The Natural Advantage of Nations: Business Opportunities, Innovation and Governance in the 21st Century

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Format: Hardcover
Pub. Date: 2005-05-30
Publisher(s): Routledge
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Summary

This book is more than just a "palliative care" guide for the planet-it is about innovation, solutions, competitiveness and profitability. At work, at home and as members of society, our generation has an obligation-and an exciting opportunity-to be part of the solution in restoring the balance. The authors present a bold vision for the future and demonstrate how we can get there, drawing on lessons of competitive advantage theory and the latest in sustainability, economics, innovation, business and governance theory and practice. The result is nothing less than the most authoritative and comprehensive guide to date, to building the new ecologically sustainable economy. For further information about The Natural Edge Project and to view the book's online companion, visit www.naturaledgeproject.net.

Table of Contents

List of Figures and Tables xiii
Forewords by
Alan AtKisson
xvii
Amory B. Lovins
xix
William McDonough
xxiii
L. Hunter Lovins
xxix
Michael Fairbanks
xxxv
Preface by Karlson 'Charlie' Hargroves and Michael H. Smith xxxviii
Acknowledgements xlii
List of Acronyms and Abbreviations xlvi
Introduction: Insurmountable Opportunities 1(6)
SECTION 1: THE NEED FOR A NEW PARADIGM
1 Natural Advantage of Nations
7(27)
Progress, competitiveness and sustainability
7(5)
Significant potential for resource productivity improvements
12(2)
Creating competitive advantage of the firm
14(2)
A critical mass of enabling technologies
16(6)
Externalities: who pays?
22(2)
Benefits of valuing nature
24(1)
Implications and benefits for global development
25(9)
2 Risks of Inaction on Sustainable Development
34(9)
A great transition
34(2)
A sense of urgency
36(3)
Declining ecosystems: a new limiting factor for growth?
39(2)
Can we replicate nature's services?
41(2)
3 Asking the Right Questions
43(14)
How should we measure growth?
43(2)
What is meant when we speak of 'sustainability' and 'sustainable development'?
45(2)
Achieving sustainable genuine progress or sustainable development
46(1)
Can we achieve no major trade-offs and win-win opportunities?
47(3)
How do nations measure progress?
50(2)
How do we design for legacy?
52(2)
Can we turn 'vicious cycles' into 'virtuous circles'?
54(3)
4 A Dynamic 'Platform for Change'
57(11)
Economic policy: the broader context
57(6)
The invisible hand
58(2)
Collaborative approaches
60(3)
Tripartite world
63(1)
Whole of society approach
64(11)
Importance of capacity building
67(1)
5 Thinking Locally, Acting Globally
68(7)
SECTION 2: NATURAL ADVANTAGE: A BUSINESS IMPERATIVE
6 Natural Advantage and the Firm
75(34)
The changing nature of competition
75(6)
Achieving competitive advantage through strategic positioning
81(2)
What will be the major driver of innovation in the 21st century?
83(4)
Moving early to exploit structural change
85(2)
Why integrate sustainable development into corporate strategy?
87(3)
Downsizing: a strategy that no longer cuts it
88(2)
The shifting nature of competition in emerging economies
90(4)
Additional drivers for sustainable development
94(10)
Achieving radical resource productivity
98(3)
New opportunities for product differentiation
101(3)
Increasing profitability and minimizing risk (Porter's 5 Forces Model)
104(5)
Threats of new entrants
104(1)
Threat of substitute products or services
105(1)
Bargaining power of buyers
105(3)
Power of suppliers
108(1)
7 Innovation and Competitiveness through Industry Cluster Development
109(9)
Cocoa beans...and what else?
Michael Fairbanks and Andrew Smith
110(1)
The cluster development process
111(1)
Government role in promoting cluster competitiveness
116(1)
A way forward
117(1)
8 The Political and Social Context: A Sixth Force on Business?
118(17)
Consumer demand change: knowing your market
118(2)
Human resources: attracting the best people
120(1)
Staying ahead of changes to government regulations
121(3)
Can market based mechanisms be designed to assist firms to achieve competitive advantage?
121(1)
Can regulation be designed to assist firms to achieve competitive advantage?
122(1)
Raising the bar: independent certification schemes
123(1)
The insurance industry: responding to climate change
124(3)
The finance industry: a new paradigm in investment
127(8)
The practice of ethical and socially responsible investment
130(5)
9 Accelerating the Sustainability Revolution
135(26)
Overcoming short-termism
135(15)
Incentives for business leaders
136(1)
Reform of fiduciary duty for pension and superannuation funds trustees
L. Hunter Lovins and Walter Link
137(4)
Environmental management accounting in Japan
Chika Saka, Roger Burritt, Stefan Schaltegger and Tobias Hahn
141(9)
Grounds for change: the exciting developments in firm level economics
150(11)
Efficiency gains within firms under voluntary environmental initiatives
Bruce Paton
157(4)
10 Operationalizing Natural Advantage through the Sustainability Helix
161(10)
The business case for sustainability
161(17)
The management helix for the sustainable organization (Sustainability Helix)
162(1)
Sustainable Business Practice: The Fieldguide to Natural Capitalism
163(8)
SECTION 3: ACHIEVING A NATURAL ADVANTAGE OF NATIONS
11 The Role of Government
171(46)
The tragedy of the commons: 35 years on
178(3)
Government mechanisms
181(1)
The regulatory measure response
182(11)
Mental models of voluntary environmental initiatives
Bruce Paton
188(5)
Voluntary agreements: effectiveness analysis - tools, guidelines and checklists
Roger Burritt
193(1)
Allars' characteristics of effective voluntary agreements
193(1)
The generic Canadian pro forma for voluntary initiatives
194(1)
The United Nations Environment Programme's (UNEP's) Industry and Environment Technical Report
196(1)
The Organisation for Economic Co-operation and Development's (OECD's) approach
199(1)
Can regulation be designed to improve competitiveness?
200(9)
Effective economic measures to complement either voluntary or regulatory approaches
202(3)
Natural resources
205(3)
Government-industry partnerships to improve innovation
208(1)
From clusters to national systems of innovation
Rob McLean with Jaya Pillia
209(3)
Managing industry transitions through waves of innovation
Philip Sutton
212(5)
12 Towards a Deeper Understanding
217(27)
Markets and efficiency
217(9)
What is a market?
217(1)
How do economists define efficiency?
218(1)
The classical understanding
218(1)
Perfect complete markets
219(1)
The economics of information
220(2)
Financial markets: what they do and why they are fragile
222(2)
Anti-monopoly legislation: competition policy
224(2)
Challenges to governments and institutions
Stephen Dovers
226(1)
Attributes of policy problems in sustainability
227(1)
Clarifying government, governance and institutions
228(1)
Available scales of sustainability governance
230(1)
Scaling responses
231(1)
Principles and elements of policy and institutional reform
233(1)
Is there 'credible commitment' to sustainabilty?
236(2)
National Councils for Sustainable Development
Stephen Dovers
238(1)
Features of NCSDs
239(1)
Specific NCSDs as examples
239(1)
NCSDs and international agreements
242(1)
General observations
243(1)
13 National Systems of Innovation
244(27)
Paul M. Weaver
Practice makes perfect
244(2)
Innovation systems are part of today's development paradigm
246(1)
The challenge to innovation systems
246(7)
The Dutch National Sustainable Technology Development programme
253(2)
The Netherlands context
255(1)
Recent developments
258(2)
Lessons from the Dutch and other programmes
260(4)
Concluding remarks
264(7)
14 Sustainability in the Wild West (State Government)
271(14)
Peter Newman
The Fremantle Declaration: 'Passing the Torch to the Regions'
272(1)
The Western Australia State Sustainability Strategy: is change happening?
272(1)
Process for developing the strategy
276(1)
Public engagement
276(1)
The policy change process
277(1)
What have we learned?
282(3)
15 Delivering Sustainability Through Local Action (Local Government)
285(16)
A worldwide movement of local governments
Wayne Wescott, Martin Brennan and Yolande Strengers
285(3)
Sustainability Street: it's a village out there
Vox Bandicoot and Environs Australia Projects
288(1)
Leadership in the local government sector: working from inside out
Valerie A. Brown
289(1)
Sustainability leadership in the local government sector
290(1)
Profile of sustainability leadership
290(1)
'When everything is said and done - more is said than done'
293(1)
Sector-wide action
294(1)
Sustainability advocacy in the local government sector
295(6)
SECTION 4: SUSTAINABLE CITIES: THE CHALLENGE OF THE 21ST CENTURY
16 Tomorrow's Mega-cities: How Will They Develop?
301(15)
Governance of municipalities: a snapshot of sustainable development in China
Mark Diesendorf
303(3)
The Goa 2100 Project: a breakthrough project from India
Alan AtKisson
306(10)
17 Profitable Greenhouse Solutions
316(30)
Michael H. Smith and Alan Pears
Energy systems: drivers for change
316(1)
Vulnerabilities in the energy system
317(1)
Threat of climate change
320(1)
Greenhouse solutions that do not cost the earth
326(1)
A historic opportunity
337(1)
Issues identification
342(4)
18 Greening the Built Environment
346(25)
Cheryl Paten and Janis Birkeland with Alan Pears
Building positive examples
347(3)
The significance of greening the building and development industry
350(2)
Perceived barriers to change
352(1)
Information failures
352(1)
Market failures
352(1)
Institutional failures
352(3)
From pioneers to systemic change: cultural reform
355(1)
Information reform
356(1)
Market reform
359(1)
Institutional reform
360(1)
Rating schemes
361(3)
Design practice reform
364(1)
Design process elements
364(1)
Residential buildings
365(1)
The future in design approaches
368(2)
Summary
370(1)
19 Sustainable Urban Transport
371(16)
Jeff Kenworthy, Robert Murray-Leach and Craig Townsend
Economic impacts of transport choices are significant
371(1)
Methodology of the Millennium Cities Database
373(1)
Characteristics of urban transport systems
373(1)
Sustainable transport systems
380(1)
The importance of urban form
381(1)
Sustainable urban development
382(1)
Designing around the mind: understanding behaviour
383(1)
Civil society and business
384(3)
20 Water: Nature's Gold
387(20)
Michael H. Smith with David Dumaresq
Key drivers for change
388(1)
Rationale for dams in the past
391(1)
Creating a robust foundation and framework for water management
396(1)
The Council of Australian Governments Agreements on Water Policy
398(1)
The COAG communique to develop a National Water Initiative
399(1)
A robust separation framework
401(1)
Water access entitlements: allocations and use conditions
401(3)
Conclusion
404(3)
SECTION 5: A NATIONAL COLLABORATIVE APPROACH: THE BIGGER PICTURE - BUILDING RESILIENCE
21 Integrated Approaches to Sustainable Consumption and Cleaner Production
407(23)
Christopher Ryan
Consumption and low impact affluence
407(3)
Patterns of consumption are a global issue
410(1)
Policy approaches and action
411(1)
Summary of policy approaches for sustainable consumption
412(5)
Industry attention and action
417(1)
Strategies for the future
418(1)
Clarifying the focus for action on consumption
418(1)
Developing better indicators
418(1)
An alternative conceptual approach for describing systems of production and consumption
421(1)
Enhancing the potential of limited, localized actions
425(1)
Improving products and services: the logical focus for production and consumption
426(1)
The overall strategic goal: leapfrog to new systems of products and services
427(3)
22 Changing Hearts and Minds: The Role of Education
430(15)
The need for critical literacies in sustainability
430(2)
Sustainable development in schools
Anna McKenzie
432(1)
Constructive environmental education
432(1)
Adding value not load
433(2)
Key role of higher education and the professions
435(8)
Harnessing universities' research capacity
437(3)
Partnering with professional bodies to build capacity
440(3)
The power of individuals
443(2)
23 Achieving Multi-stakeholder Engagement
445(17)
What is multi-stakeholder engagement?
445(2)
Where does multi-stakeholder engagement fit in?
446(1)
Current issues with multi-stakeholder processes
446(1)
Looking forward: multi-stakeholder process design
446(1)
Engaging the spirit
447(1)
Introducing the Pyramid: a versatile process and planning tool for accelerating sustainable development through multi-stakeholder engagement
Alan AtKisson
447(1)
What is the Pyramid?
448(1)
How the Pyramid process works
451(6)
Building a network around a project: The Natural Edge Project
Karlson 'Charlie' Hargroves, Michael H. Smith, Cheryl Paten and Nick Palousis
457(5)
Notes 462(29)
References 491(22)
Index 513

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