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Provide an Analysis of the Environmental Economy in the North West and the Links Between Environment and Economic Development;

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Provide an Analysis of the Environmental Economy in the North West and the Links Between Environment and Economic Development; 1 INTRODUCTION 1.1 STUDY AIMS The study aims to: · provide an analysis of the environmental economy in the North West and the links between environment and economic development; · identify key growth opportunities within the environmental economy and opportunities for strengthening the positive links to economic and social progress in the future; · develop practical recommendations for regional initiatives to make progress in this field. Underlying these principal aims was an interest in highlighting the links which exist between the environment, the economy and social welfare/quality of life. It is apparent that each of these issues makes a major contribution to the overall ‘quality’ of a region and the experiences of those people who live there. What is less obvious is that the strength of the interrelationships between the environment, the economy and quality of life are such that changes in one of them could have significant impacts on the others. Our research demonstrates that the environment, which was the focus of this study, is a key engine for the development of the North West region, not just because of its direct impacts on the region, but also because of its indirect impacts on the region’s economy and on the social welfare and quality of life of the people who live here. This project draws on the views and experience of many regional specialists in the environment sector without which the report could not have been effectively prepared. We are grateful to them for their contributions. 1.2 STRUCTURE OF THE REPORT This report is divided into five sections. The remaining part of this introduction (Section 1) defines the scope of the study and explores the way in which this was developed. Section 2 focuses on the Environmental Goods and Services sector, but also includes those parts of the transport industry which fit into the scope of the study. Section 3 turns to the Primary Sector, including conservation and agri- environment, while Section 4 looks at a wide category having as its common theme Capitalising on a High Quality Environment. Here the areas of environmental led tourism, investment and quality of life are examined. Section 5 of the report presents some opportunities for the future growth and development of the North West’s environment sector as a whole. A glossary ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 1 of acronyms is given in Annex A to the report, and a bibliography in Annex B. Annex C presents a list of the people consulted during the study’s preparation as well as a list of steering group members. 1.3 FRAMEWORK FOR ESTABLISHING THE STUDY SCOPE Activities within the ‘environmental economy’ can be defined in terms of their relationship to environmental quality, according to one of the following criteria: · activities which aim to protect or improve the environment; or · activities which are dependent on a high quality environment. These two criteria provide a basis for identifying which activities to include in the scope of the study. For ease of writing and comprehension in the report, the first criterion is sometimes abbreviated to ‘protect/improve’, while the second is sometimes abbreviated to ‘dependent on HQE’. In seeking to ensure that the report carries as much credibility as possible, the project Steering Group and the consultants have worked in close co-operation to develop the project scope. The scope has also been defined taking into account the finite resources available to undertake the study and in at least one instance (the built environment) the difficulty of obtaining accurate figures has also influenced scope. Data limitations were an issue during the analysis stage of the study when available data related to areas wider than the specific environmental concerns of the study. Having discussed the scope of the project with partners and stakeholders during consultations in January 2000, and again in May 2000, we are aware that the strict application of criteria has meant that there are some items which have not been addressed as part of this study which some readers might expect to have been included. The corollary of this is that the report which follows does have the advantage of being fairly tight in terms of its definition of the environment sector. The report divides the North West’s environmental economy into three broad categories. These are the environment sector, the primary sector and capitalising on a high quality environment. Exactly what is meant by these terms, and the activities included within them, is described in Section 1.3.2, Section 1.3.3 and Section 1.3.4. Dividing the North West’s environmental economy into these key categories provides a convenient framework for analysing the effect that activities within the environmental economy have on the wider social and economic setting. In undertaking such analysis it is important to emphasise that though considered under separate headings, components of the environmental economy retain strong links which transcend these ‘artificial’ boundaries and the impacts of activities are not usually confined to just one sector. This is a underlying theme which applies to varying degrees to all ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 2 components of the environmental economy and one to which we explicitly return in Section 5.5. 1.3.1 Core and Non-Core Activities It is possible to classify activities by the strength of their relationship to the ‘environmental economy’. For example, pollution control equipment and nature conservation activities clearly aim to protect or improve the environment. Likewise, a high quality environment is a definite prerequisite for some tourism activities. These activities are linked strongly to the environment, and are therefore described as ‘core’ activities under each of the main two criteria. Activities which fall less firmly under the two criteria described above, can be classified as ‘non-core’. These activities might contribute to environmental improvement, but this is not their primary purpose; likewise such activities may benefit from a high quality environment, but they are not dependent on it. For example, low energy light bulbs bring environmental benefits in terms of energy efficiency, but arguably their primary purpose is to generate light cost-effectively. Similarly, certain agricultural activities may benefit from a high quality environment, but they do not depend on it. Activities like this, which have a weaker relationship to the environmental economy, are described as ‘non-core’ activities. By identifying these separate ‘core’ or ‘non-core’ activities, the report provides the reader with a weighting of the relationship of different activities to the ‘environmental economy’. Assessing whether an activity is ‘core’ or ‘non-core’ inevitably involves a degree of subjectivity. For this reason, the categorisation is based on a consensus of opinion among different organisations in the region. In this respect, we are pleased to have benefited from the input of both the steering group and those who contributed at our seminars held in January 2000. The following paragraphs illustrate the application of the framework described above to show which activities are covered within the study. A clear rationale is also presented for classifying an activity as ‘core’ or ‘non- core’. 1.3.2 The Environment Sector ‘The environment sector’ is one of the three main headings into which the North West’s environmental activities are divided. Within this overall heading, we include: · environmental goods and services, this sector is defined by the OECD (1999) as goods and services to measure, prevent, limit, minimise or correct environmental damage to water, air and soil, as well as problems related to waste, noise and eco-systems; ENVIRONMENTAL RESOURCES MANAGEMENT NWRA, NWRDA, GONW AND PARTNERS 3 · academic institutions; · public sector environmental services · not for profit organisations; · transport (where appropriate); and · nature conservation and biodiversity. Some of these activities are described in more detail, together with their categorisations, below. Environmental goods and services The following environmental goods and services are included under the protect/improve criterion: · air pollution control - ‘core’ because the main purpose of these activities is to protect or improve the environment via reducing air pollution; · environmental consulting services - ‘core’, because such services are mostly used to protect or improve the environment through provision of advice and/or consulting services; · environmental law - ‘core’, since its aim is the protection of the environment as described in legislation and case law; · contaminated land remediation and physical regeneration - ‘core’, since its prime function is to improve or protect the environment by cleaning up polluted sites and/or improving the quality of buildings and facilities; · environmental monitoring and instrumentation (including environmental laboratory services) - ‘core’, since the main aim of using such equipment is to protect or improve the environment; · marine pollution control - ‘core’, because these activities are primarily designed to protect or improve the environment via reducing or minimising marine pollution; · noise and vibration control - ‘core’, again, since the purpose of the activity is to protect or improve the environment through reducing or minimising noise and vibration; · waste management - ‘core’, since it aims to manage waste sensitively with respect to
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