ECONOMIC ANALYSIS OF WETLAND RESTORATION ALONG THE ILLINOIS RIVER1

Creating and restoring wetland and riparian ecosystems between farms and adjacent streams and rivers in the Upper Mississippi River Basin would reduce nitrogen loads and hypoxia in the Gulf of Mexico and increase local environmental benefits. Economic efficiency and economic impacts of the Hennepin and Hopper Lakes Restoration Project in Illinois were evaluated. The project converted 999 ha of cropland to bottomland forest, backwater lakes, and flood‐plain wetland habitat. Project benefits were estimated by summing the economic values of wetlands estimated in other studies. Project costs were estimated by the loss in the gross value of agricultural production from the conversion of corn and soybean acreage to wetlands. Estimated annual net benefit of wetland restoration in the project area amounted to US$1,827 per ha of restored wetland or US$1.83 million for the project area, indicating that the project is economically efficient. Impacts of the project on the regional economy were estimated (using IMPLAN) in terms of changes in total output, household income, and employment. The project is estimated to increase total output by US$2,028,576, household income by US$1,379,676, and employment by 56 persons, indicating that it has positive net economic impacts on the regional economy.     

Resident Motivations and Willingness-to-Pay for Urban Biodiversity Conservation in Guangzhou (China)

The monetary assessment of biodiversity measures the welfare damages brought by biodiversity losses and the cost-benefit analysis of conservation projects in a socio-economic context. The contingent valuation method could include motivational factors to strengthen economic analysis of nature conservation. This study analyzed Guangzhou residents’ motivations and willingness-to-pay (WTP) for an urban biodiversity conservation program in the National Baiyun Mountain Scenic Area (BMSA). The peri-urban natural site, offering refuge to some endemic species, is under increasing development pressures for recreational and residential use. A questionnaire survey was conducted in the Guangzhou metropolitan area during June to October 2007. We interviewed face-to-face 720 stratified sampled households to probe residents’ attitudes towards the city’s environmental issues, motivations for urban nature conservation, and WTP for biodiversity conservation. Principal component analysis identified five motivational factors, including environmental benefit, ecological diversity, nature-culture interaction, landscape-recreation function, and intergenerational sustainability, which illustrated the general economic values of urban nature. Logistic regression was applied to predict the probability of people being willing to pay for the urban biodiversity conservation in BMSA. The significant predictors of WTP included household income and the factor nature-culture interaction. The median WTP estimated RMB149/household (about US$19.5/household) per year and an aggregate of RMB291 million (approximately US$19.5/household) per year and an aggregate of RMB291 million (approximately US38.2 million) annually to support the urban conservation project. Including public motivations into contingent valuation presents a promising approach to conduct cost-benefit analysis of public projects in China.     

An Empirical Analysis of the Effects of China’s Land Conversion Program on Farmers’ Income Growth and Labor Transfer

In this article, we hypothesize that in addition to participation status and household characteristics, the impact of China’s Sloping Land Conversion Program on income growth and labor transfer is determined by local economic conditions, program range, and political leadership, and the degree of impact on income may vary among different economic sectors. To test these propositions, we have compiled a panel data set of 600 households in three counties in the Loess Plateau region, with observations for times both prior to and after the program’s inception (1999 and 2006), for both aggregate and categorical incomes, and for both participating and non-participating households. Using a difference in differences model and repeated cross-sectional data, we find that participation status, local economic conditions, program extent, and political leadership indeed have significant impacts on household income and off-farm employment. Moreover, the effects of participation on crop production income, animal husbandry income, and off-farm income vary substantially. These results carry major policy implications in terms of how to improve the effectiveness and impact of ecological restoration efforts in and outside of China.     

Rural Households’ Attitude and Economic Strategies Toward the Conversion of Cropland to Forest and Grassland Program (CCFG): A Case Study in Qira,China

The Conversion of Cropland to Forest and Grassland Program (CCFG), which was initiated by the Chinese government in 1999, is a cropland retirement program with integrated objectives for ecological preservation and local development. The purpose of this article was to study the influencing factors of attitude and economic strategies in rural households toward the CCFG. Rural households’ knowledge, attitude and economic strategies toward the CCFG were investigated through a questionnaire survey in Qira, China. Influencing factors of attitude and strategies of households were analyzed using a logit model technique. The analysis indicated that household’s income level, environmental knowledge of the program, and program implementation were significant influencing factors in a household’s attitude toward the CCFG, while major influencing factors of household strategies were their regional background and availability of income generation sources. Meaningful association was not found between attitude and strategy choices. Rich households had more strategy choices, while poor households were usually confined to low input strategies with uncertain income. To sustain their livelihood, the poor need extra assistances in marketing, loan granting, employment training, information, and technical services.     

Socioeconomic Factors Affecting Farmers’ Perceptions of Land Degradation and Stonewall Terraces in Central Palestine

Land degradation by soil erosion is a socioeconomic and environmental problem facing many developing countries. Application of stonewall terraces for soil moisture conservation is vital to reducing the environmental impacts of this phenomenon. To this end, a field plot experiment was conducted in the study area along with the use of a closed-ended questionnaire. The object of the experiment was to study the socioeconomic impacts of soil erosion on local farmers and their adoption of the stonewall terrace technique. The study showed a higher net profit in areas that had implemented terrace conservation practices than in areas that had not (i.e., 3.5 to 6 times higher net profit). Correlation analysis indicated that the farmers’ perceptions, land ownership, and geomorphology were significantly related to the farmers’ incentives and willingness to adopt terraces as soil conservation measures (P < 0.05), although the correlations were negative. Smallholder farmers (52% of the interviewed farmers) were involved in the sale of the agricultural land for urban uses, largely because of the high price and immediate returns offered. However, the associated land use changes warrant greater involvement of both the private and public sectors. This cooperation may be accomplished through the introduction of a long-term agricultural loan system and the development of proper legislation accompanied by a comprehensive and durable infrastructure and service system with the goal of reducing the negative impact of land use changes and encouraging sustainable use of resources.     

Local Residents Perception of Benefits and Losses From Protected Areas in India and Nepal

High densities of people living around protected areas (PAs) in South Asia require management strategies to balance conservation goals and livelihood needs. Based on a survey of 777 households around five PAs in India and Nepal, this paper provides a comparative perspective of Indian and Nepali households’ views of protected area benefits and costs, their attitude toward conservation in general, and attitude toward protected area staff. Results indicate mixed responses towards tourism, varying from very favorable in Nepal to less favorable in India. The majority (81%) held positive attitudes towards the existence and importance of PAs but had negative perceptions of PA staff (69%). Most residents perceived benefits from access to fuel wood, fodder and other PA resources including benefits from tourism, while crop and livestock losses from wildlife were the main costs. Households overall positive attitudes towards the PAs and conservation despite high losses from living around PAs suggests that local residents may support conservation if their livelihood needs are met. Comparisons of household attitudes and perceptions suggest that locally based strategies rather than top-down approaches are likely to be more effective. Extending PA benefits to smaller landholders, households that are highly resource-dependent or experiencing higher income losses from human-wildlife conflicts, and less educated residents are particularly important to balance costs and losses from living around protected areas.     

THE OPPORTUNITY COST OF TIME AND AVERTING EXPENDITURES FOR SAFE DRINKING WATER1

ABSTRACT: A survey of individuals during a Giardia contamination incident provided data to calculate the cost of boiling, hauling, or purchasing water to avoid infection. Three different approaches to the valuation of time were used to assess the implications of the opportunity cost of time for the measurement of averting costs. Mean monthly household averting costs were $33.47 using family income to value time, $13.07 using the minimum wage to value time, and $5.60 using zero opportunity cost of time. Comparisons of the mean costs for different sources and household characteristics indicated the value of time from family income was too high and that the other methods of valuing time were superior.     

FARM INCOME AND GROUND WATER QUALITY IMPLICATIONS FROM REDUCING SURFACE WATER SEDIMENT DELWERIES1

ABSTRACT: The potential surface water and ground water quality tradeoff implications from the nonpoint source provisions of the 1987 Water Quality Act are investigated in this paper using a national linear programming model developed at Iowa State University and modified by the Economic Research Service and the Leaching Evaluation of Agricultural Chemicals (LEACH) Handbook developed by the U.S. Environmental Protection Agency. The linear programming model is used to maximize net farm revenue using optimal combinations of crop rotations and tillage practices for each region of the United States given natural resource constraints. The LEACH handbook is used to determine the relative potential for pesticides to leach below the root zone for different soil types, hydrologic conditions, pesticides used, and tillage practices. The results indicate that imposing a surface water quality erosion constraint aimed at reducing sediment concentrations results in a larger decrease in farm income than imposing a uniform 5 ton per acre per year erosion constraint. Both constraints could result in regional improvement in ground water quality in some regions of the country while decreasing ground water quality in other regions.     

OPTIMAL PROFITS UNDER ENVIRONMENTAL CONSTRAINTS: IMPLICATIONS OF NUTRIENT AND SEDIMENT STANDARDS1

To reduce nonpoint source pollution from nutrient, chemical, and sediment runoff, a number of environmental policy standards have been proposed. Such standards could be used to reduce nonpoint source pollution from nutrient, chemical, and sediment runoff to impaired water bodies. State governments can use voluntary approaches to meet nonpoint source pollution reduction goals. However, the practices that lower net returns will not be voluntarily adopted by farmers. Crop rotations and tillage practices may help producers to comply with the environmental standards while minimizing losses in farm profits. This study compares runoff from crop rotation practices and conventional continuous row cropping systems in Mississippi. The results are compared for different tillage systems in order to examine robustness of results. Nutrient runoff and sediment runoff are simulated using the Erosion Productivity Impact Calculator (EPIC). Sensitivity analysis of the sediment and nitrate reductions at 15 percent, 25 percent, and 35 percent are conducted. Under these scenarios, net returns are optimized under environmental constraints, and the marginal cost of sediment reduction ranges from US$1.61 to US$9.63 per ton depending on soil conditions, while the corresponding nitrate and phosphorus reductions costs range from US$1.21 to US$7.08 per kg and from US$0.09 to US$31.91, respectively. The empirical results from this study indicate that a nitrate reduction policy is relatively less costly than a sediment reduction policy. The results also demonstrate the importance of geophysical conditions and policy costs, which vary across regions.     

Simultaneous adoption of integrated soil fertility management technologies in the Chinyanja Triangle,Southern Africa

Empirical scientific evidence indicates that there is still room for increasing food production by improving land productivity. This study aimed at identifying the key determinants that govern farmers’ decisions to adopt multiple components of integrated soil fertility management (ISFM) in a maize mixed cropping system of the Chinyanja Triangle, Southern Africa. Revealed preferences of ISFM components were collected from 320 randomly selected households and multivariate probit (MVP) model was used to analyse the simultaneous effects on adoption based on biophysical plot and household‐level socioeconomic attributes. The results show that farmers’ choices of a set of ISFM components are determined by a mix of factors that address the trade‐offs and synergies among them. Non‐farm income, moderate land quality perception, and education influence simultaneous technology adoption, while gender and crop loss increase the likelihood of farmers’ decisions to adopt independent options. Having other sources of income supports co‐adoption of inorganic fertilizer, residue incorporation, and crop rotation. Input/output market access, access to information, financial sources, and climate variability also play pivotal role in technology adoption. These results indicate that resource availability, learning costs, finances, and risk aversion need to be considered when designing and promoting ISFM technologies as a package.     

Survey of household waste composition and quantities in Abuja,Nigeria

Inadequate management of household solid waste is a serious problem in many developing cities. The study aimed to evaluate the quantities and composition of household solid waste generation in Abuja within different socioeconomic groups. The wastes from 74 households across different socioeconomic levels in Abuja were collected, weighted and classified on a daily basis for seven days in February 2012. The result showed that the average daily per capita household waste generation is 0.634 kg/capita/day. The characteristic of solid waste in Abuja are typical for the developing cities and dominated by organic waste. Households waste consisted of 63.6% organic waste, 9.7% paper, 8.7% plastics, 3.2% metal, 2.6% glass, 1.6% textile and 10.6% others (unclassified) and the bulk density was 240 kg/m³. The evaluation of relationship between income and daily per capita household waste generation showed a positive relationship. The study revealed a statistically significant difference between household size and daily per capita household waste generation in high-income group; a slight significant difference between household size and daily per capita household waste generation in medium income group and no statistically significant difference between household size and daily per capita household waste generation in low-income group.     

Operational Indicators for Measuring Agricultural Sustainability in Developing Countries

This paper reviews relevant literature on the sustainability indicators theoretically proposed and practically applied by scholars over the past 15 years. Although progress is being made in the development and critical analysis of sustainability indicators, in many cases existing or proposed indicators are not the most sensitive or useful measures in developing countries. Indicator selection needs to meet the following criteria: relative availability of data representing the indicators, sensitivity to stresses on the system, existence of threshold values and guidelines, predictivity, integratability and known response to disturbances, anthropogenic stresses, and changes over time. Based on these criteria, this paper proposes a set of operational indicators for measuring agricultural sustainability in developing countries. These indicators include ecological indicators involving amounts of fertilizers and pesticides used, irrigation water used, soil nutrient content, depth to the groundwater table, water use efficiency, quality of groundwater for irrigation, and nitrate content of both groundwater and crops. Economic indicators include crop productivity, net farm income, benefit–cost ratio of production, and per capita food grain production. Social indicators encompass food self-sufficiency, equality in food and income distribution among farmers, access to resources and support services, and farmers knowledge and awareness of resource conservation. This article suggests that the selection of indicators representing each aspect of sustainability should be prioritized according to spatial and temporal characteristics under consideration.     

Differences in Perceptions of Communication,Tourism Benefits,and Management Issues in a Protected Area of Rural Kenya

With record-breaking tourist visits in Kenya in 2005–2006, communities near the country’s renowned protected areas must undertake or revisit planning efforts to conserve and enhance the region’s natural, social, and economic resources. This article examines the differences between two stakeholder groups in the Samburu region of central Kenya: (1) protected area leadership and staff; and (2) members of the communities adjacent to the protected areas. Based on the results and analysis of 30 in-depth interviews, the authors identify differences between protected area staff and their community members regarding perceptions about communication between the two groups, and the economic benefits of tourism. The different stakeholders agreed, however, about challenges related to equitable distribution of tourism-based employment and revenue. The results indicate a need to reach consensus about what constitutes sufficient communication between national reserves and their community, and to what extent tourism-related revenue and employment should be distributed within the region. A discussion of the potential role of indicators and standards to make such decisions is presented.     

Potential Economic Benefits of Adapting Agricultural Production Systems to Future Climate Change

Potential economic impacts of future climate change on crop enterprise net returns and annual net farm income (NFI) are evaluated for small and large representative farms in Flathead Valley in Northwest Montana. Crop enterprise net returns and NFI in an historical climate period (1960–2005) and future climate period (2006–2050) are compared when agricultural production systems (APSs) are adapted to future climate change. Climate conditions in the future climate period are based on the A1B, B1, and A2 CO₂ emission scenarios from the Intergovernmental Panel on Climate Change Fourth Assessment Report. Steps in the evaluation include: (1) specifying crop enterprises and APSs (i.e., combinations of crop enterprises) in consultation with locals producers; (2) simulating crop yields for two soils, crop prices, crop enterprises costs, and NFIs for APSs; (3) determining the dominant APS in the historical and future climate periods in terms of NFI; and (4) determining whether NFI for the dominant APS in the historical climate period is superior to NFI for the dominant APS in the future climate period. Crop yields are simulated using the Environmental/Policy Integrated Climate (EPIC) model and dominance comparisons for NFI are based on the stochastic efficiency with respect to a function (SERF) criterion. Probability distributions that best fit the EPIC-simulated crop yields are used to simulate 100 values for crop yields for the two soils in the historical and future climate periods. Best-fitting probability distributions for historical inflation-adjusted crop prices and specified triangular probability distributions for crop enterprise costs are used to simulate 100 values for crop prices and crop enterprise costs. Averaged over all crop enterprises, farm sizes, and soil types, simulated net return per ha averaged over all crop enterprises decreased 24% and simulated mean NFI for APSs decreased 57% between the historical and future climate periods. Although adapting APSs to future climate change is advantageous (i.e., NFI with adaptation is superior to NFI without adaptation based on SERF), in six of the nine cases in which adaptation is advantageous, NFI with adaptation in the future climate period is inferior to NFI in the historical climate period. Therefore, adaptation of APSs to future climate change in Flathead Valley is insufficient to offset the adverse impacts on NFI of such change.     

Socio-economic Comparison Between Traditional and Improved Cultivation Methods in Agroforestry Systems, East Usambara Mountains, Tanzania

The East Usambara Mountains, recognized as one of the 25 most important biodiversity hot spots in the world, have a high degree of species diversity and endemism that is threatened by increasing human pressure on resources. Traditional slash and burn cultivation in the area is no longer sustainable. However, it is possible to maintain land productivity, decrease land degradation, and improve rural people’s livelihood by ameliorating cultivation methods. Improved agroforestry seems to be a very convincing and suitable method for buffer zones of conservation areas. Farmers could receive a reasonable net income from their farm with little investment in terms of time, capital, and labor. By increasing the diversity and production of already existing cultivations, the pressure on natural forests can be diminished. The present study shows a significant gap between traditional cultivation methods and improved agroforestry systems in socio-economic terms. Improved agroforestry systems provide approximately double income per capita in comparison to traditional methods. More intensified cash crop cultivation in the highlands of the East Usambara also results in double income compared to that in the lowlands. However, people are sensitive to risks of changing farming practices. Encouraging farmers to apply better land management and practice sustainable cultivation of cash crops in combination with multipurpose trees would be relevant in improving their economic situation in the relatively short term. The markets of most cash crops are already available. Improved agroforestry methods could ameliorate the living conditions of the local population and protect the natural reserves from human disturbance.     

Adaptive Capacity and Social-Environmental Change: Theoretical and Operational Modeling of Smallholder Coffee Systems Response in Mesoamerican Pacific Rim

Communities who rely directly on the natural environment for their survival typically have developed risk management strategies to enable them to avoid dangerous thresholds of change to their livelihoods. Development policy appropriate for natural resource-based communities requires an understanding of the primary drivers of social-ecological change, the ways in which affected households autonomously respond to such drivers, and the appropriate avenues for intervention to reduce vulnerability. Coffee has been, and still remains, one of the most important commodities of the Mesoamerican region, and hundreds of thousands of smallholder households in the region are dependent in some way on the coffee industry for their livelihood stability. We used the Analytical Network Process to synthesize expert knowledge on the primary drivers of livelihood change in the region as well as the most common household strategies and associated capacities necessary for effective response. The assessment identified both gradual systemic processes as well as specific environmental and market shocks as significant drivers of livelihood change across the region. Agronomic adjustments and new forms of social organization were among the more significant responses of farmers to these changes. The assessment indicates that public interventions in support of adaptation should focus on enhancing farmers’ access to market and technical information and finance, as well as on increasing the viability of farmers’ organizations and cooperatives.     

DEVELOPING AND ASSESSING A MODEL OF RESIDENTIAL WATER CONSERVATION1

ABSTRACT: Relevant literature was reviewed from which a model of residential water conservation was developed. Four residential conservation program interventions were posited: 1) public education, 2) pricing variables, 3) water use restrictions, and 4) building code requirements. Four exogenous variables affecting residential water use were also posited: 1) temperature, 2) rainfall, 3) household income, and 4) household size. The impacts of these eight variables on residential per capita daily use were assessed by cross sectional and time series analysis. Study results generally supported the porposed model, with less consistent support obtained for pricing variables and conservation beliefs. The paper concludes with the hypothesis that an inclining block rate structure coupled with an informational program designed to inform consumers of their consumption under each block will have a synergistic impact.     

Evaluating Terrestrial Carbon Sequestration Options for Virginia

Changes in forest and agricultural land management practices have the potential to increase carbon (C) storage by terrestrial systems, thus offsetting C emissions to the atmosphere from energy production. This study assesses that potential for three terrestrial management practices within the state of Virginia, USA: afforestation of marginal agricultural lands; afforestation of riparian agricultural lands; and changing tillage practices for row crops; each was evaluated on a statewide basis and for seven regions within the state. Lands eligible for each practice were identified, and the C storage potential of each practice on those lands was estimated through a modeling procedure that utilized land-resource characteristics represented in Geographic Information System databases. Marginal agricultural lands’ afforestation was found to have the greatest potential (1.4 Tg C yr⁻¹, on average, over the first 20 years) if applied on all eligible lands, followed by riparian afforestation (0.2 Tg C yr⁻¹ over 20 years) and tillage conversion (0.1 Tg C yr⁻¹ over 14 years). The regions with the largest potentials are the Ridge and Valley of western Virginia (due to extensive areas of steep, shallow soils) and in the Mid-Atlantic Coastal Plain in eastern Virginia (wet soils). Although widespread and rapid implementation of the three modeled practices could be expected to offset only about 3.4% of Virginia’s energy-related CO₂ emissions over the following 20 years (equivalent to about 8.5% of a Kyoto Treaty–based target), they could contribute to achievement of C-management goals if implemented along with other mitigation measures.     

LINEAR PROGRAMMING USE FOR EVALUATING WATER RESOURCES AND COST AND BENEFIT ALLOCATION1

ABSTRACT A linear programming model for a river basin was developed to include almost all water-related economic activity both for consumers and producers. The model was so designated that the entire basin or basin sub-division could be analyzed. The model included seven sectors, nine objective function criteria, and three river-flow levels. Economic basis for conflicts among sectors over incidence of cost allocation and level of economic activity can be traced to some chosen objective. The disposal of untreated household waste water, particularly from the rural household, directly into the river was consistent with maximizing net benefits and minimizing costs. The optimum resource allocation, water-treatment plants, farms and industry activities would change with flow level. For each of the three industries analyzed separately, paper, wool and tanning, public treatment of industrial waste water was the optimal treatment process in one or more of the solutions. Lake shoreline was the dominant feature determining lake-resource valuation. Implied capital value varied from $126 per shoreline foot to over $250 depending on discount rate. Implied prices on lake surface ranged from $42 to $147 per acre. Strong economic forces encouraged small lot sizes for vacation cottages.     

Rural environmental attitudes

Two frequent beliefs about rural environmental attitudes are examined conceptually and empirically: (1) the common conception that rural environmental concerns are expressed predominantly by wealthy community newcomers; and (2) the related position that long-time rural residents are hostile to the environmental cause. We argue conceptually, through the use of a 2×2 community matrix, that environmental attitudes are equally likely to be expressed by what we term “upper middle income newcomers,” “lower middle income newcomers,” “upper middle income locals,” and “lower middle income locals.” Empirically, we find that although wealthy newcomers express the strongest environmental attitudes in the community, their concerns represent only a small percentage of rural environmental attitudes consisting of respondents who make less than $40,000 a year in household income are over 40 years of age, possess less than a college education, and work in a nonprofessional occupation. This new category expresses environmental concerns at least equal to the rest of the community on three of four measures of environmental attitudes. The findings provide insight into the widespread and cross-sectional nature of rural environmental concern. The implication is that environmental groups will find significant sources of political support in rural communities, provided they craft their environmental message in a language consistent with rural attitudes and values. Things are gettin' bad fast. Easterners and environmentalists comin' down here from the big cities are tryin' to turn our way of life completely upside down. A western US rancher quoted in Krakauer (1991)