An economic model of soil conservation/depletion

Land is defined in terms of its qualitative characteristics in order to focus upon conservation/depletion decisions made with respect to the soil. The qualitative definition of land involves a capital component (total nitrogen content) and a Ricardian component (total precipitation). The economic model developed utilizes neoclassical capital theory to describe individual behavior in a conservation/depletion context. An important concept to the system is that of user cost; it is this concept which provides an economic rationale for fallow, a decision which requires the entrepreneur to forego static income as well as depleting the soil.     

Understanding the global economic crisis: A biophysical perspective

The recent economic meltdown worldwide has reinforced our understanding of the effects of decoupling economic growth, monetary policy, and resources. Concern for peak oil and suggestions that it may have contributed to the global economic woes as well as over concern for the banking fraud may be adding confusion over the underlying causes and sending a misleading message to the public and ultimately to policy makers. Viewing the economy as simply a circulation of money that can be manipulated to increase spending and therefore consume our way out of the current economic situation, is courting disaster by deluding the public that the solution lies in simple adjustments to the current monetary system. Similarly, emphasizing that energy is the problem and that the solution can be found with another energy source is probably counterproductive in the short run and may be disastrous in the long run. The recent nuclear accident in Japan seriously calls into question increased dependence on nuclear energy and renewable energy sources, in the majority, have low net yields and are unevenly distributed worldwide.In this paper we frame the economic system as a subsystem of the larger more encompassing geobiosphere and suggest that within this context, neoclassical economics is unlikely to provide sufficient explanation of the recent economic melt-down. From a biophysical perspective, increasing the amount or speed of money circulation as well as extracting more energy from whatever source is available will only compound the problems and relying on growth as the solution to what ails the global economy is not a desirable nor a tenable solution.     

Pollution,welfare, and environmental policy in the theory of Comparative Advantage

Within a simple two-sector general equilibrium model it is shown how some well-known propositions of the neoclassical trade theory can be applied to countries with pollution-generating industries. Results are obtained not only under the assumption that the countries do not enforce any environmental policy but also for the case that one or each country implements an environmental price and standard system. In particular, several versions of the Theorem of Comparative Advantage with respect to environmental scarcity are derived, a theorem on welfare losses from trade, and an emission charge equalization theorem.     

Re-evaluating the role of energy efficiency standards: A behavioral economics approach

The economic models that prescribe Pigovian taxation as the first-best means of reducing energy-related externalities are typically based on the neoclassical model of rational consumer choice. Yet, consumer behavior in markets for energy-using durables is generally thought to be far from efficient, giving rise to the concept of the “energy-efficiency gap.” This paper presents a welfare analysis of energy policies that is based on a behavioral model of temptation and self-control, introduced by Gul and Pesendorfer 23 and 24. We find that, in the presence of temptation, (i) Pigovian taxes alone do not yield a first-best outcome, (ii) when viewed as substitutes, energy efficiency standards can dominate Pigovian taxes, and (iii) a policy combining standards with a Pigovian tax can yield higher social welfare than a Pigovian tax alone, implying that the two instruments should be viewed as complements rather than substitutes.     

A relatively optimistic analysis of growth and pollution in a neoclassical framework

A series of neoclassical growth models, allowing for the fact that the production process results in pollution creation as well as useful output, is constructed and analyzed, placing particular emphasis on the role of technical progress. It is seen that firms not subject to pollution control are motivated to create an ever more polluting technology, but with control adequate technical progress allows exponential growth of per capita income with constant (or improving) environmental quality. If both limiting emissions and augmenting the absorptive capacity of the environment are available for pollution control, the marginal productivities of the two methods should be equalized.     

Public Timber Supply, Market Adjustments, and Local Economies: Economic Assumptions of the Northwest Forest Plan

Abstract:  The Northwest Forest Plan in the Pacific Northwest sought to stabilize local economies, including local employment and income, by stabilizing the flow of wood fiber from public forests. This is also a common forest management objective in other regions and countries. Because this economic strategy ignores basic market adjustments, it is likely to fail and to unnecessarily damage forest ecosystems. Application of basic economic principles on how markets operate significantly changes the apparent efficacy of efforts to manage local economies by managing timber supply. The emphasis on timber supply tends to ignore the dominant role that the demand for wood fiber and wood products, rather than wood-fiber supply, plays in determining levels of harvest and production. Contemporary economics indicates that markets tend to operate to offset reductions in wood-fiber supply. This significantly moderates the economic cost of reducing commercial timber harvest in the pursuit of environmental objectives. In addition, contemporary economic analysis indicates that the economic links between natural forests and local communities are much broader than simply the flow of commercially valuable logs to manufacturing facilities. At least in the United States, the flow of environmental services from natural forests has increasingly become an amenity that has drawn people and economic activity to forested areas. Attractive site-specific qualities, including those supported by natural forests, can potentially support local economic development even in the face of reduced timber harvests. These market-related adjustments partially explain the Northwest Forest Plan's overestimation of the expected regional impacts associated with reduced federal timber supply and the ineffectiveness of the plan's efforts to protect communities by stabilizing federal timber supply.     

Roads, Development, and Conservation in the Congo Basin

Abstract: Road density is closely linked to market accessibility, economic growth, natural resource exploitation, habitat fragmentation, deforestation, and the disappearance of wildlands and wildlife. Research in the Republic of Congo shows that roads established and maintained by logging concessions intensify bushmeat hunting by providing hunters greater access to relatively unexploited populations of forest wildlife and by lowering hunters' costs to transport bushmeat to market. Reconciling the contrary effects of roads on economic development and biodiversity conservation is one of the key challenges to wildlife managers in all nations. As the Democratic Republic of Congo prepares to reconstruct its almost completely collapsed road system, the government, donors, and conservation organizations have a unique opportunity to strategically prioritize investment in segments of the network that would maximize local and national economic benefits while minimizing adverse effects on forest wildlife.     

Macroeconomic Policy,Growth, and Biodiversity Conservation

Abstract: To successfully achieve biodiversity conservation, the amount of ecosystem structure available for economic production must be determined by, and subject to, conservation needs. As such, the scale of economic systems must remain within the limits imposed by the need to preserve critical ecosystems and the regenerative and waste assimilative capacities of the ecosphere. These limits are determined by biophysical criteria, yet macroeconomics involves the use of economic instruments designed to meet economic criteria that have no capacity to achieve biophysically based targets. Macroeconomic policy cannot, therefore, directly solve the biodiversity erosion crisis. Nevertheless, good macroeconomic policy is still important given that bad macroeconomy policy is likely to reduce human well‐being and increase the likelihood of social upheaval that could undermine conservation efforts.     

Growth and pollution convergence: Theory and evidence

Stabilizing pollution levels in the long run is a pre-requisite for sustainable growth. We develop a neoclassical growth model with endogenous emission reduction predicting that, along optimal sustainable paths, pollution growth rates are (i) positively related to output growth (scale effect) and (ii) negatively related to emission levels (defensive effect). This dynamic law reduces to a convergence equation that is empirically tested for two major and regulated air pollutants – sulfur oxides and nitrogen oxides – with a panel of 25 European countries spanning the years 1980–2005. Traditional parametric models are rejected by the data. More flexible regression techniques confirm the existence of both the scale and the defensive effect, supporting the model predictions.     

The economic theory of species extinction: Comment on smith

A widely recognized article by Smith suggests that harvesting leading to species extinction may be socially optimal, provided that the species growth-potential is sufficiently low. It is shown that this conclusion hinges on special assumptions about harvest technology which, despite a superficial compatibility with neoclassical production theory, contradict a basic postulate of a pioneering article by Gordon. As soon as Gordon's postulate is taken into account, while all other aspects of Smith's model are maintained, it turns out that even a species with a very low growth potential should not become extinct.     

Economic Growth,Climate Change,Biodiversity Loss: Distributive Justice for the Global North and South

Abstract: Economic growth‐the increase in production and consumption of goods and services‐must be considered within its biophysical context. Economic growth is fueled by biophysical inputs and its outputs degrade ecological processes, such as the global climate system. Economic growth is currently the principal cause of increased climate change, and climate change is a primary mechanism of biodiversity loss. Therefore, economic growth is a prime catalyst of biodiversity loss. Because people desire economic growth for dissimilar reasons‐some for the increased accumulation of wealth, others for basic needs‐how we limit economic growth becomes an ethical problem. Principles of distributive justice can help construct an international climate‐change regime based on principles of equity. An equity‐based framework that caps economic growth in the most polluting economies will lessen human impact on biodiversity. When coupled with a cap‐and‐trade mechanism, the framework can also provide a powerful tool for redistribution of wealth. Such an equity‐based framework promises to be more inclusive and therefore more effective because it accounts for the disparate developmental conditions of the global north and south.     

The Antiquities Act,national monuments,and the regional economy

Large, landscape-scale national monuments have long been controversial. It has been claimed that large monuments harm local economies by restricting growth of the grazing, timber, mining, and energy industries. Others have asserted that large monuments aid economic growth by reducing reliance on volatile commodity markets and fostering tourism growth. In this study, we use a synthetic control approach to measure the average causal effect of nine national monument designations on county-level per capita income. We find no evidence that monument designation affected per capita income in any of 20 counties hosting nine large (>50,000 acres) national monuments established under the Antiquities Act (six monuments) or by legislative action (three monuments). The broad economic claims of both advocates and critics of large national monuments have little empirical support. The absence of a designation effect for large national monuments is likely due to the attributes of federal land and the legal constraints under which it is managed.     

Optimal investment in pollution control capital in a neoclassical growth context

A neoclassical growth model is employed to study the optimal division of investment between pollution control capital and directly productive capital while simultaneously treating the saving rate as a policy variable to be varied to the optimal. The model treats pollution as a flow positively related to aggregate output, negatively related to the stock of pollution control capital, and having a negative effect on utility. Under the assumptions chosen, the optimal policy is an unbalanced one of specializing investment first in directly productive capital and subsequently in pollution control capital.     

茂名小良桉树人工林生态经济效益分析与评价

利用模糊数学的方法,通过对小良的实地调杳和专家走访,挑选了30个对小良桉林生态经济影响较大的因子.建立了评价因子指标体系和五个评价等级,采用二个层次的综合评价模型对小良桉林生态经济效益首次进行了定量的综合评价.评价结果是:现在小良桉林生态经济效益为一般.总体态势是:16%为好,26%为较好,31%为一般.23%为较差,4%为差.综合评价得分为79.85分,介于一般和良好之间,这说明在小良桉树人工林的发展过程中存在许多显性的、潜在的问题,如果还不注意合理利用林地资源,就会使森林资源变为不可更新资源,不可持续利用.因此,科学客观地分析与评价小良桉林产业生态经济效益,为区域可持续发展提供科学依据和发展良策,实现生态和经济的综合调控具有现实意义.     

Costs and Benefits of the Presence of Leopards to the Sport‐Hunting Industry and Local Communities in Niassa National Reserve,Mozambique

Sport hunting is often proposed as a tool to support the conservation of large carnivores. However, it is challenging to provide tangible economic benefits from this activity as an incentive for local people to conserve carnivores. We assessed economic gains from sport hunting and poaching of leopards (Panthera pardus), costs of leopard depredation of livestock, and attitudes of people toward leopards in Niassa National Reserve, Mozambique. We sent questionnaires to hunting concessionaires (n = 8) to investigate the economic value of and the relative importance of leopards relative to other key trophy‐hunted species. We asked villagers (n = 158) the number of and prices for leopards poached in the reserve and the number of goats depredated by leopard. Leopards were the mainstay of the hunting industry; a single animal was worth approximately U.S.$24,000. Most safari revenues are retained at national and international levels, but poached leopard are illegally traded locally for small amounts ($83). Leopards depredated 11 goats over 2 years in 2 of 4 surveyed villages resulting in losses of $440 to 6 households. People in these households had negative attitudes toward leopards. Although leopard sport hunting generates larger gross revenues than poaching, illegal hunting provides higher economic benefits for households involved in the activity. Sport‐hunting revenues did not compensate for the economic losses of livestock at the household level. On the basis of our results, we propose that poaching be reduced by increasing the costs of apprehension and that the economic benefits from leopard sport hunting be used to improve community livelihoods and provide incentives not to poach. Costos y Beneficios de la Presencia de Leopardos para la Industria de la Caza Deportiva y las Comunidades Locales en Niassa, Reserva Nacional, Mozambique     

生态经济学的价值观

农业产品因投入劳动和消耗自然界的资源形成价值。农业产品在生产和流通过程中，伴随其本身的价值，还会产生其经济效益。利用生态循环中可以再生的资源，可产生生态经济效益，运用先进的农业技术可产生技术经济效益，流通领域中的供求优势可产生社会经济效益。     

Materialphilia,biophilia, and sustainable use of the planet

SUMMARY

The intricate and complex relationships between transhumant pastoralists, livestock and environment at the high altitudes of Indian Central Himalaya has started to break down at an alarming rate. Some of the important factors attributed to this are depletion of grazing resources, commercialization of the rural economy, and integration of these communities with the mainstream of development through education and employment. Traditionally these livestock were assigned different roles in society depending upon their economic benefit and utility. The roles which once depended upon attitude to various risks, such as environmental, social and economic, have lost their significance due to changing of the production process. This paper gives an overview of the various types of roles the livestock played in the transhumant society, and how they are being replaced by the developmental process in the region, and whether the changes are sustainable for such remote regions in a developing country.     

Economic Science, Endangered Species, and Biodiversity Loss

Abstract: Although economic analysis can be used to argue for preservation of species and habitats, many natural assets represent inferior investments in society's asset portfolio. We demonstrate this for the case of ancient temperate rainforests and minke whales (  Balaenoptera acutorostrata ). For both rainforests and whales, we determined their value for harvest and balanced this against society's valuation of the preserved stock. For the market and nonmarket data available, we then determined how much rainforest and how many minke whales global society should keep in its asset portfolio. Although ecologists increasingly attempt to justify preservation of biological assets on economic grounds, we argue that this might be a dangerous approach to take. Ultimately, it may be necessary to reexamine the ethical foundations for conservation of nature and biodiversity, including the economist's use of utilitarianism. We suggest that the safe minimum standard approach may prove useful in practice.     

Evaluating the Potential for Conservation Development: Biophysical, Economic, and Institutional Perspectives

Abstract:  The widespread conversion of rural land to low-density residential development poses an immediate threat to biodiversity and to the provision of ecosystem services. Given that development will continue and environmental stakes are high, analyzing alternative growth strategies is critical. Conservation development is one such strategy that has the potential to benefit ecosystems and diverse stakeholders including developers, homebuyers, governments, and society as a whole. Conservation development clusters homes on one part of a property to manage the most ecologically important land for the conservation of biodiversity and ecosystem services. We draw on lessons learned from landscape ecology, open-space development, and regional planning to weigh the biophysical, economic, and institutional evidence for and against conservation development. Conservation development offers many potential environmental and economic advantages: relatively high home values and appreciation rates, lower development costs, and social and ecological benefits to society including landscape connectivity, protection and active stewardship of important ecological assets, and the maintenance of ecosystem services. But this approach also has shortcomings: it may require enlightened institutional regulations and regional planning (and/or ecologically aware developers), it is not always more profitable than conventional development and thus may require subsidies or incentives, and additional research is required to fully understand its benefits and drawbacks. With more information on the effects of clustering, the development of flexible zoning laws, and effective regional planning, conservation development could be a viable strategy for sustaining biodiversity and ecosystem services in changing landscapes.     

Economic growth,international trade,and the depletion or conservation of renewable natural resources

Conservation of renewable natural resources and promotion of economic growth are both sustainable development goals. Here, we study the interdependency between economic growth, international trade, and the use of renewable natural resources—under alternative institutional settings of either open access or full property rights—in an endogenous growth model. We find that if the resource is depleted over time, consumption growth is reduced. Economic growth and international trade only impact resource use when the resource is harvested under full property rights. Then, widening international trade can lead countries to shift from conservation to depletion. Changes in the institutional setting of resource use in one country may have repercussions on trading partners. Our results indicate potential trade-offs between the sustainable development goals and imply that policies focusing on resource use or trade (e.g., international trade bans or certified trade) are not sufficient to prevent resource depletion.