Robert Watson

Biography

All markets can be transformed through the artful application of market rules and incentives that reward sustainability and penalize waste and inefficiency. The solid waste industry is no exception. Based on my 30 years of experience in international environmental advocacy and business, including founding the LEED Green Building Rating System, I developed a framework for Market Transformation that can substantially hasten the transition and improve the environmental performance of key industries.  Market transformation requires both regulatory push and market pull. Just like an elevator requires a fixed cab and a motor to lift the cab, market transformation requires mandatory standards to define the industry and establish minimum acceptable performance, and voluntary standards to recognize and encourage the best performers. For maximum effectiveness, voluntary and mandatory standards should be developed and implemented in parallel. Both standards and market-based approaches are necessary, but neither is sufficient by itself. When developed jointly and in coordination, it is our experience that the end result is at least threefold greater than a course of action that emphasizes one approach to the exclusion of the other. Indeed, both mandatory and voluntary approaches are market transformation tools that are complementary, not exclusive. The figure below shows the structure of the market transformation framework. Because "the chain breaks at its weakest link," there are certain prerequisites that must exist for market transformation to occur. These are the five key elements: 1.   An overarching strategic plan that articulates goals, timing, resources, etc. for transforming the market; 2.   The development and passage of enabling legislation that allows regulations and other industry-focused programs and incentives to be implemented; 3.   A regulatory track that establishes, implements and enforces mandatory minimum performance standards for the infrastructure and/or activities in question; 4.   A parallel market driven track that has voluntary standards that are applied to the same elements as the regulatory track, but at a higher level of environmental performance consistent with the objectives of the strategic plan; (a) Both the regulatory and market-driven tracks need a capable and respected structure of administration and enforcement to be in place. Answers regarding questions about how to comply must be delivered clearly and by people who are competent and respected. Similarly, clear rules and fair enforcement by experienced professionals is also crucial. (b) In addition, a means for continuous improvement—both in the performance targets and in the administration and enforcement of those targets—must be in place. 5.   Supporting activities and institutions that facilitate and enhance the development and implementation of both the mandatory and market driven performance tracks. These activities, combined with the parallel tracks help build a reasonably available supply of physical materials and equipment necessary to build and operate the infrastructure and/or activity at both the mandatory minimum and all or most of the best practice performance level.

Research Interest

Market trasformations of waste management.