(In Swedish) presented at the Nordic Council of Minister's workshop on sustainable consumption and production, it gives a bakground to the idea of charging progressively more for substances and activities that pollute.

1. Anders L Höglund
MScEngPhys
Vice President
The Swedish Sustainable
Economy Foundation
tssef.se

2. What feature does a bicycle and a JAS-
fighter plane have in common?
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3. Obstacles on the path
to sustainability
 Political and democratical road blocks
 Weak and insufficient economic drivers
 Insecurity about suitable numbers and indicators
 Insecurity about suitable control instruments
 Too much focus on GNP-growth
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4. Conditions for an efficient
and viable solution
 Sufficiently strong economic drivers
 Political and democratical acceptance
 Means of hedging against risk
 Internalization of externalities
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5. Suggestions for an efficient and
sustainable solution
 Flexible control fees as economic drivers for
internalization of externalities in the economy
 A sufficiently large repayment of the fee income
for democratic acceptance
 A futures market to reveal abatement costs and
as an instrument to hedge against risk
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6. Why a control fee?
• Because it can be made adjustable and sufficient
• Because it can be made simple and efficient
• Because it can be made transparent and traceable
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7. Why a repayment?
• To secure democratic acceptance
• To stimulate sustainable growth
• To make the control fee 'budget neutral'
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8. Why a futures market?
• Because it is known, established and effective
• Because it has a proven hedging function
• Because it can reveal abatement costs
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9. Problem areas for efficient use
of control fees
 CO2-emissions from fossil fuels
 Harmful emissions from vehicles
 Depletion of non-renewable natural resources
 Extraction of harmful metals and minerals
 Production of harmful chemicals
 Unsustainable use of fresh water resources
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10. Advantages and added value from
flexible control fees
• Economic drivers for sustainability
• Increased purchasing power and benign demand
• Increased investment and reduced unemployment
• Acceptance thanks to repayment of fee income
• Risk reduction thanks to fee futures markets
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11. Risks and threats when the need for
stabilizing feedback is ignored
 Real estate bubbles
 Financial crises
 Environmental degradation
 Loss of resources
 Systemic collapse
 Large scale famine
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12. Thank
You!
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