This presentation presents an overview of the Swedish Sustainable Economy Foundation's Flexible Fee Mechanism for creating a transition to the sustainable society while retaining economic stability.

1. At the start of the last
century most were
convinced flying was
an impossibility

2. In the 21st century, most are
convinced transitioning to
sustainability is an
impossibility
(With economic growth at the same time)
The Swedish Sustainable Economy Foundation – tssef.se

3. TSSEF presents an
alternative view
The Swedish Sustainable Economy Foundation – tssef.se

4. The science gives clear objectives

5. 2

6. Nitrogen

7. Phosphorus
P

8. LEAKAGE=
C
NON-RENEWABLES:
e.g. Fossil energy
Abundant and should be
recycled Can be recycled but in short supply
e.g. Nitrogen e.g. Phosphorus
N P

9. MONEY LEAKS OUT TOO
$
$ $ Fossil fuel import:
13,000,000 m3
Costs: climate change
Nitrogen import 160 000 ton
Costs: water purification and
Import of Phosphorus
18,400 ton
$
Baltic sea clean-up Costs: water purification and
Baltic sea clean-up
N P
$Swedish agricultural land had an annual net import of about 10,600 tonnes of phosphorus corresponding to 3.2 kg phosphorous per hectare
Linderholm, Kersti and Mattsson, Jan Erik (2013). Analys av fosforflöden i Sverige.
Sveriges lantbruksuniversitet: rapportserie ; 2013:5
$

10. P&N: per kilo
20kr import
*200kr water works
**Baltic Sea clean-up 3200 kr
Sources*IVL **Sarah Säll, doktorand i miljöekonomi vid SLU

11. Stopping the leakage of money
and resources from the nation
and the national economy, is good
business and in effect grows the
economy as the money
recirculates

12. Resources
money

13. return
Resources
procure use

15. Systems that emit have been
cheaper

16. CONTROL ENGINEERING
the engineering discipline that designs
systems to produce desired behaviors.
Typical for control engineered
environments:
• sensors measure the behaviour of the
object being controlled
• feedback to
• actuators that can make corrections
toward desired performance.

18. SYSTEM: The commericial and social system’s use of polluting
substances
BEHAVIOUR DESIRED: That market forces act to transition technical
infrastructure, management and praxis so emissions
reach a reasonable, acceptable level.
SENSORS: Economic indicators of sales of clean tech, sales of
pollutant-bearing substances, financial indicators of e.g.
futures contracts and technilca indicators on emissions.
FEEDBACK: Figures are collated and fed to expert committee.
ACTUATORS: The regular import/extraction fee that is adjusted to
ensure behaviour of system.

19. Flexible emission control fees are tariffs imposed by authorities
on the import or extraction of specific substances.
The purpose of the mechanism is to control the rate of phase
out to keep both socio-economic and ecological stress to the
minimum necessary.
The level of fee imposed is flexible, i.e. adjusted regularly,
based on information from a monitoring function of
market behavior including the rate of abatement compared to
phase-out goals and other factors.
The mechanism includes economic feedback, returning fees
collected to the economy via dividends or other routes.
The adjustments, together with the dividend comprise
a control mechanism that ensures the transition to an
economic and safe use of the substance in the societal system.

20. FLEXIBLE EMISSION FEES
MEASURE
purchase Technology
Consumers Service production Clean
Tech
providers
FEEDBACK
substance
Dividend
CORRECT-
IONS
Rate FINANCE
Authority sets limits Import/production
Futures markets
and phase out rates Fee actors
Investors etc
MEASURE FEEDBACK MEASURE

21. changes too
slow:
raise the fee.
too fast:
lower it.

22. THE PHOSMARK
PROJECT
• Gotland as Sweden in
miniature
• Investigates the circular
P and N economy
• Conference 2015

23. Maybe some
government support
will be needed in the
beginning of
introduction of
dynamic control
The Swedish Sustainable Economy Foundation – tssef.se