155
people’s health, looking after natural and cultural capital) more competitive. In the
USA, eleven States do not tax labour (human capital) but flow of non-renewable
resources (for example, the construction industry in Florida, the oil and gas industry
in Texas). In Canada, the move in British Columbia towards taxing GHG emissions
(B.C. 2013) appears to be having effects which are both environmentally and economically beneficial (Elgie and Clay 2013). Not levying value-added tax (VAT) on
value preservation activities would give goods in the circular economy a substantial
cost advantage over new goods (around 20 % in most EU countries), again giving
economic actors a clear incentive to change from flow to stock management.
5 Industrial Ecology and the Performance Economy
The idea of the performance economy has developed separately from developments
in industrial ecology (Stahel 2010). One of the main objectives of this chapter is to
show how thinking on the performance economy embodies the idea of an industrial
ecosystem articulated by Frosch and Gallopoulos (1989), so that the performance
economy is underpinned by and applies industrial ecology concepts and tools
including life cycle management, accounting of material flows and stocks, resource
efficiency, urban metabolism, servicisation and dematerialisation. Localisation of
re-use, remanufacturing and some reprocessing can open up new opportunities for
symbiosis between industrial activities. Although the drivers for the performance
economy are primarily economic (or could be primarily economic under an appropriate fiscal regime), the model has the potential to alleviate the same environmental, economic and social challenges which industrial ecology seeks to address.
The performance economy represents industrial ecology in action.
Notation
d
Quantity of service delivered in specified time period (e.g. passenger-km per
year for personal transport)
e
Energy use (e.g. GJ/year)
e p Energy input to a sector producing material products (e.g. GJ/year)
e S Energy input to using manufactured stock (e.g. GJ/year)
f 1 Fraction of q routed to remanufacturing
f 2 Fraction of q routed to recycling/reprocessing
g GHG emissions from energy sector (e.g. tonnes CO 2e per year)
g p GHG emissions associated with a sector producing material products (e.g.
tonnes CO 2e per year)
i
Interventions (i.e. exchanges across the system boundary) associated with
operations and activities, per unit of output; i.e. inputs (e.g. energy or labour or
financial costs) or outputs (e.g. emissions or wastes)
p
Flow of materials or products into use (e.g. tonnes/year)
q
Outflow of materials or products from use phase (e.g. tonnes/year)
7 Stocks and Flows in the Performance Economy
people’s health, looking after natural and cultural capital) more competitive. In the
USA, eleven States do not tax labour (human capital) but flow of non-renewable
resources (for example, the construction industry in Florida, the oil and gas industry
in Texas). In Canada, the move in British Columbia towards taxing GHG emissions
(B.C. 2013) appears to be having effects which are both environmentally and economically beneficial (Elgie and Clay 2013). Not levying value-added tax (VAT) on
value preservation activities would give goods in the circular economy a substantial
cost advantage over new goods (around 20 % in most EU countries), again giving
economic actors a clear incentive to change from flow to stock management.
5 Industrial Ecology and the Performance Economy
The idea of the performance economy has developed separately from developments
in industrial ecology (Stahel 2010). One of the main objectives of this chapter is to
show how thinking on the performance economy embodies the idea of an industrial
ecosystem articulated by Frosch and Gallopoulos (1989), so that the performance
economy is underpinned by and applies industrial ecology concepts and tools
including life cycle management, accounting of material flows and stocks, resource
efficiency, urban metabolism, servicisation and dematerialisation. Localisation of
re-use, remanufacturing and some reprocessing can open up new opportunities for
symbiosis between industrial activities. Although the drivers for the performance
economy are primarily economic (or could be primarily economic under an appropriate fiscal regime), the model has the potential to alleviate the same environmental, economic and social challenges which industrial ecology seeks to address.
The performance economy represents industrial ecology in action.
Notation
d
Quantity of service delivered in specified time period (e.g. passenger-km per
year for personal transport)
e
Energy use (e.g. GJ/year)
e p Energy input to a sector producing material products (e.g. GJ/year)
e S Energy input to using manufactured stock (e.g. GJ/year)
f 1 Fraction of q routed to remanufacturing
f 2 Fraction of q routed to recycling/reprocessing
g GHG emissions from energy sector (e.g. tonnes CO 2e per year)
g p GHG emissions associated with a sector producing material products (e.g.
tonnes CO 2e per year)
i
Interventions (i.e. exchanges across the system boundary) associated with
operations and activities, per unit of output; i.e. inputs (e.g. energy or labour or
financial costs) or outputs (e.g. emissions or wastes)
p
Flow of materials or products into use (e.g. tonnes/year)
q
Outflow of materials or products from use phase (e.g. tonnes/year)
7 Stocks and Flows in the Performance Economy