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Thursday, 27 March 2014

The Gross Domestic Product of a country can be a grossly deceptive measure.

While it describes the financial growth of a country, it doesn't take into account how its natural resources are managed - even though they underpin much of an economy's performance and have a major effect on people's well-being and quality of life.

Ian Bateman, Professor of Environmental Economics at the Centre for Social and Economic Research on the Global Environment in East Anglia University and an adjunct professor in the School of Agriculture and Resource Economics, has come up with a scheme to work towards a more sustainable UK with a higher quality of life which will cost the Government ... nothing.

The ideas are part of the UK National Ecosystem Assessment. This is a collaboration of more than 600 researchers with Professor Bateman leading the economic team.  The work examined, in part, the reallocation of government subsidies to primary producers to reward them for focusing on a broader concept of economic values than simply market prices.

Professor Bateman spoke at UWA recently, as the inaugural Henry Schapper Fellow, about potential improvements in land use that would generate social gains.  These include producers setting aside relatively small amounts of farm land for open access recreation space.

"Such spaces could not only improve the health and social life of local people, but provide better habitats for biodiversity and  lower greenhouse gas emissions, as these areas would be not be cultivated," he said.

"Agriculture accounts for almost three quarter of the land use in the UK and payments to farmers in subsidies exceed three billion pounds a year. We are not advocating cutting subsidies, rather asking the Government to ensure those subsidies are spent in better ways," he said.

"We are also working with the Government to influence the private sector. For example, the water companies must spend a lot of money to fix problems caused by nutrients and fertilisers.  We helped them realise that it was cheaper to take action to prevent these pollutants getting into the rivers in the first place, than to get them out.

"You see, it doesn't have to cost money to improve the environment, the sustainability of our resources and the wellbeing of the community - just different use of the same money. And Governments and the private sector both love that!"

He said it was difficult to make sweeping changes in the UK because the European Union controls its agricultural policies.

"But Brussels has already allowed the UK to shift up to 15 per cent of their farming subsidies in the right direction, to return something they want (sustainability, biodiversity, a cleaner environment) to the taxpayer."

The Schapper fellowship, funded by the Australian Agricultural and Resource Economics Society, is named in honour of Dr Henry Schapper, who made a major contribution to agricultural economics in WA.

Dr Michael Burton, from UWA's School of Agricultural and Resource Economics said Professor Bateman met with Early Career researchers and postgraduate students, to give them his perspective on how to publish well, and how to ensure research makes a contribution to policy.

"They found it inspiring to meet with someone who is having an impact on environmental policy at such a high level," Dr Burton said.

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