27sustainabilityandlocal.pdf

Sustainability

and

Local

Economic

Development:

Can

Regions

'Learn'

to

Become

Sustainable?

Saeed Parto

There

is reasonably

widespread

appreciation

of

the

need

toorient ecologically industrial

and

economic

activity. At the

same

time,there isan

emerging

reservoir

of

empirical information

from

applying industrial ecology in "eco-industrial

parks"(EIPs).This paper arguesthatthese

developments

offera unique opportunity to

incorporate industrial ecology principlesinto

regional

economic development

decision-making

frameworks

in orderto

move

closer to

meeting

sustainability objectives. Attainingsustainability

at the local/regional' level requires,

among

other

factors, collective effortby industrial

organizations

toward

common

goals including

resource conservation, production efficiency,

economic

viability,

and

social responsibility.

There

is a

need

to identifyand/ordevelop

practical

management

tools

and

institutional

arrangements

thatnurture desirable organizational

traits

and

discourage practicescontrary to

sustainable

development

in the local

and

global

contexts.

To

thisend. thispaper attempts tobring

together learning

from

areview ofthe literature

on

industrial ecology, "learning organizations

and

regions,

and

ecological

economics

in an

attemptto bridge thecurrent gaps

between

regional planningpolicy

and

the requirements

of

Saeed

Parto isa

second

vear doctoral candidate

in die Facultyof

Environmental

Studiesat the

Universityof Waterloo. The followingis a

portion

of

his

paper

presented as part ofthe Best

Paper

Proceedingsatthe 8"'_{International}

Greening

ofIndustry

Network Conference

in

November

at the

Kenan-Flagler

BusinessSchool.

University

ofNorth

Carolina -

Chapel

Hill.

ecosystem

integrity

and

sustainable industrial

development.

Context

of Industrial Activity

A

common

thread running through

most

definitions

of

sustainable

development

is the

recognition that the

endemic

social,

economic,

and

ecological challenges thatconfront decision

and

policy

makers

at all levels aresystemic and.

assuch,

need

tobe tackled through strategics

and

policy tools capable

of

addressing

complex

multi-faceted issues. Interms oflocal

economic

development,

"aparticularchallenge ... is to

make

thenecessary connections

between

economy

and

society, society

and

the natural

world, [and] local resources

and

issues

and

global

resources

and

issues.

"

:

A

systems

view of

business activityplacesthe

industrial organization in its

socio-economic

environment

in

which

a multiplicityofactors

interact (Fig. 1. nextpage). Organizations that

survive the upheavals

and

fluctuationsofthe

economic system do

so because theyare able to

adapt to

changing

conditions

by

learning

from

interactions with other

system

actors.

Such

learningenables theorganization to identify

and

take

advantage of new

opportunities including

those relatingtosocial

and

environmental

performance. Increasing

economic

benefits

through resource conservation

and improved

en\ironmental

performance

is not a

new

concept

to industry, although surprisingly businesshas

been

sluggish in tapping into this

emerging

body

of

knowledge.

This sluggishness is in part

attributable toorganizational inertia or

unwillingness to

change

established codes

of

practice5

and

ageneral absence

of

adequate

and

appropriateregulatory incentives."

This situation is

changing

slowly, however.

Figure

1.

A

Systemic

View

ofBusiness Activity

Socio-economic

environment

Trading partners

Governments

Community

/

/

Business

Organization

E

NGOs

Employees

\

\

Media Investors

Insurers

a

o

o

CM

C

2

'Z

2

2

Q

Recent years

have

witnessed an

upward

trend in

development of

innovative organizational

models

that

promote

asystemic

approach

to

manage

internal

and

external aspects

of

business activity.

The

"learning organization,"5the"ecologically

sustainableorganization.""

_and

_{the literature}

_on

industrialecology all \iew

systems

thinkingas a

central

component

of

contemporary

organizational

management

models.

Approaches

to

Sustainable

Development

Sustainable

development

requires

"sustainable

human

communities

[that] act like

natural ones, livingwithin anatural

ebb and

flow

of

energy

from

the sun

and

plants....redesigning

all industrial, residential,

and

transportation

systems sothat everything

we

use springs easily

from

the earth

and

returns

back

to it."

s

To

accommodate

thistype

of

transformation, there

needsto bea shift

from domination

to

partnership."

Such

a shift will require identifying

ordeveloping linkagesthat

can

facilitatea

transition

from

an

economic system

that operates

despite ecological limits to

one

that strives to

become

fully compatible with

ecosystem

integrity. This transformation will

emphasize

the

need

forthe highestachievable levels

of

ecological efficiency in industrial acti\ity while at

the

same

time

promoting

quality, cooperation,

and

conservationatthe

expense

ofquantity,

competition,

and

expansion. Ecological integrity

of

human made

systems is central toboth

ecological

economics and

industrial

ecolosv

briefly

reviewed

below.

Ecological

Economics"

Inecological

economics,

unabated

economic

growth

is

de-emphasized

while the usefulness

of

conventional

economic

concepts,e.g.. utility

maximization,

and

tools,e.g.. cost-benefit

analysis, is questioned. Ecological

economics

promotes

sustainability asthe goal forall levels,

from

local to global.11 Industrial organizations in

an ecologicallyoriented

economy would

promote

ecological

awareness and

participation within

and

outside oftheirphysicalboundaries through

multi-stakeholderpartnershipsthat nurture

cooperation

and

servethe

common

good.

The

basic

worldview

ofecological

economics

is

founded on

thepremise that

"human

preferences, understanding,technology

and

organizationco-evolveto reflect

broad

ecological

opportunities

and

constraints.

Humans

are

responsible forunderstandingtheirrole in the

larger

system

and

managing

itsustainably."

Ecological

economics

is "prudentlyskeptical

of

assumptions

about technological progress"

and

proposes a

framework

thatis holistic

(whole

ecosystem), multi-scale(daystoeons, multi-scale

synthesis),

and

multi-level (hierarchical). This

framework

isoriented

toward

ecological

and

economic system

sustainability attained

by

"socialorganization

and

culturalinstitutions at

higher levels ofthespace time hierarchy [that]

ameliorate conflicts

produced

by

myopic

pursuit

ecological

economics aims

to address

problems

in

apluralistic

and

transdisciplinary fashion.1

A

significant feature ofthe industrial

economy

is its firms

and

organizations which,

when

functionally efficient,tend toexhibit a

considerableunityofpurpose

and

ahigh degree

ofintegration. Industrial organizationscan

simultaneously act as vehicles for

and

hindrances

to sustainable

management

of

human

activities

within thesocio-economic, political,

and

ecological domains.

Recognizing

this potential,

industrial ecology is

concerned

with

how

industrial,

and

toa lesserdegree, service

organizationscould

complement

one

anotherin

an ecologicallyefficient manner.

Industrial

Ecology

1

Industrial ecology isbased

on

theconceptof

""industrial

metabolism"

(internal processes

of

a

living system)

and

focuses

on

establishing closed

loops in industrial productionprocesses.14

Figure

2 is a

simple

representation

of

a

closed

loop

in the

production system.

The

degree

of

circularity as

depicted

in

Figure

2 serves as

an

indicator

of

ecological efficiency at

an

organizational, sectoral, regional, or national

level. Industrial ecology has

been

definedas

...the

means

by

which humanity

can

deliberately

and

rationally

approach and

maintaina desirable carryingcapacity.

givencontinued

economic,

cultural,

and

technological evolution.

The

concept

requires thatan industrial

system

be

viewed

not in isolation

from

its

surrounding systems, but inconcert with

them. Itis a systems view in

which one

seeks tooptimize thetotal materialscycle

from

virgin material, to finished material,

to

component,

to product, to obsolete

product,

and

toultimate disposal. Factors

to beoptimized include resources, energy,

and

capital.1"

Industrial ecology has important implications

for singleorganizations, groups

of

organizations,

whole economies,

orgroups

of economies.

An

understanding ofindustrial

ecology

isessential to

assessing theusefulness

and

the validityof

proposed and

actual sustainable

development

strategies involving such stakeholders as

business industry,

communities,

and

governments.

From

an organizational perspective,

industrial

ecology

looks

beyond

environmental

""aspect" or ""impact"

management

as offeredto

varying degrees

by

currently available

organizational

management

tools suchas the

ISO

14001 environmental

management

system

standards, the

European

Eco-Managcment

and

Audit

Scheme (EMAS).

or the chemical

industry's Responsible

Care

program.1

An

increasingly popularapplication ofindustrial

Figure 2. Industrial Ecology's

"Closed

Loop'

Processes

=>

Outputs

Process

wastes

SOURCE:Parto(l998)

Figure

3.

Convergence

in Ecological

Economies and

Industrial

Ecology

Economic

Development

Policies

Ecosystem

Integrity

Global

Sustainabilitv

/ Ecological

\ Economies

-» Regjon

~* _Globe

Organizations

Sectors

«-Economie

Ecological

Efficienciesin:

Industrial < Inputs

Ecoloay

o

Q

Q

Uj

1

1

O

ecologyis establishing "Eco-Industrial Parks

(see

below)

based

on

the"zero discharge"

concept(zero generationofeffluent, emission, or

waste)currently

underway

and

beingtested in a

varietyoflocal arrangements.

Ecological

economics and

industrial ecology

both

emphasize

the

importance

of maintaining

ecosystem

integrity. Ecological

economics

proposes

employing

policy toolsto steer

economic

activity

toward

sustainabilitywhile

industrial

ecology

views industrial organizations,

and

the collective (and positive) impact

of

their

relationships, as the

main

agentsof

change

in

facilitating

ecosystem

integrity. Ecological

economics and

industrial

ecology

areconscious

attemptsto

"ground"

industrial activity (industrial

ecology)

and

economic

activity (ecological

economics)

in the ecological context

by

arguing

thatthese activities cannotoccur independent

of

the ecological constraints.

Convergence

in Ecological

Economics and

Industrial

Ecology

18

In terms oforientation, ecological

economics

and

industrial

ecology

start

from

theopposite ends ofa

continuum

consistingof

micro

and

macro

questions (Figure3). Industrial ecology's

starting point is thestudy

of

processesor

operations ofsingleentities with a

view

to

identifyecologically beneficial linkagesacrossa

spectrum

of

activities (intra-organizational)

and

setsofactivities (inter-organizational)that

complement

one

another. Incontrast, ecological

economics

studies

macro

scales (regions

consisting of

numerous

municipalities or national

economies)

in orderto identify

macro

scale

linkages (tootherregionsor

economies)

consistent withsustaining the

ecosystems

and

to

promote

institutional

arrangements

thatcould

supportthem.

As

Figure 3 demonstrates,areas

of

convergence between

industrial

ecology

and

ecological

economics

arcboth

numerous

and

significant.

These

areas are alsoveryexplicitly

embedded

in

governance

contexts.1_"

However,

neitherindustrial

ecology

norecological

economics

is explicit

on governance

issues.

Such

an important omission is likely to

weaken

significantlythe practical validityof

models

based

on

concepts

of

ecological

economics

or

industrialecology. This omissionalsoconfirms

theassertion

by

some

that in

most

studiesof

industrial districts, the interrelationship

between

macro-policy

and

local forces has

been

insufficientlyappreciated.2"_Ecological

_economies

and

industrial

ecology

do

nevertheless provide

important perspectives fordecision

makers

wishing

to pursue ecologicalsustainabilityin a

more

systematic way.

and

industrial ecology concepts warrants asking

two

basic questions. First,

how

useful arethese

two

disciplines in light oftheir failure toaddress

governance

issues"effectively?Second,

how

can

theirpotential usefulness be tested?

The

challenge

is thusto learn

from

ecological

economics and

industrial ecology concepts

and

define clear

principles, operational implications,

and

contents

fordecision

making

frameworks

thatcould be

adapted forlocal

economic development and

extended

toaddressglobal sustainability

concerns.

At

the local level, these

frameworks

are

being established tovarying degrees through

current

and proposed

plansto

develop

engineered

or"virtual"' Eeo-Industrial Parks.

Eco-lndustrial

Parks

The

underlying concept

of

Eco-lndustrial

Parks (EIPs) is based

on

ecology, i.e.. the study

of

the interrelationships

among

different species

and

species

and

theirphysical

and

chemical

environments.21

Species

groups

ofa stable

ecosystem

interact with,

and

are

dependent

on.

one

another

and

their

environments

througha

seriesofintegrated

and

complex

relationships.

Integrity, or interaction

and

interdependence, of

system

components

as exemplified in relatively

stable

ecosystems

is underlined

by

theproponents

of EIPs

as the ultimate goal for

human-made

systems. Ecological integrity

of

operations in an

industrial parkcouldthus bepursued as agoal in

orderto

work

toward

"an industrial system of

planned materials

and

energy

exchanges

that

seeksto

minimize

energy

and

raw

materials use.

minimize

waste,

and

build sustainable

economic,

ecological,

and

social relationships."2

The

EIP

concept hasalso been defined as

"industrial symbiosis or by-products

exchanges

within a

continuum

ofdifferent levels

of

complexity"

with the keycharacteristics

of

"community,

cooperation, interaction, efficiency,

resources,

and

systems."23

EIPs

may

beactual

sitesengineered to

accommodate

compatible

types

of

industrial activity or"virtual sites"or

networks

arranged based

on

existing industrial

infrastructure. In eithercase,

one

ofthe

main

objectives isto identifyor

develop

frameworks

to

facilitate ecologically efficient(and sustainable)

industrial

development

in apredefined

geographicarea.

Examples

of

EIPs

include:24

Port

Cape

Charles,

Northampton

County,

Virginia: Located in anecologically sensitive

area

and

designatedas a United Nations

World

Biosphere Reserve

and

a National

Oceanic

and

Atmospheric

AdministrationSpecial

Management

Area, the

County

has high rates of poverty

and

unemployment.

The

engineered

and

mostly

constructed

EIP

ispart ofa

comprehensive

strategy to

develop

a SustainableTechnologies

Industrial Park.

The

EIP

is intendedto

become

home

to firms that can contribute to developinga

national

model

that

promotes

business, people,

economy, and

natural

and

cultural resources.

The

objectives

of

the Port

Cape

Charles

EIP

include:

•

creation of

family-wage

jobs

and

training

opportunities;

•

protection

and

enhancement

ofnatural

and

cultural resources;

•

conservation

and

efficient resourceuse;

• developing

and

usingindustrial ecology

principles;

• supporting privatebusinesses

and

industrial

development

torevitalizethe local

economy

by combining

profitability, resource

efficiency,

and

pollution prevention;

and

•

increasing thetax base without increasing

taxes.

Given

the special statusattachedto

Northampton

County

by

the United Nations, the

Port

Cape

Charles

EIP experiment

hasbenefited

from

substantial funds provided

mainly

by

the

President's Council

on

Sustainable

Development.

However,

this

experiment

isstill in itspreliminary

stages. Far

more

remains tobe

accomplished

if

the

above

objectives are to be fullyor

significantlyrealized. For

example,

it is not at all

clear

how

the

EIP

will fit in with the local

economy

of

Port

Cape

Charles that consists

mainly of

agriculture, fishing,

and

heritage

tourismbased

on

local arts, crafts,

and

products.

The

EIP

also needs to be

more

integratedwith

ongoing manufacturing

activity within Port

Cape

Charles.

The

main manufacturing

firm in the area

isa

cement-making

firm thatexports its products

m

bulk outside the

immediate

area. Residents

of

Table

1. Existing

and Proposed ElPs

Grouped

According

to

Main

Focus

Economic

Revitalization Sustainable Industrial

Development

Port

Cape

Charles.Virginia Burlington.

Vermont

Farilfield. Baltimore

Oakland.

California

Chattanooga.

Tennessee

Londonderry,

New

Hampshire

Pittsburgh,

New

York

Raymond,

Washington

Trenton.

New

Jersey Minneapolis,

Minnesota

Shady

Side.

Maryland

SkagitCounty,

Washington

Brownsville,

Texas

Tucson.

Arizona

Youngsville,

North

Carolina

Dartmouth.

Nova

Scotia

Port

Cape

Charles areoftenunable topurchase specialized information.

At

theregional policy

cement

directly

from

thisfirm astheir

demands

level, such information could be usedas abasis

are usually well

below

the

minimum

shipment

on

which

to recruit industrial firmsthat

would

O

CM

volume

setby thefirm. "fit . in an industrial ecology sense, the local

Closing the loop within Port

Cape

Charles

economy.

2

_would

_require,

_among

_{otherfactors,}

_measures

_{Chattanooga, Tennessee: Wishing}

_to

aimed

at intepratinpthe

eement

manufietiirer's operationalize a

Brownsville-Matamoros

style virtual

EIP

concept, the regionalplanners in

CD

2

'.11I11*...V1 ILL J1J1\_..[i.111Jl... UIV vv1LJv1IL 11Jill1tl1LlvI111vk O

activities into thelocal

economy

by, for

example.

2

instituting special

arrangements

forthe local

Chattanooga have

attemptedto revitalize

residents to purchase

cement

in lower-than-

economically

depressed inner-city areas

by

t

g

minimum-shipment-volume

quantities

from

the establishing ecologicallyefficientco-operative

Q

local manufacturer.

arrangements

involving

new and

present

industrial firms,theregional planners,

and

the

<j

Brownsville. Texas:

To

alleviate high ratesof local

community.

The

emphasis

in the

poverty

and

unemployment

in Brownsville

and

Chattanooga

initiative is to

encourage

industrial

theadjacent

Mexican

town of Matamoros,

development

as an integrated

component

ofthe

planners

have proposed

a "virtual

EIP"

involving City's overall

development

plan.

Mixed

land use

firms

from

the

American and

Mexican

towns

that including

commercial,

recreation,

and

residential

would

not require the participatingfirmstoco-

components

is an important featureofthe

locate.

The

Brownsville-Matamoros

virtual

EIP

Chattanooga

initiative.

initiative has gained support

from

theU.S. federal In addition, theplanners

aim

toincrease

government,

localbusinesses,

and

the regional industrial activity in the inner-cityareas

by

policymakers.

encouraging

the

development

of

warehousing and

The

virtual

EIP

concept hasgreat potential distribution centres

and

business incubators.

The

and

significant implicationsforregions

whose

planners

have

also consideredsetting

up

a

firms arephysically isolated

and

spread

over

technical education centre forthe participating

geographically

wide

areas.

The

virtual

EIP

could firms.

These proposed arrangements

are similarto

facilitatetechnology transfer,

waste

exchange. other initiatives

where

industrial incubators are

and

pollution prevention relationships

between

usedas trainingcentres for futureentrepreneurs

the participating firms

and

other stakeholders

by

aswellas supportive

environments

forthe

new

the

Chattanooga

initiative

and

incubatorprojects

isthe degree

of emphasis

placed

by

the

Chattanooga

planners

on

theenvironmental

aspects, impacts,

and

the goal toclose the

production

system

loop, in an industrial

ecology

sense, through eliminationorminimization of

various wastes.

Dartmouth,

Nova

Scotia:

There

areover

1.200

mainly

smallbusiness organizations in the

Burnside Industrial Park.

Dartmouth.

Since 1992.

researchers

from

the

School

of

Resource

and

Environmental

Studies. Dalhousie University,

have

been studyingthe Park asa testcaseto

evaluate transformation possibilities

from

a

conventional industrial parktoaneco-industrial

park.

The

Park has

been

described as

"work

in

progress

and

a 'livingexperiment"

which w

ill

continuefor

some

time."-In addition to the

above

cases, there are a

number

ofF.IP plans at theproposal stage,

especiallywithin the United States.

There

is little

available information

on

these cases apart

from

goals

and

broadobjectives. It isreasonablyclear.

however, that

ElP-based

planning proposalsarcto

varying degreesfocused

on meeting two

broad

objectives: revitalization of

economically

depressedareas and/or developinglocally driven

arrangements to facilitate sustainable industrial

development

(Table I ). In both cases, the

proposalsarc

based

on

integrating landuse

by

attempting toreconcile industrial with

agricultural

and

residential land requirements.

Another

common

feature in all cases is thedesire

to

promote

industrial activity consistentwith

ecological

and

economic

priorities. Table 1 isa

summary

ofcurrent

and proposed

EIPs according

to their

main

focus. It isalso apparent

from

the

available informationthat the

main

motivations to

applythe principles ofindustrial

ecology

through

developing EIPs include:

Site

manageability: Engineered

EIPsare

generally located in predefined

and

enclosed

areasconsisting

of

industrial organizationsthat

are in close proximityto

one

another, lace

common

challenges,

and

do

not

have immediate

contactwiththe

community

at large. Virtual EIPs

arcbased

on

clustersofindustrial organizations

that operatethrough a

common

network

that

may

or

may

not include communities. Ineither case,

structuraldesign implementation

and

decision-making

are relativelysimplerthan within

whole

regions, e.g.. municipalities consistingof

residents

and

non-industrial typesof

economic

activity. Industrializedregions tend tobe

socio-politically.

economically and

structurally

more

diverse,

complex,

and

challengingto

manage

at

the

macro

(policy) level through

imposing

a

unified

common

network.

Availabilityof

government

funding:

The

Burnside

experiment

has received funding

from

various levelsof

government.

2" _{Similarly,Port}

Cape

Charles. Brownsville,

and Chattanooga

are

all supported through direct funding by the

President's Council for Sustainable

Development.

27

Because of

theirgeographical

characteristics,

EIPs

arcgenerallyeasier to

supportas "experiments"resulting in predefined,

relatively short-term,

and

tangible deliverables.

Within a relatively shortperiod oftime. RIPs can

be expectedtoestablish themselvesas

economically

viable

and

ecologically efficient

arrangements forindustrial production.

In contrast, long-term, locallydefined visions

of

sustainabilitywith amultitude of long-term

and

less tangible benefits are

more

difficult to

articulate in terms

of immediate and

medium

term

deliverables.

Government

support

and

funding for

such proposals isoften routinely

reviewed

and

reevaluated

by

each

newly

elected

government

against other,

more

immediate, priorities.

Existence ofa successful

RIP

model:

Most

EIP models

are inspired by the successesofthe

Kalundborg

Eco-industrial Park in

Denmark.

:s

The

Kalundborg EIP

was

informally initiated in

1975

by

a

group

ofindustrial organizationsthat

resided in an industrial park

and

faced strict

regulatoryrequirements within theirshared

jurisdiction.

A common

goal toreduce

compliance

costs

by

the park's resident

organizations resulted in ecologically efficient

and

economically cost-effective arrangements to

meet

regulatory requirements. Thisinitiative led

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Table

2. Inte«ratin" Industrial Ecolojjv

and

the

Local

Economic

Base

•

"Map"

the

economic

base

by

preparingacategorized inventory ofindustrialactivity

within a predefinedregion;

•

Using

industrial ecology's "closed loop" concept, identifygaps within thecategorized

inventory;

• Consult with local

communities,

and,or usesecondary data

from

otherstudies, to

identity

community

needs

and

expectations;

•

Consult with local businesses,and/or use secondary data

from

other studies, to

identitypartnershippotentials with

incoming

new

businesses;

•

Develop and

introduce policy incentives that

promote and

nurture collaboratives

and

networks

among

firms

and

otherstakeholders;

•

Aggressively pursue opportunities to recruitbusinessesthat fit the localbusiness

needs

and

the local industrial ecosystem;

•

Cooperate

with other regions

on waste

minimization, technological transfer,

and

pollution prevention strategies;

and

•

Develop

partnerships

between

thelocal

government, community,

industry, and

learning institutions to

promote

adequate

and

appropriateregulatory

frameworks

(environmental, health

and

safety,

and

social) to

advance

collective ecological efficiency,

economic

performance,

and

socialaccountability.

Source:

Waterloo

Industrial

Network

forSustainability

[WINS]

31

in turn tocooperation with

government

agencies

aimed

at reconciling

economic

development and

environmental protection objectives.

Most

EIPs strive to

emulate

the

kalundborg

successes, i.e.. systemic integration ofindustrial

organizationsbased

on

resource conservation,

waste

minimization,

and

shared environmental

protection technologies

aimed

at current

and

future

economic

viability

and

profitability.

The

Kalundborg

experience

and

other typesof

industrial

ecology

application

have

important

implications forsustainable

development

strategies in a local/regional context.

Of

particular

relevanceto challenges thatconfront locally

driven

economic development

strategies are the

multi-stakeholder

and

integrated

approaches

that

could be

promoted

through appliedindustrial

ecology.

Some

of

these possibilities areexplored

next.

Local

Economic Development and

Sustainability:

A

Framework

The

need

tobuild business firm

and

local

economic

base resilience has

been

the focus of

much

ofthe literature

on

"learningregions."

albeit

from

an exclusively neoclassical

economics

standpoint.

As

aresult, the literature isboth

"uneeological"

and

apolitical,concentrating

mainly

on

purely

economic

terms

of

reference

such as"innovation"

and

"competitiveness" to

gauge

success in learning regions.2"

_Recognizing

the links

between

industrial activity,

economic

development,

and

social

and

ecological integrity

and

well-being as necessary

components

of

sustainable local

economic development

requires

a

more

encompassing

approach. "Studying" firms

and

regions

must

be redefined to

combine

social

and

ecological considerations

and

constraints

with

economic

ones.

level requires collaborationcentered

on meeting

common

sustainability objectives

between

the

local

communities,

businesses,

and government

departments.

One'way

tobring aboutthistype

of

collaboration is throughoperationalizing

partnership

mechanisms

based

on

industrial

ecology

principles.

Using

the available

information

on

a region's

economy

and

ecological

characteristics, it ispossibleto

compile

an

"inventory" ofthecurrenttypes ofindustrial

activity

and

definea set

of

ecological aspects

associatedwith each activity(Table2). This data

could beusedfor

two

purposes.

First,

common

targetsof environmental

qualitycould be definedforaregion as a

whole

based

on

the identified gaps

and

theregion's

capacityto fillthem.

These

common

targets

shouldbe based

on consensus

among

government,

industry,

and

the

community

to facilitate a type

of

industrial

development

that is

geared

toward minimizing

adverse environmental

impacts

and

encourages socially, politically,

and

ecologically sustainable

economic development.

Second, based

on

the inventory, the region

could provide

mechanisms

forregional

sub-divisions (area municipalities)

and

local firmsto

cooperate througha

knowledge network

that

diffuses information

on

waste exchange, pollution

prevention,

and

environmentaltechnology

transfer

and

exchange.

The

regioncouldalso

provideguidelines for

and

assistance inrecruiting

industrythat is less than proportionately

represented within itsjurisdiction.

Such

policies

could be

aimed

at closing the ecological loop in

the larger

economy

ofthe entireregion.

As

the

region's implementationagents, local

economic

development

personnel could thenconcentrate

their efforts

on

recruiting industrial organizations

thatrepresentan ecological fit intothe local

industrial ecosystem.

An

importantimplication ofoperationalizing

industrial ecology conceptsin a local

economic

development

context isthe

need

toreinterpretthe

conventional roleof

government

officers

from

"professional decision

makers"

to"facilitators

and

intcrvenors".

More

generally, industrial

ecology's full potential is likely tobe realizedin

regions that

have

coherentvisions

of

sustainable

economic development;

specific

and

realistic

ecological,

economic,

and

social objectives

and

targets; institutional

arrangements

to facilitate

meeting

these targets;

and

evaluation

and review

mechanisms

that allow revisions

and

adjustments

to objectives

and

targets inlight

of

new

information.

Much

of

this

work

can

and

should be

done

throughthe local

economic

development

offices

and under

active

guidance

from

the

regional

government.

Industrial ecology isa relatively

new

concept

and

an area

of

research little explored.

Developing

practical applications to

meet

local

sustainable

development

objectives requires

operationalizingconcepts

from

new

and

emerging

fieldssuch as industrial

ecology and

evaluating

them

in local

economic development

contexts.

There

arealso implications

of

industrial

ecology

beyond

the local/regional scope.

Regional sustainability cannot be realistically

studied inisolation

from

the larger

economy

that,

in turn, needstobe studiedin light oftheglobal

economy

and

ecological constraints.

Supported

by

macro

policy

frameworks,

especially those

inspired

by

ecological

economic

concepts,

industrial

ecology

offersa

comprehensive

set

of

tools forensuringthat future

economic

development

strategics are consistentwith a

broad

vision

of

sustainability.

Conclusion

There

exists a large

gap between

regional

policy statements

on

sustainable

development and

what

could bepractically achievedina local

planning

framework

that

employs

industrial

ecology techniques

and

strives

toward

an

ecologically sustainable

economy.

Itis difficult to

envisagethechallenges

and

opportunitiesthat

might

exist inoperationalizing industrial ecology

(orassessingthe implications

of

ecological

economics

concepts)in thecontextoflocal

sustainability since little researchhas

been

done

in this area. It isclear,

however,

that local

sustainability strategies

need

to be

based

on

local

peculiarities

and

characteristics

and on

cognizance

of

inherent conflicts

and competing

interests

between

regions, locales (e.g.,area

municipalities), businesses,

and communities.

Inattempting toclosethis gap,

we

could

do

worse

thanexperimenting with

and

learning

from

innovative concepts

of

industrial ecology, suchas

Eco-Industrial Parks, tocreate local synergy.This

type

of

experimentation is onlyrealistically

possiblein regional planning

frameworks

whose

emphasis on

how

things are

done

(i.e., the

political questions)isat leastequal tothe

emphasis

placed

on

what

is achieved in the short

term

and

astangibleresults.

EIPs and

various

examples of

the learning region simplypointtoa

potential forcollective

endeavors

toaddress

sustainabilityat all levels.

While

there are

no

magic

formulas for success,

much

learningcould

begained ifpolicy

makers

were

to integrate

social,

economic,

and

ecological (environmental)

considerationsin policydecisions.

(©

Notes

1

"local"and"regional"areused in thispapertorefer

tomunicipalitiesconsistingofvarious typesofurban

centressuchas cities,towns,andruralareas, and

governed byasinglemunicipal government.

:

Gamble.D. and

M.

Weil."Sustainable Development:

The

Challengefor

Community

Development",

Community

DevelopmentJournal, 32:3(1997). pp.

220.

:

Senge, P. TheFifth Discipline: TheArt

and

Practice

of LearningOrganizations,(NY: Currency Doubledav.

1990),Senge.P.. Ross.R.. Smith. B.. Roberts, C. and

Kleiner. A.. TheFifthDiscipline Fieldbook.(NY:

Currency Doubledav, 1994);andHarrison. B..

Lean

and Mean:

Why

CorporationsContinueto

Dominate

theGlobal

Economy,

(NY:GuilfordPress. 1997).

4

Gibson.R.B.,(ed.). VoluntaryInitiatives: The

New

Politicsof Corporate Greening. (Peterborough.

Ontario:Broadview Press. 1999). 5

Senge,P._(1990),(Note3).

6

Starik.

M.

andG. Rand.

"Weaving

An

Integrated

Web:Multilevel and MultisystemPerspectivesof

Ecologically Sustainable Organizations". The

Academy

of

Management

Review,20:4(October1995). pp.

908-936:DevereauxJennings. P..andP.A.Zandbergen.

Ecologically Sustainable Organizations:

An

Institu-tionalApproach. The

Academy

of

Management

Review,

20:4 (Octoberl995). pp. 1015-1052; and Gladwin.

T.N.,J.J. Kennelly. and

T-M

Krause."Shifting

ParadigmsforSustatinableDevelopment: Implications

for

Management

Theory andResearch", The

Academy

of

Management

Review,20:4(October1995). pp. 874-908.

Adapted from Parto.S.,Corporate Environmentalism

and

SustainableDevelopment:Assessing

Organiza-tionsfor Social

and

EcologicalSustainability,

ERS

Masterthesis. (UniversityofWaterloo: 1998). pp.

42-47. s

Hawken.

P.. The Ecology of

Commerce,

(New

York:

HarperBusiness. _{1993), pp.}xv.

g

Costanza. R,(ed.).EcologicalEconomics: The

Science

and Management

ofSustainabilin\

(New

York:

Columbia

UniversityPress, 1991).

111

Adapted from Parto.S..(1998. Note7).

" Costanza.R..(1991.Note9).

12

Costanza.R..(1991.Note9), ibid.,pp. 5.

13

Adapted from Parto.S..(1998,Note7).

14

Various aspectsoftheclosed looparediscussedin:

Allenby. B.R.andA.Fullerton,"Design for

Environ-ment -

A

New

Strategy forEnvironmental

Manage-ment." Pollution PreventionReview(1992);Allenby.

B.R.andD.J.Richards (eds.) The Greening of

Indus-trialEcosystems,(Washington D.C.:National

Acad-emy

ofEngineering, 1994);Allenby. B.R.. "Industrial

Ecology: theMaterials ScientistinanEnvironmentally

ConstrainedWorld."

MRS

Bulletin(1992):Ayres.

R.U.. "IndustrialMetabolism."inAusubel.J.H. and

H.E. Sladvich (eds.). Technology

and

Environment,

(WashingtonD.C.: National

Academy

Press, 1989):

Ayres. R.U.,L.W.Ayres,andFrankl.P.,Industrial

Ecology: Towards ClosingtheMaterials Cvcle.

(Cheltenham.U.K.: E. Elgar. 1996): Ehrenfeld.J.R..

"Industrial Ecology and Design forEnvironment:

The

Role ofUniversities", inAllenby, B.R. and

D.J.Richards(eds.) ibid.; Frosch.R.A..andN.E.

Gallopoulos. "Strategies forManufacturing,"in

Managing

Planet Earth:ScientificAmericanSpecial

Issue. September(1989); Frosch,R.A..andN.E.

Gallopoulos, "Towards

An

Industrial Ecology"in

Bradshaw.A.D.. R.Southwood. andF.Warner(eds.).

The Treatment

and

Handling ofWastes,(London:

Chapman

andHall, 1992);Graedel.T.E. andB.R.

Allenby,IndustrialEcology.(EnglewoodCliffs.NJ:

1995); andTibbs.H.B.C.."Industrial Ecology:

An

Environmental

Agenda

forIndustry."WholeEarth

Review.Winter(1992). pp. 4-19.

15

Parto,S.,(1998),(Note7).

" Graedel.T.E. andB.R. Allenby.IndustrialEcology.

(Englewood

Cliffs. NJ: 1995). pp.8.

"_Parto,S..

_"Aiming

_{Low", inGibson, R.B..(ed.).}

pp.

182-198.

IS

Parto.S..(1998). (Note 7).

11

"Governance,defined astheexerciseofauthority

andcontrolby governments,privatesectorinterests,

andothernon-governmental organizations"(Francis.

G..Keynote Address totheConference and

Workshop

onEcosystem

Management

Strategies for theLake

SuperiorRegion. (Duluth. Minnesota. 1994).

organiza-tional activitywhilethemarketforcesdeterminethe directionoforganizationalstrategy.

:"_{Harrison, B.,Lean}

_{and Mean:}

_The

_Changing

Landscape of Corporate

Power

in the

Age

of

Flexibil-ity

(New

York:

The

GuilfordPress. 1998).

21

Cohen-Rosenthal, E., T. McGalliard,andM. Bell.

DesigningEco-IndustrialParks: The North American

Experience, [Online],Available: http://

www.cfe.cornell.edu/wei/design.doc.htm [10/20/98]. ₀₁

22

Cote,R.P., andE. Cohen-Rosenthal.DesigningEco-

c

en

IndustrialParks:

A

Synthesisof

Some

Experiences,

5

[Online],Available: http://www.cfe.cornell.edu/wei/

Z

>

03 1—

design.doc.htm [10/20/98], pp.2.

23

Cote, R.P.et al,(1998), ibid.,pp. 3.

3

24

These examplesaredrawn from Cohen-Rosenthal et

>

Z

al(1998),(Note 21).

a

25

Cote. R.P.et al.(1998), (Note 23), pp.5.

O

_o

2,3

Personal

Communication

with

Raymond

Cote, r

>

-(October. 1995).

O

m

27

Cohen-Rosenthaletal,(1998), (Note 21).

O

z

28

See, forexample, Christensen,J.. "Kalundborg:

o

2

Industrial Symbiosisin Denmark", inProceedings,

O

IndustrialEcology Workshop,

Making

Business

More

o

m

Competitive, (Ontario MinistryofEnvironment and r-

m

Energy, Toronto: 1994).

O

21

*_{SeeforexampleFlorida,R.,}

"Toward

_theLearning

m

Region",Futures, (27: 1995), pp.527-536.; Cooke, P.

z

H

and K. Morgan. TheAssociational

Economy:

Firms,

en

Regions,

and

Innovation,(Oxford: OxfordUniversity rn

>

Press, 1998):.Saxenian,A., Saxenian,AnnaLee,

m

D

RegionalAdvantage: Culture

and

Competitionin

5

Silicon Valley

and

Route 128,(Cambridge. Mass:

10

H

o

HarvardUniversityPress, 1994).

"'

Parto, S..R. Read, P. Parker, andS. Mee, The Region

ofWaterloo,

ISO

14001,

and

Sustainable

Develop-ment: PanelDiscussion Proceedings, (Waterloo.

Ontario:UniversityofWaterloo. 1999).Thisdocument

containsthe rationale foranda descriptionofthe

"WaterlooIndustrial Network forSustainability"

(WINS).