s national material intensity is given using indicators such as the state of recycling and waste management, and habitat and species loss. The geographical, political, economic and social characteristics of Australia are examined briefly to identify possible key forces driving human-induced material flows.
4.3 Results and Discussion
4.3.1 Australian Industrial Metabolism inputs
The agricultural, forestry and mineral material inputs into Australian industrial activities are considered to be direct inputs from the environment into the industrial system (except for fertilisers and pesticides), and thus represent the "cradle" of industrial material flows.
4.3.1.1 Agricultural inputs
Agricultural inputs are defined here as food plants and animals, fertilisers and pesticides, and land and water used for agriculture. Data for these are presented in Tables 6-8. Extracting such inputs causes significant environmental impacts, especially since European agricultural methods and animals are generally unsuitable for Australia’s thin, nutrient-“poor”
5 Major international sources of environmental and industrial data were used, but much of the Australian data was very old - early 1970's - or non-existent. Precursory enquiries by authorities such as Barnett (1995) support the conclusion that domestic data is not as yet available in the detail required for rigorous study.
41 topsoil layer and extreme climatic conditions. The extraction of fossil groundwater from artesian basins is a common agricultural practice in Australia, and much of this non-renewable water is wasted through cooling practices (Mitchell and Aplin, 1996). Forest clearance, excessive grazing and irrigation, energy-intensive agricultural methods, and the application of fertilisers and pesticides are related to the input of agricultural materials into industrialised Australia. Subsequent environmental impacts include soil erosion, desertification, soil salinity and waterlogging, native species extinction, dieback in trees, and toxic algal blooms in water systems (Hall, 1994 and Ibid, 1996). Food processing plants, cooking, freezing, canning, and packaging etc. are other processes related to agricultural inputs. Corporate-scale abattoirs, feedlots and battery hen factories are common in Australia and must be questioned on ethical grounds as well as in terms of human health implications (Mitchell and Aplin, 1996). Hence the material flows, environmental impacts, and ethical implications of current agricultural inputs are significant indeed.
Table 6: Food Consumption in Australia, 1989-1990
FOOD TYPE NATIONAL PER CAPITA TOTAL TOTAL (kg/yr) (tonnes/yr) VEGETABLES (fresh equivalent 2,740,055 161.6 weight) FRUIT (fresh fruit equivalent) 1,905,909 112.4 GRAIN 1,521,524 89.7 MEAT (Carcass equivalent) 1,441,691 85.0 SUGAR (including honey) 705,592 48.2 POULTRY (dressed weight) 417,010 24.6 DAIRY PRODUCTS (milk solids 395,421 23.3 equivalent) OILS AND FATS (fat content) 337,500 19.9 EGGS (equivalent number) 176,368 (1000 125 (number) dozen) SEAFOOD 145,460 8.6 NUTS (in shell) 102,920 6.1 BEVERAGES Tea & coffee 51,309 Aerated & carbonated waters (I) 1,479,219 Beer, wine, & spirits (I) 2,224,821 Source-. ABS (1992)
42 Table 7: Consumption of Fertilisers and Pesticides in Australia, 1990, and 1982-1984 Average Respectively
AGRICULTURAL PRODUCT NATIONAL ANNUAL CONSUMPTION (metric tonnes) Fertilisers 3,871,000 (Area fertilised, 1000 ha) (27,360) Pesticides (active ingredient) 65,200 Source-. FAO (1992a) and UNEP (1991)
Table 8: Land and Water Inputs in Australia
LAND AND WATER INPUTS YEAR DATA DATA SOUP
Water withdrawal1 (cubic km per year) 1975 17.80 13 Sector water withdrawal (%) 1975 13 Domestic 65% Agricultural 33% Industrial 2% Land Use (and % change since 1980) 1990 12 Land area (1000 sq.km) 7682 Permanent grassland 4176 (-5%) Arable and cropland 489 (+11%) Wooded area 74 (+4%)
4.3.1.2 Forestry inputs
Table 9 gives some indication of the level of wood inputs for the Australian economy. Australia is a major exporter for chips (6.5 million tonnes/yr) and particles, and a major importer for sawnwood, fibreboard, newsprint, paper and paperboard (FAO, 1993). Most forests in Australia are logged by clearfell methods, resulting in extensive habitat loss for
1 Latest available data 1975; most other countries had data for 1987.
43 many native plant and animal species, soil erosion, slope instability, flooding, and increased siltation of water systems.
More than two thirds of Australia’s forests have been cleared since European invasion in 1788, and generally the forest remaining is not of high quality (Mitchell and Aplin, 1996). However, wood is one of the least energy-intensive construction materials available, and will continue to be a major input into the Australian economy. Plantations are more productive than native forests, and if managed prudently, could lead the way towards ecologically sustainable forestry (Ibid, 1996).
Table 9: Apparent Wood Consumption in Australia, 1991
WOOD TYPE NATIONAL APPARENT CONSUMPTION (1000 cubic metres unless otherwise specified) Roundwood 13,926 Sawnwood 3,969 Paper and paperboard (1000 MT) 2,420 Wood Pulp (1000 MT) 1,190 Wood-based panels 945 Source: FAO (1993)
4.3.1.3 Mineral inputs
Data on the production of selected metals, industrial minerals, and mineral fuels and related materials, are provided in Tables 10-12, to indicate mineral inputs of Australia’s industrial metabolism (data on the consumption of minerals are, however, quite insufficient).
Australia is the world’s largest exporter of black coal, alumina, diamonds, ilmenite, rutile and zircon, the second largest exporter of iron ore, aluminium, lead and zinc, and the third largest exporter of gold (ABS, 1994b). This illustrates the current importance of mining activities to the Australian economy.
Most mineral inputs are used for increasing industrial production, urbanisation and thus extending the anthroposphere (compare Table 7), which is driven not so much by population growth as by the increasing demand for residential areas and roads in affluent societies (Baccini and
44 Brunner, 1991). Mining activities reduce future land productivity and produce toxic wastes and large translocations of materials (Harries, 1990 and Schmidt-Bleek, 1993a). Flows of metal ores and dissipative uses are especially harmful to the environment in qualitative terms (Baccini and Brunner, 1991).
Table 10: Total National Annual Production of Selected Metals, 1991 (metric tonnes unless specified otherwise)
Aluminium (refined) 23,735,000 Bauxite (gross weight) 40,503,000 Cadmium 3,576 Copper (mine output, Cu content) 311,000 Gold (kg) 514,218 Iron and steel - Pig iron 115,000,000 Crude steel 6,018,000 Lead (mine output, Pb content) 571,000 Manganese (gross weight) 1,482,000 Nickel 115,000 Silver (mine output, Ag content) 1,180 Tin (mine output, Sn content) 5,700 Titanium concentrates (gross weight) 40,363,000 Uranium (mine output, U content) 3,776 Zinc (mine output, Zn content) 1,048,000 Zirconium concentrates (gross weight) 292,000
Source: USBM (1993)
Mining in Australia is also a politically sensitive issue since mining interests frequently conflict with Aboriginal Land Rights and the protection of sacred sites. As is recognised internationally, uranium mining is particularly dangerous to humans and the environment, and radioactive leaks, spills and accidents are frequent at uranium mining sites. No technology exists to safely contain the radioactive (Lenssen, 1996), yet
45 the current conservative government in Australia is considering expanding uranium mining throughout the country. Uranium mining has already taken place in Kakadu National Park - the only World Heritage area chosen for both its natural and cultural significance, a major tourist attraction in Australia, and the home of the Jabaluka Aboriginal people - and the current government wants to expand uranium mining in this area despite strong opposition from the Jabaluka people and environmentalists (Katona et al., 1996). An industrial metabolism which uses uranium mineral inputs is not sustainable either ecologically or socially, and adversely affects global industrial ecology since radioactive wastes are sometimes exported and uranium may be used for nuclear proliferation. Hence, mineral inputs of Australia’s industrial metabolism involve significant social, cultural and environmental impacts, and inputs such as uranium must be seriously challenged.
Table 11: Total Annual Production of Industrial Minerals in Australia, 1991 (metric tonnes unless specified otherwise) 55»WS8SBB!SSSBS5»S»SS»S5SSSBB59(5SSSSJSBSSSSSSSBBSB»SSS?SSSSBS3S»SSSSSS5S5aBBSSSaSSS^^ INDUSTRIAL MINERALS Cement, hydraulic 6,750,000 Clays (brick and cement clay and shale) 8,500,000 Diamond (1000 carats) 35,956 Gypsum 2,000,000 Lime 1,500,000 Phosphate rock 4,000 Salt 7,791,000 Stone, sand and gravel 155,000,000 Talc, chlorite, pyrolite, stealite 216,000 Source: USBM (1993)
Table 12: Total Annual Production of Mineral Fuels and Related Materials in Australia, 1991 MINERAL FUELS AND RELATED MATERIALS
Coal (metric tonnes) 256,964,000 Coke (metallurgical) 4,000,000 Gas, natural, marketed (million cubic metres) 21,687 Natural gas liquids (1000 42-gallon barrels) 22,261 Petroleum (1000 42-gallon barrels) 441,883 Source: USBM (1993)
46 Table 13: Final Consumption of Energy Fuels by Sector, 1992 (1000 metric tonnes, unless otherwise specified)
TYRE OF FUEL Industry Trans Agricut~ Commer Residen TOTAL port cial and tial Public Sendees Steam coal 2,525 120 7 2,652 Sub-Bit. coal 2,519 193 1 2,713 Lignite 53 53 Oven & Gas coke 296 296 Pat. Fuel & BKB 386 71 5 462 Natural Gas (TJ) 289,102 5,733 50 36,278 91,867 423,030 Gas Works (TJ) 5,385 683 1,585 7,653 Coke Ovens (TJ) 25,898 25,898 Blast Furnaces (TJ) 27,123 27,123 Electricity (GWh) 60,478 1,885 2,564 28,855 40,333 134,115 Crude Oil 3 •—> ““ ““ Oo Refinery Gas 8 ■ __ 8 515 18 153 174 LPG & ethane 956 1,816 Motor Gasoline 12,461 — — — — 12,461 Aviation Gasoline 70 — — — — 70 Jet Fuel 2,735 2,743 Kerosene 9 3 14 132 158 Gas/Diesel 1,495 4,955 1,057 57 50 7,614 Residual Fuel Oil 869 350 20 1,239 Naphtha 199 199 Petrol. Coke 32 476 508 Other Prod. 13 2,203 32 2,248 Source: IEA (1994)
4.3.1.4 Energy inputs
From Table 13 it can be seen that the major consumers of energy in Australia are the traditional industrial sector, followed by the residential and transport sectors. Energy consumption depletes resources and produces significant pollution, and in most industrialised countries energy
47 production and industries are also the greatest consumers of water (Baccini and Brunner, 1991). Political tensions over access to energy supplies such as oil are also likely to increase as such supplies dwindle (Hall, 1994). Transportation consumes a much higher proportion of energy in developed countries such as Australia (27%) compared to less developed countries (4%), and private households use energy mostly for heating and cooling (Ibid, 1991). Energy inputs are thus crucial determinants of the industrial metabolism of Australia.
4.3.2 Australian Industrial Metabolism outputs
Outputs are defined here as those materials flowing from the industrial system to the consumers and finally to the environment. In this regard nature is treated as a “sink” for the materials produced as a result of industrial activities. Sources of outputs can be point sources - such as specific industrial plants - or diffuse sources - producing outputs from the dissipative use of materials. The industrial metabolism approach is especially useful since it can include analyses of diffuse output material flows (Stigliani and Jaffe, 1993).
The waste generated by industry is often non-biodegradable, toxic and hazardous and increases globally in volume and complexity (Hall, 1994). The main types of waste generated can be grouped as municipal wastes (from the consumer, small trades and the tertiary sector), industrial wastes (from manufacturing), construction and demolition wastes, shredder and tire wastes, industrial and hazardous wastes, and agricultural and mining wastes (Baccini and Brunner, 1991). Processes assortment, treatment, storage and recycling of wastes influence the amount and type of outputs released from industry to the environment (Ibid, 1991).
Unfortunately data is not yet available in sufficient detail on these aspects for Australia. Moore and Tu (1995 and 1996), however, have been setting up an Australian Waste Database to develop uniform methods of waste classification, data collection, storage and reporting across Australia, so that in future target setting and monitoring can be better coordinated across state and national borders. Such a development will greatly assist the implementation of improved industrial metabolism in Australia.
48 4.3.2.1 Outputs to air
Tables 14 and 15 provide data on recent emissions of carbon dioxide, methane and chlorofluorocarbons (CFCs) in Australia. The per capita levels of these greenhouse gases are among the highest in the world and reflect the dominance of coal and automobiles in Australia’s energy and transport sectors, respectively.
Table 14: Carbon Dioxide Emissions in Australia, 1991 (1000 metric tonnes)
EMISSIONS TYPE (1000 MT) EMISSIONS SOURCE (1000 MT) Solid 149,557 Mobile Sources 66,700 Liquid 76,644 Energy transformation 145,900 Gas 32,258 Industry 46,000 Cement manuf. 3,363 Other 12,000 Total 261,818 Total per capita 15.10 (Bunker Fuels) (6,295)
Source'. OECD (1993a)
Table 15: Methane and CFC Emissions from Anthropogenic Sources in Australia, 1991 (1000 metric tonnes)
GREENHOUSE GAS: 1000 METRIC TONNES METHANE Livestock 570 Coal Mining 1,400 Solid Waste 330 Oil & Gas Production 60 Wet Rice Production 2,100 Total 4,500 CHLOROFLUOROCARBONS (CFC’s) 5000
Source: WIR (1994)
49 4.3.2.2 Toxic outputs
Table 16 gives an indication of the level of toxic outputs released to the environment as a result of Australia’s industrial activities.
Table 16: Toxic Releases (lower-bound estimates) in Australia, 1988 (1000 metric tonnes)
TOXIC RELEASE AMOUNT (1O00MT) WORLD RANK
Human Risk Exposure 783,900 13th highest in the world Aquatic Organism Risk 924,000 13th highest in the world Exposure Heavy Metal Exposure 12,000 12th highest in the world Source: WRI (1994)
4.3.2.3 Urban solid waste
Currently, the annual disposal rate of urban solid waste in Sydney is about 3.4 million tonnes, and if current rates continue unabated 5.5 million tonnes would be disposed of in 2001 and 7.1 million tonnes in 2011 (WMA, 1990). Data from Sydney gives a good indication of solid waste outputs typical of urban Australia since Sydney is the largest industrialised urban area in the country. Urban solid waste can be divided into municipal waste (household or domestic, other council, and small vehicle waste) and private sector waste (commercial and industrial waste, and demolition or building waste). The relative proportions of each waste type in Sydney were calculated by Moore and Tu (1996) and are presented in Figure 8.
50 Figure &. Amount of Urban solid Waste by Source, Sydney. 1994
Key for Waste Source 1. Municipal Waste - Domestic 2. Municipal Waste - Other Domestic 3. Municipal Waste - Other Council 4. Commercial and Industrial Waste 5. Building and Demolition Waste Urban Solid Waste (tonnes/year)
Source of Urban Solid Waste
As shown in Figure 8, municipal household or domestic solid waste comprised 42% of the urban solid waste produced in Sydney in 1994, compared to 30% in 1988 (although the 1994 figure may include small vehicle waste which was 8% in 1988 and was excluded from domestic waste) (Moore and Tu, 1996 and WMA, 1990). Figures 9-18 show details of the material composition of domestic municipal waste in Sydney, estimated from combining data for Botany, Randwick, Waverley and Woollahra (Moore and Tu, 1996).
51 Figure 9: Domestic Solid Waste, Material Composition, Sydney 1990
Others Glass 4,02% 6,9% Paper Ferrous 23,8% 3,59% Plastic 9,48% Non-ferrous Other Organic 0,73% 4,25%
Household Hazardous 0,22%
Organic Compostable 47,02%
Paper, organic compostable, plastic and glass are the largest components of domestic solid waste and all can be recycled effectively.
52 Figure 10: Domestic Solid Waste, Paper Composition, Sydney 1990
Liquid PaPerQjSp0Sap|e paper Package board containers product 3,15% 6,1% Corrugated Printing-writing cardboard paper 6,81% 13,31%
Magazine Newsprint 9,36% 24,09%
Composite, mostly paper Miscellaneous 14,92% packing 12,35%
Many of the paper material components of domestic waste can be recycled, including some of the largest components - newsprint, printing-writing paper and package board (WMA, 1990).
53 Figure 11: Domestic Solid Waste, Organic Compostable Composition, Sydney 1990
Food/kitchen 57,40%
Most of both food/kitchen and garden organic compostable materials can be recycled at their source with composting bins. Such a method is especially suitable to the majority of Australians who live in detached houses with large gardens.
54 Figure 12: Domestic Solid Waste, Plastic Composition, Sydney 1990
HDPE PVC 6,84% 0,74% PET Polystyrene 2,92%
Composite, mostly plastic 0,89%
82%
More information is clearly needed on the classification and sorting of plastic material in domestic waste, since most is labelled “other”, and the amount of plastic packaging in domestic goods can be reduced.
55 Figure 13: Domestic Waste, Other Organic Composition, Sydney 1990
Rubber Oils 1,79% 7,76%
Wood 40,84% Textile/rags 47,63%
Leather 1,97%
Wood and textile/rags are by far the greatest components of other organic compostable materials in domestic waste, and can often be re used at the source.
Figure 14: Domestic Solid Waste, Household Hazardous Composition, Sydney 1990
Paint
Household chemicals Dry cell batteries 54,36% 35,84%
56 Ecologically sound alternatives to household chemicals exist, and dry cell batteries could be recycled (Ayres and Ayres, 1994), thus reducing these major components of household hazardous materials in domestic solid waste.
Figure 15: Domestic Solid Waste, Glass Composition, Sydney 1990
Miscellaneous other glass 5,32%
Packaging glass/containers 94,68%
Packaging glass/containers can be recycled very successfully at the source (WMA, 1990), and so greatly reduce the glass component of domestic solid waste.
57 Figure 16: Domestic Solid Waste, Ferrous Composition, Sydney 1990
Composite,
Steel packaging is a good candidate for recycling (Ayres and Ayres, 1994), and doing so would greatly reduce the need for mining virgin materials for steel.
58 Figure 17: Domestic Solid Waste, Non-ferrous Composition, Sydney 1990
Other 4,52%
Aluminium 95,48%
Aluminium has proven to recycle rather perfectly (WMA, 1990). Recycling facilities could be expanded and improved, and so would great ly reduce the need for bauxite mining.
59 Figure 18: Domestic Solid Waste, Other Composition, Sydney 1990
Special 0,17%
Ceramics Dust/dirt/ 46,65% rock/inert 53,18%
Some dust/dirt/rock/inert and ceramics could perhaps be re-used as fill for roads or some construction areas, for example, instead of further increasing domestic solid waste.
4.3.2A Manifested hazardous waste
Figure 19 shows the amounts of major manifested hazardous waste types produced in Sydney from 1990 to 1994. Most wastes produced are miscellaneous, waste oil, putrescible/organic wastes, washwaters, alkalis and organic chemicals, with a rapid increase in generation of miscellaneous manifested hazardous wastes. Table 17 provides an index of the major manifested hazardous waste types produced in Sydney, and the manufacturing industries which generate such waste.
60 Figure 19: /Amounts of Major Manifested Hazardous Waste Types
Year
□ 1994 B 1993 ■ 1992 ■ 1991 ■ 1990 (tonnes) Manifested Hazardous Waste
61 Table 17: Key for Major Manifested Hazardous Waste Types and 2 Digit Manufacturing Industries Contributing
MAJOR HAZARDOUS WASTE 2 DIGIT MANUFACTURING TYPE INDEX INDUSTRY CODES A Plating and Heat treatment 21 Food, Beverages and Tobacco B Acids 23 Textiles C Alkalis 24 Clothing and Footwear D Inorganic Chemicals 25 Wood, Wood Products and E Reactive Chemicals 26 Furniture F Paints, Resins, Inks, Dyes, 27 Paper, Paper Products and Furniture Adhesives, and Organic 28 Sludges Chemical, Petroleum and Coal G 29 Organic Solvents Products H 31 Pesticides Non-Metallic Mineral Products I 32 Basic Metal Products J Waste Oil 33 Textiles Waste Fabricated Metal Products K 34 Putrescible/Organic Wastes Transport Equipment L Washwaters Other Machinery and Equipment M Inert Waste Miscellaneous Manufacturing N Organic Chemicals O P Bags, Containers Immobilised Waste, Inert Q Wastes Miscellaneous Source-. Moore and Tu (1996)
As indicated in Figure 20, the main manufacturing industries generating hazardous waste types are Chemical, Petroleum and Coal Products, Basic Metal Products, Fabricated Metal Products and Miscellaneous Manufacturing. In Australia waste generation is increasing for these industries, but appears to be decreasing slightly for Textiles, Wood, Wood Products and Furniture, and Non-Metallic Mineral Products manufacturing industries.
62 Figure 20: Amounts of Major Manifested Hazardous Waste Produced by Manufacturing Industries in Sydney, 1990-1995
Year □ 1994 @ 1993 ■ 1992 ■ 1991 ■ 1990
Manufacturing Industry (2 Digit ASIC Code)
Australia also exports hazardous wastes at times and dumps industrial wastes at sea (UNEP, 1991), thus impacting adversely on the ecosystems and industrial metabolism of other countries.
4.3.3 Paths of material flows
The processes which transform inputs from the environment into outputs to the environment from Australia’s industrial system have been described briefly in sections 4.3.1 and 4.3.2 in qualitative and quantitative terms. Processes such as extraction, manufacturing, packaging, transport, recycling, and disposal are important in determining which paths material flows will take. They give an indication of the level of material throughput that is occurring within Australia’s industrial metabolism.
4.3.4 Materials stocked in the anthroposphere
An indication of the materials stocked in the anthroposphere in Australia is given by Tables 18-20. Table 18 suggests that a significant amount of materials are stocked in residential buildings in Australia, since separate houses and flats/apartments are the most common types of dwellings in the country and separate houses in particular use large amounts of construction materials.
63 Table 18: Major Types of Dwellings in Australia
TYPE OF DWELLING TOTAL % TYPE OF DWELLING TOTAL % Separate house 76.7 Flat/Apartment Semi-detached 1 or 2 storey 6.2 1 storey 5.9 3 storeys 3.2 2 or more storeys 2.0 4 or more storeys 2.3 Other 3.7 Source: ABS (1994b)
Table 19 provides a further indication of the amount of materials stocked in the urban environment, by illustrating the large size and material intensity of Australian dwellings - most households have three bedrooms, garage one to two vehicles, and use bricks in their outer wall materials.
Table 19: Number of Bedrooms and Motor Vehicles Garaged per Household and New Houses Approved by Outer Wall Materials in Australia
NUMBER OF % NUMBER OF % NEWHOUSES , ; 1 1 1 BEDROOMS PER MOTOR • APPROVED BY HOUSEHOLD VEHICLES OUTER WALL GARAGED PER MATERIAL HOUSEHOLD Zero - one 6.4 None 12.6 Double brick 18.8 Two 23.1 One 41.0 Brick veneer 67.2 Three 48.7 Two 31.9 Timber 7.0 Four 15.9 Three 8.3 Fibre cement 3.6 Five or more 2.9 Four or more 3.3 Stone and cement 0.7 Not stated 3.1 Not stated 3.0 Steel, aluminium 2.6 and other Source: ABS (1994b)
Table 20 shows the number of vehicles and length of roads which are accumulating, thus enabling an additional rough estimate on the amount of materials stocked in Australia’s anthroposphere.
64 Table 20: Road Transport Materials Stocked in Australia
ROAD TRANSPORT DATA STOCKS DATA YEAR SOURCE Network length (km): 1991 11 All roads 853,000 Motorways 1,100,000 Vehicle stocks (1000): 1991 11 Motor vehicles in use 10,002 Passenger cars in use 7,850 Goods vehicles in use 2,150 3 Number of registered vehicles 10,505,900 1993
4.3.5 Indicators of the state of Australia ’s Industrial Metabolism
An overview on the state of Australia's industrial metabolism has already been given by estimating the level and type of inputs, outputs, and materials stocked in the anthroposphere. Further indicators of the ecological sustainability of Australia considered here are environmental impacts and waste management strategies.
4.3.5.1 Environmental impacts
Impacts of the industrial system on the Australian natural environment include deforestation, eutrophication of hydrological systems, exacerbated flooding, destruction of the ozone layer, global climate change, loss of biodiversity, increased desertification and erosion.
Table 21 shows that in only 208 years of white colonisation, 95% of Australia’s forest and wetlands have been lost, and that 12% of the mammal species remaining are under threat. Trade in native birds and other wildlife products is an economic activity which also has very detrimental effects on the health of the Australian ecosystems.
The full impacts of industrial activities on the Australian environment, however, is not known, since data is very limited (for example, hydrological records only go back 100 years), and many of the ecosystems which have been disturbed were much older than the current
65 colonised society (Mitchell and Aplin, 1996). This provides another reason why industrial processes in Australia must be exercised with great care, in accordance with the precautionary principle of environmental management (Simonis, 1991).
Table 21: Some Environmental Impacts of Industry in Australia
ENVIRONMENTAL YEAR EXTENT DATA IMPACT OF SOURCE IMPACT
Habitat Types and Losses: Early 1990’s Current Ext. (% 17 (1000 ha) Loss) All Forests 13,000 Wetlands/Marsh 87,600 95 Desert/Scrub 17,000 95 Mangroves 2,200 58 0 Trade in Wildlife & Wildlife Products1: 1990 Imports 17 Live Birds 0 Exports Live Primates 45 39 Cat Skins 7 0 Reptile Skins 601 0 Live Orchids 2,669 0 n Irrigated Land 1991 1,900 17 (1000 square km)
Threatened Species Early 1990's 12 (% of those known): Mammals 12.3 Amphibians 5.0 Vascular Plants 4.7 Birds 3.4 Reptiles 2.9 Fish 0.4
1 Only 88% of the reporting requirements to the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) met.
66 4.3.5.2 Waste management strategies
Current waste management strategies in Australia which give an indication of the state of Australia’s industrial metabolism include waste management policies, the level of recycling, and the waste disposal route and collection method.
In theory waste management policies prioritise waste minimisation, recycling and materials/energy recovery over landfill disposal and landfill gas recovery (WMA, 1990 and Cook and Moran, 1993). The Sydney region only has the landfill capacity to meet two more years of current waste disposal demands (WMA, 1990), yet despite this, landfill remains by far the most common practice of waste disposal, e.g., 89% in New South Wales, 100% in Victoria, in 1994 (Moore and Tu, 1996). In 1986, local Councils in Sydney replaced the 55 litre household rubbish bins with 240 litre bins for weekly collection of household garbage. Although WMA (1990:20) claims that the subsequent massive increase in domestic waste was probably material that residents had disposed of by less efficient methods previously, it admits that such a move has discouraged composting. It is also likely that it has even encouraged residents to create more waste.
The rate of recycling in Australia is still very low, despite the ready availability of suitable materials and technology. Only 6.4% of urban solid waste was recycled in Sydney in 1994, and 0% was recycled in Victoria (Moore and Tu, 1996). Some more details on recycling acticities are shown in Table 22. Recently, house-to-house collection of materials for recycling has received great public support and is by far the most effective means of recycling (WMA, 1990). Recycling container collections in strategic locations such as shopping and transport centres, and recycling centres are other ways to increase recycling in Australia.
67 Table 22: State of Recycling Activities
MATERIAL RECYCLED % RECYCLED OF YEAR DATA APPARENT SOURCE CONSUMPTION Paper and cardboard 31.8 1985 11 Glass 17.0 1985 11 Waste paper: 30.0 1988 13 Apparent consumption (2,570,000 MT/yr) 1988 13 Aluminium: 14.0 Apparent consumption (335,000 MT/yr)
4.3.6 Characteristics of Australia which influence material flows
Australia has unique climatic, topographical, situational and anthropo logical characteristics compared with many other countries and regions, and with European countries in particular. Assumptions and strategies to improve industrial metabolism in European countries can, therefore, not be directly applied to Australia. Hence, a discussion of the unique characteristics of Australia is vital if an attempt to locate the key forces influencing the nation’s industrial metabolism is to be made.
4.3.6.1 Physical geography
Australia has a large geographical area of 7,682 thousand square kilometres, long coastlines and an abundance of natural resources. It is especially unique for its offshore barrier reef and extremely diverse climatic and ecological zones (Boardman, 1990). Rainfall (or the lack of it!) is the most important single factor determining land use and rural production in Australia (ABS, 1994b). Droughts and floods (especially in the north and eastern coastal areas) are frequent and sunshine is abundant. An especially unique phenomenon are the frequent bushfires which form an integral part of the Australian environment. Australia is the lowest, flattest and second driest continent in the world (Ibid, 1994b). During the last glacial retreat conditions were arid in Australia and the
68 landscape was not reworked as occurred in the Northern hemisphere. As a result, Australia has a landscape millions of years old and correspondingly nutrient "poor" soil, and a very unique geomorphology (Fanning, 1994).
The direct transferral of European agricultural and river management methods to Australia has had disastrous environmental effects including extreme soil erosion, desertification and flooding (Mitchell and Aplin, 1996). Since Australian climate and geomorphology are unlike those of other industrialised countries particular strategies to promote environmental protection and a sustainable industrial metabolism are needed for Australia.
Table 23 illustrates the spectrum of natural resources including forests, fish, wildlife and many as yet pristine environmental areas, in Australia.
Table 23: Natural Resources in Australia
TYPE OF RESOURCE EXTENT OF WORLD DATA RESOURCE RANK OF SOURCE EXTENT Biosphere Reserves 12 sites, 47,432 sq.km - 1990 11 Wetlands of 39 sites, 44,779 sq.km 3rd highest 1990 11 International Importance Major Protected areas: 11 Scientific Reserve 16 sites 4th highest 1990 National Parks 339 sites Highest Nature Reserves 309 sites 2nd highest Protected Landscapes 64 sites Total 728 sites, 456,500 2nd highest sq.km (5% of total territory) World Heritage Sites 8 sites 2nd highest 1990 13
4.3.6.2 Human geography
Australia is well recognised for its rather low population and low population density. The population in 1992 was 17,529,000 inhabitants,
69 and population density was 2.3 inhabitants per square kilometre (ABS, 1994b). The ageing indice (pop>64, pop<15) is 50.9% and the growth in population from 1980-1992 of 19.3% is due not so much to domestic population growth as to a high rate of immigration to Australia (Ibid, 1994b).
At the same time, the urban population of Australia comprised 85% of the national population in 1990 - one of the highest rates of urbanisation in the world - and is settled mainly along the coast (UNEP, 1991). The average annual urban growth rate in the early 1990s was about 1.1% (Ibid, 1991).
Australia’s urban metabolism is highly unsustainable. The "Australian Dream" of having a large house and garden per household together with the poor urban planning of Australia's colonial history have resulted in extensive urban sprawling. This in turn has produced dependence on automobiles as the primary means of transport, and results in high and inefficient uses of energy, iand and other resources. The urban structure, therefore, is a very significant factor influencing the industrial metabolism of Australia.
The transport structure in particular is a major factor influencing the rate, intensity and composition of human-induced material flows in Australia. Tables 24-25 demonstrate that the transport structure of Australia relies heavily on motor vehicles, passenger cars in particular. Such a transport metabolism is in the long run unsustainable, due to the high energy consumption and high emissions of greenhouse gases and other pollutants associated with automobile use. The increasing demand for larger (6-8 cylinder) cars and the corresponding increase in national fuel consumption to 8.88 1/100km in 1992 can only accelerate the above- mentioned unsustainable trends (IEA, 1994). By the same token, the transport structure of Australia offers opportunities to decrease material consumption and pollution production.
70 Table 24: Road Transport Characteristics of Australia
ROAD TRANSPORT • DATA YEAR DATA SOURCE CHARACTERISTICS
Traffic volumes (billion/milliards vehicles/km): Total vehicles 1991 11 Passenger cars 161.6 Goods vehicles 124.9
Car ownership (vehicles per 100 people) 36.4
Distance travelled 45 1991 12 (million km in a year)
Purpose of travel (%): 151,154 1991 3 Business purposes 34.8 1991 3 Travel to & from work 22.5 Private purposes 42.7
Table 25: Rail and Air Transport Characteristics of Australia
RAIL AND AIR TRANSPORT , DATA YEAR DATA CHARACTERISTICS SOURCE
Government railway passenger 1992-93 3 journeys (1000): 393,088 Suburban 8,306 Country 301,394 Total
Air traffic to Australia: 1992-93 Number of flights 26,207 Number of passengers 4,902,693
Air traffic from Australia: Number of flights 26,088 1992-93 Number of passengers 4,855,572
71 Thus it appears that the transport structure offers a great possibility to improve the industrial metabolism of Australia, since it is currently responsible for a very large share of the material and energy consumption of the nation. Transport policy suggestions as proposed by ECGB (1995:28) which could be applied to Australia include the following: • decrease the separation between home and work areas; • promote public transport, bicycle and pedestrian transport; • encourage car-pooling and car-sharing services; • include external costs into costs covered by transport users; • implement progressive emissions-based tax for private passenger cars; • improve inter-modal goods and passenger transport by improving traffic management and information technology; • decrease the material and energy intensity along the vehicle production line (vehicle size, their drives, from scrapped and re-used materials etc.).
4.3.6,3 Political/legal characteristics
Australia has a distinctive federal structure, with the Commonwealth of Australia and States and Territories (for convenience these will be addressed as "States" only) having different legal powers. States are in many ways the real foundation of environmental policy and their statute and common laws are what primarily govern the day-to-day lives of most Australians (ABS, 1994b).
Many environmental questions have been internally divisive and major targets of group and public pressures have been domestic (Boardman, 1990). For instance, pressure has been aimed at the Queensland, Tasmanian and Western Australian governments concerning the Great Barrier Reef, Tasmanian Dam and mining threats to the jarrah forests, respectively. Regarding policy style, it would appear that the consensus-seeking approach valued by countries such as Denmark, and in certain intervals in Germany (Simonis, 1994) would not necessarily be successful in Australia since its political culture seems to value political combativeness more than "mere" consensus-seeking.
72 Boardman (1990) also claims that environmental policy in Australia is conditioned by Federal-State conflicts and further weakened by the inexpertise and low levels of interest of members of both Houses of the Parliament on environmental policy questions. This is seen to be even more so with international environmental policy issues. Devall (1985), however, opines that the Greens are the most important political movement in Australia and were a major factor in electing Labor Party governments which supported some of the Green Platform in the 1980's.
Australia has, however, been interested in most international conventions (see ABS, 1994b for details) and in December 1992 heads of Federal and State governments endorsed the "National Strategy for Ecologically Sustainable Development" (ESD) and the "National Greenhouse Response Strategy" (NGRS) (ABS, 1994b). The main focus of government involvement in environmental concerns, though, appears to be simply on improving energy efficiency and international competitiveness of Australia in energy production and transport (IEA, 1994). Aspects such as decreasing the use of non-renewable resources (as coal or bauxite) and promoting the use of renewable energy sources (solar energy) instead or decreasing overall material consumption are hardly considered.
Government transport organisations also reflect an uneven focus of government policies. For instance, ABS (1994b) lists three government organisations specifically for road transport - The Australian Road Transport Advisory Committee, AUSTROADS, The Australian Road Research Board (ARRB) and National Road Transport Commission - and not one specific government organisation for alternative forms of transport.
Toner and Doern (1994) claim that Canada and Australia share many political and other characteristics, and identify the need to overcome significant entrenched resistance from industry ministers and central government agencies in both countries, and for strategic support from both non-governmental environmental organisations and business interests when attempting to implement policies for sustainable development.
73 4.3.6.4 Economic characteristics
Australia is a major energy and mineral exporting country. For instance, in 1991-1992 exports of coal and LNG were 80.3 million tonnes of oil equivalent (Mtoe) and 5.1 Mtoe, respectively (IEA, 1994). Coal is the most important energy commodity for Australia, comprising 69% of the energy produced in 1992-93, and 78.8% of the fuel used to produce electricity. The Commonwealth government continues to place a high priority on coal as an energy source, and views prospects to expand the use of renewable energy sources as limited. IEA (1994) claims that it will be difficult for Australia as a net exporter of energy to achieve its interim objective of greenhouse gas stabilisation by the year 2000.
Some efforts to promote co-generation in industry and the use of renewable energy have begun, however. Victoria, for instance, is leading the way in co-generation by offering attractive buy-back rates to co generators and developers of renewable energy resources (Ibid, 1994). Solar energy is especially suitable for the sunny Australian climate, and currently some 10,000 households generate their own electricity by solar means. Solar water heaters are already found in 5% of Australian homes (ABS, 1994). Methane gas from municipal waste is now fuelling five power stations in Victoria, New South Wales and South Australia. The use of wind farms is also thought to have a great potential for low-cost power supply (Ibid, 1994).
Tables 26-27 show which industrial sectors are the biggest contributors to employment and gross domestic product (GDP) in Australia. It is interesting to note that the manufacturing, electricity, gas and water, and mining industries have a decreasing share in overall employment and that more people are now working in the service sector.
74 Table 26: Industries’ Contribution to Employment (1000), annual average
INDUSTRY SECTOR CONTRIBUTION TREND (1000). INDICATION descending order 1964-93
Wholesale and retail trade 1,608.9 + Community services 1,460.2 + Manufacturing 1,115.2 - Finance, property and business services 870.5 ++ Recreation, personal and other services 622.4 ++ Construction 535.8 = Agriculture, forestry, fishing, hunting 405.9 = Transport and storage 372.7 + Public administration 369.9 + Communication 115.5 + Electricity, gas and water 98.9 - Mining 88.7 - Total 7,664.4 Key: + increase, ++ sharp increase, = stable, - decrease, - sharp decrease Source'. ABS (1994b)
Manufacturing, construction, and the agriculture, forestry, fishing and hunting industries have shown a marked decrease in contribution to GDP since 1964, as seen in Table 27. This indicates a slight restructuring of industry away from "dirty" industries to the (perhaps) less energy- and material-intensive service industries: Simonis (1994b) and Jänicke, Binder and Mönch (1994) discuss further ways to deliberately restructure dirty industries for the benefit of the environment as well as for overall employment.
75 Table 27: Percentage Contributions to GDP by Industry (current prices)
INDUSTRY SECTOR CONTRIBUTION TO TREND GDP (%), descending INDICATION order 1964-93 Wholesale and retail trade 17.4 - Manufacturing 14.7 Finance, property and business 13.6 ++ Community services 12.6 ++ Ownership of dwellings 9.9 ++ Construction 7.0 - Transport and storage 4.9 = Recreation, personal and other services 4.8 + Mining 4.3 + Public administration and defence 4.0 + Electricity, gas and water 3.5 = Agriculture, forestry, fishing, and hunting 3.2 Communication 2.6 + Import duties 0.8 —
Key: + increase, ++ sharp increase, = stable, - decrease, -- sharp decrease Source: ABS (1994b)
The economic structure is a major factor influencing the industrial metabolism of a nation. The national economy is in turn influenced by international competition and the international economic structure. An economy as the Australian, which relies heavily on non-renewable energy and has high rates of energy and resource consumption is clearly not sustainable or environmentally beneficial. The challenge to improve the efficiency and environmental performance of industry in nations such as Australia is not only to improve the performance within the current industrial structure, but also to restructure industry so as to be able to meet employment and economic needs as well as to protect the natural environment
76 4.3.6.5 Social characteristics
The most powerful factor forcing governments and industry alike to improve industrial metabolism for the benefit of society, the world and future generations is public pressure (Jänicke and Weidner, 1995 and ECGB, 1995). Public concern for the environment has been growing in Australia - the Tasmanian Dam and South East Forest campaigns being telling examples of this. The success of the "Clean Up Australia Day“ is another example of the willingness of the Australian people to act to improve their environment (ABS, 1994).
There are, however, still very many Australians who pursue environmentally-destructive goals of having bigger houses, bigger cars, more motorways etc. (IEA, 1994). Such a tendency may be encouraged by the relative abundance of natural sources and sinks in Australia which act to at least partly disguise the unsustainability of such behaviour. Hence, the fact that Australia is an "anthropogenic island" in a "geogenic sea" (Baccini and Brunner, 1991) could be a factor influencing public opinion and will to act to protect the environment.
4.4 Conclusions from the Australian Case Study
The Australian case study was valuable in illustrating the methodology of the extended industrial metabolism concept, suggesting possible factors influencing Australia’s industrial metabolism, as well as identifying future data/research needs.
Combining methods from major authors in the field and incorporating contributions from the Industrial Ecology and MIPS-concepts, key inputs, outputs, material flow paths, material stocks and indicators of the state of Australia’s industrial metabolism were identified. Agricultural, forestry, mining, energy, land and water inputs were found to be especially significant. Greenhouse gas emissions, urban solid waste and hazardous waste were among the important outputs identified. A range of material flow paths and industrial processes were outlined qualitatively, including those involved with extraction, manufacturing, packaging, trade, consumption, recycling and disposal. A rough indication of the materials stocked in Australia’s anthroposphere (or urban and industrial environment) was given by examining the type, size and materials of
77 Australian dwellings, the length of roads, and the number of vehicles stocked. Other indicators of the state of Australia’s industrial metabolism included the extent of habitat loss since colonisation, the percentage of remaining native species which are threatened, the trade in wildlife and wildlife products, and waste management strategies.
Unique geographical, political, economic and social characteristics of Australia were described briefly, in an attempt to characterize the anthropological forces driving material flows in Australia and the ecological constraints on Australia’s industrial metabolism. The old, extremely variable and diverse nature of Australia’s landscapes and climate, the non-uniform pattem of Australia’s State legislation and policies, the economic emphasis on energy and raw materials export, the relative abundance of natural resources, low population and extensive urban sprawl were seen to be key factors influencing the industrial metabolism of Australia.
From the case study it is apparent that more data and research is needed on nearly all aspects of Australia’s industrial metabolism, including inputs, outputs, material paths and stocks, indicators and influential factors. The need for comprehensive information on industrial outputs, for more accurate means to measure the performance of waste minimisation, recycling and re-use,and other indicators of the state of Australia’s industrial metabolism is particularly urgent. The Australian Waste Database which is being developed by the CRC for Waste Management and Pollution Control Ltd. In collaboration with the Environment Protection Agency, and its associated waste monitoring is an important step towards providing some of this information. Eventually, information on the material intensity of industrial products and processes could be obtained through material accounting which considers ecological rucksacks, imports and exports. Instruments to implement an improved industrial metabolism in Australia should be evaluated through monitoring, reporting and feedback mechanisms which consider the political, economic, social, cultural, and environmental contexts at all geographical scales.
Given the current lack of data or understanding of the interrelations between Australia’s industrial and ecological systems, and the continued risk of high ecological damage, it is necessary to act with geat precaution and to manage the land and industrial systems based on a partnership
78 ethic between humans and the environment (Mitchell and Aplin, 1996). This is particularly prudent given the age and unique character of Australia’s ecosystems and the inappropriateness of applying North American or European land management strategies to them. Having said this, it is suggested that beneficial comparisons could be made between Australia and Canada since they share some political, economic, social, and environmental characteristics (Tonerand Doem, 1994).
Providing a case study of Australia, it is hoped, was useful to illustrate the methodology of the extended industrial metabolism approach, to suggest factors which may be significantly influencing material flows, and to identify future data and research needs. Improving national industrial metabolism is, at long last, a vital pre-requisite to achieving and maintaining the ultimate goal of global sustainable development.
79 5.0 GENERAL CONCLUSIONS AND RECOMMENDATIONS
Industrial metabolism is a useful theoretical framework for investigating material flows within an industrial region, and between industry and the environment. It can be used to provide the information needed to transform industry into a system more like a sustainable biological organism by reducing material inputs and outputs and aiming to close material cycles. Such an approach is especially important since the Earth’s capacity to act as a source and sink for the industrial system is proving to be very limited, and we need to work and live within the constraints of nature if we are to live sustainably.
The industrial metabolism approach is especially significant in that it can provide information currently lacking in most accounting procedures, including: • estimates of historical and future industrial material flow patterns; • cumulative effects of industrial material flows; • diffuse sources of industrial material output flows to the environment; and • possible political, economic, technological and social forces driving human-induced material flows.
This report has incorporated contributions of the Industrial Ecology and MIPS-concepts into the industrial metabolism concept, provided an overview of possible instruments to implement improved industrial metabolism, and used a case study to demonstrate methodology and identify possible influential factors and data/research needs for improving Australia’s industrial metabolism.
Applying the extended industrial metabolism concept would contribute to the goal of long-term global sustainability, and enable coordination of national industrial metabolism studies through a range of international networks and institutions. Integrating the MIPS methodology could enable material flows associated with ecological rucksacks, imports
80 and exports, and services rather than individual economic products to be investigated.
Many environmental policy instruments can be used to improve industrial metabolism at the individual, firm, sector, local, regional, national and global level. These include a wide variety of political, economic, technological, social and informational instruments. The major focus of these instruments would have to be to improve industrial metabolism by closing the material cycles and dematerialising industrial products and processes. Such strategies would enable industrialised countries to reduce their material consumption, waste and pollution levels, while sustaining high quality of living standards.
The Australian case study was undertaken to outline the methodology involved in applying the extended industrial metabolism concept, to identify possible key forces driving Australia’s industrial material flows, and to offer recommendations for future research. Such national case studies could play an important role in contributing to the broader goal of ecological sustainability for the whole planet.
The methodology involved quantifying the industrial material flow inputs from the environment and outputs to the environment, outlining the paths of industrial material flows, estimating the amount of materials stocked in Australia’s anthroposphere, and identifying the key factors driving material flows. Australian data on air and water flows were limited, but it can be assumed that they are the most significant flows quantitatively, as found in major studies conducted on industrial metabolism and related areas (see particularly Baccirii and Brunner, 1991). Inputs of raw materials to the agricultural, forestry and mining industries were also found to be significant. Data on environmentally sensitive industrial material outputs for Australia were found to be extremely limited, although progress is being made in this area through the Australian Waste Database (AWD). An indication of urban solid waste and manifested hazardous waste outputs for Australia was made, based on data for Sydney from AWD (Moore and Tu, 1996). Paths of material flows within the industrial sector and between industry and the environment were described in terms of industrial processes such as extraction, manufacturing, trade, consumption, recycling and disposal. A very rough indication of the level of materials stocked in Australia’s urban environment was given by examining the size and outer wall materials of
81 Australian dwellings, and road lengths and vehicle stocks. Various environmental impacts and the level of waste minimisation performance in Australia were chosen as crude initial indicators of the state of Australia’s industrial metabolism.
Any management system or descriptive model is only as good as the standard of information provided (Moore and Tu, 1995). It is clear from the case study, that there is an urgent need for data on all aspects of Australia’s industrial metabolism, and on developing more accurate and representative indicators of the ecological sustainability of the industrial system. This is particularly important given the unique character of the Australian environment, which is not yet well understood, and which does not respond to management strategies in the same way as European or North American environments do. The political, economic and social characteristics of Australia also play a great role in driving the nation’s industrial material flows and therefore must be considered when formulating research priorities, environmental policies or management strategies to implement improved industrial metabolism in Australia.
The following quote may demonstrate the importance of continuing our efforts to understand the metabolism of the anthroposphere, and to transform present industrial systems so that they function within the constraints of nature:
First analysis of the metabolic phenomenology supports the conclusion that the dynamics of anthropogenic material flows are not under sufficient control to secure resources and environmental quality. Today, we can assess that faulty control can lead to a collapse not only of the anthroposphere but of the whole biosphere. Therefore, it is essential and a question of survival for (humans) and the whole biosphere, to understand the metabolism of the anthroposphere. (Baccini and Brunner, 1991:148)
Informational instruments are thus seen as especially important for transforming industry’s metabolism so that it resembles the metabolism of a sustainable biological organism, with low material inputs and outputs and closed nutrient cycles. Data on industrial material flow outputs are particularly critical to this process, and reliable indicators are needed to estimate the state of a region’s or nation’s industrial metabolism. These informational instruments, together with a mix of political, economic, technological and social instruments applied in a given context, can enhance the reduction of raw materials consumption and waste production
82 levels typical of present industrial systems. Implementing improved industrial metabolism at the firm, local, regional, national and global level would greatly advance the survival prospects for all species on Earth.
83 6.0 STATISTICAL SOURCES
1. Australian Bureau of Statistics (ABS) Apparent Consumption of Foodstuffs and Nutrients. Australia 1989-90. Australian Government Publishing Service, Canberra, 1992.
2. ABS Principle Agricultural Commodities, Australia (Preliminary) 1993- 94, Agricultural Production and Farmer's Intentions for the 1994- 95 Season. Australian Government Publishing Service, Canberra, 1994a.
3. ABS Yearbook Australia, 1995, No.77. Australian Government Publishing Service, Canberra, 1994b.
4. CSIRO Australia Report 1990-1992: CSIRO Division of Materials Science and Technology. CSIRO Australia, Clayton, Victoria, 1992.
5. Food and Agriculture Organisation of the United Nations (FAO) Production Yearbooks. FAO, Rome, 1991.
6. FAO FAO Yearbook - Fertiliser, Vol.41, 1991. FAO, Rome, 1992a.
7. FAO The State of Food and Agriculture. 1992 - World and Regional Reviews, Marine Fisheries and the Law of the Sea: A Decade of Change. FAO, Rome, 1992b.
8. FAO FAO Yearbook - Forest Products 1991. FAO, Rome, 1993.
9. International Energy Agency (IEA) I Organisation for Economic Cooperation and Development (OECD) Energy Statistics of OECD Countries 1991-1992. OECD Publications Service, Paris, 1994.
10. Moore, S. and Tu, S.Y. Standard Australian Waste Database Report, 1996 CRC for Waste Management and Pollution Control Ltd. for the Environmental Protection Agency, University of New South Wales, Sydney, 1996.
11. OECD Environmental Data - Compendium 1993. OECD Publications Service, Paris, 1993a.
84 12. OECD Environmental Indicators. OECD Publications Service, Paris, 1994a.
13. United Nations Environment Programme (UNEP) Environmental Data Report, Third Edition, 1991-92. Basil Blackwell, Oxford, 1991.
14. UNEP The World Environment 1972-1992: Two Decades of Challenge. Basil Blackwell, Oxford, 1992.
15. United States Bureau of Mines (Department of the Interior) (USBM) 1991 International Review: Minerals in the World Economy 1991 - Minerals Yearbook Vol.lll. United States Government Printing Office, Washington D.C., 1991.
16. USBM 1991 International Review: Minerals Yearbook Vol.lll - Mineral Industries of Asia and the Pacific. United States Government Printing Office, Washington D.C., 1993.
17. World Resources Institute (WRI) and UNEP World Resources 1994-95. Oxford University Press, New York and Oxford, 1994.
85 7.0 BIBLIOGRAPHY
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