Sustainable Economic Development

By John DunkerBusiness Development &

Investments, LLCdunker@attglobal.net

Pikes Peak Economics ClubThe Vanguard SchoolColorado Springs, CO

June 7, 2011

SustainabilityGreen is real … and can really be green.

Definition: Brundtland Commission (March 20, 1987).

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Definition:John Dunker

“Forever”“Productivity”

Economics drives sustainability!

Green is Real:Perception or Reality?

Perception

Reality

Earth’s assets are finite … other than renewables

Consumption of the Earth’s assets is by people

Sustainability is not new

Triple Bottom LineTraditional: Venn diagram

People

ProfitsPlanet

Triple Bottom LineMy approach: Power triangle

Society Environment

Economics!

Hierarchy of Human NeedsAir

Water

Food

Shelter/Clothing

Procreation

Energy (pertains to all the above)

ENERGYFossil Fuels:OilCoalGas

Renewable Fuels:Wind Solar Wood/Peat.Biofuels Methane Hydro NuclearGeothermal

Conflicts to SustainabilityFood vs. energyBiodieselEthanol

Energy vs. ‘snail darter’WindmillsDrilling

AgricultureCorporate farms vs. family farms Food vs. Rain ForestsFood vs. animal production for food

Dairy

The Information Unit on Climate Change takes methane pollution caused by cattle seriously. Scientists now believe that methane gas is responsible for 15% of “man induced climate change”. Livestock contributes 15-20% of the methane. The Information Unit also states that livestock farming results in more methane pollution than “fossil fuel production, biomass buring, landfills, and domestic sewage.”

Natural vs. rBST: 2008 study by Dr. Dale Bauman.157,000 fewer cows.491,000 m/t corn.158,000 m/t soybeans.2.3 m/t feedstuffs.541,000 acres of production.

Agricultural Consumer ChoicesJohn Barnett of Stockholm Environment

Institute of York, UK Dog – 2 acres (Jeep for 6200 miles).Cat – 0.75 acres (Volkswagen Golf for 1 year).Hamster – 0.5 plasma TV.

Consumer Perception vs. Economics (Nov. 2009 study by AP & NBC):

Cans – 70% agree to recycle; of 133b cans only 50% recycled.

Water bottles – 58.8b/year; 168/person; 23% recycled.

Sustainability in Business Driven by Economics (mostly food and agriculture)

Dairy Farms: Productivity = Economics1944=25,000,000 cows vs. 2011=9,00,000 cows.Milk per cow 4500 lbs. or 525 gals vs. 20,000 lbs or

2325 gals.Serving 138 million people vs. 350 million people.2.5 X more people with 65% fewer cows.

Dairy Plants: 1980 vs. 2010 20% less energy and twice the throughput.

GSA – 4 dairy companies; Capper-Volsted Act 1923.

(Dairy Plants - continued …)SWC

Transport fuel savings $26,280,000.Dryers – heat recovery system.Methane – from waste treatment.Water for irrigation …Cooperation with city of Clovis, NM.

Other Companies

Schwann’sExpress Foods Inc.Miller-Coors JVGM

SummaryEconomics Drives Sustainability

Economics … is … Productivity (more output from less input)!

Reduce factors of productionRaw materials.Capital.Labor.Water.Energy.Land.Waste.

Green is real … and can really be Green!