Resiliency and Regeneration in the Pannonian Region of Hungary: Towards a Circular Economy by Hillary Brown

Resiliency and Regeneration in the Pannonian Region of Hungary Towards a Circular Economy for KĹ&#x2018;szeg and Beyond

A Joint Pilot Project between the City University of New York and the Institute of Advanced Studies, KĹ&#x2018;szeg

Authors Brown, Hillary; Armstrong, Philip; Csuvár, Ádám; Gossler, Judit; Herrera, Gabriel; Ibraham, Tamer; Käsz, Katalin; Leone, Jennifer; Kurucz, Krisztina; Molohides, Louiza; Murai, Miklós; Rajczi, Alexandra; Stryker, Kate; Tesser, Derek; Turáni, János; Vajda,Viktória; Vörösmarty, Charles; Kerekes, Sándor. Affiliations are noted at the end of the report.

Acknowledgements The authors are indebted to the following for their generous sponsorship and underwriting of student involvement in this project: The Institute of Advanced Studies, Kőszeg; the City University of New York (CUNY) University Provost, Graduate Center Provost, and City College of New York (CCNY) Grove School of Engineering Dean; the CUNY Advanced Science Research Center, CCNY Spitzer School of Architecture, and CCNY Sustainability in the Urban Environment masters program. Together, iASK and CUNY funded the participation of key faculty, lecturers, and the support staff that enabled the work to be undertaken during the students’ month-long residency in Kőszeg and beyond. The entire team wishes to thank iASK’s founding director, Ferenc Miszlivetz, for graciously hosting the project in Kőszeg. Lead Professor Hillary Brown, recipient of a 2018 iASK Research Fellowship, undertook this interdisciplinary research initiative under the auspices of iASK’s Polányi Research Center. This report was compiled and finalized during a subsequent Residency Fellowship in Bogliasco, Italy, thanks to the generosity of the Bogliasco Foundation. Key faculty mentors for the project included Professors Hillary Brown, Sándor Kerekes, Charles Vörösmarty, and Gyula Zilahy with the participation of researcher Anikó Magasházi. Cover and design by Andriy Striltsiv, student, City College of New York, CUNY. Special thanks to Anne Bartoc, Art Department, City College of New York, CUNY. Copyright © 2019 by the City University of New York and the Institute of Advanced Studies Koszeg All rights reserved.

Resiliency and Regeneration in the Pannonian Region of Hungary Towards a Circular Economy for KĹ&#x2018;szeg and Beyond

A Joint Pilot Project between the City University of New York and the Institute of Advanced Studies, KĹ&#x2018;szeg

tABle oF contents ABstrAct

e xecutive summAry

0.1 0.2 0.3 0.4

o Bjectives Action PlAn intended o utcomes key Findings And recommendAtions

chAPter 1: introduction

1.0. rurAl townshiPs in trAnsition 1.1. s tudy BAckground 1.2. c irculAr economy PrinciPles 1.3. methodology 1.4 o rgAnizAtion oF this document c hAPter 1 reFerences

chAPter 2: wAter

2.1. e xisting c onditions 2.2. ProPosed s trAtegies 2.3. t echnologies 2.4. B eneFits & metrics oF success 2.5. PreliminAry c ost A nAlysis 2.6. PhAsing & c onclusion c hAPter 2 reFerences

chAPter 3: Forestry And Agriculture

3.1. Forestry c hAPter overview 3.2. s tudy locAtion 3.3. t he e xisting conditions oF Agriculture 3.4. e xisting economy model 3.5 new wAy oF thinking , the shAring economy model in AgriculturAl AreAs 3.6 economics oF imProved model 3.7. B eneFits And conclusion 3.8. Forestry overview 3.9. c urrent conditions , dynAmics And ProPosed interventions 3.10 PreliminAry c ost A nAlysis c hAPter 3 reFerences

chAPter 4: e nergy 4.1. e xisting c ondition 4.2. PotentiAl interventions 4.3. e nergy PotentiAls And ProPosed t echnologies

4.4. B eneFits And metrics oF success 4.5. B eneFits And conclusion 4.6. Project PhAsing 4.7. PreliminAry c ost A nAlysis c hAPter 4 reFerences

chAPter 5: economic develoPment : e xisting & ProPosed

5.1. Kőszeg’s e xisting C onditions 5.2. Kőszeg’s ResouRCes 5.3. c urrent c hAllenges And PotentiAl c hAPter 5 reFerences

CHAPteR 6: An eConomiC develoPment stRAtegy foR Kőszeg

6.1. Kőszeg As A “C enteR foR eCo -innovAtion” 6.2. Key C omPonents of tHe Kőszeg C enteR foR eCologiC innovAtion 6.3. eCo -e duCAtion PRogRAmming 6.4. A mAsteR PlAn : t He eCo -innovAtion C enteR in Context 6.5. Project c osts 6.6. Project B eneFits 6.7. metrics And meAsuring success c hAPter 6 reFerences

CHAPteR 7: eCo -innovAtion C enteR/RelAted PlAnning imPRovements

7.1. CAPitAl investment And finAnCing tHe eCo -innovAtion C enteR 7.2. c ommunity suPPort And Project PhAsing 7.3. B eyond the Four Project PhAses: A mPliFicAtion c hAPter 7 reFerences

chAPter 8: c onclusion 8.1. j ustiFicAtion For the s tudy 8.2. summArized A PProAch 8.3. PotentiAl o utcomes 8.4 key Findings And recommendAtions

Addendum: c ommentAry From the octoBer 29, 2018 s tAkeholder workshoP

AFFiliAtions

APPendices

104

list oF Figures Figure 2.1. Figure 2.2. Figure 2.3. Figure 2.4. Figure 2.5. Figure 2.6. Figure 3.1. Figure 3.2. Figure 3.3. Figure 3.4. Figure 3.5. Figure 3.6. Figure 3.7. Figure 3.8. Figure 4.1. Figure 4.2. Figure 4.3. Figure 4.4. Figure 4.5. Figure 4.6. Figure 4.7. Figure 4.8. Figure 4.9. Figure 4.10. Figure 4.11. Figure 4.12. Figure 4.13. Figure 4.14. Figure 5.1. Figure 6.1. Figure 6.2. Figure 6.3. Figure 6.4. Figure 6.5. Figure 6.6. Figure 6.7. Figure 7.1. Figure 7.2.

The dual watershed scope: Greater Rába Basin and the Gyöngyös Sub-basin (by authors) Existing conditions of water in Kőszeg and its surrounding region (by authors) Reimagined conditions for water in Kőszeg and its surrounding region (by authors) Site of proposed wetland with Google Earth Pro Proposed wetland design (by authors) Rendering of proposed wetland (by author) Forest area development in Hungary (KSH, 2013) The research scope for agriculture Satellite imagery with high resolution, supervised classification, color coding, and figures Interdependency between farmers and integration companies (by authors) Proposed alternative and economic flow (by authors) Pro Silva initiative selection technique cutting (by authors) The experimental Pro Silva regions nearby Kőszeg (source:erdoterkep.nebih.gov.hu) Existing forestry method (by authors) Gross inland consumption by sources (2016 data, Eurostat 2018) Share of RES in gross final energy consumption for Hungary, 2006-2016 (Eurostat 2018) The existing energy flow chart of Kőszeg (by authors) The proposed energy flow in Kőszeg (by authors) Solar map of Hungary (GeoModel Solar 2011) Schematic diagram of solar heating water (by authors) Schematic diagram of PV-T to generate electricity and heating water (by authors) Methane capture from landfills (by authors) Waste digestion potential (by authors) Typical scheme of a microgrid (by authors) Key plan of the Eco-Innovation Center for renewable technology utilization (by authors) Gyöngyös stream at the Eco-Innovation Center site (photo by authors) Proposed Renewable Energy Sources for Powering the EIC (by author) Methane production and storage (by authors) Current map of Kőszeg (by authors) Rendering of Eco-Innovation Hub seen from the approach from Lake Abert (by authors) Diagram: Circularity for Kőszeg (by authors) Diagram of Eco-Innovation Center, material and production flows (by authors) Diagram of Education Programming (by authors) Master Plan showing education, innovation and infrastructural improvements (by authors) Site Plan of the Eco-Innovation Center (image and design by authors) Rendering of the Eco-Innovation Hub as seen from the approach from Lake Abert, featuring outdoor event space flanked by Gastro-Industry building and farmers market (image by authors) Phasing and Implementation Diagram (by authors) Amplification of Project (by authors)

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2.1. Matrix of benefits provided by proposed water engineering interventions. 3.1. Agricultural activities in Kőszeg and its surroundings 3.2. Distribution of cultivation branches in Kőszeg (Takarnet database, 2015) 3.3. Changes in the operating modes of the Szombathely Forestry ZRt 3.4. Matrix of benefits provided by proposed interventions in forestry and agriculture 4.1. Energy Production potential for solar energy at the EIC 4.2. Matrix of benefits and metrics of success for proposed energy interventions 4.3. Preliminary Cost Analysis of proposed energy interventions 6.1. Matrix of benefits provided by educational components in the proposed plan for Kőszeg 6.2. Matrix of benefits provided by the proposed Eco-Innovation Center 6.3. Matrix of benefits provided by infrastructural elements in the proposed plan for Kőszeg

Using systems thinking and ecologically-reflexive planning, this study examines opportunities for resilience and regeneration of the historic northwestern Hungarian municipality of Kőszeg and its surrounding bioregion. Kőszeg provides an excellent test-bed for applying sustainable redevelopment concepts that simultaneously optimizes economic growth with long-term stewardship of the environment, yielding products and services of tangible value in the region’s economy. This report explains how the town and the bioregion’s socio-cultural and sociotechnical systems —its historic heritage coupled with existing and new industrial, commercial, and infrastructural services (energy, water, sanitation, waste)—can be placed into a regional development scheme that optimizes the vitality and resiliency of these collective systems, following the principles of a circular economy. This study assessed opportunities for Kőszeg, as one example in the region, to revitalize its economy and its local environment based upon attaining a high level of integration among its multidimensional resources. Conceptual strategies together with practical solutions to town and bioregional revitalization and resiliency are illustrated.

Executive Summary oBjectives The concept of small towns as potential catalysts for sustainable and resilient rural development was the premise of this study, undertaken in Kőszeg, Hungary, a small town in the the northwestern Pannonian region of the country. The effort assessed opportunities for Kőszeg, as one example in the region, to revitalize its economy and its local bioregion based upon attaining a high level of integration among its multidimensional resources, a foundational principle of the circular economy. The proposition was to analyze opportunities to foster beneficial exchanges among Kőszeg’s key natural resource, built environment and human assets, thereby reducing overall energy, water and material throughput, creating new economic opportunities at the same time. Assets included in the study were Kőszeg’s natural resources (hydrologic systems, upland forests, agricultural production); its seasonal tourism (based upon its historic heritage and scenic beauty); and its existing and some proposed new commercial and infrastructural enterprises. The study goal was to identify place-based, cross-cutting initiatives that would enhance environmental conservation and regeneration in the immediate bioregion, while creating new jobs, improving food and water security, and promoting a transition to a postfossil fuel economy. It is envisioned that these multiple initiatives, implemented collectively, could revitalize this community, reversing its decline as a rural service center and stemming the outmigration of its workforce and youth population. A section of the Gyöngyös River sub-basin was identified as the case study boundary, and research and analysis was undertaken and proposed strategies developed within four sector areas: hydrology, forestry and agriculture, energy, and economic development. The case study has sufficient generality, in terms of its similarities with regard to its biogeophysical and social systems, to other regions of Pannonia if not Hungary and Central Europe at large.

Action PlAn The actionable items identified in the study can be grouped

according to the governing practices of the circular economy: Regenerate: Conserve, reclaim and rehabilitate the health and resilience of ecosystem services and natural (recreational/tourism) assets, specifically the: • Local natural and constructed water bodies • Biodiversity and integrity of forest species and soil health • Diversification of food and fodder crops • Scenic and recreational features

Optimize: Spur economic and infrastructural resiliency with:

• • • • •

Repurposed and upgraded vacant or underutilized historic structures Creation of an Eco-Innovation Center and new public destination at the edge of town A new system for wood curing and storage Deployment of distributed, renewable energy Enriched educational offerings, including project-related vocational and professional training

Mutualize: Share use of local assets--human, natural and informational resources-- specifically by: • Developing a new cooperative, district-based, not-forprofit agricultural integrator model for the area • Modeling the advantages of multipurpose, co-working and maker-spaces • Utilizing and enhancing existing iASK educational resources • Partnering with other cities’ existing commercial and infrastructural enterprises to help achieve necessary economy of scale for key project components

Loop (Circularize): Giving value to human and natural resources currently underutilized or wasted; recover and exchange waste products for beneficial use by the same or another sector by: • Retraining and retaining unemployed or underemployed local citizenry in aspects of the circular economy • Systematizing water harvesting and utilization for nonpotable uses • Collecting and valorizing valuable organic waste products to generate renewable energy and to provide nutritious fertilizer to crops • Recovering useful existing and new forest and agricultural products and byproducts for revenue production

intended outcomes APPlicAtion oF the c irculAr economy PrinciPles to A town And region As applied in this study, the circular economy may be defined as a framework for a regional economy that is restorative and regenerative by design. It entails gradual decoupling of economic activity from the consumption of finite resources and eliminating or reducing waste from the system. Underpinned by a transition to renewable energy sources, the circular model used here builds economic, natural and social capital by designing out waste and pollution, keeping materials in use, and regenerating natural systems. (Ellen MacArthur Foundation) This interdisciplinary inventory of natural, historic, industrial, and commercial resources identified the critical features of the town’s and bioregion’s asset pool that could be integrated, internally interconnected, and thereby “circularized” within the Kőszeg study boundary. Overarching benefits derived from this “whole-systems”/circular model approach, when collectively implemented, may potentially include: 1) revitalized regional ecosystem services; 2) a reduced need for imports of more costly energy, materials and services; 3) job creation and training of a next generation workforce around sustainability principles; 4) wealth-building by attracting regional and even foreign investment in these future-proofing enterprises; and 5) a network for business development in state-of-the-art renewable materials and energy technologies. As a demonstration project, the Kőszeg Ecologic Innovation Center (Eco-Innovation Center) intentionally models the possibilities of a circular economy and has the potential to launch a movement toward these practices that extends to the surrounding region and beyond. Additionally, the more extensive “master plan” included here supports a resilient and futurethinking Kőszeg that may stem the tide of out-migration of young people and families. A transformed economy could entice them to stay and also attract new students and workers into the region at large.

key Findings & recommendAtions: circulAr design thinking For town And BioregionAl renewAl As a global trend, urbanization brings with it a critical consequence—the outmigration of large numbers of people from rural towns and a devitalization of their livelihoods and local economies. A different paradigm is needed to ensure the sustainability of these essential settlements. Proposed here for the Western Pannonian region of Hungary is a hallmark case study in the “circular economy,” one grounded in an integrative systems approach, closed-loop cycling of resources, and cooperative, participatory networking. This paradigm has been applied to the town of Kőszeg and its bioregion, as a solution demonstration of the utility of sustainable development strategies in the context of a developed, though rapidly changing, nation state. At this relatively small scale, a demonstration of more holistic ways of approaching endogenous rural development and of new opportunities to apply more innovative, sustainable and placebased strategies has an obvious logic. Specifically, circular design thinking can be employed here to encompass: 1) a renewed and proactive focus on regeneration of local and regional ecosystem services, including new means of food and fiber production; 2) incorporation of more resilient, low-carbon, low-impact infrastructural systems; 3) promotion of economic diversification based on innovative use of local resources, including technical know-how and appropriately trained members of the labor force. Transformative policies, incentives and practices will be required to implement such expanded circular design concepts These can be cast as a set of key findings—or lessons learned—that emerged from this holistic planning exercise and resulted in regional design of a sustainable transformation for the Köszeg region.

key Finding 1: towArd resiliency oF wAter systems key c hAllenges: Adverse effects from new development, current agricultural practices and emerging climate instability manifest in terms of more frequent and intense flooding and drought, as well as heat waves, in the Kőszeg bioregion and the Pannonian basin in general. Both traditional “hard” engineered works and natural green infrastructure could be used to interactively address these emergent challenges facing water quality and water balance.

recommendAtions: •

Future planning decisions, aided by the use of modeling systems (e.g., SWAT [Soil and Water Assessment Tool]), should aim for a more closed-loop performance of water resources in not only the study area (the Gyöngyös Subbasin) but also in the Greater Rába Basin, downstream. Special consideration should be given to those adaptation (climate-proofing) measures that also simultaneously address mitigation (decarbonization).

ProPosed strAtegies & technologies: •

• •

While potable water, drainage and water treatment infrastructure legacy systems must continue to operate, improvements to water inflows and outflows lie in the investment in “soft path” (green) infrastructure engineering at large and small scales. Large-scale investments in a constructed holding pond/wetland, and local water harvesting/storage and infiltration basins, can address both flooding and water quality issues. Localized water treatment (anaerobic biodigestion) and restoration of the degraded canal and its hydroelectricity production addresses both adaptation and mitigation objectives.

metrics oF success: • •

Increased % of infiltration rate, reduced % of runoff and combined sewer overflow events Increased % of on-site water reuse.

Key finding 2: need foR ResilienCy/RegenerAtion oF Forestry And AgriculturAl PrActices key c hAllenges: The Kőszeg region’s mixture of large forested and agricultural lands that supply local fiber, fuel, and food stuffs are under threats from climate and land cover changes as well as sub-optimal market and ownership conditions. The region needs to re-imagine more resilient models for production, ones based on more circularized and sustainable management practices.

ProPosed strAtegies & technologies: •

• • • •

Further conservation of forest holdings (e.g. Natura 2000 areas), and ongoing implementation of the European Pro Silva forest management principles in the Kőszeg Mountain region will reduce unwanted consequences from suboptimal logging practices, while enhancing the area’s biodiversity. Selective cutting techniques, soil nutrient cycling management, and replanting with more diverse, climate-adapted species will regenerate forest losses and maintain resiliency. Further investment in public and private forestry management will also strengthen the tourism economy based upon hiker and biker activities in the Kőszeg hills. Diversification of local agricultural (and viticulture) output, including restoration of Kőszeg’s closed gardens, will improve crop resiliency and public nutrition. The current national agricultural model, controlled by enterprises that vertically integrate the production/marketing system, should be tested with respect to a shift towards a more cooperative, shared model run as a non-profit entity to increase profits to smaller and medium-sized farm enterprises.

metrics oF success: • •

% increase in area biodiversity above baseline, increased forest floor biomass, and % increase in forest area under Pro Silva management. % increase in small and mid-size farm earnings.

key Finding 3: trAnsitioning towArd A renewABle energy mix key c hAllenges: As throughout much of Hungary, winter heating in Kőszeg relies on a combination of imported fossil fuel and burning of wood and domestic household waste, a practice negatively impacting air quality and human health. Although well-endowed with potential renewable energy sources, the nation in general and Kőszeg in particular depend upon electricity generated from fossil fuel and nuclear power plants, leaving it the least renewables-dependent country in the EU.

ProPosed strAtegies & technologies: •

• • • •

Improved wood curing practices, upgrading domestic stoves, and enforcing restrictions on trash-burning for heat can eliminate Kőszeg’s wintertime air pollution. By coupling this strategy with building envelope upgrades, the region can substantially improve its overall energy efficiency. Widespread investment in domestic rooftop solar photovoltaic and hybrid solar/thermal technology will complement the locally planned 4.5 MW solar array near the train station, enlarging the town’s renewables mix. Hydroelectricity, formerly produced by a dam in the Gyöngyös, can be reinstated in the form of several microhydro dams within the refurbished canal system, renewably powering the Ecologic Innovation Center. Methane recovery from the local landfill and pig farms, coupled with anaerobically produced biogas from waste at the Ecologic Innovation Center, represent other potential improvements to the town’s renewable fuel base. As a demonstration of next-generation technology, a microgrid serving the Ecologic Innovation Center will cover its energy load requirement (using the above mentioned renewables), while still maintaining a connection to the grid.

metrics oF success: • • •

% increased deployment of PV, increased % deployment of solar/thermal, reduced % of biofuel energy mix represented by waste burning % reduction in wintertime particulates pollution % increase in local employment in installation and maintenance of distributed energy.

key Finding 4: undertAking renewAl oF A creAtive And resilient economy key c hAllenges: Kőszeg Municipality has suffered population loss, in part associated with the degradation of the previous socialist economy and the ongoing out-migration of youth to the cities and local labor to Austria, creating a significant building vacancy rate in the town. There has also been inadequate investment in the transportation infrastructure. Although popular with visiting Hungarians and nearby Austrians, the robustness of the tourism economy remains hampered by lack of diversity in accommodations and commercial enterprises otherwise attracting more visitors.

ProPosed strAtegies & technologies: •

•

A transformational enterprise, the Ecologic Innovation Center, a demonstration hub and training center, would couple eco-tourism (local gastronomy, craftsmanship), business development (state-of-the-art renewable materials and energy systems), and clean waste valorization (organics-to-energy, and agro-forestry byproducts), helping to uplift a stagnant economy. A proposed “Circular Economy Academy,” aligned with the Ecologic Innovation Center, would foster economic development and boost local job creation by training a next generation sustainability workforce in best practices for agriculture, viticulture, forestry, green infrastructure, transportation, water management and renewable energy systems. Training and workshops putting in place sustainable building technologies in under-occupied or vacant historic structures would return these properties to revenue production as diverse hotel accommodations or new commercial venues. Investment in both natural and constructed infrastructure—a constructed wetland, a restored canal system, upgraded bikeways, trails and tourist lodges in the mountains, along with improved roadbeds and train service— will help expand tourism opportunities through an ecotourism option.

meAsuring success: • •

Increase number of visitors/annum, net numbers of new jobs and % decline in unemployment rate against baseline number of new food products/ services and % increase in student (trainee) population Reduced vacancy rate in historic structures and % increase in tenant-generated revenue.

chAPter 1:

Introduction rurAl townshiPs in trAnsition The twin phenomena of globalization and urbanization—our increasingly integrated planetary economy, and the absorption by metropolitan areas of most of our planet’s population growth over the coming decades— are current subjects of scholarly focus. In contrast, relatively little attention has been paid to the associated demographic and economic decline of small towns and their rural hinterlands. In Europe, as in many other parts of the world, emigration to cities has generally weakened these rural service centers, causing them to stagnate, contributing to a loss of cultural heritage and related social and economic values (Knox and Mayer, 2013). New planning paradigms can help address rural stagnation. One is envisioned here as an ideal aspiration for the stagnant, post-Soviet bloc agglomeration economy of Pannonia in general and Kőszeg in particular, a region dominated by large-scale, industrialized agriculture. The project objective was to demonstrate in a highly practical way how existing socio-cultural and socio-technical systems of Kőszeg—its cultural heritage, coupled with existing and new industrial, commercial, and infrastructural services (energy, water, sanitation, waste, transport), as well as forestry and agriculture—might improve the town’s resiliency by conceiving of these assets as part of a large ecological whole.

study BAckground This notion of small towns as catalysts for sustainable and resilient rural development is the premise of a study undertaken in a pilot settlement in the town of Kőszeg (2017 pop. 11,747), which sits at the Austrian border, in Vas County, in the northwestern Pannonian region of the country. Fortunately, some of the town’s underutilized historic buildings have undergone adaptive reuse, today housing the Institute of Advanced Studies, Kőszeg (iASK). Affiliated with Pannonia University, iASK’s mission is to study complexities and uncertainties of this age in the Central and Eastern European region. Here, key research has focused on fostering “creative and sustainable cities” (Miszlivetz et al, 2012). The subject study herein grew from shared interests between iASK and the City University of New York (CUNY) regarding how such

towns and cities, utilizing circular economy practices, could help reverse these trends. A research team comprising faculty and students from CUNY and affiliated Hungarian universities spent a month assessing opportunities for revitalizing Kőszeg and its forested and agricultural bioregion, investigating its assets and simulating principles and practices of a circular economy within the township.

circulAr economy PrinciPles The notion of a circular economy is an emergent field of research that advocates for the replacement of an extractive, “oncethrough” economy with a closed-loop and regenerative one. The key feature of this model is that waste from one process becomes feedstock for another, reducing infrastructural, industrial or commercial waste, along with associated GHG emissions and other negative environmental impacts. The circular economy is broadly defined here as one that better emulates the closed-loop systems comprising the natural biosphere. Such ecosystems—and economies—are sustained in the long-term by taking inputs from the biosphere and reconfiguring their normal industrial flows of energy and matter in order to repurpose or recycle them. By cascading (passing along) waste energy and recovering material, water or nutrient waste for reuse, such a system reduces virgin resource inputs.

potential flows from each of the sectors, strategies were eventually developed to utilize many existing waste streams (water, energy, nutrients) in a proposed “eco-industrial park,” called the Eco Innovation Center, a practical, modest incubator for circular economy concepts. At the outset, it was determined that the optimal study boundary for the natural resource sectors would be defined by the Hungarian side of the sub-basin watershed of the Gyöngyös River, a yearround body of water flowing out of Austria and into Hungary from the northeast, through Kőszeg and extending as far as the neighboring city of Szombathely (2017 pop. 78,025).

orgAnizAtion oF this document The sections of this report are organized according to the main sector topic areas: water, forestry and agriculture, energy, and economic development. The latter section is divided to accommodate a section on project implementation. References and full citations can be found at the end of each chapter. An Appendix is included, similarly divided into sections.

methodology For this interdisciplinary project, student researchers worked in teams of four—focused on hydrology, forestry/agriculture, energy and economic development—to determine a base case and propose future alternatives. Sustained interaction across the groups fostered solutions promoting integration and exchanges across natural and socio-technical systems. For the former, various modeling tools were employed, including the “Soil and Water Assessment Model” (SWAT) to examine short- and long-term hydrologic impacts, and LANDSAT (data-gathering satellites) to determine forest cover changes. SWAT was also used to classify agricultural crops, toward quantifying potential waste outputs for recovery and use. Evaluation of the town’s economy took into consideration its commercial sector, tourism, recreational assets, and underutilized historic building stock. By diagramming and quantifying

c hAPter 1 reFerences: Preston F, A Global Redesign? Shaping the Circular Economy. Energy, Environment and Resource Governance, London: Chatham House; 2012. Duncker PS, Barreiro SM, Hengeveld GM, Lind T, Mason W, Ambrozy S and Spiecker H. Classification of Forest Management Approaches: A New Conceptual Framework and Its Applicability to European Forestry. Ecology and Society, 2012, 17, 4:51-68. Ghisellini P, Cialinai C, and Ulgiati S, “A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. J Clean. Production (2016) 114, 11-32. Knox, P, Mayer, H Small Town Sustainability: Economic, Social and Environmental Innovation. Basel: Birkhauser; 2013. Longhurst N. (2015) Transformative Social Innovation Narrative of the Transition Movement. TRANSIT: EU SSH.2013.3.2-1 Grant agreement no: 613169, March 31, 2015 United Nations, Department of Economic and Social Affairs (UN DESA), Population Division Database 2014: 23-24. http://www.un.org/en/development/desa/population/publications/development/population-development-database-2014. shtml (Accessed May 2, 2018). Veress, Márton, Németh, István, and Schläffer, Roland, “The effects of intensive rainfalls (flash floods) on the development on the landforms in the Kőszeg mountains (Hungary). Central European Journal of Geosciences, 4(1) (2012) 47-66. Miszlivetz, Ferenc, et al (2012). Kreatív városok és fenntarthatóság [Creative Cities and Sustainability]. Szombathely: Savaria University Press.

chAPter 2:

Water The Pannonian Region, which is divided from north to south by the Danube and Tisza Rivers, is almost completely enclosed on all sides by low-lying hills and mountains. The Carpathians are to the north and east; the Alps are to the west; and the Dinarics are to the south. The region includes most of Central Europe, including the entirety of Hungary. The region’s position beneath mountains and not far from the Mediterranean generates complex weather patterns that result in a landscape of diverse flora. The surrounding hills and mountains are an important source of water for this otherwise dryer landscape. In the past the Tisza and Danube rivers, with their intricate network of tributaries, regularly flooded and thus became heavily regulated with dykes and drainage channels to cut off the majority of the water supply, forcing residents to use groundwater for their water needs (Sundseth, 2009). Because Hungary is landlocked, the country is forced to use water sources, such as rivers, that originate in other countries that also rely on groundwater. While Hungary’s groundwater contains natural levels of various metals, it has been contaminated in some areas by lack of adequate sewage treatment, overuse of manure, fertilizers, and pesticides in agriculture, as well as seepage of high levels of concentrated nitrate and phosphorus into the ground from landfills, animal farms, and mining operations. Analysis done by the National Public Health and Medical Officer Service (ÁNTSZ) in 2014 (Novak, 2014) showed that with higher levels of such contamination, there could be increased risk of serious illness and disease such as dysentery. Hungary formally adopted standards set forth by the European Union’s 1998 Drinking Water Directive in 2001, but since then the country has faced many economic difficulties in implementing these standards. Hungary has failed to meet several deadlines for providing safe drinking water to all of its settlements and faces another from the European Commission in 2020 (Novak 2014). While the potable water in Kőszeg is treated and considered safe for consumption, it is still reliant on similarly tainted water resources. The town is part of a water and sewer system that prioritizes protection of groundwater from potential issues like those stated above. However, some local cases of illegal landfilling and dumping may be continued cause for concern. As a town on the mountainous border of western Pannonia, Kőszeg also faces flooding issues different from those of the more

central, low-lying areas in the basin. An adequate engineering solution has yet to be put in place for excess mountain runoff. Integral to an assessment of Kőszeg’s natural resources is its water systems, which feature both traditional hard-engineered works as well as natural green infrastructure – including a variety of ecosystems and natural cycles – that contribute to the distribution and quality of water in the region. In this chapter, the scope of the project is ultimately defined through the concept of the watershed. From this framework various inflows and outflows of water can be assessed through a closed, defined system. The watershed is a powerful concept for regional sustainable development because the natural water cycle dictates the flow of essential resources, including water itself, sediments, essential nutrients like nitrogen and phosphorous, as well as the flow and destination of pollutants. Therefore, management

decisions in one part of a watershed have the potential to impact what occurs downstream in that same watershed. Our two watersheds of interest include the Greater Rába River Basin and the Gyöngyös River sub-basin. Both watersheds can be seen in Figure 2.1. The Rába River flows in a northeasterly direction along the edge of the region’s watershed while the Gyöngyös River flows southeast through Kőszeg, eventually feeding into the Rába as a tributary from one of 25 total subbasins delineated for this project’s hydrological analysis. Planning within the context of these two watersheds allows one to determine which decisions are optimal for preserving natural resources within the region to obtain maximum benefit while staying well within sustainable limits. Furthermore, it is important to note that the Rába is ultimately a tributary of the Danube. While the project’s scope is set within a delineated sub-basin watershed on the western border of Hungary (darker

Figure 2.1. The dual watershed scope: Greater Rába Basin and the Gyöngyös Sub-basin (by authors)

blue/green in figure 2.1), the strategies detailed herein are also designed to be emulated in multiple locales at a regional scale. A variety of issues and opportunities have been identified in a baseline assessment of water in Kőszeg and its surrounding bioregion. The existing conditions and the proposed interventions to achieve more closed-loop performance of water resources will be explained in the following sections.

e xisting conditions Water management in the Kőszeg region consists of three main functions: 1. 2. 3.

Extraction, transport and storage of drinking water; Stormwater collection systems constructed within and underneath settlements; and Collection and treatment of wastewater.

Currently, Kőszeg has neither its own drinking water treatment plant nor a wastewater treatment plant. Drinking water is obtained from the Perenye water base, which is one of six water bases located in Vas County (for further details, see Appendix Ai.1). A water base is a defined area, containing one or multiple water sources, either as surface water or groundwater, that is used to supply human systems. Major contaminants of potable water are removed through a natural filtering system, such as bank filtered water resources, and transported to Kőszeg via pipe and pump system. The wastewater generated by Kőszeg is conveyed via gravity through a combined (stormwater and sanitary) municipal sewerage system to the nearest operating wastewater treatment plant, which is located in Szombathely. The plant discharges treated effluent into local water bodies, one of which is the Perint River. In the last decade, Kőszeg has experienced an increased frequency of high intensity rainfall events, which on multiple occasions have caused flash flooding in the northern portions of town. In these areas, the development of rills, gullies, and a sediment veneer poses a threat to civil engineering and agricultural projects (Veress et al., 2012). These occurrences are likely to become more common with climate change projections for Central & Eastern Europe that reveal increasing trends of extreme precipitation events (Bartholy et al., 2015). Another issue during periods of heavy rainfall or snowmelt is

that wastewater volume can exceed the capacity of the sewer or treatment plant (about 100,000 m3 per year); this happens roughly once every two years. (H. A. e-mail interview) In order to prevent residential backups, combined sewer overflows (CSOs) are designed to collect stormwater runoff, domestic sewage, and industrial wastewater in the same pipe and discharge the excess wastewater directly into nearby water bodies. The two villages containing CSOs in the Kőszeg area are Lukácsháza and Gencsapáti, which discharge into the Gyöngyös River. Finally, there is an existing but disused engineered water resource local to Kőszeg: a canal adjacent and mostly parallel to the Gyöngyös River, which in the past was used as a flowregulated channel serving a series of watermills whose use is also now abandoned. In its current unused state the canal is unsightly, showing signs of structural disrepair and excessive sediment accumulation along its banks. The canal is a promising site for realization of potential benefits without the requirement of constructing an entirely new work, should some of the mills be restored and reactivated for cultural heritage value. The various flows of freshwater, potable drinking water, and wastewater are shown in Figure 2.2.

2.1.1. drinking wAter The Perenye water base is located on the eastern edge of the foothills of the Kőszeg Mountains in a valley formed by the Gyöngyös River, at the border of Perenye and Gyöngyösfalu. The base supplies Kőszeg, as well as its surrounding settlements and parts of Szombathely. The water base consists of two canals and the water produced is collected by two wells that are operated with a siphon system.

Generally speaking, half of the water base is supplied by the Gyöngyös River, while the other half is sourced from groundwater. Water production quantity has fluctuated over the past ten years, though the capacity of the water base (2,000 m3/day) is expected to satisfy demand in the long term. There is also no significant quality issue from the water base: while the source water contains trace amounts of natural iron and manganese, these levels do not pose a health risk. The extracted water has high hardness, though it can be reduced via treatment by enrichment tanks. Nevertheless, there is a

Figure 2.2. Existing conditions of water in Kőszeg and its surrounding region (by authors) Drinking water flows in light blue and sewage flows in dark green remaining issue of concern from illegal landfilling located in the southwestern part of Gyöngyösfalu, where examination of water samples from deep exploration wells indicates the presence of nitrite and ammonia and traces of herbicide above the limit. Diagnostic tests carried out in accordance with the preliminary requirements have substantiated the vulnerability of the water base (Vízbázisvédelem Szombathely, n.d.).

2.1.2. wAstewAter The Szombathely-Kőszeg regional sewage treatment plant utilizes an activated sludge process that treats influent sewage both mechanically and biologically. The plant’s capacity is 45,000 m3 /day and in 2017, on average, the plant operated at 96 % cleaning efficiency in removing nitrogen, phosphorus, fat and oil, etc. The sewage treatment plant in Szombathely, much like other resource recovery facilities, demonstrates an integrated circular economy in its processes. The sludge collected during precipitation and the resulting surplus sludge in anaerobic mesophilic digesters (2 x 2,500 m3) of the plant is treated to produce biogas. The annual volume and composition of the biogas produced is approximately 870,000 m3, 65 % methane and 34 % carbon dioxide. Ninety-five percent of the biogas is burned in gas engines, which generate elect ricity—most of which is fully dedicated to wastewater purification. The

remainder is combusted for heating purposes in boilers, so the plant has zero methane emissions. Finally, the homogenized pre-sludge and dewatered (4 %) excess sludge is digested and then transported in containers to a composting plant in Nárai,7 where it is mixed with wood chips and composted in aerated prisms. The receiving water body of the wastewater plant is the Soros-Perint facility, and the plant is continually meeting effluent quality requirements. (H.A. E-mail interview)

ProPosed strAtegies While there are opportunities to improve the inflows and outflows of the drinking water and sewage, it would be impractical to consider this as part of the study initiative, as those legacy systems are regulated under the EU Water Framework Directive and do not require upgrade or expansion at this juncture (Office Journal of European Communities, 2000). Therefore, the following proposed interventions are focused on managing the flooding and sediment issues with “soft path” (green infrastructure) engineering, both large and small. The proposed design for flooding mitigation comprises a holding pond and a constructed wetland with a combined capacity of about 8,000 cubic meters. The wetland could retain excess surface runoff during major events, clean it and return it to the Gyöngyös River, as seen in Figure 2.3, which shows the inflows

and outflows of the drinking water and sewage unchanged. The Eco-Innovation Center proposed as part of the master plan, which is discussed in detail in Chapter 6, would also include a number of smaller soft path technologies: biodigesters, infiltration basins, rainwater harvesting, and micro-hydro turbines. Finally, the proposed development site would be flanked by two flowing water bodies: the Gyöngyös River and the newly restored canal. A general revitalization of the adjacent canal, followed by a reintroduction of regulated flow into that channel, would help establish a medium with consistent flow rates from which energy could be reliably generated via micro-hydro technology.

technologies 2.3.1. hydrologic modeling For inFormed wAter mAnAgement decisions And climAte strAtegy To ensure that its proposed interventions for circular economic

development are sustainable from a hydrological standpoint, this project uses the Soil and Water Assessment Tool (SWAT). SWAT is a powerful modeling and simulation software that can be used to predict the effects of management decisions within a watershed on various yields such as water, sediments, nitrogen and phosphorous. The tool acts as an interface extension to geographic information system software like ArcGIS and QGIS. The construction of a SWAT watershed model is detailed generally in Appendix Ai.2. In order to run a simulation for the model, SWAT requires hydroclimate data (precipitation, temperature, relative humidity, wind speed, and solar radiation) at a daily time step. The modeler can run a simulation for as many days as deemed necessary, to observe flux over periods from one week to several years. Finally, for a proper calibration of the model, it is important to have reliable observational streamflow data; Kőszeg has a stream gauge measurement station located south of the city center, where readings are automatically generated in terms of height on a fifteen-minute interval. To calibrate these height readings into flow rates for comparison with SWAT, the research team conducted a site assessment to estimate the approximate geometry of the riverbed. Thus far,

Figure 2.3. Reimagined conditions for water in Kőszeg and its surrounding region (by authors)

Figure 2.4. Site of proposed wetland with Google Earth Pro the model has completed a successful trial run simulation. The SWAT model established in this project for the Greater Rába River Basin provides a crucial bioregional context within which the effects of development proposals in Kőszeg and the Gyöngyös River sub-basin can be examined. SWAT outputs are to be analyzed as relatively accurate predictions that quantify the expected results of various “what if” management scenarios. In the model, these scenarios might appear as changed land cover (e.g., new development implementing impervious cover, resulting in higher rates of runoff), or the addition of either new point source or nonpoint source pollution. Given that closedloop systems prioritize the sustainable use of inputs and waste recycling potential, they help reduce the human burden on nature’s free ecosystem services. SWAT can also be used to predict how a changing climate might affect the hydrologic features of a watershed and inform how human systems might need to respond. Essentially, just as with actual historical weather data, SWAT can read and simulate artificial hydroclimate data that estimates future climate change for the bioregion. Rather than downscaling from an ensemble of climate change projection models, this project follows its own methodology for generating plausible long-term future weather data. To foster an approach that emphasizes climate adaptation and resilience, the methodology for generating future weather focuses

on frequency and distribution of extreme weather events (both wet and dry). Furthermore, to maintain simplicity and action-ability, the future weather breaks down into three scenarios: best, medium, and worst-case climate change scenarios (best meaning minor change with nearly the same historical frequency and intensity of extreme events, worst meaning the opposite). To remain within the scope of realistic, observed conditions, the methodology employs historical weather data (from the last 50 years) whose days can then be rearranged and modified to varying degrees for each of the three scenarios. The result will be three datasets of long-term future daily weather patterns between 2050 and 2075. These datasets could then be used as input, in combination with management decisions on the watershed, to run simulations for the future whose informational backdrop reflects a holistic approach to water resource management in the 21st century.

2.3.2. site And design oF ProPosed wetlAnd Constructed wetlands are “shallow depressions that receive stormwater inputs for water quality treatment” (Virginia DEQ Stormwater Design Specification, 2011). Runoff from each new storm displaces runoff from previous storms, and the long residence time allows multiple pollutant removal processes to operate. The wetland provides an ideal environment for gravitational settling, biological uptake, and microbial activity

(Virginia DEQ Stormwater Design Specification, 2011). In short, the proposed wetland design would help divert excess surface water during flood periods while also improving its quality through a natural treatment process. After further research in the landscape of the area, a potential wetland site was identified in the northwestern region of Kőszeg near the border and Route 87 (further details see Appendix Ai.1). The site is highlighted in Figure 2.4. The Gyöngyös River flows through the site and a small detention pond is located on the southeastern portion. Introducing a constructed wetland to a small town like Kőszeg is a significant intervention, employing a number of features and design elements. The preferred design is a pond/wetland combination that can protect the channel with a detention storage volume and also improve the water quality of the river by reducing the total nitrogen and total phosphorus of the stormwater. (For further details, see Appendix Ai.1). These features are labeled in the Figure 2.5. The first feature would be a flow regulation point. It would consist of a constant dam including a seasonal mechanical portion that would close during the short intensive floods in order to divert the stormwater to the pond forebay, an artificial pool of water in front of a larger body of water. The pond forebay

would trap sediment and preserve the capacity of the holding pond, which would temporarily capture diverted stormwater runoff and provide two services. First, it retains runoff before releasing it back to the stream in flow rates and frequencies similar to those that exist under natural conditions. Second, it provides pollutant removal through settling and biological uptake. Research by the Center for Watershed Protection (2007) shows that turbidity and total hardness decrease between the inflow water and the outflow water of the holding pond. The constructed wetland cells (bioremediation plantings containing microorganisms, media, and appropriate species) would contain microorganisms, media, and appropriate plantings that would filter the water and remove sediments, excess nutrients and dangerous pollutants. The dissipation pool would reduce the energy of the water flow. The transitional cell would help move the water from the dissipation pool to the meandering stream. Finally, the meandering stream would provide oxygenation and further remediation before releasing the stormwater back into the Gyöngyös River. Another suggestion for the wetland design would include a renovated detention pond for overflows. By renovating the current detention pond, more excess surface water can be mitigated. There are many design criteria that need to be met when

Figure 2.5. Proposed wetland design (by authors)

implementing a wetland. One is the sizing, which is based on the volume discharged during the flood. It is also necessary to calculate the water balance in order to assume the worstcase scenario and the acceptable water depth (for further details, see Appendix Ai.1). A geotechnical testing should also be conducted to determine the physical characteristics of the soil, its adequacy for its use from infiltration rates, and an evaluation of the compaction and composition needs for embankment. A slope profile should be administered since a wetland should generally be flat from the inlet to the outlet. The internal design and geometry of the cells play a major role with pollutant removal and plant diversity. Wetland performance is enhanced with multiple cells, longer paths and irregular-shaped flows streams. Micro-topographic features (hillocks, rock piles) placed within the water path help with the water cleaning and promote dense and diverse vegetative covers. Weir walls and rock vanes that create variable microtopography help filter and transition stormwater through the cells as internal structures (Virginia DEQ Stormwater Design Specification, 2011). Flora landscape is a crucial element in wetland design. In order for the wetland to be a realistic long-term flood mitigation plan, the desired wetland vegetation must be selected carefully for each zone of the wetland (for further details, see Appendix Ai.1). There are two plant genera useful for wetland remediation of water quality: Phragmites spp. (reed grass) and Tyhpha spp. (cattail). Both of these species are native to this region of Europe. Since they grow densely, they remediate water quality by slowing flow and increasing sedimentation while also removing some contaminants from the water. Also, they provide good bird habitat, which improves the biodiversity in the region (Bhatia, 2013). While there are other useful species, an analysis, coordinated with Natúrpark, the nature conservatory of the region, is needed to identify common native shrubs and tree species, especially potential emergent plant species for biofiltration. Finally, maintenance is also prominent in the design aspect of wetlands in order to reduce clogging of the channels and to control the flow in order to make repairs and preserve the wetland treatment capacity. Maintenance of wetlands is conducted to increase efficiency of hydraulic flow, pollutant removal, safety and mosquito control. This can be done by removing sediment from forebays, cleaning away floating trash and debris, removing invasive plant species, controlling

pests, and keeping the flow regulation point free-flowing (Hunt, 2006).

2.3.3. other ProPosed technologies Beyond proposing a couple of relatively sizeable initiatives, namely, to maintain and improve a hydrologic model of the region and to introduce a new constructed wetland, this project explores some small-scale technological interventions involving water that would also demonstrate circular design thinking. Promising interventions, which will also be incorporated and demonstrated at the Eco-Innovation Center, include but are not limited to aquaponics, infiltration basins, evaporative cooling walls, and rainwater harvesting. Aquaponics is the combination of aquaculture (fish farming) and hydroponics (farming of soil-less plants) in which waste from the farmed fauna can nourish the growth of aquatic flora, which in turn purifies the water to conditions that are ideal for the fauna to thrive. Aquaponics is assisted by specific microorganisms that process fish waste into nutrients that are then useable by plants in the system. Aquaponics is a practice that prioritizes the use of ecosystem services to minimize both resource inputs and waste outputs. The recycling of nutrients in aquaponics forms a closed loop that reduces water consumption (in some cases, to approximately 1% that of pond culture) and fish food requirements (Diver, 2006). Infiltration basins, also known as “bioswales” or rain gardens, are trenched areas of land containing porous materials and plantings that assist in the rainwater infiltration, uptake and storage. These basins may vary greatly in design to match aesthetic and environmental needs, but typically contain gardens of diverse plantings that can thrive in dry or saturated soil conditions. Infiltration basins are highly valuable in reducing stormwater runoff, decreasing flows onto the streets and into the sewers during a rainfall event. Implemented at a large scale, these basins can serve to reduce the risk of flooding in high density urban areas and also greatly reduce the occurrence and severity of combined sewer overflows. For example, modeling simulation conducted by the New York City Department of Environmental Protection estimates that a scenario in which 10 % of the city’s impervious cover is converted into green infrastructure would reduce CSOs by 8.1 % citywide (Arcadis of New York, Inc., 2016).

Finally, rainwater harvesting is the rather simple practice of directly capturing rainwater during precipitation events for storage and usage (often executed by a simple piping system with a tank or barrel). This water is then usable, after treatment, for potable purposes or usable immediately for nonpotable purposes such as flushing toilets, watering gardens, and cleaning outdoors.

BeneFits & metrics oF success The human and natural systems within KĹ&#x2018;szeg and its surrounding bioregion could benefit substantially from the interventions and technologies detailed in this chapter. The smaller-scale, soft-path water engineering interventions introduced in this chapter for potential use by the EcoInnovation Center all demonstrate the benefits of closed-loop design whereby resource input requirements and waste outputs are both significantly reduced. The various benefits are listed above in Table 2.1 and detailed on the next page:

Table 2.1. Matrix of benefits provided by proposed water engineering interventions Proposed Intervention Aquaponics

Benefits

Reduced Waste Output

Metrics of Success

Farming jobs

Water

Fish feces

Fish yield

Farming education

Food for fish

Nutrients

Crop yield

Healthy food source

Fertilizer for plants

Infiltration Basins Aquifer recharge (including permeable Stormwater runoff pavement) reduction Aesthetic appeal

Rainwater Harvesting Additional water storage and supply

Wetland

Reduced Resource Input

Water, fertilizer, food requirements (% decrease)

Future environmental Pollutants transported Infiltration rate (% remediation by runoff into water increase) Sewer operation and bodies Runoff rate (% maintenance Runoff contributing decrease) to sewer load, CSOs Grid water for farming purposes

Pollutants transported Site potable water by runoff into water usage (% decrease) bodies Runoff rate (% Runoff contributing decrease) to sewer load, CSOs

Stormwater runoff reduction

Grid water for toilets outdoor cleaning

Flooding mitigation

Flood damage repairs Excess water Pollution Hard-engineered

Water quality improvements

water treatment Increased biodiversity processes

IBI (% increase)

Runoff contributing to sewer load, CSOs

AquAPonics: 1.

Jobs in Farming. The aquaponics greenhouse would provide local green jobs.

Education. The biochemical processes involved in aquaponics could be studied scientifically, while regular practical maintenance of the system could provide hands-on experience to students and farmers.

Healthy Food Source. Freshly harvested fish and greens could be sold locally.

Lower Water and Energy Usage. Through maintenance of optimal balance between food, water, fertilizer, and microbial growth, ecosystem services are optimized, requiring fewer virgin resources.

inFiltrAtion BAsins (including PermeABle PAvements): 1.

Aquifer Recharge. Rainwater would infiltrate the surface of the gardens or pavements, slowly seeping via gravity into the local aquifer and replenishing groundwater resources.

Stormwater Runoff Reduction. Water that would otherwise travel over the surface as runoff is reduced, mitigating potential flooding and leaching of pollutants off the ground. Aesthetic Appeal. Flora in rain gardens enhance the amount of green space at a site.

r AinwAter hArvesting: 1.

Additional Water Supply and Storage. Rainwater is captured and stored for uses that do not require complete treatment, such as flushing toilets, washing clothes, outdoor cleaning, and irrigation.

Stormwater Runoff Reduction. See above.

constructed wetlAnds: 1.

Improved Biodiversity. Because of their location between water and land, wetlands are uniquely protective of wildlife. In the United States, for example, wetlands shelter more than one-third of the country’s threatened and endangered species, according to the U.S. Environmental Protection Agency.

Flood Control. Wetlands function like a sponge, soaking up water that comes in with the tides, or from periodically flooding rivers. In fact, they control floods much more effectively and efficiently than any floodwall.

Pollution Filtration. If trees are the lungs of the planet, then wetlands are its kidneys. For example, on the Rouge River near Detroit, Michigan, a wetland demonstration project showed significant reductions in nitrates, phosphorus, and heavy metals. Clean and plentiful drinking water depends on healthy wetlands.

Enhanced Recreation and Tourism. Between bird watching, biking, hiking, and kayaking, wetlands provide people with many ways to enjoy nature’s aesthetic features.

These circular technologies therefore save on overall capital costs while improving the health of surrounding ecosystems that provide indispensable services for human functions. Metrics detailed in Table 2.1 are observable, quantitative figures with which one can evaluate the success of the benefits of these technologies relative to a baseline. Success of aquaponics can be measured by weighing requirements for food, fertilizer, and water against those of traditional aqua- and agriculture methods of similar yield. Decrease in runoff rates can be measured for both infiltration basins and rainwater harvesting, based on the total area and type of land that existed prior to intervention. Furthermore, success of rainwater harvesting can be measured by observing a facility’s reduced reliance on grid water over a period of time before and after intervention. There are some metrics, such as the index of biological integrity (IBI), the habitat evaluation procedure (HEP) and the hydrogeomorphic approach (HGM) that can be used to evaluate the success of a wetland (Environmental Protection Agency, 2002). Since the IBI method is designed to evaluate the health and biological integrity of wetlands, this method should be used as the metric of success for the proposed constructed wetland. The IBI uses stream information in its evaluation, along with flora and fauna assemblages of wetlands. The IBI

uses multimetric indices to integrate several biological metrics on a site’s condition (further details see Appendix Ai.1 Fig 2). These multimetric indexes can be designed to be sensitive to a range of physical, chemical, and biological factors that stress the system, making it easy for one to interpret and measure. (A rendering of the proposed wetland can be seen in Figure 2.6.) A well-maintained SWAT model for the region would be a powerful decision-making tool to predict environmental impacts associated with new development as well as efforts to preserve and remediate the existing ecosystem. Social and economic impacts are closely tied to SWAT output figures such as water yield (potential for flooding or drought) and nutrient yield (potential for pollution). The model also delivers continuous added value by filling knowledge gaps in hydrological information for the region. Furthermore, students in environmental studies based in Kőszeg or Western Pannonia can use the model as an educational tool, which would in turn benefit the accuracy and robustness of the model. The larger-scale landscape intervention proposals, while more intensive in planning and implementation, could result in a multitude of more tangible benefits for Kőszeg. Revitalization of the flow-regulated canal would enhance aesthetic beauty along the margins of the town, attracting tourist activity and reestablishing a collective ownership of the space that otherwise appears slightly

abandoned. Both revitalization and maintenance of the canal are undertakings that could provide jobs and opportunities for the local community to participate in environmental volunteerism.

PreliminAry cost AnAlysis Appendix Ai.4 lists the variously sourced cost figures, assumptions, and calculations used to arrive at estimated initial capital costs to implement each technological intervention in water. Restoration of the Gyöngyös canal would cost between $47,000 and $61,000 for dredging. If the city were to invest further by hard reinforcing the bank’s structure, that would cost an estimated additional $410,000. Several infiltration technologies, from bioswales to permeable pavements, are listed in Appendix Ai.4 with price estimates averaging approximately $9.00 per square foot. These figures are incorporated in the estimate for overall site work costs in Appendix A.iv. Rainwater harvesting is an extremely low cost intervention for the site at an estimated $700, while acquiring the materials and built environment necessary for a small-scale aquaponics would cost about $150,000.

Figure 2.6. Rendering of proposed wetland (by authors)

Because wetland cost parameters are site-specific, a rough cost estimate was conducted in Appendix Ai.4. For a 40-year life span of a wetland, the total cost per wetland acre would be around $7,600 to $9,500. When converting this amount to the hectares for the proposed site, the total cost would be around $70,700 to $88,400. This cost would include first-year, one-time costs and exclude long term expenses such as maintenance and repair.

PhAsing & conclusion The water systems in Kőszeg and its surrounding region could clearly benefit from the introduction of several closed-loop, circular interventions. Many of the water-related challenges outlined in this chapter are representative of current technical strategies that follow linear thinking. For example, a cursory assessment of existing water and wastewater infrastructure in the region reveals simple issues in linear design. Sourcing and treatment is highly centralized, resulting in sizeable capital and energy costs to pump water to distant locales like Kőszeg. However, due to existing EU regulations, the water supply and sewerage flows cannot readily be altered (Office

Journal of European Communities, 2000). In addition, the aim of this project is not to overhaul all non-optimal systems, but to augment current resources and leverage potential new ones with current best practices to move toward a closed-loop water economy. The proposed interventions can therefore be sorted into shorter and longer term phasing schemes based on resource intensity and degree of urgency.

improvements and demonstration at the Eco-Industrial Center, these green interventions would also prove applicable to other locales. The result: a region-wide movement toward local water resilience in the face of changing water supplies, changing water demand and a changing climate.

Of great urgency in creating a more resilient Kőszeg is the need to address the issue of flooding, which, as described, may be mitigated by the proposed wetland. Because of the high risk of damage posed by continued flooding, and in spite of relatively high resource requirements, the wetland should be considered a high priority item. Furthermore, a revitalization of the river’s adjacent canal would be a major and lasting contribution in terms of aesthetics and cultural heritage significance as well as its potential for energy production, with the addition of a new regulated flowing channel. Property value and development appeal should sustain an increase as a consequence. While canal revitalization represents another significant undertaking, its lasting integrated benefits suggest that it should take high priority. Longer term, mid-priority endeavors include implementation of the various smaller scale soft path technologies introduced here, as well as maintenance and improvement of the SWAT model for the region’s watershed. While the Eco-Innovation Center could demonstrate the soft path technologies at a site-specific scale, the ultimate idea is for Kőszeg and the region to reach widespread incorporation of green interventions to the extent that they maximize a balance of social, economic, and environmental benefits for stakeholders. Meanwhile, a continuous working hydrological model would help to inform development and education at every stage of the project. Within the context of Vas County, Kőszeg is a highly dependent entity that receives freshwater from, and contributes wastewater to, the larger system. Given its dependencies on Perenye and Szombathely, a Kőszeg with full water autonomy is difficult to conceive, but also not entirely necessary. As this chapter details, there exist a multitude of ways in which Kőszeg can revitalize existing resources and introduce new technologies to move toward a water system with less waste and greater integration of ecosystem services. As a consequence, this transition would alleviate some stress on the region’s engineered works. Through tangible, measurable

c hAPter 2 reFerences: Arcadis of New York, Inc. (2016) “Green Infrastructure Performance Metrics Report”. Report prepared for The City of New York Department of Environmental Protection. Bartholy, J., R. Pongrácz, and A. Kis (2015) “Projected changes of extreme precipitation using multi-model approach”. Quarterly Journal of the Hungarian Meteorological Service, 111, 2, 129-142. Bhatia, M. and D.,Goyal (2013) “Analyzing Remediation Potential of Wastewater Through Wetland Plants: A review”. Available at: https://moritz.botany.ut.ee/~olli/eutrsem/Bhatia2013.pdf [Accessed 31 Aug 2018]. Center for Watershed Protection (2007) “Manual 3:Urban Stormwater retrofit practices manual”. Available at:http:// owl.cwp.org/mdocs-posts/urban-subwatershed-restoration-manual-series-manual-3/ [Accessed 31 Aug 2018]. CNT. (2013). Green Values National Stormwater Management Calculator. Retrieved from http://greenvalues.cnt.org/ national/cost_detail.php Diver, S. and L. Rinehart (2006) “Aquaponics – Integration of hydroponics with aquaculture”. Attra. Edgár, S. (2017). A régió és Vas megye ivóvízkészlete. Nyugat–dunántúli Vízügyi Igazgatóság, p.18. Engle, C. (2015). Economics of Aquaponics. Southern Regional Aquaculture Center Publication No. 5006. Environmental Protection Agency (2002) “Methods for Evaluating Wetland Condition: Developing Metrics and Indexes of Biological Integrity”. Office of Water, U.S. Environmental Protection Agency, Washington, DC.EPA822-R-02-016. Handler, András, Discussion of the Water management of VASIVÍZ Co., [email interview, 2018 June 25]. Hunt, W. and B., Lord (2006) “Maintenance of Stormwater Wetlands and Wet Ponds”. Available at:https://brunswick. ces.ncsu.edu/wp-content/uploads/2013/04/Wetland-and-Pond-Maintenance-2006.pdf?fwd=no [Accessed 31 Aug 2018]. Jones, P., K. Keating, and A. Pettit (2015, March). Cost estimation for channel management – summary of evidence. Bristol, UK: Environment Agency. Novak, B. (2014) “EU funded projects to bring clean drinking water to Hungarian settlements affected by polluted groundwater”. Available at: https://budapestbeacon.com/eu-funded-projects-to-bring-clean-drinking-water-tohungarian-settlements-affected-by-polluted-groundwater/ [Accessed 31 Aug 2018].

Office Journal of European Communities (2000). [online] Eur-lex.europa.eu. Available at: https://eur-lex.europa.eu/ resource.html?uri=cellar:5c835afb-2ec6-4577-bdf8-756d3d694eeb.0004.02/DOC_1&format=PDF [Accessed 4 Aug. 2018].

Sundseth, K. (2009) “Natura 2000 in the Pannonian Region”. Available at: http://ec.europa.eu/environment/nature/ info/pubs/docs/biogeos/pannonian.pdf [Accessed 31 Aug 2018]. Tucker, J. (2018, August 15). Time series: RPI All Items: Percentage change over 12 months: Jan 1987 = 100. Retrieved from https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/czbh/mm23 Tyndall, J., and T. Bowman (2016). Iowa Nutrient Reduction Strategy Best Management Practice cost overview series: Constructed wetlands.Department of Ecology & Natural Resource management. Iowa State University. United States Department of Labor, Bureau of Labor Statistics (2018). Consumer Price Index. Retrieved from https:// www.bls.gov/cpi/ Veress, M., I. Németh, and R. Schläffer (2013) “The Effects of Flash Floods on Gully Erosion and Alluvial Fan Accumulation in the Kőszeg Mountains”. In D. Lóczy (Ed.), Geomorphological impacts of extreme weather: Case studies from central and eastern Europe (pp. 301-311). New York: Springer. Virginia DEQ Stormwater Design Specification (2011) “Constructed Wetlands”. Available at: https://www.vwrrc. vt.edu/swc/NonPBMPSpecsMarch11/DCR%20BMP%20Spec%20No%2013_CONSTRUCTED%20WETLAND_ Final%20Draft_v1-9_03012011.pdf [Accessed 31 Aug 2018]. Vízbázisvédelem. (n.d.). [ebook] Szombathely: VASIVÍZ ZRT, pp.5-6. Available at: http://www.nyuduvizig.hu/ upload/vizbazisvedelem_szombathely.pdf [Accessed 31 Aug. 2018].

chAPter 3:

Agriculture and Forestry Agriculture And Forest chAPter overview Nationally, 70 % of Hungary’s territory is suitable for agricultural production while forested area covers about 23 % of the country. This breakdown is similar in the local region surrounding Kőszeg. Land capable of supporting agriculture covers approximately 60 % of the Kőszeg region. The long growing season, flat terrain and high nutrient soils make this region suitable for agricultural enterprises. The major crops produced in the region include wheat, barley and corn. Sunflower, sugar beet, and vineyards exist on a smaller scale but are also important to the local economy. Forests make up a slightly higher percentage (29 %) of the land cover at the local scale, and are divided between publicly managed and privately owned forests. The majority of local forest activity supplying the region with hardwood and fuel occurs in the Kőszeg Mountains northwest of the town as well as in the private forests that lie southwest and to the east. The combined size of privately owned forests is approximately double the area of the publicly managed forest in the region of Hungary surrounding Kőszeg. The recent shift from collectively managed to privately owned land provides an opportunity to assess local agriculture and forestry production capabilities in the scope of the circular economy approach.

study locAtion The Kőszeg Mountains are about 400m above sea level. The highest peak, Írottkő (882 m), is also the highest point in the broader Transdanubia region. The Kőszeg Mountains are of mild climate with relatively balanced precipitation but in the alpine climate zone. The annual rainfall is above 800 mm, with 60-70 % falling in summer. The mountainous area contributes to the catchment of the Gyöngyös stream, with a moderate water discharge of between 2.1 m3/sec and up to 18 m3/sec in large events. The landscape shares similarities with the Sopron Mountains, where alpine impacts and large soils are significant, so similar forest patterns have emerged. Higher areas of the

mountain range were originally covered by beech trees, with the lower regions largely hornbeam oak trees. However, the intensive forest cultivation has changed the vegetation, with oak forests replacing beech and hornbeam, augmented by pine trees planted in their place.

For the agriculture analysis, the study region was expanded to include the Szombathely town limits. The overlaps in the agriculture and water supply sectors between Szombathely and Kőszeg justifies expanding the region of assessment from an economic perspective.

The Kőszeg region is predominantly a mixture of forested and agricultural lands. The Kőszeg Mountains in the northwest of the county remain forested and are publicly managed, while the flatter middle and eastern regions adjacent to the SopronVas plain are dominated by private agricultural activity and forested (Figure 3.1).

Developing Kőszeg’s agricultural retail trade is important to increase its competitiveness in the domain of cross-border tourism and consumption. Additionally, the expansion of the micro-regional agriculture, and quality improvements, are important objectives to further boost the competitiveness of Kőszeg. Moreover, Kőszeg could also be a market for a future food receiving and processing industry. Csepreg and Lukácsháza, for example, currently design agricultural products and have processing and storage facilities, while Peresznye has been operating a private fruit packaging company for several years.

This assessment focused on Kőszeg and its surrounding region, an area of approximately 19 km2 that includes the villages of Kőszegfalva, Cák, Horvátzsidány, Lukácsháza, and Velem (Figure 3.1). The scale of this study region aligns with the watershed boundaries considered in the hydrology chapter, allowing for a more direct analysis between the forested and agricultural sectors. While most of the local foresting activity occurs in the mountains northwest of Kőszeg and the private forests to the southwest and east, agriculture is more dominant in the flatter plains generally located south and east of the town.

the existing conditions oF Agriculture The first step in the assessment of existing agricultural conditions involved inventorying approximate resource use,

Figure 3.1. The research scope for agriculture. The area within the red circle was analyzed using satellite imagery and field observation.

Figure 3.2. Monthly-averaged Sentinel-1 C-band radar image for May 2018 field type locations, and crop yields in the Kőszeg region. Although these data are readily available at the national and county level they are more limited at the local scale. Many types of agricultural data are privately reported or not consistently maintained by individual farmers. These include information on irrigation schedules, pesticide use, fertilizer records, crop types, field rotations, time of planting, crop emergence, yields and harvest yield. Similarly, economic data such as crop sales and ratios of imports to exports exist for the county and national level, but localized data sources are scarce. A comprehensive analysis of the existing conditions of agriculture would ideally include this information at the local scale. This investigation focused on filling in the gaps of some of the major indicators of agricultural operations and production in order to envision a more circular economic approach in the Kőszeg region. Several methods were employed to describe the state of agriculture at the regional scale. A satellite-based classification provided information on agriculture field utilization in the Kőszeg region. This was utilized to create a crop map at a local scale reflecting land use for Spring 2018. Similarly, economic data

related to agriculture activity available at the county level were considered and then downscaled to provide regional estimates of the economics of agricultural activities surrounding Kőszeg. A supervised classification approach mapped land cover types in the Kőszeg region. Major land cover types in the region— determined a priori by optical observation and verified by existing agriculture data—included wheat, corn, barley, sunflower, forest, vineyard, urban, and open water. Sample sites from each of these classes within the Kőszeg region were then identified and verified by field-based observation. GIS software provided a method to create shapefiles of each verified location, which then became reference training sites in a supervised land cover classification. The European Space Agency’s Sentinel-1 satellite provided data for the radar-based supervised classification. Sentinel-1 is a C-band active radar satellite constellation that provides day/night observations with global repeat every 3-4 days over continental Europe (ESA, 2018). Radar is especially sensitive to vegetation water content and structure. It operates independently of weather conditions and provides high

Figure 3.3. Sentinel-1-based Supervised Classification of land cover types in the Kőszeg region. Percent and area of each land cover class correspond to the number of pixels within the overall map that fall into each respective class resolution information at approximately 20-meter scale. Furthermore, the flat terrain of the Kőszeg agricultural region makes it an ideal study site for a radar-based investigation. Using the Google Earth Engine server, Sentinel-1 data was processed and averaged monthly between October 2017 and June 2018. Each scene is preprocessed to derive radar backscatter information per pixel (Google Earth Engine API, 2018). Monthly averaging of pixels between scenes helped to reduce speckle, noise, and variability in individual dates of acquisition (Figure 3.2). A Random Forest Supervised Classification program derived the land cover map based on the reference class training data set and monthly Sentinel-1 scenes (Figure 3.3). The area mapped in the land cover classification analysis totaled 176,484 hectares. The largest land cover types in the region include agriculture lands (57 %) and forest (25 %). Within agriculture, grain crops (wheat and barley) together make up the largest class of crop types. Approximately 37 % of land in the Kőszeg region in Spring 2018 was allocated for grain crops. Distinctions between seasonal crops, such as winter and summer wheat, were not made in this study. It is possible that a small percentage of underutilized fields, classified as other land cover types, may also fall within the grain category. Further coordination with local farmers would

help derive this seasonal information. Overall, the breakdown of crop types at the local scale agreed well with the national and county level information (Central Statistical Office, 2013; Department of Land Administration and Geoinformation, 2017). This provides a further method to downscale and derive information at the local scale. The majority of agriculture land in the Kőszeg region is owned by the private sector. After Hungary transitioned to democracy with the fall of the Soviet Union in 1991, large collective farms were divided among private owners. This legacy is noticeable in the size and distribution of farm types in the Kőszeg region (Fig. 3.3). Although the land here is highly arable, the region is small relative to the total agricultural land and crop yields for all of Hungary. Thus the Kőszeg region is not a significant agricultural supplier within Hungary and across the Austrian border. However, the abundance of resources at the local scale provides an opportunity to increase coordination between local farms and government offices and reimagine a more resilient regional economy based on a circularized approach. In the following sections, specific industries in the agricultural sector with local significance are discussed and waste streams are identified to set a framework for this reimagined circularized approach.

Kőszeg belongs to the larger wine region of Sopron, where small-scale wineries have a long and proud tradition. Although vineyards total only 8 % of the agriculture land use around Kőszeg, the local significance and high potential profitability of the industry necessitates its consideration in the assessment of the existing picture of agriculture in the region. Around Kőszeg, the nearly 300 hectares of land supporting wineries are divided among family-operated vineyards with an average size of 5 hectares per vineyard (personal interview, András Tóth, owner of the Tóth Winery, 06.11.2018). In conversations with winery managers and owners, these vineyards emphasize traditional growing practices that prioritize wine quality over maximizing yield. Locally, the two most important wine making companies are Tóth Winery and the Kampits Family Cellar. In Kőszeg, it may be a realistic objective to preserve and enhance the wine traditions and wine culture, thereby promoting local and cross-border trade. For example, vineyards are currently rain-fed, although local climate change may require reconsidering non-irrigating practices. Locals have described more recent intense, less consistent storms during the growing system, a condition that may require future irrigation methods and coordination between farms. The assessment of baseline waste production from the agricultural sector was also considered given that it represents an important potential resource output in a circular economy. For this assessment, the estimates of waste production in the Kőszeg region were obtained by considering farm types, sizes, and economic outputs as well as from conversations with local farm managers. Economic data on livestock farm types and sizes were obtained through the Farm Accountancy Data Network (FADN)—a database containing county level data on agricultural waste supplied by the Hungarian Research Institute of Agricultural Economics. FADN is a tool designed by the European Union to establish a representative information system for agricultural holdings in the European Union. The Hungarian FADN system consists of approximately 1,900 sample farms representing the more than 106,000 farms in the country. The network gathers representative data to produce variables, or “farm returns,” for sample farms. These include the physical data on farms such as location, crop areas, livestock numbers, and labor force, as well as economic data such as the value of production of the different crops, stocks, sales and purchases, production costs, assets, liabilities, production quotas and subsidies (FADN, 2013).

In the Kőszeg region, waste outputs differ greatly between crop and livestock farms. Conversations with local crop farmers indicated that very little available organic agricultural waste is produced from crop operations. This originates from the fact that the non-consumable plant residues generated in production are subsequently plowed into the soil to provide nutrients for the following growth year. For example, at Tóth Winery, the remaining, un-pressed vine waste is tilled back into the field. Vineyards also utilize a biodegradable binding material, such as rope and twine, avoiding plastic waste. The significant waste produced from crop agriculture operations in the Kőszeg region includes industrial waste in the form of packaging of chemicals, fertilizers, seeds, and used machinery. The landfill in Kőszeg does not accept this type of waste and it must be disposed of according to European Union regulations at designated locations. This represents a linear waste scheme in the Kőszeg regional economy and deserves reconsideration as one potential route to circularizing the system. The largest circular waste stream in Vas County arises from bioproducts of animal husbandry: The area produces considerable manure and biogas yielded from cattle, poultry, and swine operations. A portion of this manure is currently distributed and reused as fertilizer in other agricultural sectors. The total application allowance of nitrogen in the European Union, including Hungary, is 170 kg/ha, and organic fertilizer management is regulated in order to protect water quality. Specific data on fertilizer usage in the Kőszeg region would allow farm managers to apply optimal levels within stated regulation. Through this assessment, it was determined that in 2016, the cattle industry produced 30,759 tons of manure. Of this total, 8 % of the waste was allocated to a biomass power plant, 26 % was used as an organic fertilizer at the livestock farms, and 51 % sold for profit. The remainder was left in farm stock. During the same year the poultry industry produced 2,318 tons manure. Half of this waste was used by the producers as organic fertilizer on agricultural lands, while the other half was sold elsewhere (FADN, 2018). Interviews conducted for this work found that the approximately 24,000m3 of pig manure produced annually is utilized by the husbandry farmers as an organic fertilizer soil amendment. Biogas production and capture from the pig farm remains a point of consideration. Although this represents a possible method to put to beneficial use the waste stream as energy from the byproduct of biogas production, a deeper assessment of both the financial

feasibility and the energy potential is required. This is further discussed in the energy section, Chapter 4, of this report. The assessment of agriculture in the region also included consideration of educational opportunities and job trainings. Kőszeg is home to a vocational school that focuses on agriculture education. Presumably, local agriculture practices and knowledge are incorporated in the curriculum. Since Kőszeg has a vocational school which offers agricultural education, a more “circularized” agricultural approach could be included in the curriculum, which in the long run would open up new ideas and means to further improve the agricultural productivity and sustainability. The eventual involvement of these students within the agricultural community should facilitate the discussion and practice of the circular economy.

existing AgRo-eConomy model The agriculture sector of Hungary underwent a significant structural shift following the fall of the Soviet Union and subsequent transition to a democratic system, scaling down from large cooperatives to a much more highly fragmented medium- and small-sized farm structure. Figure 3.4 depicts a 2-pole agriculture between different sized producers and differentiated markets conjoined by national integration companies (enterprises that vertically-integrate the production/ marketing system). It shows the local small-producers

primarily serving the local markets and the medium-sized, more efficiently organized farms serving domestic and international markets. Each of the agricultural producers, regardless of size category, is supplied with inputs from, and provides outputs to, these integration companies. This pattern, as well as similar or different patterns belonging to the apiaries and wineries, was revealed during the research phase. Since the 1990s’ privatization and shifts in compensation practices, the efficiency and profitability of Hungarian agricultural production has decreased. The yields from the country’s farming economy have dropped significantly, while global agricultural production grew during this period. Animal husbandry in the Kőszeg region has gradually decreased in recent years. This is due to structural changes in agriculture that are common throughout the European Union. Increasingly, large-scale factories make up a larger part of the commodity stock in more centralized regions at the expense of smaller, decentralized enterprises. These small-scale operations have become more economically disadvantaged, particularly those which produce for self-supply and local markets. In the 16 years since Hungarians voted to join the European Union, their country’s agriculture has benefited from the largely land-based subsidies provided by the Common Agricultural Policy. This has temporarily enabled the operation of less efficient farms.

Figure 3.4. Interdependency between farmers and integration companies (by authors)

In Kőszeg, there are small and medium-sized producers such as the Biotáj House or the Gurisatti Nursery garden, more competitive companies that sell not only to the local market but to the larger domestic market as well. Integrator companies like Kite or Axiál influence the profitability of growers. These companies both provide farm inputs such as seeds and fertilizers and receive the produce that is grown, striving to maximize their profits through markups.

new wAy oF thinking , A “sHARing eConomy ” model foR tHe AgriculturAl sector If it were possible to reinvent and reconfigure this linear, corporate-controlled system, improvements and efficiencies could conceivably be gained in comparison to the current agricultural model. Assuming the introduction of a sharing economy model, growers could earn higher profits. In this proposed rearrangement (see fig. 3.5), the producers, collectively a non-profit organization, would supply input material and information to a local Kőszeg district organization. The easy flow of information at the right time and place is critical for all the economic operators. Such an arrangement currently exists with the vineyards. During the interviews conducted, it was revealed that two wineries (Tóth and Kampits) share their tools, their labor, and the information at their disposal, affording them

greater influence on market value. Just as the bargaining power of large farms allows them to influence market prices, so could the nonprofit composed of collaborating small farmers use the economy of scale to leverage better profits. Such a local nonprofit organization would be integrated into a regional scheme. The state would be linked to all economic operators, directly in the form of taxes and subsidies. Subsidies would include the currently available European Union-source and domestic agricultural subsidies. The state would collect the taxes generated by the activity and indirectly regulate the operation and activity of the organizations. This model has the potential to create a more productive system for small farmers. With a well-organized framework, it could be more effective because it would be governed both by the purchase of input materials (quality, price) and sales. Sales to the local market remain important. In Kőszeg, contact was made with several local farmers in order to get acquainted with the characteristics of local agriculture. The owner of the Biotage House Private Enterprise provided useful information. He works on his own farm and keeps in touch with local farmers and helps them in their development. Asked about the basis of cooperation for agriculture, he expressed the need for extension and development of current cooperating initiatives. This is critical because agriculture is extremely demanding, and in Kőszeg and the bioregion, there is currently a large labor shortage, posing additional obstacles. He told us that integrators currently assert control and

Figure 3.5. Proposed alternative and economic flow (by authors)

coordination of the significant production in this area (Csaba Bolfán, June 20, 2018).

3.4.1. C uRRent exAmPles of “loCAlizAtion” As a result of the privatization process in the agriculture sector during the transition from farm cooperatives, current farm sizes average 2.9 to 3.3 hectares in the Pannonian region, or 28.7 parcels of land per farm. Yet the modern agricultural methods employed in the region do not allow for efficient cultivation of these parcels. Monoculture cultivation remains the current practice. However, with a re-envisioned agro-biodiversity scheme, these parcels could be utilized more advantageously. The current Common Agriculture Policy does not incentivize agrobiodiversity, resulting in the establishment monocultures of crops like grain, sunflower or rapeseed. Currently grain and rapeseed production is more profitable when grown in monocultures. For example, when considering smaller enterprises, profits from arable crops in the Kőszeg region range from 34.6 % for small farms and 31.6 % for mediumsized farms. In the greater Pannonian region, profitability is slightly less: 34.1 % and 30.5 %, respectively. It is worth noting that because agriculture accounts for 18 percent of Hungary’s GDP much of this profit originates in subsidies provided by the Common Agricultural Policy. It is also noteworthy that although the Pannonian region’s soil quality indicator (“gold crown”) does not differ significantly from the national average, the region’s crop production

sector utilizes greater amounts of amendments (nitrogen, phosphorus and potassium) per hectare of agricultural production areas than Hungary as a whole. This points to the need for a regional agriculture policy appropriate for farm-size operations existing on the local scale within the Kőszeg region. A more differentiated Common Agriculture Policy would benefit local producers by incentivizing cooperation and making the cultivation of smaller parcels more economically profitable. This would also allow for the establishment of new techniques on smaller parcels that produce arable crops with precision farming that minimizes irrigation and maximizes soil regeneration and crop yield. Greater coordination and buy-in at the local level would create the possibility for a more efficient farming scheme within the Kőszeg region. Kőszeg was designated a Royal Town by King Ferdinand III in 1648 because of its historically celebrated local wine industry. The town continues to maintain its wineries, which provide both a tourist attraction to the region and make up a significant sector within Kőszeg’s economy. Before 1891, when the wine industry was devastated by the pest known as phylloxera, the urban vineyard area was nearly 400 hectares. Today, wineries in the region occupy roughly 100 hectares. The vineyards are in the form of fragmented parcels owned by small-scale operations. The owners today, descending from the historical Poncichter Wineries, include Láng, Stefanich, and Tóth. These wineries average about 10 hectares of land and produce a few tens of thousands bottles of wine annually. Smaller wineries also exist in the region and operate at the scale of 2 to 4 hectares.

Table 3.1 Quality of Agricultural Holdings / Utilization of Soil Amendments (Fertilizer) Land Value Gold crown* (GC)

Pannonian Region

Hungary

Net difference

21,4

21,2

0,2

Nitrogen(kg)

92,6

76,4

16,2

Phosphorus(kg)

32,1

25,2

6,9

Potassium(kg)

34,5

8,5

Soil Amendments*

* Indicator of soil quality (the higher the number, the greater the yield) (FADN database, authors’ calculations) 35

None of the wineries can be said to have achieved economy of scale, thus the wines of Kőszeg are virtually unknown today. Wines that go into bottles are relatively expensive and typically are bought by tourists as gifts. This doesn’t offer a very attractive business model for the local economy in the long run. It is respect for Poncichter ancestors that maintains the enterprise, but this model only provides families a side income. The survival of wineries largely depends on their ability to cooperate in the fields of vine cultivation, winemaking and wine marketing. Wineries may further capitalize on the tradition of the “Buschenschank” (a farm/tavern where the farmer is allowed to serve his own drinks and food) and present the new wine to tourists and hikers. This tradition endures in Kőszeg, and in neighboring Austria, as “Hauriger.” It relies upon a kind of association, whereby the producers organize when each winery is open to avoid unnecessary competition. It is worth noting that in Kőszeg, the local producer market and the “honesty box” sales are outstanding examples of local sharing in the agro-economy. While this market is not economically significant in the scope of the overall region, the cultural significance to the region remains high. Multiple small-scale producers with backyard space for growing flowers, eggs, fruits, honey, grapes, jams and vegetables provide for the weekly Saturday farmer’s market in Kőszeg. This gives individuals direct access to the local agriculture economy. This model allows residents to access high quality products for a reasonable price that further sustains this local economy.

economics oF the imProved model Project research included the acquisition of the domestic integrators companies’ accounts (balance sheet, profit and loss account, supplementary annex) of current activities. Ownerequity profitability was 10.5 %, and sales revenue was 2.1 %. These profits are prescribed by the integrator companies. If the proposed non-profit organizations could perform these same activities—distribution of input materials, buying and selling of finished products—they could pass along much of the value of the integrators’ profit to the producers, who in turn could invest in new developments that could improve their own efficiency. (ebeszamolo.im.gov.hu, 2017) The Hungarian FADN performs detailed accrual accounting

to determine the profit margins of local farms. In Hungarian currency, 69 farms in Vas County recorded average pre-tax profits of just over HUF 11 million in 2016. It is anticipated that the proposed more circular, integrated approach could further increase the pre-tax profit of these regionally-scaled agricultural companies. Regarding priority costs for crop production, Vas County agricultural companies spent just over HUF 1.2 billion on seed, fertilizer, pesticides, etc. in 2016. On the side of animal breeding, they spent approximately HUF 1.5 billion on new animals and forage. These costs accounted for an integrators’ profit margin of approximately 34 %, an expense of more than HUF 917 million that could be eliminated and accrued instead by the operation of the proposed non-profit organization (Crawford, 2012). Furthermore, transaction or maintenance costs could be lowered by newly achieved economies of scale. These funds could be allocated to new, potentially larger equipment that could be shared equitably. In addition, when the local farmers are able to sell their products directly on the local market, they can save the approximately 30 % wholesale margin of the national integrators. Retaining or even lowering the current level can result in higher income for the local producers, achieving the proposed model’s main goal of keeping as much profit with them as possible.

BeneFits And conclusion During the research exercise, there was an opportunity to reflect on the weakness of the current agricultural economic organization and explore a new paradigm. The goal was to set up a model that promotes development economically, socially and environmentally. In the course of the investigation, actors involved in the process were contacted to gain a deeper insight into the existing conditions. The model outlined here localizes production and consumption, improves farmers’ revenues, and creates more stable workplaces while keeping costs controlled for the local consumer. Selling more products on the local markets also results in lower transportation costs and lower greenhouse gas emissions. The model assumes that cooperation between agricultural operators will enable more efficient management overall. The key to success is obtaining new economies of scale through the

cooperation of farmers and a non-profit integrator organization based upon a bottom-up management structure. Inquiries revealed there are useful examples in Kőszeg and in the region. Developing Kőszeg’s agricultural retail trade is important to increasing its competitiveness in the domain of cross-border tourism and consumption. Additionally, expansion of the micro-regional agriculture and quality improvement are key targets needed to further boost Kőszeg’s competitiveness. Moreover, Kőszeg could work to become a future receiving and processing industry.

the existing conditions oF Forestry Approximately 29 % of the Kőszeg region is covered by forest, making it one of the most forested regions in Hungary, and reforestation in the state-owned forests is on the rise. The major tree species in the region include spruce, oak, and acacia, while less dominant species are beech, redwood, fir and pine. Forest management in the Kőszeg region is divided between

publicly managed and privately owned forests (figure 3.6). The combined size of privately owned forests (13,082 hectares) is more than double the area of the publicly managed forest (5,250 hectares) in the local region of Hungary surrounding Kőszeg. Forests in the Kőszeg area have undergone change over time that include trends in clear cutting, replanting, and species shifts. Figure 3.6 illustrates these changes between the years 2000 and 2014. The Hansen et al. global forest change data derived from Landsat provided a rapid method to quantify forest cover change between the two reference years 2000 and 2014 (Hansen, et al 2013). While global data products are widely understood to have inaccuracies at the local scale, and the 30-meter resolution of Landsat pixels makes individual tree detection difficult, this downscaled approach has other advan tages. Quantification and visualization of forest change is rapid, allowing forest managers to quickly identify regions of interest. Comparison of local forest inventory data with remotely-sensed data also provides a method to improve downscaling techniques. This is especially important where forestry management promotes selection-cutting techniques. The assessment of existing forest conditions presented here is derived primarily from remotely sensed data.

Figure 3.6. Kőszeg forest cover and change map 2000-2014, derived from Landsat. Green shows forest extent in 2000. Areas in red represent forest losses from 2000 to 2014. Blue represents forest gain for the same period. Data layers derived by Hansen, et al 2013.

Figure 3.7. Existing conditions of the forestry industry in the Kőszeg region (by authors).

Overall, both public and private forest land in the Kőszeg region lost nominal amounts of clear cut forest between 2000 and 2014. (Note that this satellite-based assessment does not account for selection cutting.) Losses in the forests of the Kőszeg Mountains were slightly larger and more localized. Clear cut stand losses have been attributed to storm and flooding, forest fire, hardwood extraction, and removal of less resilient species. Losses in the private forest are more decentralized, reflecting the individual management of these lands. Forest loss in the private lands are also attributable to hardwood extraction for timber and firewood and replanting of more resilient, profitable species. The majority of local forest activity supplying the region with hardwood and fuel occurs in the Kőszeg Mountains northwest of Kőszeg as well as the private forests that lie to the southwest and east of Kőszeg. The existing conditions of the forestry industry in the Kőszeg region is summarized in the linear scheme shown in figure 3.7. Forests under both public and private ownership generally supply wood and wood waste to the regional economy. Wood supplied by the forestry sector provides material for industrial purposes in in Kőszeg and Szombathely. Some of this wood is cured or processed as wood waste to provide a home energy heating source to residents in the Kőszeg region. The production of heat from wood waste generates combustionbased pollution, ash and excess heat that is not currently captured or beneficially utilized in this linear waste scheme. While much of the wood and wood waste generated by the forestry sector originates from the cutting of trees, a significant amount is gathered from litter. Observation of several forest areas within the region revealed intensive efforts

to centrally collect all woody tree components including fallen trunks, branches, and twigs. These components are typically removed by local residents and used as additional heat sources. However, sustainable forestry practices recommend a threshold level of litter to remain on the forest floor to promote nutrient cycling and forest regeneration (Jacob, 2010). Alternatively, “manicured” forests with cleared understories may be considered more aesthetically pleasing from a cultural standpoint, and they could promote increased tourism to the forests. The balance between these two perspectives demands real consideration in the development of a more resilient approach to forestry sector management. The Szombathelyi Erdeszeti Zrt (Szombathely Forestry Corporation) is a state-owned company working in Vas County that manages all publicly owned forests in the region. The main activities of the company include forest management and hunting, as well as public welfare and tourism services that span 46,998 hectares of the state-owned forests area. The company has designated 34 % of the area as protected and allocated 2 % to serve public welfare purposes, while the remaining area is reserved for economic purposes. The Szombathely Forestry Corporation employs sustainable forestry practices in the cutting, replanting, and maintaining of protected forest regions. “Shelterwood cutting,” a progressive forest management method that leads to the establishment of a new generation of resilient seedlings without the intervention of planting, has become more prominent, leading to a balanced agedistribution of forests. There is also great diversity in the types of species found in the state-owned forests. Oaks represent 30 % of leafy trees, followed by Turkey oaks

(10 %), hornbeams (8 %), beeches (7 %), acacias (5 %), other hard-leaf (2%) and soft-leaf (1 %) trees. In general, the ratio of oaks has increased while pines and spruce have decreased as a result of the effects of local climate change in the region. Spruce has declined due to invasion of the deathwatch beetle. Replacing single-species areas with a mix of tree species has led to forests that are more resilient against pests and climate change. Replanting in the Kőszeg Mountains emphasizes oak and beech trees, which can easily regrow from seeds, requiring little intervention. Constant reforestation does occur on sites where weather may have inf luenced forest coverage. Further evidence of the shift toward sustainable forestry management policy includes the Szombathely Forestry Corporation’s designation of 39 % of its forest holdings as Natura 2000 areas (the largest networks of protected areas in the world, offering a haven to Europe’s most valuable and threatened species). These sites of high biodiversity significance fit within the European Union’s program to protect core nature and habitat areas throughout the continent. Commercial logging cannot be done in these areas of protection and strict regulations govern the plants and animal species supported there.

Consideration of biodiversity and resilience by the forestry management services in the Kőszeg Mountains extends to private areas at the interface of public management. On the southern slopes of the Kőszeg Mountains stand many closed gardens with significant vineyard coverage. Invasive species remain high in these regions and the forestry company plans to work with local landowners to replace invasive species with more native varieties. Forestry managers in the Kőszeg Mountains have also considered other sustainable practices. One of these, the Pro Silva initiative, is a federation of European foresters that promotes forest management principles as an alternative to clear felling, short-term tree plantations. In 2005, a Pro Silva experimental site was established to evaluate the potential benefits of the approach in the Kőszeg Mountain region. However, the assessment was not completed after floods from a storm necessitated clear cutting 10 percent of the area. Nonetheless Pro Silva principles still guide many of the forest management strategies in the Kőszeg Mountains. The subsequent section of this chapter will discuss plans to implement potential recommendations from the study and Pro Silva.

Figure 3.8. Pro Silva initiative selection technique cutting (Pro Silva Europa)

Figure 3.9. The experimental Pro Silva regions nearby Kőszeg (source:erdoterkep.nebih.gov.hu)

ProPosed interventions Proposed interventions within the forestry sector to circularize the economy in the Kőszeg region should focus on minimizing the generation of waste from forestry activities while maximizing energy production from the sector. Over the last decade, publicly owned forestry management in the Kőszeg region has progressively moved toward more sustainable forestry practices; however, the private forests have lacked a concerted management scheme based on principles of resilience. In this section, the Pro Silva forestry method is expanded upon and recommended as a proposed management strategy in the privately owned forests surrounding Kőszeg. Tourism and other community-based activities are also discussed as opportunities for economic development within the forestry sector. The main pillars of the Pro Silva method are the production of timber and other products, protection of soil and climate, maintenance of ecosystems, maintenance of biodiversity (native species predominantly) and providing opportunities for recreation to the public. Around the mountains of Kőszeg the forest species are predominantly non-native, as they were

historically clear cut and replanted with a selected few species. Pro Silva emphasizes the shift from clear-felling to a selection cutting technique that supports the restoration of the forest to a more native state. The aim is the diversity of age structure and tree composition, and higher, sustainable, continuous forests. Privately managed forests should consider similar management schemes to move away from clear cutting techniques that do not provide long term ecological and economic benefits. In the long run, selection cutting strategies such as the Pro Silva method are more economically viable than the labor intensive method of regrowth from clear cutting. From an ecological perspective, this method provides sustainability benefits as well. Increased biodiversity promotes forest resilience to climate change, disease, and storm flooding. Pro Silva can provide one sustainable management strategy that enables the development of the economic and industrial needs of the Kőszeg region. Establishing these experimental Pro Silva assessment projects requires new input costs that makes implementation in privately managed forests more difficult. Greater articulation of the benefits on the local level may help to promote further adoption of the Pro Silva method within the private forests of the Kőszeg region.

Table 3.4. Matrix of benefits provided by proposed interventions in forestry and agriculture. Proposed Intervention

Benefits

Integrated Coordination agricultural approach between farms

Reduced Resource Input Reduced transportation and fuel costs

Reduced Waste Output Reduced

Metrics of Success

% increased farmers’ revenue

Honesty box

High value food products

Pro Silva forestry method

High value wood and more resilient tree species; more frequent harvests

Reduced management Reduced erosion; and clear cutting Reduced low quality wood products

% increased forest area under Pro Silva management over baseline

Reduced forest floor litter removal

Nutrient cycling, increased biodiversity, sustained forest productivity, erosion control,

Reduced pressure on publicly-owned forestry company to maintain cleared leaf litter

% Increased biodiversity over baseline, increased forest floor biomass

Reestablished forests could also promote and strengthen the associated tourism economy. The Kőszeg forests were previously popular destinations for hikers, and the Steier Houses there provided accommodations for tourists. Reinvestment in these sites, including the so-called Hermann Spring area, an area commemorating an historic Hapsburg battle, could boost tourism in the region. Emphasis on strengthening the tourism and cultural sectors of the economy remain a priority for public forestry management in the region. Central to these efforts are more resilient and healthy regional forests capable of supporting greater influxes of tourist activity. However, renewed attention on tourism promotion should not sacrifice principles of sustainability. For example, this assessment emphasizes the minimization of litter removal, currently treated as waste, and a paradigm shift toward preserving a greater amount of felled litter material within the forest. Benefits of this strategy include improved nutrient cycling that promotes more efficient forest growth and a stronger root system. Metrics of success include reduced flooding and subsequent landslides in the region that preserve the forest structure and maintain active routes for tourism activity.

Reduced erosion, reduced low quality fuel sources

PreliminAry cost AnAlysis This preliminary analysis considers the cost of implementation of the Pro Silva forestry method over the traditional clear cutting technique based on estimations from “silviculture” forestry activities in nearby Zala County. Traditional forestry clear felling techniques include the initial costs of clear cutting, waste management after felling, and costs of reforestation. Profits are initially large, but decrease overtime. Silviculture methods, meanwhile, do not require large initial investments, though regular maintenance costs are required. Profits are greater in the long run, especially when valuing ecosystem services provided by these more resilient forests. Overall, it is projected that the Pro Silva method has a cost savings of HUF 520,000 over a ten-year period. This section breaks down forestry service costs for implementing these two different methods. These costs assume that one hectare of forest produces on average 55 m3 of wood, while one cubic meter of wood sells for 14,000 Ft, yielding a total of 770,000 Ft per hectare (Zalaerdő, 2018). Factoring in the costs of wood production and transportation, each hectare of forests requires an investment of 159,500 Ft. Therefore, the net profit on one hectare of clear cut forest is approximately 610,500 Ft over ten years. Still, these profits may not include the costs of soil care, removal

of invasive roots and weeds, and fencing to prevent wildlife from impeding regrowth of the site. These additional costs can exceed 140,000 Ft per hectare and may persist through the duration of forest management. Lack of reinvestment in a clear-cut site can also lead to additional degradation and diminishing future returns that are not quantified here. Cost of the Pro Silva method for the same ten-year period was based on analysis of selection cutting implemented in the area of Nagykapornak in nearby Zala County. Over ten years, selection cutting at the designated site yielded 450 m3 of wood available for industrial purposes, with a potential profit of 6,300,000 Ft in total, or 623,762 Ft per hectare. This higher profit is a result of more frequent harvesting in the selectively managed forests and lower maintenance costs. In this case study, the area of study experienced two harvests during the same ten-year period. Since maintenance and clear cutting costs are not present in the Pro Silva method those are discounted from the calculations of Pro Silva net profits. Furthermore, this method provides a more consistent revenue stream to foresters over traditional clear cutting techniques due to more frequent harvests of wood.

c hAPter 3 reFerences: (http://www.kerekerdo.org/pdf/Vil%E1ghy,%20Zalarerdo.pdf) this one for the Pro Silva and clear-felling cost comparison. Crawford, I. M. (1997). Agricultural and food marketing management. Rome, Italy: FAO. Hansen, M.C., P. V. Potapov, R.Moore, M. Hancher, S.A. Turubanova, A. Tyukavina, D. Thau, S. V. Stehman, S.J. Goetz, T.R. Loveland, A. Kommareddy, A. Egorov, L. Chini, C.O. Justice, and J.R.G. Townsheand. 2013 “Highresolution global maps of 21st century forest cover change”. Science 342 (15 november): 850-53. Data available online from : http//:earthenginepartners.appspot.com/science-2013-global-forest J. Gyurácz. 2008. “Ornitholgical Newsletter of Vas County, the 13th issue” I. Chernel Ornithological and Nature conversation society : 7-12. Data available on-line from : http://chernelmte.extra.hu/cinege2008_13_teljes.pdf Silva Naturalis - Series on Theory and Practice of Continuous Forest Cover http://silvanaturalis.nyme.hu/kotetek/Silva_4.pdf, page 127 Székely Csaba (2016): A magyar mezőgazdaság stratégiai kérdései. Gazdálkodás 2016/1. 16. P. Szabó Gyula (2010): Föld- és területrendezés. Nyugat-magyarországi Egyetem. Udovecz Gábor (2010): Szerkezetváltási kényszerben a magyar agrárgazdaság. A regionális tudományok műhelye tanulmányai. Kaposvári Egyetem, Kaposvár. Varga Gyula (2010): Új szerepben a Magyar mezőgazdaság- adottságok, kényszerek és esélyek. A regionális tudományok műhelye tanulmányai. Kaposvári Egyetem, Kaposvár. Massot Albert (2016): A közös agrárpolitika és a szerződés. URL: www.europarl.europa.eu (letöltés dátuma: 2018.11.03.) Takács J. (2010): A mezőgazdaság és élelmiszeripar üzemi szerkezete. Szaktudás Kiadó Ház Varga É. (2014): Törpegazdaságok Magyarországon és az Európai Unió déli tagországaiban. Zrt, Budapest. Keszthelyi Sz. (2009): A tesztüzemi rendszer bemutatása. URL: https://www.aki.gov.hu/publikaciok/publikacio/a:1/A+teszt%C3%BCzemi+rendszer+bemutat%C3%A 1sa (letöltés dátuma: 2018.10.30.) Keszthelyi Sz., Molnár A. (2014): A tesztüzemi információs rendszer eredményei. Agrárgazdasági Kutató Intézet. Nábrádi A., Pető K. (2009): A különböző szintű hatékonysági mutatók. Debreceni Egyetem Agrártudományi Centrum, Debrecen.

Udovecz G. (2014): Gondolatok a „Hatékonyság és foglalkoztatás a magyar mezőgazdaságban” című vitacikkhez. Gazdálkodás 58. évf. 5. Sz. Dajnoki, K., Kun, A. I. (2016): Frissdiplomások foglalkoztatásának jellemzői az agrárgazdaságban. GAZDÁLKODÁS: Scientific Journal on Agricultural Economics, 60(4). Jacob, M., Viedenz, K., Polle, A., & Thomas, F. M. (2010). Leaf litter decomposition in temperate deciduous forest stands with a decreasing fraction of beech (Fagus sylvatica). Oecologia, 164(4), 1083-1094. Ksh database http://www.ksh.hu/agricultural_census_fss_2013 Tarkanat database? Department of Land Administration and Geoinformation, 2017 http://en.foldhivatal.hu/ SENTINEL-1 SAR User Guide Introduction. (2018). ESA. Sentinel-1 Algorithms. 2018. Google Earth Engine API. https://developers.google.com/earth-engine/sentinel1 FADN http://ec.europa.eu/agriculture/rica/concept_en.cfm Szombathelyi Erdeszeti Zrt

chAPter 4:

Energy In conducting an assessment of the energy sector and the role it could play in a circular economy, the objectives included addressing current sectoral challenges, examining untapped local resources, and considering opportunities for recovering local wastes for energy production. There are some baseline characteristics of the country that informed this work. As a landlocked nation, Hungary lacks sufficient domestic power sources of fuel. Much of the energy consumed in Hungary (~67 %) comes from fossil fuels (Eurostat, 2018), see fig. 4.1. The bulk of the country’s energy mix (58 % of the total primary energy supply) relies on crude oil and natural gas imports from Russia. Hungary’s single, aging Paks Nuclear Power Plant provides 16 % of all national energy consumption and accounts for just over 50 % of all domestic electricity generation, suggesting a disproportionate reliance on nuclear power. The European investor-owned electric utility service, E.ON Hungária Zrt., supplies electricity and gas to customers in the Transdanubian region. Given the reliance on few sources of primary energy, grid resiliency is an issue for Hungary’s energy infrastructure. Hungary, however, has significant renewable energy potential. The annual sunshine hours are 1,900-2,200, and the annual solar incubation is 1300 kWh/m2—relatively favorable conditions compared to other European countries (Farkas, 2010). Government subsidies have helped to increase the amount of photovoltaic power generation for domestic and industrial use. Built-in capacity increased by 225 times in the seven years between 2009 and 2016 (IRENA, 2012). With regard to geothermal potential, it is worth highlighting the country’s basin nature, which results in high ground heat flow and geothermal gradient. While the world average for the former is 60 mW/m2, in Hungary the mean is about 100 mW/ m2. Likewise, the continental value of the geothermal gradient is 32°C/km, while the Hungarian value is higher than 44°C/ km, and in some places it can reach 100°C/km (MEKH, 2016). Geothermal energy has so far had limited application as a heating source. Despite the presence of modern technologies, the most widespread renewable resource is biomass, which accounts for more than 90 % of total renewable energy consumption (Eurostat, 2018). The high proportion is mainly due to utilization of traditional biomass, namely residential

Figure 4.1. Gross inland consumption by sources (2016 data, Eurostat 2018) firewood burning; hence there are issues with particulate matter emissions. In 2010, Hungary came close to matching China in air pollution deaths per million inhabitants: 937 to 954, respectively (OECD 2010). While Hungary has potential for wind power, the 2016 regulations currently hinder the deployment of new wind energy (IEA, 2017). The existing capacity overall is about 330 MW. All in all, the share of renewables in the gross final energy consumption is rising. In 2006 this rate was 7.4 %, but by 2016 it rose to 14.2 %. However, while Hungary has met its renewables targets of 13 percent by 2020, it must be said that this is lower than other EU national targets. Despite the country’s endowment of good solar irradiance, plentiful biomass and geothermal energy potential, the proportion of renewable sources has recently declined (see fig. 4.2) (Szőke, 2018). Given that few would invest in a relatively high-cost technology on a market basis, an advance in modern renewable energies depends on government subsidies. These subsidies, the so-called feed-in-tariff (FiT) [2] and feed-in-premium (FiP) [3] incentives, encourage renewable electricity investments.

key issues were identified: 1) foreign energy dependence, 2) poor home heating methods and 3) low energy resiliency. Figure 4.3 shows the existing energy flow chart of Kőszeg. A combination of imported and domestically generated energy is used to meet local energy needs. For the purposes of this project, energy demand was examined on a heating and electrical basis, and focused mostly on the residential sector as an area for intervention. The largest share of national energy consumption comes from natural gas and petroleum products (see Appendix A.4, figure 1). Natural gas and crude oil is largely sourced from Russia, and converted electrical energy is imported from the Slovak Republic and other countries, including Austria and Ukraine (see Appendix A4 figure 3). Hungary is largely reliant on outside sources, with over half of all energy demand met by foreign supply. Heating demand is largely met by Russian natural gas; however, many Hungarians burn wet, low quality fuel wood and occasionally domestic non-organic waste to heat their homes as an inexpensive alternative, or supplement, to gas purchase (Lenkei, 2016). This produces particulate matter emissions, which creates poor air quality during the winter and leads to severe national health impacts. In 2010, OECD cited 937.6 deaths per million inhabitants in Hungary due to ambient particulate matter and ozone pollution, just shy of the rate of China. Furthermore, the Hungarian Ministry of Agriculture recently attributed 70 % of particulate matter emissions to household heating (Ministry of Agriculture - Hermann Ottó Institution, 2018). As mentioned previously, over half of the country’s domestic electricity is produced by nuclear energy generated by the

e xisting conditions In many ways, the energy picture in Kőszeg is a microcosm of the national situation. The energy infrastructure of Kőszeg is linear, with traditional in-flows of both fossilfuel and renewable resources to supply heat, transportation and electricity and outflows of waste heat and emissions. In conducting an initial assessment of the energy makeup, three

Figure 4.2. Share of RES in the gross final energy consumption for Hungary, 2006 - 2016 (Eurostat 2018)

Figure 4.3. The existing energy flow chart of Kőszeg (by authors) Paks power plant in central Hungary (International Energy Agency, 2017). The reliance on a single source creates an underlying issue of grid resiliency in Hungary’s energy infrastructure. In addition, though only 2 % of national energy demand is met by renewable sources, 80 % of it is from solid biofuels, i.e. burning organic materials. Indeed, biofuels account for nearly 100 % of renewable energy used in homes, a result of the country’s propensity for burning

wood and waste for residential heating. (Eurostat, 2018). Given a general lack of data for the Kőszeg region, this project assumed an energy consumption breakdown based on national statistics (See Appendix A fig. 2). Based on this data, estimates of household energy use were created: Total annual energy consumption per household is 17 MWh, while electrical consumption is 2.65 MWh and heating demand is 13 MWh. (Eurostat, 2018; Heat Roadmap Europe, 2017). Given

Figure 4.4. The proposed energy flow in Kőszeg (by authors)

heating practices (see Section 4.3.2) would reduce demand and emissions. Biogas capture from a local pig farm, along with recovery of local landfill methane, (currently flared), when run through a combustion generator, can create a new, distributed renewable reserve energy source. The potential of different energy sources and potential applications will be discussed in details in the following section.

energy PotentiAls And ProPosed technologies

Figure 4.5. Solar map of Hungary (GeoModel Solar 2011) the roughly 3,353 households in Kőszeg (based on estimates of 3.5 persons per household and a population of roughly 12,000 people), Kőszeg has assumed annual demands of 57,000 MWh, 8,900 MWh, and 43,600 MWh, respectively, for energy, electricity, and heating.

PotentiAl interventions To address the identified issues of foreign dependence, energy resilience, and heating-related air pollution, the project goals envisioned a general transition to renewable energy sources. Accordingly, an assessment of energy potentials was undertaken for solar, hydro, and biodigestion potential of the region. In addition, domestic heating issues are addressed. Based upon these results, this report suggests specific technologies that should be further studied to appropriately exploit these potentials. In looking at potential interventions in Kőszeg, an alternative energy regime was conceptualized, with the intent that it would: 1) decrease pollution through improved heating and burning mechanisms; 2) decrease foreign energy dependence; and 3) increase system resiliency through the creation of local alternative, renewable energy sources and the intelligent utilization of existing waste streams as a resource. Figure 4.4 presents the proposed energy flow in Kőszeg. The energy mix here is largely subsidized by domestic solar (because it is intensively supported by the government and the solar potential is quite good), while adjustments to home

The following technologies representing renewable and distributed energy production were considered for application to the project. Conceptual costs and identification of benefits and metrics for success are included.

4.3.1. solAr energy Solar energy can be converted into electricity directly by photovoltaic arrays or it can be converted into thermal energy to supply hot water and heat. Photovoltaic (PV) arrays are usually placed on the roofs or free-standing in open areas. An ideal site will have no shade on the arrays, especially during the prime sunlight hours; a south-facing installation will usually provide the optimum potential for the system, but other orientations may provide adequate production. Trees or other factors that cause shading during the day will result in significant decreases to power production. Therefore, not every roof has the correct orientation or angle of inclination to take advantage of the sun’s energy.

4.3.1.1. electricity generAtion Figure 4.5 shows the solar map of Hungary, based on data compiled by Geomodel Solar. The average annual solar irradiance in Kőszeg is in the range of 1200 to 1240 kWh/m2. Considering the standard efficiency of PV panel (the conversion rate of incoming sunlight) is typically 15-18 % (in some cases ranging as high as 25 %), and inverter efficiency is within 92.5 %, the annual potential energy production is 124 kWh/m2. In order to make the case for this energy potential, it must be evaluated against current consumption. The annual electric

energy consumption per house was calculated based on Eurostat data to be 2.65 MWh. The optimum orientation of the PV panel is to the south with tilt angle equal to 47 degrees based on Hungary’s latitude. Based on solar maps at Kőszeg with different orientation, the maximum energy production is 124 kWh/year/m2 (when panels are facing south) and the minimum potential is 52.7 kWh/year (when panels are facing north). Therefore, when accounting for variation in orientation the average production potential will be 107 kWh/year/m2. If 30% of the rooftop area were covered by PV panels, the electric energy generation would be 30% x 80 m2 (an assumed rooftop area based on local consultations) x 107 kWh/m2--2.6 MWh per household per annum. Using an estimate of 3,356 total households in the town (assuming 3.5 persons per household), if only 25 % of the houses installed solar panels, the total solar potential would be 2181.4 MWh per annum. Under a worstcase scenario in which panels are minimally efficient, covering this rooftop area would meet 30% of the electric energy needs in Kőszeg. While solar panels can produce more energy if all the panels are oriented southward with an appropriate tilt angle, to be more practical less-than-optimal orientations of the panels were considered. It should be noted that some solar installations currently exist in the town and further installation plans are anticipated. In Kőszeg as in nearby towns, some occupants have already installed photovoltaic arrays on their houses. Empiric observation suggests most houses are approximately the same height, and so there is minimal over-shading from neighboring buildings. This study assumed that only 30 % of available roof area will be covered with solar panels arrays, due largely to the prevalence of historic structures and inhibitory architectural features like chimneys. In addition, the investing company Raab Energy Kft. plans to fund the installation of a 4.5 MWp capacity solar array in an industrial park in Kőszeg, close to the railway station in town. The produced power would not be used directly in Kőszeg; instead Raab Energy would sell it to E.ON, the regional distribution system operator (Rába, 2017). As solar panels are integrated into the electricity grid, the generated electricity can be fed into the grid and create revenues for the investor/producer. While this is a worthwhile project, it does not directly benefit the residents of Kőszeg, nor does it address previously identified issues with the existing energy makeup in its current form, although this may change as plans evolve.

Thus it is noteworthy but not altogether part of the integrated solutions explored in the paper.

4.1.1.2. thermAl And Pv - HybRid geneRAtion To reduce the dependence on natural gas for hot water, thermal energy from the sun can be utilized instead. Rather than traditional photovoltaic arrays, solar thermal collectors can be installed on the rooftops of houses to cover domestic heating or hot water requirements. The schematic diagram of solar heating water is shown in Figure 4.6. In this arrangement, the solar collector is fixed to the roof of a house. The collector heats the water, which then passes into an interior tank storage system for later use. Solar energy is used to pre-heat the water, which is then augmented by an auxiliary boiler to boost the heat to the required temperature. One argument for the use of these systems is that, in general, solar thermal panels take up less space than photovoltaic panels, and they are more efficient since more than 80 % of the solar energy is turned into heat. The drawbacks of a solar heating water system are the annual required maintenance and the structural requirements to support the thermal collector. This would require site-specific evaluation by experts in the field. A final technology might be considered in Kőszeg: To maximize energy utilization, PV-T (combined photovoltaic and thermal) technology might be implemented in tandem. As shown in Figure 4.7, The PV panels are mounted on top of the solar collector. The panels are used to generate electricity and then heat drawn off the back of the PV modules is used to heat water or air. The roofs of the houses would need to support the weight of the tank, which is the heaviest component. This can be considered as the predominant obstacle to PV-thermal solar technology.

4.3.2. domestic heAting Domestic heating in Kőszeg is supplied primarily by natural gas and biosolids; that is, the burning of wood and occasionally trash (Lenkei, 2016). While houses are typically connected to the natural gas grid, burning in stoves is a cheaper alternative and is often used as the primary or supplementary heating source. This leads to poor winter air quality from particulate matter emissions. (As mentioned previously, Hungary has an

environment through the emission of water vapor. Therefore, it is essential for the wood consumer to either purchase adequately dried wood, or dry the wet wood under dry storage conditions prior to combustion. Wood storage, however, is both space- and financially intensive.

Figure 4.6. Schematic diagram of solar heating water (by authors) (all icons are courtesy of Flaticons) unusually high rate of deaths associated with air pollution, and by proxy particulate emissions.) Wood can be considered a renewable energy source, though a limited one, if it comes from sustainable forestry, and it can be considered clean if it is used in high-efficiency stoves with appropriate filters. But this is often not the case in Hungary, where wood is often sourced in unsustainable ways from non-regulated producers (a black market of sorts) (Szajkó et al., 2009). One of the primary interventions that can reduce particulate emissions is the improvement of the energy efficiency of buildings. According to the Energiaklub’s study from 2011 (Fülöp et al., 2011), the energy saving potential from basic renovations, such as upgrading the efficiency of doors and windows of Hungarian residential buildings, is about 40 % of the total energy consumed. Significant improvements have been made through government support, such as the Otthon Melege Program, which aims to improve the energy efficiency of households through financial aid for appliance upgrades and insulation installation. The replacement of doors and windows, the insulation of walls, and the replacement of stoves all reduce the amount of firewood and waste burned, thus reducing the associated damage. But more robust support is needed to achieve this 40 % savings potential. Ideally, this could be done as part of the community-driven renovation program detailed in the next chapter. It is not only the conditions of use that can be a problem. The quality of the firewood is also a factor, specifically if its moisture content is higher than ideal (about 10 %). Wood purchased directly from forestry sources can have a moisture content of over 30 % if not properly cured, which not only reduces the efficiency of combustion, but also greatly damages the

A potential model for promoting the burning of dryer, cleaner, and higher quality fuel food is exemplified by that of Community Supported Agriculture (CSA). Under a CSA approach, citizens buy in to a farm via a periodic fee, which gives them access to food produced by the participating farm. This allows them to reap the rewards of the farm without the labor and upfront monetary costs associated with growing one’s own produce. In Kőszeg’s heating scenario, wood could be purchased upfront by the government (or a not-for-profit entity) and stored in selected abandoned buildings (ideally those not in need of extensive restoration). Citizens would then pay a monthly subscription fee to gain access to that wood, which would be available to burn only after the requisite oneyear drying period. In this way, citizens could afford to buy higher quality, drier wood, thus reducing particulate emissions in the town.

4.3.3. hydroelectric Power While today the Gyöngyös River can be considered underutilized, in the past energy produced by a series of modest hydro dams powered several mills. Today, those structures are no longer in use, but the river still has adequate flow to suggest the use of hydroelectric power with particular applications specified in this report. As determined by firsthand measurements, the Gyöngyös has a discharge rate of 1 cubic meter per second, and a 2-meter head, resulting in an average power capacity of about 20 kilowatts. Thus the resulting annual energy production potential is roughly 130

Figure 4.7. Schematic diagram of PV-T to generate electricity and heating water (by authors).

Figure 4.8. Methane capture from landfill with its potential energy value (by authors) MWh per turbine. It should be noted, however, based on a 10year simulation of the SWAT model using historical weather data from 2005-2014, that discharge in the Gyöngyös River is highly seasonal. In 2012 a study commissioned by Siemens determined that the renovation and upgrade of the former hydroelectric power installation from the previous century was not an economically feasible method for energy generation (Tábori, 2012). However, there is an argument beyond an economic one to pursuing hydroelectric power. Given the existing dam and mill structures that sit on the Gyöngyös, there is cultural value in coupling restoration with modern upgrades, as per the educational curriculum proposed here (see Chapters 6 and 7). Under a targeted development scheme that includes the renovation of the former canal system, micro-hydro technologies could be utilized at appropriate locales to power the renovated structures, allowing them to be used creatively by the local community and also creating sites of interest for residents and visitors. While typologies differ, and require further research, there are various companies that can provide site-specific plants that can utilize the available 20 kW of power with minimal disruption of water flow or the river ecology. In addition, multiple turbines can be installed along the river, allowing for compounding returns on investment and greater renewable energy yield. For example, if five turbines were installed (beyond those dedicated to powering the EcoInnovation Center and restored mills), annual production

would be approximately 650 MWh, enough to meet the energy demand of 38 households (1.3 % of Kőszeg’s residential demand). Although this is a relatively small proportion, it can serve to advance the demand for renewable energy in the region and contribute to local community revitalization projects.

4.3.4. wAste digestion PotentiAl There is significant potential for value-added waste capture in Kőszeg, both in terms of anaerobic biodigestion and methane capture from landfill.

4.3.4.1. AnAeroBic Biodigestion Anaerobic biodigestion is the process wherein organic materials are allowed to break down in an enclosed, oxygenfree environment, and the emitted gasses are captured for future use. While community scale digestion has been successful in many communities, it was not pursued in this scenario, given the storage capacities needed to wholly capture the town’s waste (See Appendix Aiii.2). It was decided that an infrastructure investment at a citywide scale would be heavily opposed and infeasible. While utilization of domestic and commercial organic waste was not explored further, the presence of large-scale pig farms several kilometers from Kőszeg provided a potential opportunity. Based on interviews with the farm owners, a

4.3.5. renewABle energies And microgrids foR tHe eCo - innovAtion CenteR

Figure 4.9. Waste digestion potential of the pig farm and potential energy value (by authors) waste output of 24,000 liquid m3 per annum was calculated. Prior research has demonstrated the mean methane gas yields from pigs of different ages (Nagy and Wopera 2012). Based on the breakdown of the region’s pig population, a total methane yield of 35,895m3 was determined (See Appendix Aiii.2).

As mentioned earlier, the Eco-Innovation Center is the hub of green technologies in Kőszeg. In light of Kőszeg’s great solar and hydro-power potential, this study suggests that the center could be electrified from clean renewable energy sources (RES). From a technical point of view, the intermittent nature of RES has an adverse impact on the electric loads. Thus, energy storage systems should be integrated to ensure the steady flow of electricity to serve the loads. This combination of RES, energy storage, and loads is known as microgrid. A microgrid can operate while connected to the utility grid—the main distribution grid of the town— or it can run in an “islanded” or autonomous mode. Figure 4.10 presents a typical scheme of a microgrid with a switch for these different modes of operation. The main point of this section is to introduce the concept of microgrid and to present the potential of renewable energy sources at the EcoInnovation Center. In addition to exploring potentials for the city proper, renewable energies are deemed essential for the successful implementation of this facility. Three options were explored: solar PV, micro-hydropower, and biodigestion.

4.3.4.2. methAne cAPture From lAndFill In addition to biodigestion, methane captured from the local municipal waste-handling facility (located just at the southeastern edge of Kőszeg) was explored. Based on interviews with employees, the facility yields 26,280m3 of methane annually. It may be more advantageous to utilize methane in its gaseous state rather than converting it to electricity, which results in significant losses. Methane can be stored and converted later, when needed, or used in municipal projects, such as compressed natural gas vehicular transport. For both the specific types of anaerobic biodigesters and the methodologies of energy valorization of the biogas (biomethane), further work is required to determine appropriate applications. This report simply determines the energy potential of each source as a demonstration of prospective value added from waste.

4.3.5.1. solAr Power The proposed site for the Eco-Innovation Center has eight existing buildings, one of which would be allotted to a hydroponic greenhouse. Figure 4.11 shows the plan of the site with the buildings’ numbers. Given the sloped roof areas and

Solar Panels

Wind Turbine

Switch Electric Loads

Main Grid

Energy Storage

Figure 4.10. Typical scheme of a microgrid (by authors)

Table 4.1. Energy Production potential for solar energy at the EIC Building

Area available m2

Energy Production MWh/year

Rated Power kWp

Existing MultiFelt factory 1

Aquaponic greenhouse 1

95 m2

14.267

12.1

Aquaponic greenhouse 2

260 m2

27.7

23.6

Existing MultiFelt factory 2

500 m2

65.2

55.3

Existing MultiFelt factory 3

Eco-Incubator Center

210 m2

4 MWh * 7 = 28

23.75

Gastro-Enterprise

360 m2

24.4 MWh * 2 = 48.8

41.4

Gallery and demonstration space

Total Potential Energy Production/year orientation (excluding the greenhouse roof), and accounting for shading from nearby forested areas, the total annual energy production potential was calculated to be approximately 260 MWh. Table 4.1 shows the calculations of the potential energy production per year.

4.3.5.2. HydRo - eleCtRiCity The Gyöngyös River flows adjacent to the site, and a canal branches off from the main body and runs behind the site. Figure 4.12 shows the existing, defunct hydro dam erected on the Gyöngyös. Micro hydropower turbines can be installed at the gate (head 1m) with capacity up to 100 kw of electricity (U.S. Department of Energy website). This type of generator requires no head; therefore, micro hydropower can generate electricity with the flow of the stream. Hydropower potential was calculated as per the formulas above. A single, 20 kw micro-hydro turbine could be expected to produce 131 MWh annually. The advantage of micro hydropower compared to solar panels is the steady flow of electricity, since the power from solar panels depends on the solar irradiance. It should be noted that more than one micro hydropower could be installed further along the stream, but for the purposes of this proposal, one will be used for the Eco-Innovation Center and any further installations can be applied to alternative municipal uses.

184 MWh/year Various energy storage systems can be explored to store the power generated by the site’s solar and hydroelectric installations. Energy storage systems can be classified based on the form of stored energy, e.g. mechanical storage such as flywheels and springs and chemical storage as in batteries. As discussed in Chapter 3, this study suggests that a water storage system is the most feasible option for the Eco-Innovation Center because of the availability of the existing canal branching off the Gyöngyös. Technically, battery storage should be installed given the fast change in the solar power production and the battery storage system’s moderate charge/discharge response. A combination of different energy storage systems can be integrated as well. The main point is that these storage systems have no technical restrictions and Kőszeg has the potential to adapt any kind.

4.3.5.3. AnAeroBic digestion Finally, energy potential was calculated for an on-site “anaerobic biodigester,” apparatus that converts biodegradable matter into compost in the absence of oxygen, using waste from a proposed micro-brewery. Based on an assumed annual beer production of 2,000 barrels—typical for a small-scale microbrewery—a waste output of 217,000 gallons of wastewater and 2,500 wet tons of spent grain was estimated. Given a 4:1 liquid to water ratio of spent grains, the brewery would be

Figure 4.11. Key plan of Eco Innovation Center referencing renewable technology utilization (by authors) expected to produce approximately 468,000 kg of solid waste annually. It is calculated that 52 % (243,000kg) of this waste would be organic carbon that would be expected to degrade during the process to approximately 200,000kg (Matthias et al 2015). Assuming a 53 % methane content for biogas, the resulting methane gas equivalent is 192,595m3 (Ibid). When added to the small proportion of gas available from micro-brewery wastewater, the total methane gas that could be captured would be 193,717m3, equivalent to 414.5 MWh if converted to electricity (Banks). Optimally, rather than conversion to electricity, this gas could be used to fire ovens for an on-site bakery and other site-specific uses. It could also return to the biodigester the heat requirement necessary for decomposition—approximately 3.5Mwh annually, based on brewery-specific consumer biodigester models such as those built by the company EUCOlino (See Appendix A.ii).

the resiliency of the microgrid at the Eco-Innovation Center and provide backup energy in case of outages, energy storage systems are considered here. There are different energy storage technologies that can be integrated, but the question is which technology would be the most economic and suitable for Kőszeg. Among all type of batteries, lead-acid are generally inexpensive. Generally, this battery has a high efficiency (80– 90 %) and reliability. The lead-acid battery is a good storage option for spinning reserve, energy management, and power quality applications, but it suffers from a short life (about 2000 cycles) and low energy density (30–50 Wh/kg). Li-ion batteries are a very strong ESS choice, based on their flexibility in power and energy, long cycle and calendar life, extremely

4.3.6. energy storAge systems For eCo - innovAtion CenteR Energy storage systems allow capture and storage of electricity for later use instead of losing potential excess electricity produced by renewables for which there is no demand. In addition, energy storage systems are used to smooth the output from intermittent and unpredictable generators. To increase

Figure 4.12. Defunct hydrodam on the Gyöngyös stream next to Eco Innovation Center site (photo by authors)

Figure 4.13. Proposed Renewable Energy Sources for Powering the Eco-Innovation Center (by author) high energy efficiency, and compact size. Furthermore, the accelerating deployment of Li-ion batteries in energy storage, electric vehicles, telecommunications and other applications is driving costs down just as microgrids are starting to take off, making microgrids and Li-ion technology an excellent match. As mentioned before, methane can be produced from pig farms, organic waste, landfills, etc. The amount of methane produced from each source is unstable, subject to change from season to season. But produced methane can be collected, stored, and used at some point to generate electricity at one location.

4.3.7. microgrid scenArios At the eCo - innovAtion CenteR

For the first scenario, the utility grid will be connected the whole time to the microgrid. Therefore, the electric loads of the Eco-Innovation Center will be fed from the RES and the utility. In this case, if there is insufficient power from the RES, the utility can support the center with the required electricity. On the other hand, the excess energy from the RES will be sold back to the utility. The first scenario could be the first step of integrating a microgrid, since there would be no additional cost to installing battery storage. In September 2016, the worldwide average price of a residential system without tax was given as US $1.67/Wp (EUR 1.49/ Wp), about 25 % higher than in Europe with EUR 1.21/Wp, or Australia. Taking the European price and adding a surcharge

From the previous section, there are many microgrid scenarios that could be implemented. This study suggested three different case scenarios for a microgrid installation at the EcoInnovation Center (introduced in figure 4.11). The microgrid would be installed to cover the loadâ&#x20AC;&#x2122;s requirements of the EIC. The two different scenarios are as follows: â&#x2014;?

â&#x2014;?

Scenario #1: Grid-connected scenario uses solar power and hydropower (RES) to supply the EIC without using an energy storage system. Scenario #2: Battery Storage Scenario studies the case for adding battery storage to scenario #1.

Figure 4.14. Methane production and storage (by authors)

of EUR 0.14/Wp for fees, permits, insurance, etc., an installed PV system costs US $1,530/kWp without financing and VAT (VAT rates at the European states). The Hungarian VAT rate is 27 % (A Jäger, 2016). Assuming additional and inflation costs of 20 %, the price of installing 1 kWp of solar panels would be $2,249/kWp with VAT and other additional costs [5]. As shown in Table 3.1, the rated power of the solar panels of the EIC is 23.75 kWp. This is the maximum solar potential if the whole rooftop area of the Eco-Innovation Center were covered with solar panels. Assuming that only 50 % of the rooftop area of the center would be utilized by the solar panel, the total cost of installing solar panels at the center would be $26,706. The cost can be minimized if the government reduced the VAT rates of solar panels.

technologies assessed. Successful implementation would constitute a noticeable shift in the current energy makeup and associated problems of air pollution, resilience, and foreign reliance. Metrics are listed in Table 4.1, and are further elaborated here:

The average installation cost of micro hydropower and/or run-ofriver turbine is $5,000/kW based on the technology and vendor (National Hydropower Association). Adding VAT rates and additional costs raises the price of the small micro hydropower to $7,350/kW [6]. To cover the load’s requirements for the EcoInnovation Center, only 10 kW micro hydropower needs be installed in addition to the solar panels. Hence, the total cost of installing micro hydropower at the EIC would be $73,500. However, a larger installation is also viable and could supply additional energy to the grid. In other words, more than one micro hydropower generator could be installed and connected directly Kőszeg’s main electric grid. This would help in reducing the reliance on the electricity produced from fossil fuel, and it would be much cheaper. The first scenario is considered the base case; the other two call for energy storage systems to be added. The energy produced from the solar panels for one day is 50 % (the covered area as mentioned before) x 23.75 kWp x 3.23 (average peak sun hours in Hungry) or 38.3 kWh per day. The power generated from the solar panels would be stored in batteries for later use. For the second scenario, battery storage would be added, thus the microgrid could work in an islanded mode. As discussed, the lithium-ion battery is recommended because of its advantages over others with different characteristics and costs. The lithium-ion battery’s cost is $550/kWh (O’Conner, 2016). Adding VAT rates and other costs brings the price of 1 kWh lithium-ion battery to $800. The size of the battery storage system will be 30 kWh with an estimated total cost of $24,000. Metrics of success are varied and dependent on the individual

solAr PhotovoltAic instAllAtion: 1.

Increased local resilience. Solar energy would subsidize local electricity demand, reducing reliance on single-source nuclear/fossil fuel energy and reducing associated emissions.

Reduced import reliance. Similarly, PV installation would reduce demand for foreign electricity import.

Local employment. Installation and maintenance would be required, ideally employing local residents and empowering the community. Training would be conducted at the Eco-Innovation Center.

solAR-tHeRmAl HybRid geneRAtion: Reduced natural gas demand. In addition to the aforementioned benefits from solar installation,hybrid installations would reduce demand for imported natural gas and its associated environmental impacts (emissions, incentive for habitat disruption for construction/transport of pipelines, etc.).

heAting eFFiciency imProvements: 1.

Reduced natural gas and wood demand.Building renovations have the potential to reduce heating demand by 40 %, reducing demand for various energy sources currently employed.

Reduced particulate matter emissions. Similarly, even if the energy supply mix remains the same (with reliance on wood and waste burning), improved insulation efficiency will nevertheless reduce PM emissions by an associated percentage, which will translate into real health improvements and reduced morbidity and mortality rates from air pollution. There would also therefore be costs savings to the health care system and to affected families.

Table 4.2. Matrix of benefits and metrics of success for proposed energy interventions. Proposed Intervention

Benefits

Reduced Resource Input

Reduced Waste Output

Metrics of Success

Solar photovoltaics

Increased local resiliency; reduced import reliance; local employment

Electricity

CO2e emissions

Increased % deployment of solar installation over 2018 baseline

Solar-thermal hybrid generation

Reduced import reliance; reduced electricity demand; local employment

Natural gas

CO2e emissions

Increased % deployment of solar installation over 2018 baseline

Heating efficiency improvements

Reduced natural gas demand; reduced particulate matter emissions, local employment; community engagement

Natural gas

CO2e emissions

Reduced domestic heating demand from baseline (kWh)

“CSA” wood purchasing model

Reduced particulate matter emissions and associated health risks; reduced odors; improved communitygovernment relations; increased tourism in heating season; better forest management

N/A

Particulate emissions; odor

% Reduction against baseline in airborne disease rates; majority community buy-in; reduced “black market” wood purchasing; reduced % of biofuel in energy mix represented by waste burning

Micro-hydro plants

Opportunity for community engagement; reduced cost of on-site power

Electricity (negligible)

Greenhouse gases

Increased % of distributed generation over baseline

Anaerobic Biodigestion and methane capture

Reduced landfill requirements; energy production and storage; reduced resource waste

Electricity; natural gas

Organic waste; methane emissions

Increased % of distributed energy generation over baseline from gas capture, utilizing local farms and landfill

RES for EIC

Demonstration of energy potentials at a local scale

Natural gas; electricity

CO2e emissions

% contribution of distributed energy (all site sources) to serve EcoInnov. Ctr energy demand

Energy Storage

Increased energy resilience and control

N/A

Successful deployment of an energy storage scheme and microgrid

“CsA” wood PuRCHAsing model to reduce Adverse emissions:

AnAeroBic Biodigestion And methAne cAPture:

Reduced particulate matter emissions. Burning drier wood that has cured for the requisite minimum one year would reduce water vapor and particulate emissions,imparting compound health benefits.

Reduced landfill requirements. By diverting organic waste to biodigesters, less material would make it to landfill.

Quality of life and tourism. In the course of work done for this report, local residents cited odors from waste burning in the winter and associated it to a notable lull in tourism at that time. A reduction in waste burning would reduce the pervasive smell, improving the environment for residents and perhaps increasing Kőszeg’s desirability as a winter tourist destination.

Energy production and storage. Biodigestion and methane capture provide an opportunity to convert gas to electricity, or for gas storage for use at times of need, improving local resiliency. Gas can also be used directly for appliances, such as stoves, that traditionally use other gases.

Reduced resource waste. While methane is traditionally treated as a waste product that requires treatment (i.e. burning), regarding it instead as a resource opens potential for capture and innovative use.

Improved community-government relations. Government subsidization of wood purchasing/storage would facilitate positive community-government interaction. This would in turn help gather public support for other interventions suggested in this report. 4. Better forest management. Government wood regulation would improve forest management and work in tandem with the interventions suggested in the forest section of this report.

miCRo-HydRo instAllAtions: 1.

Opportunity for community engagement. The use of micro-hydro to power locally renovated buildings offers many synergies, and provides an opportunity to reprise culturally and historically relevant architecture for modern community uses. Reduced cost of on-site power. As per the above, micro-hydro installations would reduce the overhead costs of any community uses of old buildings, perhaps allowing a lower threshold for success for local entrepreneurs.

renewABle energies For the eCo-innovAtion CenteR: Demonstration of energy potentials at a local scale. The authors believe the successful implementation of renewable energies at a local, visible, and community-integrated site is critical to driving the broader interventions suggested.

miCRo-gRid instAllAtion: Increased energy resilience and control. The creation of a local micro-grid similarly demonstrates the potential for community energy control and improves local resilience.

BeneFits And conclusion The primary goal of implementing a new energy regime in Kőszeg is to address the three issues identified with the existing makeup: 1) air pollution arising from domestic waste and organic burning; 2) reliance on aging, single-source nuclear infrastructure; and 3) foreign energy dependence, primarily in regard to natural gas and oil. These can be addressed primarily through domestic heating interventions, solar PV installation,

and biogas and methane capture. In addition, while hydroelectric potential may be limited, it offers an opportunity for community engagement in progressive environmental thinking coupled with historic building restoration and redevelopment. Finally, the application of a selection of these renewable energies to the Eco-Innovation Center is an opportunity to demonstrate and demystify renewable energies and encourage public support for further projects. For the implementation of a biodigester at the pig farm, a potential partnership between the town and the farmers carries benefits to both. Interviews conducted for this work found that the regionâ&#x20AC;&#x2122;s largest pig farm has considered the use of biodigesters, but deemed the project economically inadvisable and difficult to fund through available grants. Therefore, a funding relationship is needed with the town or county proper to make it worthwhile. The structure of this relationship might take various forms, but a brief examination of benefits demonstrates the value in this relationship. For instance, the town could fund the construction of a biodigester as part of larger sustainability goals. This report has demonstrated that the pig farm has a potential yield of 35,900 m3 of biogas per year, largely methane, a gas with 30 times the warming potential of carbon dioxide. This quantity in itself is a valuable offset. The gas is also a potential energy source, either for use in raw applications (cooking/heating) or as electricity (worth 77 MWh per year). In addition, biodigester effluent used in agriculture has been shown to produce a 25 % higher yield, with 14 % more nutrient-dense crops than raw manure (Chau, 1998). It is clear, therefore, that there are benefits to both parties in collaboration.

sectors encompassed in this report. Therefore, in the short term the focus should be on the installation of solar PV on the site buildings, micro-hydro in the neighboring river and renovation/replacement of the dam that exists there, and biogas generation from an on-site brewery. The demonstration of local renewable energy has value beyond economic paybacks. First, it can help with community buy-in for further development of renewable energies and sustainability initiatives. Second, the implementation of a model for wood treatment to support domestic heating, inspired by the Community Supported Agriculture approach, should be considered low-hanging fruit. KĹ&#x2018;szeg has many abandoned buildings that could be used for storage, and the cost to the government could be recouped easily if participants were charged at cost for the wood purchased. Both of these could be implemented almost immediately. Phasing of solar implementation is a longer process, and should begin with municipal building installation. Domestic installation will take longer to see buy-in and uptake, and should be anticipated as a multi-year process per the metric above and description below. Likewise, hydro-electric is an easier prospect but should also be done with community involvement and buy-in, with the goal of providing hydroelectric power to community functions.

PreliminAry cost AnAlysis While an in-depth cost analysis is necessary as a future project phase, some preliminary assumptions can be made for the proposed interventions. All costs are expressed in todayâ&#x20AC;&#x2122;s US dollars, with additional 20 % design contingency.

Similarly, the methane produced by the local waste facility is a valuable resource currently being flared, to the detriment of the environment. The 26,000m3 of methane currently being combusted can be converted to 56 MWh of electricity. As mentioned, the exact application of biogas and methane requires further exploration. However, this work demonstrates that these are real resources that can and should be recovered and utilized, rather than wasted.

Project PhAsing The Eco-Innovation Center sits at the heart of this project and serves as the ideal catalyst for implementation across all

Table 4.3. Preliminary Cost Analysis of proposed energy interventions. Proposed Intervention

Solar photovoltaics

Benefits

Reduced Resource Input

1 kWp of solar panels would be 2249 $/kWp with VAT

$665.70 to cover 25% of rooftop

and other additional costs. 20% of the house rooftop

area of one house in Kőszeg.

could fit a 296 watt installation. Solar-thermal hybrid generation

We mentioned before the only obstacle for this

The total cost for one house is

(electricity and hot water)

technology is ability of the roof to carry the water tank.

$3665.70 with VAT and other

The cost here applies to buildings able to carry the

additional cost.

water tank. The cost of 1kWp of solar-thermal hybrid generation would be $2,249 /kWp in addition to $3,000 for the solar thermal installation and plumbing equipment. (Renewable energy hub) For one house in Kőszeg, 25% of the rooftop could fit a 296-watt installation. Heating efficiency improvements

“CSA” wood purchasing model

Upgrading thermal performance of windows and doors

Negligible. Less than $5,000 per

would be the majority of work required.

household.

Government would use existing structures for storage,

$280 per family per year, or

but would be required to sustain an upfront cost of $35/

$560,000 for the government to

m3. Assuming half the population buys into the CSA,

purchase all stock up front.

and each household requires 8m3 of wood based on empirical observation. Micro-hydro plants

A cost of $7,350/kW.

$1 million to install seven 20KW micro-hydro installations

Anaerobic biodigestion and methane

Digesters would be built to spec. Prices are based on

$400,000 for the pig farm.

capture

quotes obtained from local biodigester companies.

Solar PV at the Eco-Innovation

50% rooftop coverage

$26,706

Government would use existing structures for storage,

$280 per family per year, or

but would be required to sustain an upfront cost of $35/

$560,000 for the government to

m3. Assuming half the population buys into the CSA,

purchase all stock up front.

Center “CSA” wood purchasing model

and each household requires 8m3 of wood based on empirical observation. Micro-hydro power at the Eco-

A 10kW installation could meet the electricity

Innovation Center

requirements of the EIC, at a cost of $7,350 per kW.

Battery storage at the Eco-Innovation The estimated cost of 1kWh lithium-ion battery is $800.

$73,500

$24,00$

Center

The size of the batter storage system will be 30 kWh.

Biodigester at the Eco-Innovation

A Pricing based on local company quotes obtained

$250,000 (or $5,000/month to

Center

during research.

lease)

AdditionAl resources: [1] For further information see: https://www.portfolio.hu/vallalatok/energia/geotermikus-eromuvet-epit-kina-magyarorszagon.287992.html [2] For further information see: https://www.investopedia.com/terms/f/feed-in-tariff.asp [3] For further information see: https://energypedia.info/wiki/Feed-in_Premiums_(FIP) [4] For further information see: https://energiaklub.hu/files/study/negajoule2020_pdf.pdf [5] For further information see: https://www.renewableenergyhub.us/solar-thermal-information/how-much-does-solar-thermal-cost.html [6] For further information see: https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_ en.pdf

c hAPter 4 reFerences: A. Jäger Waldau, PV Status Report 2016 Banks, Charles. Anaerobic digestion and energy. [PowerPoint slides]. Retrieved from https://www.scribd.com/ document/369117467/Biogas-Calculation-From-Cod Chen, H., Cong, T. N., Yang, W., Tan, C., Li, Y., & Ding, Y. (2009). Progress in electrical energy storage system: A critical review. Progress in Natural Science, 19(3), 291-312. doi:10.1016/j.pnsc.2008.07.014 . Crawford, I. M. (1997). Agricultural and food marketing management. Rome, Italy: FAO. Energiaklub. (2011. 03 01). Negajoule 2020 - A magyar lakóépületekben rejlő energiamegtakarítási lehetőségek. Budapest. Forrás: https://energiaklub.hu/files/study/negajoule2020_pdf.pdf Final Energy Consumption by Product. Eurostat. Accessed June 11, 2018. http://ec.europa.eu/eurostat/data/database Farkas, István (2010). A napenergia hasznosításának hazai lehetőségei. Magyar Tudomány. Magyar Tudományos Akadémia. Budapest. Frankel, A. (2016). Market analysis of how to promote the spread of photovoltaics in Hungary (Unpublished master’s thesis). CAH Vilentum University of Applied Sciences. Retrieved August 21, 2018. Fülöp, O.; Ámon, A.; Király, Zs.; Perger, A.; Tóth, N. (2011.03.01.) Negajoule 2020 - A magyar lakóépületekben rejlő energiamegtakarítási lehetőségek. Energiaklub. Budapest.

Hungary: Balances for 2015. (2015). IEA. Accessed June 18, 2018. https://www.iea.org/statistics/statisticssearch/ report/?country=HUNGARY&product=balances IRENA (2012). Renewable Energy Technologies: Cost Analysis Series - Hydropower. International Renewable Energy Agency (IRENA). Abu Dhabi https://www.irena.org/documentdownloads/publications/re_technologies_cost_analysis-hydropower.pdf IRENA (2017). Renewable capacity statistics 2017. International Renewable Energy Agency (IRENA). Abu Dhabi http://www. irena.org/DocumentDownloads/Publications/IRENA_RE_Capacity_Statistics_2017.pdf Lenkei, Péter. (April 16, 2016). Illegális lakossági szemétégetés hazánkban. Levegő Munkacsoport. Budapest. Mathias, T. R., Alexandre, V. M., Cammarota, M. C., Mello, P. P., & Sérvulo, E. F. (2015). Characterization and determination of brewers solid wastes composition. Journal of the Institute of Brewing, 121(3), 400-404. doi:10.1002/jib.229 MEKH (2016). Magyarország Geotermikus Felmérése 2016. Magyar Energetikai és Közműszabályozási Hivatal (MEKH). Budapest. http://www.mekh.hu/download/f/0f/30000/magyarorszag_geotermikus_felmerese_2016.pdf Ministry of Agriculture - Hermann Ottó Institution (2018). Fűts okosan! Forrás: Fűts okosan!: http://www.futsokosankampany. hu/ National Hydropower Association open access at https://www.hydro.org/waterpower/why-hydro/affordable/ Nagy, Gabor, and Agnes Wopera. (2012) Biogas Production from Pig Slurry - Feasibility and Challenges. Materials Science and Engineering 37, no. 2: 65-75. OConnor, J. P. (2016). Off grid solar: A handbook for photovoltaics with lead-acid or lithium-ion batteries. San Francisco, CA: Joseph P. OConnor. Rába, K. (2017.01.17.). 4,5 MWp teljesítményű napelempark épülhet a Kőszegi ipari park területén. https://rabakalman.blog. hu/2017/01/17/4_5_mwp_teljesitmenyu_napelempark_epulhet_a_Kőszegi_ipari_park_teruleten Szőke, D. (2018.05.11.). Energy Policy Goals and Challenges for Hungary in the 21st Century, Budapest: Institute for Foreign Affairs and Trade Szajkó, G. - Mezősi, A. - Pató, Zs. - Sugár, A. - Tóth, A. I. (2009): Erdészeti és ültetvény eredetű fás szárú energetikai biomassza Magyarországon. Budapest: Regionális Energiagazdasági Kutatóközpont. Source: http://rekk.hu/downloads/projects/wp2009_5. pdf Tábori, József (September, 20, 2012) Kőszeg, Gyöngyös patak vízhasznosítása (Összefoglaló jelentés). Siemens. Budapest.

chAPter 5:

Economic Development Existing & Proposed Kőszeg’s existing Conditions Kőszeg is considered one of the most attractive towns in Hungary, often referred to as “Hungary’s Jewel Box.” In addition to the Kőszeg forests and the Hungarian Nature Park system, it contains a historic town center still partly enclosed by its old town wall, with buildings dating to the 14th century (Szövényi, 1970). Having been spared from destruction various times throughout its history, the town center is almost entirely intact [1]. Because of these and other attractions and resources, Kőszeg is a favored tourist destination within Hungary and the Pannonian region. In part because of tourism and the surrounding natural resources, Kőszeg has an unemployment rate of just 3.05 %, slightly higher than the county’s (2.92 %) but well below the national rate of 5.55 %. However, Kőszeg’s economy has been stagnant and the city is facing out-migration as a consequence of its lack of social and economic opportunity (ITS, 2015).

Kőszeg’s ResouRCes Kőszeg has a multitude of touristic, cultural, historical, natural, and physical resources at its disposal as a result of its geography and history. Understanding and maintaining these resources is a key component in identifying strategies for the town and bioregion’s economic development.

5.2.1. touristic resources Tourism is a critical part of Kőszeg’s economy and effects the day-to-day life of the city. Tourists are present year-round,

Figure 5.1. Current map of Kőszeg (by authors) with 90 % coming from elsewhere in Hungary and 10 % from Austria. (ITS, 2015) Tourism is based primarily on the town’s cultural and natural resources, but also draws some visitors as a result of its lower costs relative to Austria. The city has tourist information services on the main square, which direct visitors in German and Hungarian to the regional and city’s natural and cultural resources.

Advanced Studies, Kőszeg, (iASK) [4]. Kőszeg has a large number of restaurants, most of them downtown, primarily around the main square. The restaurants focus primarily on Hungarian cuisine, but there are several fast food establishments including pizza and kebab stops.

5.2.2. C ultuRAl / HistoRiCAl ResouRCes At present, Kőszeg has about eight hotels and inns. There are also a number of small apartments that are rented out to tourists. The greater district has a higher number of accommodations per capita than Kőszeg itself [2]. This includes towns like Bükfürdő, Sárvár and Szombathely in Hungary and Lutzmannsburg, Bad Tatzmannsdorf, Lockenhaus, Rechnitz and Rust in Austria [3]. The number of guest-nights in Kőszeg is higher than the national average, but still lower than the surrounding spa towns. It is possible that the lack of hotel space discourages foreign tourists, putting Kőszeg at a disadvantage relative to nearby towns, which have more and better hotels and amenities to offer visitors. Current plans for the city include seeking investors for building high-end accommodations. However, finding investors can be a challenging process. An option to acquire more accommodation space includes the restoration of historic buildings in the town center, including the ‘Bálház’ (Ball-house) or the Bencés Rendház (Benedictine Convent) as hotels. This is already planned by the town and supported by KRAFT, an initiative promoting creative and sustainable towns and regions in Pannonia envisioned by the Institute of

Some of Kőszeg’s historic building stock dates as far back as the 14th Century and is protected by the national government. Historic buildings and sites are notably marked with a little plaque with the word műemlék, Hungarian for monument. Two dozen historic building sites occupy the town center, the ten most important of which are connected by a walking tour called “Storytelling Houses of Kőszeg” [5]. Some have been restored and others are in the process, primarily through a partnership between the city and iASK. But there are many other buildings that are in need of repair and maintenance. One of the most important of these relics is the Hősök Tornya (Heroes Tower), which commemorates the most significant event in Kőszeg’s history: the Siege of Kőszeg Castle in 1532, when the locals managed to hold off a part of the Ottoman army, protecting Vienna—and Western Europe—from the Ottomans. The tower was built on Jurisics Square in 1932 and stands as a reminder of the heroism of the townspeople. It is an iconic part of the city and serves as a local museum. Other notable buildings include six structures that consecutively

functioned as the town hall [6]: The Old Tower (also called Zwinger), the Europe House, the Sgraffitós House, the Ball House, the Benedictine Convent and the Synagogue (the oldest building in Hungary, dating to the 14th Century). The town wall, from the 16th Century, is also still partly intact. Some of these buildings are already restored, but many still await refurbishment. In addition, there are a number of historic and culturally significant monuments and churches in the hills and villages outside Kőszeg. These buildings and the town walls are a critical resource for Kőszeg’s tourism industry and contribute to the town’s identity as a “Jewel Box” and one of Hungary’s most historic destinations. In addition to the historically significant buildings, there are many museums in Kőszeg. Most iconic is the local history museum in the Heroes Tower on Jurisics Square. In addition, the Post Museum, the Apothecary Museum, the Jurisics Castle, the Crown Guarding Bunker and the Stajer Houses tell the stories of Kőszeg’s past, memorialize important events and demonstrate the day-to-day lives of the city’s residents. Another important resource for the city is the Bechtold István Nature Conservation Center, built with EU funds, which showcases the local flora and fauna and protects local animal species [5]. Kőszeg’s many local and regional festivals are also an important part of the city’s identity. Among them are the Kőszegi Várszínház (Kőszeg Castle-Theater), a month-long cultural festival, and programs centered around the Siege of Kőszeg Castle, which is commemorated with an annual race around the medieval city center. In addition, The Natúrpark Ízei Gasztronómiai Fesztivál (Flavors of the Natúrpark Gastronomic Festival) is a program that involves the craftsmen (wine makers, beekeepers, wood carvers etc.) from the Írottkő Natúrpark’s different towns who also sell their wares at a market, and the Kőszegi Szüret (Kőszeg Wine Harvest) held each September [5]. Regional festivals also draw tourists to Kőszeg: The neighboring town of Cák has a multitude of wine cellars as well as traditional products sold at a wide selection of gastronomic programs all year around. Another town, Pusztacsó, has an annual festival celebrating its long tradition in pig breeding. [7], [8].

5.2.3. e ducAtionAl resources Kőszeg is a “City of Schools,” according to its website. The town was considered an “iskolaváros” or “school town” in the 19th and 20th centuries (Bariska, 2014) and still maintains the identity through its relationship with iASK/The University of Pannonia and other local and regional academic and vocational programs. As a district center, Kőszeg has many educational facilities— three kindergartens, three elementary schools and three secondary schools for local and regional children. Kőszeg also houses the Dr. Nagy László School, the region’s elementary and secondary school for children with special needs, and the Kőszegi Evangélikus trade school, which offers vocational training for stablemen, gardeners and waiters. Higher education is represented in Kőszeg by iASK, which is a campus of the University of Pannonia [9], and has since become an important part of Kőszeg’s identity. The University of Pannonia, established in 1949, has expanded its curriculum from engineering into the liberal arts and economics, finally establishing iASK and the Kőszeg Campus in 2016 [10], [11]. iASK attracts Hungarian and foreign visiting scholars and graduate students to the city and draws in local people with programs including the Summer University, a two-week event with international participants and guest speakers, or with various programs like the Tudomány a Kocsmában (Science in the Pub), an environmentally-themed talk series in which the audience can engage in friendly conversation or debate with the invited speakers. These multiple events allow Kőszeg residents to benefit from the Institute’s offering and economyboosting mechanisms.

5.2.4. nAturAl resources Kőszeg is rich in natural resources. Approximately 60 % of the town’s administrative area is covered in forests, which is primarily found in the surrounding Kőszeg Hills. Parts of these forests are conservation areas managed by the national park system and are a precious natural resource for the town. They act as an eco-tourist attraction featuring many hiking and biking paths and extraordinary flora and fauna preserved by decades of isolation by the technological border and the Iron Curtain). They also offer a bounty of ecological benefits, including the

notable fresh air of the town and potential energy services for residents who heat their homes with firewood. (ITS, 2015,[1]). The Kőszeg Hills are part of the Hungarian Nature Park system as well as the Írottkő Natúrpark Association, which is maintained by 18 Hungarian and Austrian settlements. These agencies manage the park’s rare and protected animal and plant species: peat moss, cotton grass and eared willow in the local raised bog; and spotted salamanders, large woodpeckers and wild boar [12]. The park contains most of the region’s hiking and biking trails as well as several underutilized or abandoned travelers’ lodges. Fifteen educational nature trails and nine themed hiking paths (including nature, religion and history) offer opportunities for those interested in natural history, while 16 km of biking paths are available for those who want to recreate and explore on wheels [13]. These trails start in or near the town center, but ownership often determines the conditions of the tracks. The trail networks need to be maintained and developed further in order to function as real resources, and to link them successfully to various other national and international trails. These include the Kék túra (Blue Tour, a Hungarian hiking path system, spanning the whole country); the Iron Curtain biking trail, which follows the former Iron Curtain through 20 European countries for about 9,000 km; and the Alpannonia hiking trail, a cooperation between Austria and Hungary that takes advantage of Kőszeg’s border aspects and has an aggregated length of 150 km between the two countries [14], [15]. West of Kőszeg, in the hills reaching over to Austria, is a Natura 2000 park, which is a prioritized natural conservation area. This area houses many lookout structures as well as the tallest mountain of western Pannonia, the Írottkő (884 m), which sits just on the border between Austria and Hungary. A number of natural and artificial water bodies dot the landscape around Kőszeg. The main source of water in the district is the Gyöngyös River. There are two major artificial lakes outside Kőszeg’s historic downtown, the Csónakázó-tó (Boating Lake) to the north and the Abért-tó (Lake Abért) to the south, each offering different services to the region. The Csónakázó-tó is used mostly for boating and fishing, while the Abért tó is part of the Lukácsháza Reservoir, which was constructed to protect the area from flooding. In addition,

more than 25 different springs can be found in the Kőszeg Hills, including the Hétforrás, Vasas-kút, Enikő forrás, and Ciklámen-forrás. They are connected by hiking paths, although the infrastructure requires some improvements around the springs as well as on the paths (ITS, 2015).

5.2.5. AgriculturAl resources Agriculture is an important aspect not only for Kőszeg, but the whole region, and is one of the biggest employers in the district, with about 72,000 hectares under cultivation. These areas are sown with crops including wheat (the most prominent of all crops), corn, barley and sunflowers. The local agriculture scene consists mostly of small-, and medium-scale farmers who produce for the local and domestic market. Viticulture, a subset of agriculture, has long been an important part of Kőszeg’s identity. Records document Kőszeg’s wine industry and its competition with Sopron since the 14th Century. Most notably, the Szőlő Jövésének Könyve (“The book of Grape’s Coming”), contains drawings of local grapes from every year since 1740, providing valuable data for local and national researchers. The area’s viticulture was interrupted at the end of the 19th Century, when the Phylloxera plague virtually wiped out the industry. But tradition and continuing interest have sparked a recent renaissance, and the hard work of locals has begun to expand the industry again. At present about 1 % of the city’s administrative area is covered by grape vines (ITS, 2015). The local winery scene supports 12 larger wine cellars, including Tóth Pincészet, Kampits Családi Pince, Láng Pincészet, Frank Borászat, Jagodics Pince, Mándli Borház, Frank Borászat and Alasz Pince. However, even the largest participants of the local industry have relatively small plots at their disposal [16], [17].

5.2.6. e xisting inFrAstructure As a district center, Kőszeg acts as a transportation hub to the surrounding smaller towns and villages. Train service to and from Kőszeg has been minimal since the removal of Austriabound train tracks during the Socialist era. Only a single track in the direction of Szombathely remains, making hourly trips to the county capital (ITS, 2015). In addition, the train station is located on the outskirts of town, 1.5 km from the main

square, which makes easy public access problematic (ITS, 2015). Kőszeg is connected by regular bus service to Sopron, Szombathely, Bük, and other small towns across the Austrian border. Travel to Budapest, Vienna and other major cities and airports is highly inefficient, and currently requires travel through Szombathely by bus or train. There is no bus service within Kőszeg other than stops that are part of regional routes, following the abandonment of local service by the regional bus association several years ago (ITS, 2015).

capitalizing on Kőszeg’s abundant resources. With increased economic and social opportunity, there is a chance to imagine Kőszeg as a city where young families would want to settle and new businesses could be fostered. The following are strategies recommended for enhancing economic development:

Roads and their upkeep are important in a community where a large percentage of residents commute to work every day. The number of cars per capita is higher than the national average, likely the result of the lack of public transportation [2]. The road system has varying quality and is in need of constant maintenance to secure the continuous flow of traffic. The main road, Route 87, goes through the city and carries a great portion of the transit traffic between Szombathely and the Austrian border, putting significant stress on the city and its residential areas. Kőszeg also has well-used infrastructure for bikes and pedestrians, but it is limited and not in very good condition. There is a need for additional biking lanes, parking and bike racks. Walkways are of poor quality and lack continuity. As a result, the number of pedestrian-related accidents has increased since 2010 (ITS, 2015).

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To address some of the transportation issues, the town government is planning the construction of an intermodal hub at the existing train station to better synchronize bus and train services, but this would also require the reestablishment of intratown bus services, so that locals can access the new transportation hub more easily. In addition, the national government plans a bypass road around the town. However, the planning process has been difficult on the state level, and the designs have changed multiple times in recent years. Fortunately, additional plans are underway for a new road into Kőszeg near the Boating Lake and an extension of the bike path into Austria (ITS 2015).

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Leverage and expand Kőszeg’s existing cultural resources by upgrading the vacant iconic and historic building stock to allow for new commercial, public and private uses that increase economic opportunity, including tourism. Leverage and expand existing educational activity by creating complementary new programs that draw more students and visiting faculty to Kőszeg. Protect Kőszeg’s natural beauty by supporting regenerative programs and improved natural resource management that will ensure the value of Kőszeg’s forests and waterways are maintained or increased. Support energy independence which will ensure that Kőszeg’s clean air is maintained and value is created through local resource generation. Upgrade the internal infrastructure—-roads, bikeways and pedestrian area—in ways that increase access to and around Kőszeg, attracting visitors and benefiting local businesses and residents. Further enhance and develop the local green belt around the Gyöngyös River to better integrate the river in the city’s fabric. This will increase the amount of public green space in the city, which is an important goal of the local government. Leverage untapped physical and human resources in Kőszeg to foster creative new businesses and growth opportunities.

An adroit combination of these initiatives could help Kőszeg move beyond its “jewel box” status into a more vibrant and resilient 21st Century community.

current chAllenges And develoPment PotentiAl Kőszeg faces a variety of challenges—economic, social, environmental—which impede its prosperity, hinder further economic development, and create incentives for out-migration. However, sustainable economic growth can be stimulated by

AdditionAl resources: [1] For further information see: http://www.Kőszeginfo.com [2] For further information see: https://www.teir.hu/helyzet-ter-kep/kivalasztott-mutatok.html [3] For further information see: http://www.Kőszeginfo.com [4] For further information see: https://kraftprojekt.hu [5] For further information see: https://www.koszeg.hu/hu/koszeg/ [6] For further information see: https://magyarepitok.hu [7] For further information see: https://www.tripadvisor.co.hu/ [8] For further information see: http://www.falusiturizmus.org [9] For further information see: https://Kőszeg.uni-pannon.hu [10]For further information see: http://www.uni-pannon.hu [11]For further information see: https://iask.hu [12]For further information see: http://www.orseginemzetipark.hu [13]For further information see: http://www.naturpark.hu [14]For further information see: http://www.kektura.hu/cimlap.html [15]For further information see: http://turizmusonline.hu [16]For further information see: http://Kőszegibor.hu [17]For further information see: http://borneked.hu

c hAPter 5 reFerences: Bariska István (2014): Kőszeg történeti identitásához. Vasi szemle 2014. 2: 153–165 Kukely et al. (2015): Kőszeg Integrált Településfejlesztési Stratégia (ITS) Szövényi István (1970): Kőszeg. Vas Megyei Idegenforgalmi Hivatal

chAPter 6:

An Economic Development Strategy for Kőszeg As outlined above, there is great potential for improving Kőszeg’s economic and environmental outlook by taking advantage of its many existing resources. However, it is not possible to implement all these suggested changes in the short term; certainly much further study is needed. A more strategic economic development plan is proposed in which these opportunities can be studied, executed and demonstrated, spurring economic growth and setting Kőszeg on a path toward a sustainable future.

Kőszeg As A “C enteR foR eCologiC innovAtion” The plan proposes the development of a regional “Center for Ecologic Innovation” (Eco-Innovation Center), a signature feature based on the key principles of a circular economy. In addition to reducing the negative consequences of a “take, make, waste” economy, the center would create longterm resilience while generating social, economic and environmental benefits. The proposed Eco-Innovation Center would be a transformational enterprise, with the potential to unify “thinking and making” that will harness Kőszeg’s rich array of resources and bring sustainable economic growth to the town and its surroundings.

key comPonents of tHe Kőszeg c enter For ecologic innovAtion The proposed Eco-Innovation Center project (see figure 6.3) is based on two principle ideas: socio-technical innovation coupled with job training and professional education, which are mutually symbiotic and can be aligned to foster balanced

Figure 6.1. Rendering of the Eco-Innovation Center as seen from the approach from Lake Abert (image by authors) and sustainable economic development (jobs and business opportunities) while creating other social and environmental co-benefits. The goal is to coordinate the functions of an innovation center and related education programs to successfully leverage Kőszeg’s primary resources in service of a circular economy. Therefore, the focus of the Eco-Innovation Center will be programming around regenerative, loopclosing strategies and technologies for the natural and built environments. The wealth of Kőszeg’s existing historic, natural and physical resources allows it to serve as a “living lab” for hands-on learning and Kőszeg should benefit directly from these programs in the form of sustainably managed forests, cleaner water, more renewable and resilient infrastructure and improved building stock. Such unique programming could draw both students and visitors alike to Kőszeg.

6.2.1. the center For ecologic innovAtion The Eco-Innovation Center would function as an incubator of emergent technologies, services and companies that can be developed and nurtured in a supportive environment. It would help launch creative businesses, providing labs and work space, business skill training, and access to financing and professional networks, all within a collaborative setting. By minimizing overhead and providing access to training, funding and distribution, incubators can have high economic returns. New York University’s School of Engineering incubator program, for example, is said to have generated $251.2 million in direct and indirect job creation, taxes and spending, in just five years alone (Forbes).

Using Kőszeg’s wealth of educational and ecosystem resources, the Eco-Innovation Center’s entrepreneurs can develop new

Figure 6.2. Diagram: Circularity for Kőszeg (by authors) sustainable products, test emerging technologies and develop innovative concepts for circularizing the local economy. The enterprise could also offer workshops, galleries, tours and open lab space to visitors, creating additional sources of income and allowing the open exchange of ideas to foster a creative atmosphere. The center would be formulated around three key components: 1) an eco-friendly products and services incubator; 2) a gastronomic enterprise and 3) a green energy and infrastructure enterprise.

6.2.1.2 An eCo -PRoduCts And services enterPrise incuBAtor Incubators tend to be most successful when they have a specific or unique focus. For the Eco-Innovation Center, that focus will be sustainable products and technologies that are based on the principles of the circular economy. The market for such eco-friendly products and technologies has grown rapidly

in the past couple of decades and includes products fabricated from sustainably harvested materials and technical/ biological waste streams (i.e. diapers using bio-based materials instead of plastic, or building boards such as Ecor and Wheatboard that are derived from urban and agricultural waste products), as well as the technologies that enable their creation (i.e. Liam, Apple’s iPhone disassembly robot). Products could be focused on the building materials and technology sectors, which have the added benefit of addressing the issues of sustainable building upgrades that are critical for Kőszeg’s long term economic prosperity. These are products that could have great value at a regional or European scale as well, in light of the problems of maintaining an aging, historic building stock that are endemic throughout the EU. There could also be a “salvage warehouse” containing historic fabric and artifacts for sale. In addition to building-related products, the center could produce sustainable handicrafts, such as woodworking, that would contribute to the local tourism economy.

Figure 6.3. Diagram of the Kőszeg Ecologic Innovation Center’s internal and external material and production flows (by authors)

6.2.1.3. A “gAstRonomiC enteRPRise” Gastro-tourism is a niche industry attracting billions in revenue worldwide. Local, naturally-sourced food and beverages can be a motivating factor for travel (Williams et al. 2013). In addition to creating a venue where small food- and beverage-based businesses can be incubated, local and sustainable food products offered on site could support the Eco-Innovation Center as an appealing workplace, gathering space and tourist destination. The “Gastro-Enterprise” facility would be focused on the creation of local foods and beverages using sustainably grown agricultural items from Kőszeg’s farms. These enterprises could, for example, include a microbrewery and/or a bakery that use locally sourced grains to produce beer and baked goods like bread and energy bars. It is also possible that such a creative enterprise could take advantage of the waste stock of neighboring gastro industries: a bakery could create high-

protein baked goods using the spent grains from a brewery, or smoothies could be created from unsold farmers market items. These and other healthy products created on-site can be sold to visitors, tourists and the Kőszeg community. The Gastro-Enterprise would also include on-site aquaponic and soil-based greenhouses, which could contribute additional ingredients or products to be cooked or sold on site, including fresh fish, tomatoes and leafy greens. Finally, the GastroEnterprise would host and coordinate an additional onsite farmers market, where locally and on-site produced agricultural and culinary products could be sold directly to the Kőszeg community and local tourists, creating visibility and economic opportunity for farmers and gastro enterprise while supporting a mission of local food production.

6.2.1.4 green energy & inFrAstructure

eCo -e duCAtion PRogRAmming

As a demonstration facility, it is critical that the enterprise is itself powered by the renewable and regenerative technologies it espouses. A conceptual analysis suggests that there is likely to be ample energy potential to support the baseloads (excluding process loads) of the proposed Eco- Innovation Center’s activities. This renewable potential would be derived from rooftop solar and small-scale micro-hydro providing electricity. Small scale anaerobic digesters could be incorporated to convert food waste from the gastro-enterprises, farmers market and local restaurants into biogas that would be used to power cooking and/ or brewing equipment on-site, or used as a clean fuel to heat buildings. In addition, small-scale biodiesel processors could be incorporated to capture used cooking oil for conversion into a clean substitute for diesel fuel, which could power food trucks or other vehicles used to transport goods on-site or to local distributors.

Educational programming would complement the proposed innovation activities of the Center for Ecologic Innovation. This could be accomplished by expanding on existing educational activity in Kőszeg. New curriculum would teach about the circular economy with a focus on sustainable design and innovation as seen in Figure 6.4.

In addition to incorporating renewable energy, the site will utilize and demonstrate soft path, regenerative strategies for water management. Rainwater will be harvested on-site and utilized for landscaping and, where possible, on-site agriculture. All water that falls on the site will be captured for reuse in agriculture and landscaping or naturally treated via infiltration basins and other soft path technologies. In addition to providing a free resource, this will prevent flooding and protect local ecosystems. In addition to contributing to a project that is regenerative and low-impact, the green technologies on-site would be highly visible and offer an opportunity for visitors to see the technologies in action and learn about their potential. In addition, there would be many educational opportunities for students to study the systems within a “learning laboratory” setting. In summary, the Eco-Innovation Center would serve as a venue where local, sustainable products could be showcased and where the public could learn about the workings of a circular economy. It would demonstrate the ideas of “loop closing” and regenerative/ restorative design at many scales, from the food-waste-to-energy loop on-site, to upcycling regional textile waste into sustainable building products, to visionary technologies for renewable energies and sustainable transportation. It would be a destination for locals and visitors alike and a beacon drawing attention to the possibilities inherent in circular economy thinking, increasing tourism and driving economic growth for Kőszeg.

Kőszeg’s wealth of natural resources, rich cultural and architectural heritage, and role as an educational center for the region—all described in detail in this report—make the development of educational activity with a focus on sustainable technology, design and construction fitting and feasible. The existing sustainable and creative cities initiative at the Institute of Advanced Studies, Kőszeg (iASK) and the Cultural Heritage Management and Sustainable Development post-graduate program at the University of Pannonia’s Kőszeg campus are already in line with a sustainable design curriculum. The proposed expansion of the educational programing should include but not be limited to academic education. Educational activity could be diversified to include workshops, vocational training and certification programs—all under the “sustainable design and construction” umbrella. There are two primary components of the educational activity: 1) “sustainable built environments” and 2) “sustainable ecosystems.” But it would also be appropriate to add the array of educational programs as a third activity around the circular economy. These programs would bring a variety of outsiders to Kőszeg while also offering workforce training for local residents, both benefiting the local economy in different ways. The following curriculum proposals capitalize on the existing conditions of the city and its region.

6.3.1 toPics Around the sustAinABle Built environment The first proposal, under the “sustainable built environment” heading, is a hybrid of energy and resource-efficient building retrofitting and historic preservation. This hands-on program could take the form of a short-term design/build studio based on similar programs in the United States (at Yale and Auburn universities, among others) in which students physically rehabilitate building stock in a designated community. The

sustainable design and construction training school in Kőszeg would be unique for Hungary and would therefore attract students from afar.

6.3.2 toPics in sustAinABle ecosystems

Figure 6.4. Diagram of Education Programming – A “Circular Economy Academy”(by authors). historic significance of Kőszeg’s buildings, along with the deteriorating condition of many of these structures, presents a special opportunity for students interested in historic preservation to develop technical skills in conservation and sustainable retrofits. In particular, the concerns around home heating (see section 3.3.2 Domestic Heating) could be addressed in part with energy-efficiency upgrades. Refurbishment of old buildings to increase efficiency offers many benefits that are in line with a circular economy: fuel use reduction, waste minimization, and cultural resource stabilization. Kőszeg could benefit from such a program with an upgraded building stock while students from across Europe and the United States would gain a unique set of skills. In addition to the studio program described above, there could be ongoing vocational training in dedicated sustainable design and construction systems and technologies to train building professionals and construction workers alike. Hungary is a member of the World Green Building Council and could offer the Leadership in Energy and Environment (LEED) program, which provides environmentally responsible building certification, to local interested professionals and tradesmen. Additionally, training in the International Passive House Certification program is increasingly valuable as this system is part of an emerging trend in new Hungarian construction (http://www.paosz.hu). Other related courses could include design and installation of photovoltaic systems, sustainable construction management, etc. Course offerings would respond to the needs of sustainable and innovative local businesses and these would be designed by industry experts. A

The second curricular proposal comes under the “sustainable ecosystems” heading. In such programming, local lands and water bodies would be used as laboratories for education and training of new management technique. These would comprise existing courses (offered in regional universities) and new specialized training programs. One, for example, is training in Pro Silva management techniques, (see section 3.9), described as a crucial component of the forestry improvement initiatives. See: http://www.prosilva.hu and support@prosilva.fi. Another example, training in constructed wetlands maintenance, would complement the installation of this feature and ensure its functional longevity. Courses currently offered by the Hungarian Research Institute of Organic Agriculture (ÖMKi) could complement the initiatives identified under section 3.5. And lastly, training in permaculture (circular, sustainable, and organic agricultural and agroforestry practices) could be a regular offering. See: http://www.permaculture.hu.

6.3.3 circulAr economy toPics A final more generalized curricular area could be training given under the title “Circular Economy Academy,” with courses offered to those interested in transitioning to this emerging policy area currently being emphasized throughout Europe. This could include introduction to circular business models for commerce and industry based on leasing or providing functionality rather than products. (Current training opportunities are coordinated through the Universitei Leiden, in the Netherlands, but see also http://www. beda.org/all-news/circular-design-learning-innovative-designsustainability). Other courses could be developed pertaining to waste management and recycling initiatives. The Eco-Innovation Center could also include collaborations with the local schools, offering hands-on learning in the form of internships, labs and workshops. In addition, the craft- and technology “makers” could offer skill-based but non-credentialing workshops to tourists and visitors on topics as diverse as woodworking, water and energy technologies, and product fabrication.

Figure 6.5. Master Plan showing education, innovation and infrastructural improvements (by authors)

A mAster PlAn: the eCo -innovAtion C enteR in Context Like the overall project strategy, a feasible master plan that supports the Eco-Innovation Center will leverage Kőszeg’s existing natural and physical resources and will rely on strategic, cost-effective interventions to maximize development potential, while minimizing cost. These resources include the historic building fabric in Kőszeg’s celebrated town center, the Gyöngyös River, and the Kőszeg Forest with its trail system; and its underutilized tourist and lodging structures, historic monuments, array of educational facilities, underutilized building stock, and finally, an existing but disconnected transportation infrastructure. Executed in phases, such a plan would create and connect Kőszeg’s existing and new resources with upgraded, sustainably oriented infrastructure to create a well-connected Kőszeg that will better serve an expanding local and tourist population. The Gyöngyös River is the primary organizing element of the proposed master plan. Originating in Austria as the Güns River, the Gyöngyös crosses the border and continues downstream for many kilometers until it joins the Rába River. The river basin, while not large, connects several key recreational resources in Kőszeg, including the Boating Lake and Lake Abért, and biking and walking paths that connect to

Kőszeg’s historic district and regional trail system. In addition to providing potential for energy in the form of micro-hydro power, it connects several disused mills and buildings that have redevelopment potential and scenic value. The Gyöngyös is not currently a primary tourist destination in Kőszeg but it offers great potential as a spine for future development. A strategic master plan has been developed to suggest how the project could be implemented along the Gyöngyös. It includes the two key development areas discussed above: education (coded blue in the diagram below) and innovation (orange), as well as the infrastructure that will support them (green). This represents a first stage of development for Kőszeg which would, ideally, stimulate further economic growth in these and other sectors of the economy.

6.4.1. educAtionAl FAcilities & Amenities A number of institutional facilities currently exist that, within the sharing economy context, could host an initial phase of educational programming as described above. Not only is this a tenet of the Kőszeg circular economy, but it also supports advanced educational programming evolving over time. The current facilities include buildings and spaces that are currently utilized by iASK, as well as the future iASK Engineering Lab currently under consideration for renovation. Additionally, there are a wide range of

vacant or under-occupied buildings in Kőszeg that could be upgraded to accommodate expanded programming or the introduction of new educational entities. The buildings themselves could act as showcases of the Eco-Innovation Center’s programs once renovated by the students or trainees, using materials and techniques developed within the Center.

6.4.2. eCo -innovAtion CenteR site A possible pilot site for the Eco-Innovation Center has been identified which could meet many of its necessary criteria. The site, which lies just northwest of Kőszeg’s historic center near the Austrian border, is identified in figure 6.6. It is approximately 5.5 acres (2.2 ha), a portion of which currently houses the Multifelt factory, which continues to produce roofing felt and other products. The remainder of the site is currently underutilized (serving as storage facilities) and contains a number of potentially charismatic older buildings, many in an advanced state of disrepair. Occupying the space between the Gyöngyös River and the canal, the site is connected to the Pannonian trail system and is adjacent to Kőszeg’s popular boating lake, though it is inaccessible from there. It is near Highway 87 and a planned bike trail extension, both of which will connect to the Austrian border as well as to a planned new

entry road into Kőszeg. With minimal intervention, the existing buildings would be sustainably rehabilitated to accommodate a range of programmatic elements, including spaces for the EcoIncubator, the Gastro-Enterprise that includes a microbrewery and a bakery, the “Sustainable Energy and Infrastructure Lab/ Showroom,” and a gallery/ demonstration facility that would showcase goods created on-site, host art shows and workshops, and serve as a gathering space for tenants. Rooftop greenhouses housing “aquaponics” (a system combining conventional aquatic agriculture with hydroponics) and soil gardening could be built on the flat roof of the Multifelt Factory and an open air structure along the project’s edge would accommodate market stalls where local farmers and artisans could sell their wares. The southern end of the site could accommodate outdoor events like music performances, festivals and films and could feature outdoor seating areas. During weekends and events, food and beverages produced on site could be sold to visitors, improving product visibility and expanding the sales potential. And by opening up the site to the Boating Lake, access would be greatly improved. The interventions described above could create a vibrant new center for locals and tourists alike, addressing an expressed need for new amenities for Kőszeg’s youth, extending tourist

Figure 6.6. Site Plan of the Eco Innovation Center (image and design by authors).

amenities, and creating economic opportunity and visibility for the enterprises housed within (see figure 6.6). In addition to creating educational and economic opportunity, the site would demonstrate the principles and technologies of renewable energy and sustainable infrastructure that are espoused by the center itself. Conceptual calculations show that there is potential for much of this site to be powered by rooftop solar and micro-hydro power installed along the Gyöngyös (see Table 4.1 for calculations). In addition, modular anaerobic digesters located behind the Gastro-Enterprise would use waste from the microbrewery, the bakery, and local restaurants to power the on-site cooking facilities. Finally, the site would incorporate a range of green infrastructure technologies for water management, including rainwater harvesting for use in the greenhouses and landscaping, permeable paving to mitigate flooding, and a series of decorative yet functional infiltration basins that would collect and purify storm water during heavy rainfall events. Should the initial phase prove productive, a potential expansion site has been identified (see figure 6.5).

6.4.3. generAl inFrAstructurAl imProvements To support the Kőszeg Center for Ecologic Innovation, some strategic and cost-effective infrastructural measures are suggested. These would increase access to the various components of the project, but would also benefit the local population and tourism infrastructure as well. These improvements will connect Kőszeg’s existing and new resources with upgraded, sustainably oriented infrastructure to create a well-connected and more resilient Kőszeg that will better serve an expanding local and tourist population.

6.4.3.1. PuBlic t rAnsPortAtion As mentioned earlier, Kőszeg is not well connected by public transportation and needs improvements to its road infrastructure. However, there are several existing improvement plans that are reportedly in process, including an extension of biking trails and new roads, as well as a proposed intermodal transit station to address visitors arriving by public transportation. While beyond the scope of this initial master plan, Kőszeg would be well served by improving access to and from larger cities and airports. In the interim, it is

possible that several smaller-scale initiatives be implemented to improve access within Kőszeg, including better routing of the existing Kőszeg-Szombathely bus service, and the possible incorporation of micro-scale urban transport, i.e. electric minibus of the type seen in Slovenia’s historic urban centers. These initiatives support sustainable development by increasing access and reducing automobile traffic.

6.4.3.2. B icycle And PedestriAn inFrAstructure While there are many well-used paths and green spaces in Kőszeg, they are discontinuous and deteriorated in areas. Over time, the connection of existing and new pedestrian and bike pathways along the river and through the town would create better access to existing physical, cultural and natural amenities as well as to the proposed educational projects and future development sites. In addition to improving transportation for locals and visitors, improved byways will help link Kőszeg and the Eco-Innovation Center into important regional trail networks that have important touristic value, including the Iron Curtain bike trail, the European Long Distance Walking Route E4 and the Alpannonia trail.

6.4.3.3. recreAtionAl FeAtures In addition to the initiatives listed above that would create recreational value, expanding so-called “eco-amenities” to existing and future recreational sites along the Gyöngyös and throughout Kőszeg could provide economic value. Eco-amenities provided by the Eco-Innovation Center’s entrepreneurs could include bike service hubs, food and beverage kiosks, and other small-scale interventions that support the mission of a greener, friendlier Kőszeg. In addition to creating amenities for tourists and locals, these small services would expand sales and visibility and dedicated spaces for young people.

6.4.3.4. h ydrologic FeAtures Over time, several other soft path interventions could be incorporated along the Gyöngyös spine that would increase Kőszeg’s resilience to flooding and provide additional

Figure 6.7. Rendering of the new Eco-Innovation Center as seen from the approach from Lake Abert, featuring the outdoor event space flanked by the Gastro-Industry building and the farmers market (image by authors) ecosystem and aesthetic benefits. As outlined in Chapter 2, a constructed wetland upstream of Kőszeg would minimize flooding from upstream flood surges but could also act as a nature preserve attracting and supporting wetland biodiversity, particularly if linked by hiking and biking trails to Kőszeg proper. In addition, a general overhaul of drainage and repair of the Gyöngyös canal would also help control flood waters while upgrading a polluted spillway into an amenity. Disused mills and other waterfront projects could then become sites for adaptive reuse development along the canal. Both initiatives could be part of the sustainable ecosystems programming that is offered by the Eco-Innovation Center, with much of the engineering and labor being provided as part of a hands-on learning program.

6.4.3.5. B uilding s tock While not specifically infrastructure, the built environment is one of Kőszeg’s most valuable resources. Improvement of the town’s building stock as an aspect of the sustainable built environment curriculum would, by default, improve one of Kőszeg’s greatest resources and provide space for program enlargement (i.e. living galleries, classrooms, shops) and other

economic growth in a way that visibly aligns with the tenets of a circular economy. As the program expands, Kőszeg could consider utilizing restored buildings as part of an “Albergo Diffuso,” a concept pioneered in Italy in which many buildings in the village are renovated in order to be organized and managed as a single hotel, run by a local stakeholder. The concept has brought economic benefits to many small villages faced with out-migration and decaying building stock, and has brought sustainable development to such areas (Racine, 2012). In Kőszeg this could include both historic buildings in the town’s center as well as the lodging buildings in the Kőszeg hills.

Project costs A very preliminary analysis of costs for the Eco-Innovation Center as well as costs for the initial phases of the recommended infrastructural interventions can be found in Appendix A.iv. The numbers shown here are representative of approximate quantities based on highly schematic designs and generic unit costs that are publicly available. The costs may not accurately represent construction costs in Hungary in general and for Kőszeg in particular, as these numbers are not available. The budget will be updated continuously during subsequent phases of the

project, the scope of which will be outlined further in Chapter 7.

Economic Success. These are metrics that describe direct economic value. They will include net job growth, unemployment rate, increase in numbers of visitors and students, new businesses started, exports, etc.

Non-Economic Success. These are metrics related to social and environmental measures including energy independence, flood reduction, improved agricultural and forestry management, reduction in waterway pollution, improved biodiversity, minimization of out-migration/ retention of local population, etc. Note that improvements in these areas is likely to have substantial economic value that is both short-term and long-term.

Project BeneFits The proposed master plan would provide many benefits for Kőszeg and its residents: expanded job and business opportunities, income generating educational programming, and a major increase in tourism, potentially transforming Kőszeg from a day trip into a weekend or semester-long travel destination. But a master plan that also spurs education and innovation based on the principles of a circular economy would create accompanying benefits beyond economic growth. The ideas embodied by the Eco-Innovation Center and the master plan would have direct benefits for Kőszeg’s resource stocks, serving to regenerate the town’s natural and physical resources and creating a resilient and future-thinking Kőszeg that may entice young people and families to stay.

metrics And meAsuring success Measuring economic development goes well beyond looking at the retention and creation of jobs in a community (https://caled. org/everything-ed/economic-development-metrics). In order to assess whether the project has been successful, the metrics must be tied to the goals of the economic development proposal. There are two broad categories by which each of the project’s components can be assessed:

Table 6.1. Matrix of benefits provided by educational components in proposed plan for Kőszeg. Plan for Kőszeg: Educational Components Proposed Intervention Expanded educational programming, the Circular Economy Academy

Benefits Increase the number of temporary and permanent city residents, expand tourist base, job training for residents

Reduced Resource Input % increase in student population % increase in course offerings Tuition revenue Number of job placements

Hands-on curriculum opportunities (i.e. design-build and forestry programs)

Physical improvement to Kőszeg’s building and ecosystem services stock, skills training. Smart strategies use circular, regenerative processes minimizing waste.

Building inventory before and after launch of program Weight of materials diverted from waste streams

Table 6.2. Matrix of benefits provided by the proposed Ecological Innovation Center. Plan for KĹ&#x2018;szeg: Eco-Innovation Campus Proposed Eco-Products & Services Incubator (â&#x20AC;&#x153;cleantechâ&#x20AC;?)

Benefits Economic opportunity for residents and the city as a whole. Development of new materials and technologies to be sold locally and as exports.

Gastro-enterprise incubator

Metric of Success Number of new products and services New tenant-generated revenue % increase in visitor counts per annum (p.a.) (as a quantifiable measure of tourism)

Economic opportunity for residents and the city as a whole. Improved food access for tourists (branded/ local products for gastro-tourism).

Number of new food products/services offered

Better food access, tourist destination, can be used for other purposes (i.e. craft market), shortened supply chain and improved markets for farmers.

Revenue generated from sales, p.a.

Incorporation of outdoor event space and programming

New amenity for local youth, tourists, etc.

Number of annual events

Rooftop greenhouses

Local food production, takes advantage of waste streams on site. Insulates buildings.

# kilos/p.a.. of food produced

Soft path water infrastructure (infiltration basins, permeable pavement)

Minimizes flooding, removes pollutants, recharges groundwater system, ecosystem development, aesthetic opportunity.

Flood levels before and after creation of infrastructure

On-site energy micro-grid using solar & micro-hydro power)

Energy independence for the Eco Innovation Center, demonstration of technologies to public, used as lab for educational programs.

kW/p.a. of energy produced

Anaerobic Digesters

Energy independence, free energy, reduced waste streams, demonstrates technologies to public, used as lab for educational programs

kW/p.a. of energy produced

Farmers market

Revenue generated from sales, p.a.

P.a. visitor counts (as a quantifiable measure of tourism)

Revenue from visitor counts/ticket sales, p.a.

# kilos/p.a.. weight of diverted waste

Species inventory before and after

List of educational courses (and student count) utilizing facility

Table 6.3. Matrix of benefits provided by infrastructural elements in proposed plan for Kőszeg Plan for Kőszeg: Infrastructural Elements Proposed Intervention

Benefits

Reduced Resource Input

Development of greenway and canal Increased connectivity and circulation, with paths and other amenities expanded tourist base, job training for residents

Pedestrian traffic p.a. counts Increase in visitor counts p.a.

Upstream wetland construction

Reduces flooding, removes pollutants, charges groundwater system, biodiversity improvement, aesthetic opportunity.

Flood levels before and after creation of wetland Species inventory before and after creation of wetland

Eco-Amenity development throughout Kőszeg

Increases distribution and exposure of the Eco Innovation Center’s businesses, creates amenities for tourists and locals

Revenue p.a. product sales Visitor count p.a.

c hAPter 6 reFerences: Racine, Amelie. â&#x20AC;&#x153;Albergo diffuso: to develop the accommodation offer differentlyâ&#x20AC;? Accessed November 24, 2018. Available at: http://veilletourisme.ca/2012/01/12/albergo-diffuso-pour-developper-loffre-dhebergement-autrement/ Williams, Helena & Williams, Jr, Robert & Omar, Maktoba. (2013). Gastro-tourism as destination branding in emerging markets. International Journal of Leisure and Tourism Marketing.

chAPter 7:

Execution of the Eco-Innovation Center and Related Planning Improvements Even a strategic and cost-effective master plan will require both community support and capital investment. As designed, the project will bring significant benefits to the town of Kőszeg and its residents, particularly with regard to the youth demographics. However, change is difficult and “incidental” research suggests that development at any scale will be challenging in Kőszeg because of the complexity of involving and satisfying numerous parties. In addition, even with a proposal based on revenue generating ideas and future economic benefits, the project will require significant capital inflow in order to be implemented. Consideration of these challenges is critical to move forward with the project.

cAPitAl investment And FinAncing tHe eCo-innovAtion CenteR The master plan includes both commercial and institutional initiatives as well as infrastructural improvements, each of which will rely on different funding sources and structures. While infrastructural work can be assumed to be funded by local or regional government grants, the Eco-Innovation Center will likely rely on outside funding in the form of a combination of government and E.U. grants, incentives and private investment. Identifying potential funders for each of the components and each of the phases is critical to executing the master plan. Most high-achieving incubators are nonprofit models, and public sector support contributes fundamentally to program success. Typically, more than half of an incubator’s budget is rent and service fees, but most incubators rely on a combination of public and private grants and incentives to underwrite the project. (Raths, 2014). A sponsoring organization, typically a university or private company with a stake in the incubator’s mission, must be identified at the early stages as a source of start-up capital and

other resources. Government support in the form of loans and grants is also key: Tax incentives and research and innovation grants are often part of a funding strategy for an incubator, particularly at the early stages (Moore & Moore, 2018).

7.1.1. leverAging existing relAtionshiPs And Building new ones To be able to fully capitalize the Eco-Innovation Center, it will be critical to leverage existing relationships as well as building new ones. One way this can be done is by forming partnerships between the town and various private institutions and businesses. These partnerships can be beneficial for both parties, giving the public-sector access to private financing, and providing business and industry with an opportunity to develop capacity and expand.

the region and expand workforce development via internships and apprenticeships. And additional partnerships could be created to correspond with the center’s hands-on programming, i.e. using a cooperative “revolving fund” initiated by the government to finance upgrades and allow students to perform building repairs to town-owned buildings as part of the educational curriculum, whereby returns from improved asset sales or leasing revert to a general pot for ongoing investment. These connections could ensure the integration of the various programs, allowing them to share resources and provide direct benefits to Kőszeg in the form of a skilled workforce and improved infrastructure. There are precedents for partnerships between public and private entities in Hungary, mostly focused on the increase of efficiency, rather than on sharing information or diffusing risk, although in recent years their number has decreased. Because of these influencing factors, these enterprises can’t be called public/private partnerships in the strict sense (Kozma, 2016).

7.1.1.1 PubliC -PRivAte PArtnershiPs And PArtnershiPs with nonProFit entities

The restoration and renovation of the Sgraffitós House in Kőszeg’s historic district is an example of a successful partnership between the town of Kőszeg and iASK. With the renovation funded by the state-coordinated KRAFT program, the improved property is owned by the town, and is leased by iASK for use as a library. Both entities benefitted – iASK was able to influence the design of the space to ensure that it would accommodate its unique requirements, while Kőszeg benefits by having a well-restored historical resource as part of its historic town center. This sort of partnership could be effective in the development of the Eco-Innovation Center, which would benefit both the city and businesses located in Kőszeg and the region. By partnering with various educational institutions, including the Kőszegi Evangélikus Szakgimnázium (Kőszeg Evangelical Vocational School), iASK-Pannon University, CUNY and numerous other partner schools, the center could provide a highly educated workforce for and from the region. In exchange, the students and workers who come to Kőszeg would spend money and boost the local economy. Partnerships could be created between the schools, the town and for-profit entities operating within the center, which could attract business development and growth to

7.1.1.2 PArtnershiPs with commerciAl enterPrises Partnering with nearby commercial enterprises based in Szombathely and other nearby urban areas will be especially critical in the initial stages of implementation for several enterprises proposed for the center. Financial and operational assistance for these startups will be necessary to achieve the economies of scale required for new product and service offerings located there. For example, the microbrewery will likely initially need to be a spinoff from an already robust beer brewery and distribution enterprise interested in expanding to Kőszeg as a tenant at the Eco-Innovation Center and developing a new localized “brand” that could be sold not only in Kőszeg but regionally. The same kind of economic leverage would most likely be required for a bakery and for a new gastro-enterprise. An illustration of this leverage potential is Szombathely-based bakeries and the parent Portre Restaurant, now with branches in Kőszeg. Another is the Elixir Health Club, a branch new to Kőszeg and substantially upgraded under the management of its Szombathely economic parent. The partnerships should be structured in such a way that the new enterprises can eventually spin off on their own in Kőszeg.

7.1.2. government And eu grAnts The European Union is intent on helping member states create a greener and more resilient future that enables the further development of groundbreaking technologies and economic growth. A program to support these goals is Horizon 2020, which aims to couple research and innovation while removing barriers to public-private collaboration and reducing bureaucratic burdens for applicants. For the years 2018-2020, the program has a budget of 30 billion euros, which can be used in several different themed research and development projects (EC, 2018) by public authorities, managing authorities, agencies, research institutes, thematic and other non-profit organizations that would like to participate. The key areas that may connect to this project are food security and sustainable agriculture and forestry; secure, clean and efficient energy; smart, green and integrated transport; and climate action, environment, resource efficiency and raw materials. Applications to Horizon 2020 are accepted annually but funds today are scarce and organizations must still navigate a bureaucratic procedure with deadlines that vary by program. A new program can be developed or an existing program can be joined. At present there are around 184 active projects with themes that could benefit this project. The Hungarian government also offers a variety of grants to businesses, mostly based on EU-funds. The government based Terület- és Településfejlesztési Operatív Program, (in English, the Regional and Settlement Development Operative Program) has funds eligible until 2023 and draws participation by most of the Hungarian settlements and local governments, including Kőszeg. (NGM, 2014). This program covers many different areas, including regional economic development, the revitalization of urban areas to attract investors and residents, the change to a lowcarbon economy and the promotion of Community-Led Local Development (short CLLD) projects, all of which would benefit Kőszeg and this project (NGM, 2013). Funds for this program total 3.38 billion euros in the 2014-2020 time period. Though most of that sum is already dedicated, another round of funding may follow. [1]

community suPPort And Project PhAsing As with any development project, it is necessary to consider the phased rollout of the project. The proposed venture has

been broken down into four distinct phases as per Figure 7.1 below: 1) Assessment and Early Planning, 2) Design and Development, 3) Implementation and 4) Expansion. Phase 1 has been completed; the others are prospective.

7.2.1. PhAse i In the first phase of the project, a team of researchers gathered data and did an analysis of existing conditions for Kőszeg and its surrounding region. The findings of this analysis are featured in this report. Various sectors were considered and a preliminary inventory developed, identifying the region’s natural resources, energy makeup, economic conditions, existing infrastructure, cultural resources, educational institutions, transportation and circulation, land use, recreation/open space, and demographics. This analysis led to the identification of challenges and potential solutions, an identification of some key stakeholders, and an early project proposal, featured in this report. This phase concluded with a presentation of the proposal to several key stakeholders, including the deputy mayor of Kőszeg, the town’s director of tourism, and the key management of iASK, where it was received with enthusiasm.

7.2.2. PhAse ii: s tAkeholder workshoP, FeAsiBility study, identiFying PArtners & PlAyers In the next phase of the project, key partners and local and regional workshop participants would be identified, including those from the educational, industrial, civic, professional and governmental sectors. A small executive management group (project directors) should be selected, representing the key partner sectors. Meetings with stakeholders would follow and from these meetings project goals and objectives would be refined to better reflect the new ideas and any concerns of the community. Ideally in tandem with this phase, it is crucial to do a further, more detailed feasibility study of the proposal and determine fiscal opportunities and constraints in the community. The feasibility study should also include a more detailed analysis of the economic conditions of Kőszeg and its region. (Additional funding would be required for this more in-depth feasibility study). As the project plan takes a more finalized form, a targeted

Figure 7.1. Phasing and Implementation Diagram (by authors)

industry study should be conducted to know exactly what industries would be appropriate for the Eco-Innovation Center. Appropriate industries should be contacted and informed of the opportunities in Kőszeg through a marketing campaign. Ultimately, Phase II should conclude with the preparation and adoption of the final plan. Dedicated fund-raising efforts would accompany this phase and the next two.

7.2.3. PHAse iii: PRe - imPlementAtion Details of the exact implementation would evolve as the project is finalized but generally speaking implementation goes more smoothly when a clear organizational structure is established and local champions are committed to the project. In this phase it is important to know all the players and set up the framework for moving forward. During the first part of this phase, the property for the Eco-Innovation Center would be acquired and business entities set up. A design and engineering team would need to be hired to create a preliminary design and cost analysis for the space that could be agreed to by all parties. This would be followed by a full- scope set of construction documents, along with a precise construction and operational budget.

7.2.4. PhAse iv: imPlementAtion In this final phase, programs and facilities would be built out and staff hired. An advertising and outreach campaign would need to be established and finally programming would launch. In support of the project, the government of Kőszeg would need to respond with infrastructure upgrades, the means for which would come from new revenues generated by the project. The project is conceived to enable a sequence of success that might look like this: Spaces at the Eco-Innovation Center fill up with tenants developing new technologies and goods. Educational opportunities around green design and the circular economy are instituted. More students and tourists come to Kőszeg, increasing revenue for the town. Products made at the Eco-Incubator make their way into the local economy. This scenario would present both opportunity and need for the expansion of certain program elements to meet a growing demand. For that reason, success of the project needs to be continually monitored. Finally, it must be emphasized that for this project to be viable it is imperative that it ultimately benefits—and involves—the current residents of Kőszeg. Success relies on leveraging existing resources and institutions and so will need a high degree of community buy-in. Residents should be invited to participate in the planning process at every stage.

7.2.5 PArAlleling the Four

Implementation of the Pro Silva initiative throughout Kőszeg’s forest system for sustainable forest management.

Expanded localization and resource sharing for farmers, with the possibility of expanded infrastructure to accommodate it.

Attempt to improve energy independence and resiliency and reduce particulate matter emissions by implementing distributed, renewable energies throughout Kőszeg. This would include the phasing of solar installations beginning with municipal buildings and expanding to domestic installations outside the historic town center, paired with an expansion of energy-tight building renovations. In addition, an expansion of micro-hydro power along the Gyöngyös River and the use of biodigestion to capture energyfrom-waste can be considered.

Expansion of the center’s operations.

Project PhAses: Project e xPAnsion In addition to the master plan and the Eco-Innovation Center, a number of initiatives and policies have been suggested that, if implemented, could have a great impact on Kőszeg’s long term resiliency and sustainability. These projects are related to the strategies and technologies to be adopted by the center but distinct in their timelines, execution and funding streams. It is possible that the suggestions can be tested and developed further within the center’s innovation or educational institutions prior to implementation, taking advantage of an attenuated timeline. The timeline for the following would need to be established in parallel with the phases of the Eco-Innovation Center implementation. As discussed earlier in this report, these initiatives include:

Implementation of the various smaller scale soft path technologies for rainwater catchment and stormwater management throughout Kőszeg, as well as maintenance and improvement of the SWAT model for the region’s watershed.

Attempt to use constructed wetlands as a biochem and geophysical lab for students.

Figure 7.2. Amplification of Project (by authors)

Beyond the Four Project PhAses: AmPliFicAtion If successful as a demonstration project, the Kőszeg Center for EcoInnovation would demonstrate some of the features of a circular economy, potentially helping to launch a movement replicating and extending these practices to the surrounding region and beyond. The practices demonstrated at the Kőszeg Center could be amplified throughout the region through several processes. First and foremost, the practices will be passed on and applied by practitioners educated at the center. Whether they are builders, engineers, designers, architects, or thinkers, former students associated with the center and its sustainable design teachings would employ this knowledge and skill in their professional lives. Buildings would get built using methods learned at the center, green technologies would be deployed, and projects would be designed with circular economy principles in mind. If successful, Kőszeg’s Eco-Innovation Center will be a model for how other communities can close waste streams, reduce negative consequences, and create long-term resilience while generating social, economic and environmental benefits. This example could stimulate the establishmentofsimilarcentersthroughouttheregion,creatinganetwork and amplifying the message of the benefits of the circular economy.

AdditionAl resources: [1] For further information see: https://cohesiondata.ec.europa.eu/programmes/2014HU16M2OP001

chAPter 7 reFerences: European Commission (2018): Horizon 2020 Work Programme 2018-2020 Kozma Miklós (2016): A Public-Private-Partnership Magyarországon Kukely et al. (2015): Kőszeg Integrált Településfejlesztési Stratégia (ITS) Moore, Justine and Olivia Moore. “How to start a startup incubator (from the founders of Stanford’s Cardinal Ventures).” Accessed July 26, 2018. Available at: https://hackernoon.com/how-to-start-a-startup-incubator-from-the-founders-of-stanfordscardinal-ventures-35697427960 Nemzetgazdasági Minisztérium (NGM) (2013): Terület- és Településfejlesztési Operatív Program - verzió 3.0 Nemzetgazdasági Minisztérium (NGM) (2014): Terület- és Településfejlesztési Operatív Program Raths, David. 2014. “Growing Innovation: Winning Formulas for Tech Incubators.” Accessed August 1, 2018. Available at: http://www.govtech.com/applications/growing-innovation-winning-forumlas-for-tech-incubators.html

chAPter 8:

Conclusion justiFicAtion For the study The town of Kőszeg, endowed with a handsome setting and substantial natural resources, possesses an illustrious history. Its storied past remains embedded in its well-preserved landscape, townscape, buildings, and artifacts. These scenic, historic and cultural assets attract seasonal tourists from the local region and beyond, helping supplement the town’s modest service economy. Today, however, the forces of market globalization and urbanization threaten to undermine long-term economic stability, while climate change portends still greater environmental, economic and social disruptions, with potential disturbances that are dynamic, interdependent and complex. To build resiliency against these destabilizing forces, this interdisciplinary inventory of natural, historic, industrial, and commercial resources identified critical features of the town and bioregion’s asset pool that could be internally optimized, integrated, and thereby “circularized”— within a stipulated setting—to counter many of these disruptive forces. In contrast to our conventional, linear model of once-through inputs and outputs, the initiatives proposed in this report attempt to collectively prototype a circular economy at a modest, ideally manageable scale. The circular economy defined here is restorative by design. It minimizes impacts and wasteful resource throughput in several ways: Regenerating and optimizing the productivity and efficiency of both natural and constructed assets; mutualizing (sharing resources and information; and looping (recovering, repurposing, recycling) waste output from one sector—economic, industrial, agricultural and infrastructural—for beneficial use by another.

summArized APProAch Adhering to these axiomatic strategies, the specific recommendations proposed in this report can be organized here according to these key attributes:

Regeneration: Conserve, reclaim and rehabilitate the health and resilience of ecosystem services and natural (recreational/

tourism) assets, specifically the: • Natural and constructed water bodies (the Gyöngyös riverbank, the canal, upland flood-prevention measures, and a cleansing wetland with water storage capacity)

•

Development of a new cooperative, district-based, not-for-profit agricultural integrator model for the area modeled on the system put in place and proven by Kőszeg’s small wineries

•

Biodiversity and integrity of forest species and soil health through improved forestry management practices (the European Union’s Pro Silva Method

•

Modeling the advantages of multipurpose, co-working and maker-spaces at the Eco-Innovation Center

•

Diversification of food and fodder crops, organically produced (without chemical fertilizer and pesticides) and ongoing return of valuable biological nutrients to the soil

Utilizing (and enhancing) iASK educational resources (classroom, dormitory, library, other TBD) for professional and vocational training around sustainable built and natural environments, technologies and best practices

•

Scenic and recreational features (hiking, boating) of the Kőszeg hills, the Gyöngyös River and other water bodies, the green belt they comprise, and improved access by upgrading bicycle and pedestrian pathways.

•

Partnering with other cities’ larger, more robust commercial and infrastructural enterprises (e.g. Szombathely) to help achieve necessary economy of scale for realizing new Kőszeg-based craft enterprises (e.g. brewery, bakery, aquaponics, etc.).

Optimization: Spur economic and infrastructural resiliency with:

•

Repurposed and upgraded (to highest efficiency standards) vacant or underutilized historic structures using a system of revolving financing with involvement of local expertise and labor Creation of an Eco-Innovation Center and new public destination at the edge of town, a multi-purpose incubator space and showroom for clean technology coupled with new commercial activities and multi-use public space A system for wood curing and storage for optimizing its energy value while reducing natural gas consumption and air pollution

•

Deployment of distributed, renewable energy (solar, solar thermal hybrid, micro-hydro) and a pilot microgrid and energy storage system

•

Enriched educational offerings (via a “circular economy academy”), one that may include vocational and professional training in clean technology, green building practices, Pro Silva forestry methods, permaculture, and viticulture best practices.

Mutualization: Share use of the area’s human, natural and

Looping (Circularizing): Put greater value on human and natural resources. Recover and exchange waste products for beneficial use by the same or another sector by:

•

Systematizing water harvesting to offset potable water use and restore aquifers

•

Recouping biomethane currently being flared at Kőszeg’s landfill and the nearby pig farm to produce distributed, renewable energy and nutritious fertilizer

•

Recovering useful existing and new forest and agricultural products and byproducts for revenue through training in local craftsmanship, microbrewing and gastronomy

•

Retraining and retaining unemployed or underemployed local citizens to participate in and service the circular economy.

PotentiAl outcomes Potential costs, benefits, and metrics for measuring success have been conceptually identified in this report for the specific initiatives proposed above, with some further detail provided in the Appendix. Collective benefits can be broadly summarized as follows:

informational resources by:

Restored and enhanced ecosystem services within the

study area to support long term, locally-based resource provision

key Findings & recommendAtions: circulAr design thinking For town And BioregionAl renewAl

Reduced need for imports of more costly energy, water, materials, food and services

Job creation and training of a next-generation workforce around sustainability/circular economy principles

Networked business development models using stateof-the-art renewable materials and energy technologies

Wealth-building by attracting regional and even foreign investment in new future-proofing enterprises

Presentation to the world’s development community of a model program capable of being replicated across Pannonia, Hungary and beyond

Positioning Hungary as a leader in regional sustainable redevelopment efforts

As a global trend, urbanization brings with it a critical consequence—the outmigration of large numbers of people from rural towns and a devitalization of their livelihoods and local economies. A different paradigm is needed to ensure the sustainability of these essential settlements. Proposed here for the Western Pannonian region of Hungary is a hallmark case study in the “circular economy,” one grounded in an integrative systems approach, closed-loop cycling of resources, and cooperative, participatory networking. This paradigm has been applied to the town of Kőszeg and its bioregion, as a solution demonstration of the utility of sustainable development strategies in the context of a developed, though rapidly changing, nation state.

As an ambitious demonstration project, the Kőszeg Center for Eco-Innovation and its external circular economy measures offer a model for potential replication elsewhere. By identifying and testing the possible advantages of applying regeneration, optimization, sharing and looping strategies across its resources–-natural, infrastructural, economic, historic, cultural, educational, and human—the Kőszeg study objectifies and makes more tangible abstract circular economy principles. With implementation of these pilot measures, a Kőszeg-and-bioregion circular economy model could help launch a movement of replication by other settlements.

At this relatively small scale, a demonstration of more holistic ways of approaching endogenous rural development and of new opportunities to apply more innovative, sustainable and placebased strategies has an obvious logic. Specifically, circular design can be employed here to encompass: 1) a renewed and proactive focus on regeneration of local and regional ecosystem services, including new means of food and fiber production; 2) incorporation of more resilient, low-carbon, low-impact infrastructural systems; 3) promotion of economic diversification based on innovative use of local resources, including technical know-how and appropriately trained members of the labor force.

The features of the accompanying master plan offer a tactical vision of new initiatives, many already aligned with Kőszeg’s own strategic and capital plans. As a document with longerterm vision, it identifies key connections and integration opportunities among natural and constructed resources to help support a resilient and future-thinking Kőszeg—one that may better entice young people and families to remain and regional enterprises to invest in new commercial collaborations. It is a vision that builds on Kőszeg’s unique attributes but requires a networked economy of scale to realize.

Transformative policies, incentives and practices will be required to implement such expanded circular-design thinking. These can be cast as a set of key findings—or lessons learned— that emerged from this holistic planning exercise that resulted in regional design for a sustainable transformation of the Köszeg region.

recommendAtions: •

ProPosed strAtegies & technologies: •

• •

metrics oF success: • •

Increased % of infiltration rate, reduced % of runoff and combined sewer overflow events Increased % of on-site water reuse.

ProPosed strAtegies & technologies: •

• • • •

metrics oF success: • •

% increase in area biodiversity above baseline, increased forest floor biomass, and % increase in forest area under Pro Silva management. % increase in small and mid-size farm earnings.

ProPosed strAtegies & technologies: •

• • • •

metrics oF success: • • •

ProPosed strAtegies & technologies: •

•

meAsuring success: • •

Addeundum: Commentary from a Stakeholder Workshop, October 29, 2018

loCAtion: z wingeR HAll , Kőszeg

context And oBjectives For the stAkeholder workshoP Prior to finalizing this project report, CUNY and iASK leadership agreed that it was vital for the long-term benefit of the project to incorporate feedback from local stakeholders and affected public. The goal of the stakeholder workshop was to invite discussion and commentary on the proposed initiatives from key strategic partners in Koszeg and vicinity, along with members of the general public. For a development initiative such as the one detailed here, a stakeholder workshop process would typically occur at the inception of project planning. It would include a “visioning” session to elicit expectations and perceptions, identify crucial community agendas and concerns, and even flesh out additional components and features not previously considered. By conducting exploratory discussions and establishing multiple channels of communication and interaction with the key players and their constituencies, planners can build critical relationships that have the potential to improve overall project outcomes. The compact timeframe governing the student project didn’t accommodate a window for planning and executing such an initial workshop. Nonetheless, the opportunity to present the project publically and open a dialogue with local government, civic organizations, commercial enterprises, educators and interested citizens, gave invaluable feedback to the project team. The workshop agenda, description of the attendees, received commentary and recommendations are included in the sections below.

A KÖRKÖRÖs gAzdAsÁg vÍziÓJA Kőszegen (tHe vision of tHe CiRCulAR eConomy in Kőszeg) 29 octoBer 2018 13:00 – 17:00 zwinger AgendA 1.

welcome

13:00

Plenary

Ferenc Miszlivetz Sandor Kerekes

wARm-uP exeRCise

13:15

Plenary

student PresentAtion

13:30

Plenary

General Questions

BreAk