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Industrial ecology:
eco-industrial development and regional economic development

David Gibbs, Pauline Deutz and Qiaozhi Wang

What is industrial ecology?

Kalundborg, DenmarkIn the 1990s industrial ecology emerged as a concept that its proponents claim can deliver the win-win-win outcome of sustainable development. At the heart of the concept is a deceptively simple argument that proposes a way to reduce or eliminate the negative impacts of economic development - by drawing upon the example of natural ecosystems we can create 'industrial ecosystems'. By mimicking nature, industry can shift from the current wasteful linear model of production to a circular economy, where natural resource inputs are reduced, wastes transformed into firm inputs and energy cascaded through the industrial ecosystem. Industrial ecology differs from more commonplace efforts to 'green' industry in that it fosters cooperation between firms as opposed to focusing upon action at the level of the individual firm, seeing firms as nodal points within a networked ecosystem. By cooperating with each other in an industrial ecosystem, it is proposed that businesses can improve their combined environmental performance by measures that will also increase profit margins.

Industrial ecology research at Hull

Phillips Eco-Enterprise center, Minneapolis, MinnesotaOur interests at Hull originally stemmed from our initial observations that there seemed to be an overlap between research undertaken on regional development which focused on networking and trust in creating industrial clusters, and one strand of industrial ecology research which focused on eco-industrial parks. Eco-industrial parks have been defined as "a community of manufacturing and service businesses seeking enhanced environmental and economic performance through collaboration in managing environmental and resource issues including energy, water, and materials…the community of businesses seeks a collective benefit that is greater than the sum of the individual benefits each company would realise if it optimised its individual performance (Lowe and Warren, 1996: 7.8). We were therefore interested to see if issues of trust and 'untraded interdependencies' were important in the formation of eco-industrial parks. Moreover, much industrial ecology research has been from either a scientific/engineering or a management science perspective and we were particularly interested in trying to theorise the development of eco-industrial parks from a critical social science perspective. The UK's Economic and Social Research Council funded us for a research project on these themes (Sustainability and the Local Economy: The Role of Eco-Industrial Parks) and the results from this are summarised below.

In a second project (Governance, Partnership and Sustainable Industrial Development: ESRC CASE studentship with Yorkshire Forward), Amy Proctor analysed the role of partnerships in building sustainable industrial developments. She investigated the roles of public, private and NGO bodies in 9 eco-industrial developments in the UK. Whilst partnerships increased the capacity of the public and NGO bodies, engagement with the private sector was found to be limited. Public sector bodies played a crucial role in the governance of the partnership process.

Currently, Ms. Qiaozhi Wang is comparing China's circular economy programme with the UK's National Industrial Symbiosis Programme (NISP) and examining the potential for cross-cultural transfer of strategies for promoting industrial symbiosis. See Qiaozhi's web page for more information.

We continue to be interested in research on industrial ecology and would welcome the opportunity to develop collaborative research with individuals or teams outside the UK. We also welcome applications from potential doctoral students to work with us.

 

Sustainability and the Local Economy: The Role of Eco-industrial Parks

David Gibbs and Pauline Deutz
Department of Geography, University of Hull

Award Reference Number: R000239428 to David Gibbs
Final Report to ESRC

 

Executive Summary

Introduction
The research project was concerned with investigating whether the development of eco-industrial parks (EIPs) offers possibilities to implement sustainable development policies, combining economic, environmental and social aims. EIPs are based upon industrial ecology (IE) principles that suggest industrial systems can be made to operate in a similar fashion to natural ecological systems. Firms and processes can be connected so that the wastes from one firm or process are utilised as an input by other firms or processes with complete or nearly complete recycling of materials within the system. The project was intended to contribute to recent critiques of the EIP approach by focusing upon the key problems and dilemmas involved in developing EIPs. The original research outline proposed investigating EIP development from a more critical perspective, drawing upon concepts of clustering and networking in local and regional economic development.

Methods
An email, fax and telephone survey was conducted between January and March 2002 to collect basic background information on EIPs, focusing on the USA and Europe. The survey produced a total of 19 responses, from both operational (14) and planned (5) eco-industrial developments. From this survey 16 EIPs were chosen for in-depth study (ten sites in the USA, six in Europe). These claimed to be engaged in (or intended to be engaged in) inter-firm networking, as well as contributing to local economic and social objectives. At each site up to eight interviews were carried out with park managers, project developers, local authority representatives (planning and/or economic development), consultants, participating firms, environmental organisations, community representatives and chambers of commerce. A total of 53 face-to-face interviews with a total of 63 individuals were conducted.

Main Conclusions
A major finding is the sheer difficulty of developing inter-firm exchanges and interactions, particularly materials and energy interchanges. At most EIPs, synergies were only potential rather than operational and in the very early stages of planning. Given the absence of inter-firm networking it has been difficult to develop one of the main themes of the original proposal - i.e. to reinterpret these from the perspective of work on untraded interdependencies, trust and networking. However, the results bear out the initial view that EIP development has been concerned with infrastructural provision and has assumed that relational assets will emerge with time.

The original proposal envisaged trust and co-operation as key factors influencing networking and interchange activity. Given the absence of the latter, this proved difficult to investigate. There were interactions present between businesses other than materials or energy exchanges, including discussions aimed at setting up such interchanges, as well as other forms of co-operative behaviour. This represents the initial stages of building a sense of community within the EIP. Issues of trust were important at the development and fund raising stages where pre-existing links were often the crucial deciding factor.

Red Tail Golf Club, Devens MALocal collaboration and partnership was of key importance. Local institutional capacity was in large part based upon a history of collaborative working on past projects within a locality and the capacity this engendered for EIP projects. Community involvement had often arisen at sites with a legacy of pollution from past uses and a general community desire to support any initiative that sought to remediate this pollution and to create a better physical environment.

It is difficult to point to firm evidence of environmental improvement occurring in tandem with improved business competitiveness. There was some evidence of reduced environmental impacts, including reduced fossil fuel dependence. However little or no quantification had taken place for either environmental or economic performance. Developers in the USA believed EIP designation had helped as a marketing device and a means to create a 'unique selling point'. However, using EIPs simply as a marketing tool meant that lack of initial success can result in the abandonment of the EIP strategy.

The broader economic context plays a key role in deciding the relative success of EIP operations - those located in more successful economic contexts were also likely to be more successful in terms of tenant recruitment. EIP development is not a straightforward means of overcoming the economic constraints of particular locations.

Changing economic conditions have inhibited tenant recruitment or led to the abandonment of the EIP theme in favour of more conventional economic development aims. This was particularly evident at some of the US EIPs, where covenants (e.g. on grey water use, landscaping requirements, recycling, employment practices) had been introduced at the early stages of park development to restrict firm entry. Given the difficulty of tenant recruitment, these had frequently been abandoned. At other locations, rather than impose these norms upon tenants pre-entry, attempts were being made to incorporate dynamism by recruiting tenants to a site-wide environmental management system.

Some regulatory barriers exist, for example the case of the US Resource Conservation and Recovery Act and its definition of hazardous wastes. Similarly in the UK, waste management regulations were felt to inhibit symbiotic relationships due to regulations on storage and definition of wastes. Changes to national legislation may be necessary to facilitate EIP development.

The policy lessons to be drawn are that developing EIPs is likely to be a long term process and that immediate results are unlikely to be forthcoming. Developing symbiotic relationships between firms and encouraging networking activity is difficult to achieve and time is needed to gain the confidence of firms and other participants. While sympathetic to the idea that EIPs need to develop over time through a variety of strategies, one conclusion is that waste and energy exchanges and some form of inter-organisational networking must be present to earn this definition. Given that the IE and EIP literatures are largely premised upon networking and interchange behaviour, suggesting other features can define EIPs lacks critical engagement and runs the same risk of ambiguity as is commonly found with sustainable development.

There is an issue as to whether the park element of EIPs is an essential feature, or whether an emphasis on co-location is actually a hindrance to achieving industrial symbiosis. There may be more potential benefit to be gained by identifying and building upon existing networking activities involving the exchange of waste and energy at a wider spatial scale to develop a 'local-regional industrial ecosystem'. Policy intervention could play an enabling role in helping to identify these opportunities and creating the appropriate conditions for inter-firm networking to take place.

 

Governance, Partnership and Sustainable Industrial Development

Amy Proctor, PhD awarded 2005

This project explored the role of partnership in the pursuit of more sustainable forms of industrial development and reflects critically upon its value as a strategy for supporting the governance of sustainable development at a local and regional level. The role of partnership working between the public, private and not-for-profit sector in the development of the nine eco-industrial development initiatives (EID) initiatives in the UK was examined. In-depth qualitative interviews were adopted as the principal research method.

The findings demonstrated the challenges involved in developing sustainable industrial development activity both on a conceptual and practical level. It was observed that partnership proved a useful tool for enhancing the capacity of some actors (most notably from the public and not-for-profit sector) to deliver and benefit from EID; however, critically, partnership engagement with the private sector proved more problematic.

A number of barriers were found to exist to encouraging the inter-firm collaboration essential for EID. The development of EID initiatives is proposed to fall into three stages: conception, initiation and implementation- each of which showed different problems of partnership working, particularly in involving funders and private firms in stages 2 and 3. The findings indicate that the pursuit of partnerships may be helpful, even necessary, for EID but in the end (and for the moment at least) such partnerships are not necessarily sufficient in themselves to ensure successful outcomes, particularly in a sustainable industrial development context.

Phillips Eco-Enterprise center, Minneapolis, MinnesotaIn terms of the wider implications of the findings, it can be concluded that partnership has the potential to be effective as a vehicle for strengthening local and regional governance for sustainable development; the critical issue in the case of sustainable industrial development is securing the involvement of the private sector. Whilst participation and engagement in sustainable development was being extended to non-government stakeholders through partnership, the government sector was still found to be crucial in governing the governance process.

 

Project Outputs

Publications

Deutz, P (accepted) Producer responsibility in a sustainable development context: Ecological modernisation or industrial ecology? The Geographical Journal.

Deutz, P. and Gibbs, D. (2008) Industrial ecology and regional development: Eco-industrial development as cluster policy. Regional Studies. 42 (10) 1313-1328.

Deutz, P. and Gibbs, D. (2004) 'Eco-industrial development and regional restructuring: Industrial ecology or marketing tool?' Business Strategy and the Environment No.13, pp.347-362. Part of special issue: 'Business and Industrial Ecology'.

Deutz, P. and Lyons, D.I. (2008) Editorial: industrial symbiosis - An environmental perspective on regional development. Regional Studies, 42 (10) 1295-1298.

Deutz, P., Lyons, D., Gibbs, D. and Jackson, T. (2007) Editorial to double special issue of Progress in Industrial Ecology: Industrial ecology and regional development, v. 4 (3/4) p. 155-163.

Gibbs, D (in press) Eco-industrial parks and industrial ecology: strategic niche or mainstream development? in F Boons and J Howard-Grenville (eds.) Industrial Ecology: Social Science Perspectives, Edward Elgar.

Gibbs, D (2009) Sustainable entrepreneurs, ecopreneurs and the development of a sustainable economy, Greener Management International.

Gibbs, D (2008) Industrial symbiosis and eco-industrial development: An introduction, Geography Compass, 2/4, 1138-1154.

Gibbs, D (2003) Ecological modernisation and local economic development: The growth of eco-industrial development initiatives, International Journal of Environment and Sustainable Development, 2 (3), 1-17.

Gibbs, D (2003) Trust and networking in interfirm relations: the case of eco-industrial development, Local Economy, 18(3), 222-236.

Gibbs, D.C., and Deutz, P., (2007), Reflections on implementing industrial ecology through eco-industrial park development. Journal of Cleaner Production, 15, 1683 - 1695. Part of special issue: 'From Material Flow Analysis to Material Flow Management'.

Gibbs, D.C., and Deutz, P., (2005), Implementing Industrial Ecology? Planning for eco-industrial parks in the USA. Geoforum, 36, 452-464.

Gibbs, D.C., Deutz, P., and Proctor, A., (2005), Industrial Ecology and Eco-industrial Development: A New Paradigm for Local and Regional Development? Regional Studies. v. 39, p. 171-183.

McManus, P and Gibbs, D (2008) Industrial ecosystems? The use of tropes in the industrial ecology and eco-industrial park literature, Progress in Human Geography 32(4), 525-540.

Conference presentations

Adams, J.D. and Deutz, P. 2006, Industrial ecology: Illuminating analogy, or misguided metaphor? Invited presentation to the University of Teesside's EPSRC funded Industrial Symbiosis Network workshop, University of Hull, 20 October, 2006.

Deutz, P., 2006, Producer responsibility in a sustainable development context: Ecological modernisation or industrial ecology? Presented at the RGS-IBG annual conference, London, 30 Aug - 1 September, 2006. Supported by HERI.

Deutz, P., 2006, End of Life Vehicle Directive as regulation for interfirm co-operation: a critical study of industrial ecology as a policy initiative. Presented at the 12th Annual International Sustainable Development Research Conference, Hong Kong, 6-8 April, 2006. Supported by the British Academy.

Deutz, P. and Gibbs, D.C., 2005, Industrial ecology, eco-industrial development and regional development: The role of clustering and networks. Presented at 11th Annual International Sustainable Development Research, Helsinki, 6-8 June 2005. Supported by HERI.

Deutz, P., and Gibbs, D.C., 2004, Eco-industrial developments as a tool for sustainable development. Paper presented at the RECOURSE meeting Society, economy, environment - Towards the sustainable city Gdansk, Poland, 12-14 September, 2004.

Deutz, P., and Gibbs, D.C., 2004, Eco-industrial parks as business clusters and networks: Interrelationships of economic geography and industrial ecology in theory and practice. Paper presented at the Annual Meeting of the RGS-IBG (joint with IGU), Glasgow 15-20 August, 2004.

Deutz, P., and Gibbs, D.C., 2004, Eco-Industrial Development: an exercise in public-private co-operation. Paper presented to the Annual Meeting of the Association of American Geographers, Philadelphia, 14-19 March 2004.

Deutz, P., and Gibbs, D.C., 2003, Eco-industrial development and regional restructuring: Industrial ecology or marketing tool? Paper presented to the Reinventing Regions in the Global Economy conference, Regional Studies Association, Pisa, Italy 12 -15 April 2003.

Deutz, P., Gibbs, D.C., and Proctor, A.L., 2003, Eco-industrial development: Its potential as a stimulator of local economic development. Paper presented to the Annual Meeting of the Association of American Geographers, New Orleans, 4-8 March 2003.

Gibbs, D.C., and Deutz, P., 2003, Eco-industrial development and regional restructuring: industrial ecology or marketing tool? Paper presented to the Business and Industrial Ecology Symposium, Business Strategy and the Environment Conference, University of Leicester, 16 September 2003.

Gibbs, D., Deutz, P., Proctor, A., and Jones, G. 2002, Eco-industrial parks and sustainable waste management. On-line conference at www.environment-2002.com, 4/11/2002-15/11/2002.

Gibbs, D., Deutz, P. and Proctor, A., 2002, Sustainability and the local economy: the role of eco-industrial parks, ecosites and eco-centres in Europe, Brussels, 19th June 2002.

Proctor, A., 2004, Addressing issues of scale in industrial ecology: local and regional approaches to eco-industrial development in the UK. Paper presented to the Annual Meeting of the Association of American Geographers, Philadelphia, 14-19 March 2004.

Proctor, A., 2003, Regional restructuring for sustainable development: the potential role of ecosites. Paper presented to the Reinventing Regions in the Global Economy conference, Regional Studies Association, Pisa, Italy 12 -15 April 2003.

Conference Sessions and Journal Special Issues

Deutz, P. Lyons. D., Randles, S. and Agarwal A., 2009 Industrial symbiosis, eco-industrial networking and regional sustainability. Invited session for 15th Annual International Sustainable Development Research Conference, Utrecht, 5-8 July, 2009.

Lyons, D. and Deutz, P. 2008 Regional Sustainable Development. Invited session for 14th Annual International Sustainable Development Research Conference, New Delhi, 27-29 September, 2008. Special issue in preparation for Sustainable Development.

Deutz, P., Lyons, D., Gibbs, D., Jackson, T. Industrial Ecology and Regional Development. 11th Annual International Sustainable Development Research Conference, Helsinki, 6-8 June 2005. Contributed to double special issue of Progress in Industrial Ecology v 4 (3/4), 2007.

Deutz, P. and Lyons, D. Industrial Ecology and Economic Geography, RGS-IBG Glasgow, 2004. Contributed to double special issue of Progress in Industrial Ecology v 4 (3/4), 2007.

Deutz, P. and Lyons, D. Industrial Ecology and Geography. AAG, Philadelphia April 2004. Resulted in mini themed issue of Regional Studies, v 42 (10), 2008.

 

Non-academic outputs

Presentations

Deutz, P. and Gibbs, D., 2007 Implementation of Industrial Symbiosis through Eco-industrial Park Development: The USA, UK and France. International Conference on Eco-Industrial Development (Aree Produttive Ecologicamente Attrezzate). Provincia di Bologna, 16/03/07.

Deutz, P. and Gibbs, D. 2005, Eco-industrial Parks: The USA Scence. Presentation to Renew Tees Valley conference: Environmental Industries Park in Tees Valley, Middlesbrough, 20 September, 2005.

Publication

Deutz, P. and Gibbs, D.C., (2004) Sustainability and the Local Economy: The role of Eco-Industrial Parks. In Dallemand, J.F., and Mottram, L.C., eds. Ecosites, Ecocentres and the implementation of European Union environment and sustainable development policies, European Communities.

Poster

Proctor, A.L., Deutz, P., and Gibbs, D.C., 2002, Eco-industrial development in Europe and the United States. Poster presented at 'Sustainable development: The way ahead for Yorkshire and Humber', organised by Yorkshire Forward, 21.11.02, Harrogate.

 

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Page last updated by Sophie Ottaway on 7/31/2012