Estimation of subsidies on coal in India

The removal of energy subsidies is considered to be the first step towards a better environment. In order to pursue a policy for subsidy removal, one needs to know exactly the amount of subsidies accorded to different fuels. In this paper, the subsidies involved in the coal sector in India are estimated. Existing prices are reviewed, economic prices are estimated and the two are compared to arrive at appropriate subsidies or taxes. The subsidies are also distributed among different sectors and policy implications of subsidy removal are discussed. Finally, the need to have a larger data sample to study the coal industry is stressed, in order to better understand the cost structure .     

Soil erosion in developing countries: a socio-economic appraisal

Soil erosion is the single most important environmental degradation problem in the developing world. Despite the plethora of literature that exists on the incidence, causes and impacts of soil erosion, a concrete understanding of this complex problem is lacking. This paper examines the soil erosion problem in developing countries in order to understand the complex inter-relationships between population pressure, poverty and environmental-institutional dynamics. Two recent theoretical developments, namely Boserup's theory on population pressure, poverty and soil erosion and Lopez's theory on environmental and institutional dynamics have been reviewed. The analysis reveals that negative impacts of technical change, inappropriate government policies and poor institutions are largely responsible for the continued soil erosion in developing countries. On the other hand, potential for market-based approaches to mitigate the problem is also low due to the negative externalities involved. A deeper appreciation of institutional and environmental dynamics and policy reforms to strengthen weak institutions may help mitigate the problem.     

Economic and financial aspects of mine closure

Today, mine reclamation is a key component to a successful mine plan. Most of the industrialized nations have recognized the need to make mining activities relatively environmentally friendly, if they want to continue to benefit from the economic gains from mineral resource development. Countries such as the United States, Canada, Australia and South Africa are leaders in the field and have implemented relatively sophisticated legislation to ensure environmentally correct mine closure. These countries rely on a combination of strict control strategies and economic penalties to ensure compliance. Yet, from the firm's perspective, reclamation activities are counterproductive as they cut into profits. In order to attract economic development and earn much needed economic capital, most of the rest of the world, particularly the developing countries, lack effective mine closure legislation. The traditional command and control type of legislation that is sometimes used is either vague and therefore avoided, or not enforced appropriately, resulting in an undesirable level of environmental degradation. With the use of case studies from Brazil, this article shows that direct controls are effective in some instances and not in others. It proposes that economic and financial tools may be more effective than the traditional direct controls in getting firms to comply with environmental standards, particularly in developing countries where environmental compliance is more difficult to achieve. It explains the use of performance bonding as one type of economic incentive that has proven to be an effective environmental policy in mine planning and closure. The authors additionally push beyond the typical style of performance bonds to introduce a flexible bonding and insurance system that allows governments to maintain strict environmental standards but limits firms financial exposure during the mining process. Such a system learns from the successes of the industrialized countries that use performance bonding and is sensitive to the needs of developing nations to attract investment yet maintain environmental integrity.     

Towards a grand deal on subsidies and climate change

Recent studies have identified public subsidies as a principal cause of unsustainable development. Worldwide, governments are spending up to $U950 billion a year on subsidies. Many of these public subsidies fail to serve their purpose and in fact, often turn out as policy failures as they further distort trade and cause environmental harm. The energy sector is among the most subsidized sectors in the world, receiving over $U240 billion per annum of public subsidies. This article highlights current energy subsidies and their implications. The article examines: (i) the global size and distribution of energy subsidies in industrialized and developing countries; (ii) the impact of these subsidies on the economy, equity and the environment and their role as barriers for sustainable development; (iii) the political economy behind public subsidies and the various political and institutional barriers and lock-in mechanisms that cause subsidies to become entrenched in economic and public structures; and (iv) proposals for effective subsidy reform in energy policies, suggesting a global strategy to eliminate energy subsidies. OECD governments are in a position to take the lead, and the UN Framework Convention on Climate Change presents an excellent opportunity of striking a political grand deal and linking the reform of energy subsidies to a meaningful participation of developing countries to the Kyoto Protocol. Moreover, if sinks are to be included in the clean development mechanism (CDM), it is crucial to include the removal of forestry subsidies in the grand deal.     

A Decision Support Framework for Environmental Planning in Developing Countries

This paper presents a decision support framework for environmental planning in developing countries. The interest in protecting the natural environment from pollution gained increased importance in the 1990s with a push by world communities for sustainable development. Developing countries as well as the industrialized nations are expected to cut down on pollution and control the use of non-renewable natural resources. Although the concept of sustainable development sounds plausible, it is difficult to implement in many countries due to their conflicting goals. The world-wide targets on emissions, use of fossil fuels, reduction in water and atmospheric pollution require the participation of every nation. These goals are not easily achievable by some of the poorer developing countries partly because of their economic dependence on natural resources and partly because of their inability to afford more modern and efficient technologies. Thus, environmental planning goals are often in conflict with the development,social and economic needs of a country. In this paper, we develop a decision support framework that utilizes multicriteria and optimization models to address environmental planning problems. This framework is based on identifying the priorities of conflicting goals by working through and reducing the conflicts. A strategic planning framework is introduced into the decision support system since national planning is a strategic issue and these goals can only be achieved by adopting a systemic view.     

Household Demand for Waste Recycling Services

Municipalities everywhere are coping with increasing amounts of solid waste and need urgently to formulate efficient and sustainable solutions to the problem. This study examines the use of economic incentives in municipal waste management. Specifically, we address the issue of recycling, if and when this waste management option is—on social welfare grounds—a preferred solution.A number of studies have recently assessed the monetary value of the externalities of alternative solid waste management options. In the present context, these subsidies could be interpreted as the implicit value of the benefits from reducing environmental externalities associated with landfilling as perceived by local government authorities. We surmise that the difference between mean households willingness to pay (WTP) for recycling services, via the purchase of a subsidized waste disposal facility, and the above (proxy) value of externalities reflects the difference between private and public perception regarding the negative externality associated with landfilling. We believe that this information is useful in determining the level of subsidization needed (if at all) to sustain any recycling program.The study is unique in the sense that its conclusions are based on revealed household behavior when faced with increased disposal costs, as well as information on WTP responses in hypothetical but related (and, therefore, familiar) scenarios. The article also explores the influence of the subsidization schemes on recycling rates. It was found that with low levels of effort needed to participate in a curbside recycling program, households participation rates are mainly influenced by economic variables and age, and households are willing to pay a higher price for the recycling scheme. When the required effort level is relatively high, however, households would pay a lower price, and the rate is influenced mainly by their environmental commitment and by economic considerations. We found that in both cases a subsidy would be required in order to achieve an efficient level of recycling. The median price that households are willing to pay for recycling devices is found to be about NIS 370 (New Israeli Shekel, approximately $90).     

Mining economics and the environment

A mining operation can affect the environment adversely and create costs to others that are external to the mining firm, if no constraints are imposed. To deal with this problem of externalities, various regulatory steps can be taken, eg effluent taxation, subsidies, regulation of emissions by command, and use of emission permits that are tradeable. Bargaining between the polluter and the damaged party over the level of production and compensation remains a more theoretical option. Regardless of what regulatory approach is adopted to transform external costs into internal costs, the resulting higher costs will have an impact on the decisions of a mining firm. Information processes, traditionally focused on finding deposits, have now been broadened to include an environmental dimension. Operating practices can be modified to reflect the need for stable long-term solutions of waste disposal problems. On the industry level, environmental regulation may lead to sterilization of resources, to higher prices for some commodities and to distortions of competitiveness among commodity producing countries.     

Publicly-provided information in environmental management: incorporating groundwater quality goals into herbicide treatment recommendations

Use of publicly-provided information to promote environmental quality has received somewhat less attention in the environmental management literature than use of other environmental policy tools based on economic incentives such as emissions taxes, subsidies and marketable permits. Yet publicly-provided information may have potential as an environmental policy tool, especially in managing problems of agricultural pollution, due in large part to the existing capability of public information agencies associated with the agricultural research community. Information provided by these agencies is known to be an important factor in decision making in agriculture and may have potential for influencing decisions that relate directly to preserving the integrity of environmental resources. Moreover, this potential may have particular relevance for protecting groundwater quality from agricultural production since the results of contamination are often at least partially internal to the farm decision maker. This paper develops an empirical model to formulate publicly-provided herbicide treatment recommendations designed to protect both the quality of groundwater and the income of farmers. An economic and statistical model of a crop-pest system is used in conjunction with a groundwater loading model to derive the trade-off relationship between producer income and movement of herbicide material through the root zone. The trade-off relationship can provide the basis for formulating herbicide treatment recommendations and can also shed light on appropriate groundwater quality goals.     

Modelling and analysis of international recycling between developed and developing countries

To deal with the complexity of recycling, a wide variety of models have been developed, each serving a specific purpose. Despite the current trend increasing international trade in recycling-related material flows, the international dimension of physical and economic relationships in recycling is often ignored in current models and analyses. This paper develops a formal model of an international material-product chain (MPC) that represents the mechanism behind international recycling. The attention is focused on the case of a developed and a developing country that exchange material commodities, final products and recyclable waste. Among others, the model demonstrates that taking into account environmental externalities results in higher levels of recycling. Moreover, we show that international recycling is mainly driven by regional differences in the quantity and quality of factor endowments and economic efficiency of recycling. Given that industrialised countries are relatively well endowed with recyclable waste, the recovery rate usually exceeds the utilisation rate. In developing countries, an opposite pattern is observed.     

System dynamics model for analyzing effects of eco-design policy on packaging waste management system

EU's long-term objective is to become a recycling and resource effective society, where waste is utilized as a resource and waste generation is prevented. A system dynamics model was developed to analyze the policy mechanisms that promote packaging material efficiency in products through increased recycling rates. The model includes economic incentives such as packaging and landfill taxes combined with market mechanisms, behavioral aspects and ecological considerations in terms of material efficiency (the packaging material per product unit, recycled fraction in products). The paper presents the results of application of various policy instruments for increasing packaging material efficiency and recovery rate and reducing landfilled fraction. The results show that a packaging tax is an effective policy instrument for increasing the material efficiency. It ensures the decrease of the total consumption of materials and subsequent waste generation. The tax helps to counteract a rebound effect, which, as identified by the analysis, can be caused by reduced material costs due to eco-design. The model is applied to the case of Latvia. Yet, the elements and structure of the model developed are similar to waste management systems in many countries. By changing numeric values of certain parameters, the model can be applied to analyze policy mechanisms in other countries.     

Consumption,waste and (un)sustainable development: reflections on the Dutch holiday of Queen’s day

This article aims to interrogate manifold features, uses and manifestations of the term sustainability through critical reflection on paradoxes of “sustainable development.” This article will discuss the implication of the environmental Kuznets curve hypothesis, postmaterialist values theory, and ecological modernization theory all of which expresses a certain relationship between the wealth of a nation and their environment impact. According to these theories, during early industrialization and development, economies use materially intensive resources, until a threshold is reached after which the economic and technological changes allow for more sustainable material use. Simultaneously, it is believed that concerns about environment are secondary to economic concerns and that satisfaction of material needs will lead to higher environmental awareness. The aim of this article is to reflect upon a gap in the literature of empirical case studies to support or refute these theories. While there is a wealth of publications detailing various unsustainable practices in different countries, studies addressing the implication of the accuracy of the triple theories for the global enterprise of development are rare. To compensate for this oversight, this article will address the case of Dutch Queen’s day celebrations in April 2013, based on the document analysis. In generalizing the case of Dutch Queen’s day celebrations to global consumption patterns, this article considers consequences of Western consumption model for the enterprise of global development. It is argued that the Dutch case supports evidence of the (un)sustainability of a consumptive economy operating within a global market. Alternative framework based on cradle-to-cradle and circular economy approaches is proposed.     

中国当代环境法制之传统文化障碍——基于制度运行之现实反思

环境法制的发展,对中国多年来环境领域取得的成就功不可没。中国当代环境法制不仅存在体制矛盾,还受文化制约。环境法制的突出问题主要包括:立法质量不高,授权立法和部门立法色彩浓厚,监管体制发挥作用有限,环境司法救济滞后,环境外部成本难以内化以及公众参与不足。针对上述矛盾,从文化视角分析和解构,充分认知矛盾本身。     

Energy and environmental challenges for developed and developing countries

A supply-oriented strategy which accepts current projections of development energy demands, and seeks to satisfy them, based on acquiring capital-intensive technologies requiring imported fuels is doomed to failure. Developing countries which follow such a strategy will be unable to meet either their energy needs or the basic development needs of their people. To the extent that their energy needs are thus met, it will be at horrendous cost of capital desperately needed for economic and social improvement in non-energy sectors and with tragic environmental consequences to the developing countries and to the world [17]. The opposite of a supply-oriented strategy is a demand-control one. Commercially available or near commercial energy efficient technologies will permit the developing countries to raise the standard of living of their people with only a modest increase in per capita energy consumption.     

Feasibility of water purification technology in rural areas of developing countries

Water scarcity is threatening social and economic growth in rural areas of developing countries. There are potential markets for water purification technologies in these regions. The main focus of this article is to evaluate the social, economic and political feasibilities of providing water purification technologies to rural areas of developing countries. The findings of this research can serve as the basis for private investors interested in entering this market. Four representative regions were selected for the study. Economic, demographic, and environmental variables of each region were collected and analyzed along with domestic markets and political information. Rural areas of the developing world are populated with poor people unable to fulfill the basic needs for clean water and sanitation. These people represent an important group of potential users. Due to economic, social, and political risks in these areas, it is difficult to build a strong case for any business or organization focusing on immediate returns on capital investment. A plausible business strategy would be to approach the water purification market as a corporate responsibility and social investing in the short term. This would allow an organization to be well positioned once the economic ability of individuals, governments, and donor agencies are better aligned.     

考虑不同合作模式和多方奖惩的绿色信贷风险优化控制研究

绿色信贷风险的优化控制,有利于推动绿色信贷的稳定、可持续发展,实现环境效益、经济效益和社会效益的共赢。本研究将政府部门、环保部门、金融机构和企业的行为纳入同一个理论体系中,充分考虑影响参与主体最优努力水平和绿色信贷风险最优轨迹的环境因素、经济因素和社会因素。在此基础上,构建不同合作模式下的绿色信贷风险优化控制模型,分析不同情境下参与主体的努力水平,比较绿色信贷风险的最优轨迹,找出绿色信贷风险优化控制存在的问题及原因。研究结果表明：第一,四方合作模式对绿色信贷风险的优化控制具有明显的优势。第二,政府的参与能够有效带动其余合作者的积极性。第三,金融机构和企业之间,存在明显的利益共存和投入互动关系。第四,补贴和惩罚措施在合作过程中能够产生激励和约束作用,但在非合作模式下发挥的作用比较有限。第五,参与主体的协同水平越高,越有利于绿色信贷风险的优化控制。因此,需要灵活运用行政、经济或法律等多种干预手段,并对补贴用途进行考评和增强舆论监督,防止金融机构和企业将绿色补贴挪作他用。同时,建立符合国内绿色信贷发展特点的风险标准,统一绿色信贷风险的评判和管控依据。     

Groundwater resource management and environmental protection

Population and economic developmental pressures will continue to put increasing pressure on the environment, especially on scarce water resources. Meanwhile, large numbers of poor families in the developing countries still lack access to safe water. An integrated water resource planning and policy analysis framework is presented that permits the main issues and alternative options to be systematically considered and prioritized, especially problems arising from groundwater pollution. Basic principles of water resource economics are used to illustrate how the neglect of long-term environmental considerations jeopardizes the availability and quality of groundwater resources in the Greater Manila area. This paper contains a brief overview of drinking water and sanitation issues in developing countries, presents a policy-oriented analysis of a groundwater problem of great relevance worldwide, and demonstrates how the study conclusions might be implemented practically in a constrained developing country context.     

Ecological Risk Assessment and Problem Formulation for Lake Uluabat,a Ramsar State in Turkey

Unlike the United States and the European Union, developing countries do not have sufficiently structured legal and institutional systems to apply certain environmental management tools such as ecological risk assessment. However, it is important for countries with valuable environmental and ecological resources to have appropriate tools and to strengthen their environmental management capabilities and capacities for the sake of those resources. The case study described in this paper attempts to be a case study towards developing environmental management plans, especially in developing countries. The problem formulation step of Ecological Risk Assessment applied in this study contributed to the basic elements of an environmental management plan including the following: the partnership-building process, prioritization of the problems and issues of the ecosystem, and development of the action plan. Based on the information provided by participants from a series of workshops held to develop an environmental management plan for Uluabat Lake, ecosystem risks were ranked and an action plan was formed. The results obtained with the aid of fuzzy set theory provided a base for identification of the action steps by allowing scientific information to be included in the process. The degree to which Uluabat Lakes problem formulation fits into the existing legal framework of Turkey is also analyzed in this paper.     

Assigning money amounts to represent intrinsic value of precious eco-systems in developing countries

Conclusion  The need is urgent, if the ongoing rapid degradation of the remaining precious eco-systems of the developing countries are to be put under control while there is still time, for developing a procedure by which the real world intrinsic meaningfulness to people of precious eco-systems is recognized by assigning them monetary values to be considered in benefit/cost analyses. The procedures recommended by the U.S. Corps of Engineers and Resources of the Future for use in the USA seem to be much too complex for application in developing countries in the foreseeable future. Rather a very pragmatic approach is recommended based on actual experience in money outlays for such protection in USA projects, with the amounts modified to suit developing country conditions. Hopefully the IAAs (Multilateral Development Banks, Bilaterials, U.N. Agencies) will carry out the recommended R&D studies to produce a prescribed methodology recognized by economic, environmental, and political decision makers of both the IAAs and the DCs to be appropriate for use in planning and evaluating DC projects.     

Green taxes, blue taxes

Central governments are facing increasingly stringent demands to lead the clean-up of public resources. Historically, governments have chosen legislation and regulation to address these concerns and achieved mixed results, but another tool of public policy holds significant promise and is gaining ground in the policy debate: 'green' taxes. The potential of a tax system to mitigate environmental externalities is explored. The theory of pollution tax is reviewed and a comparison of two country cases where taxes have been designed explicitly to reduce industrial effluents and improve the quality of fresh water resources is presented. If structures to approximate social costs are federally mandated and regionally implemented, a comprehensive tax system can constitute an integral part of an effective response to private spoliation of the commons.     

An analysis of variables influencing the material composition of automobiles

The use of materials is studied broadly, because of the environmental problems related to extraction, production, consumption and waste treatment. The use and substitution of materials in products is therefore a relevant issue for environmental policy making. Studies have been done to describe the material flow or to measure the impact of materials or products on the environment. However, these studies do not often consider economic, substitution and dynamic aspects of material flows. Other studies on material flows analyse the relationship between the use of materials and economic growth, but they do not consider substitution between materials. For environmental policy making economic, technological and environmental aspects of the use of materials need to be considered. Especially, substitution of materials is important. In various countries material and product policies are imposed on a variety of materials and products. For evaluation of these policies their environmental and economic effects need to be examined in detail. This study aims to analyse the economic and technological factors influencing the use of materials and the substitution between different materials dynamically. The goal is to obtain an insight in the effect that material levies may have on the use and substitution of materials. The statistical analysis is performed on a specific product-group because decisions on the use of materials are taken on a product-level. The case study is performed on automobiles. The results show that the material use is largely an autonomous development. The price of aluminium has a positive, significant effect on the use of that material. The price of plastics has a positive, but not significant effect on the use of plastics. Reasons may be that the costs of a raw material are small relative to the processing costs, and that the production process can only be changed slowly. Other factors, like competitiveness and consumers' tastes, may be more important for substitution. This implies that levies or subsidies on certain materials is not a promising policy to change the use of materials. Besides time, there are two other factors that have a positive and significant relationship with the use of aluminium and plastics: the fuel efficiency, which is the distance driven divided by the energy used; and, the road tax, which depends on the weight of a car. However, these effects are caused by their positive relationship with time. The main conclusion of the case study is that imposing a levy on materials may not have the desired or expected effect of reduction in material use.