Economic Evaluation of Carbon Dioxide Emission Abatement Measures in the Greek Energy Sector

This paper outlines a methodological framework for the economic evaluation of carbon dioxide (CO 2 ) emission abatement policies and measures, formulating a basis for the selection of those options of climate change mitigation interventions that minimize economic cost and maximize social welfare. To this purpose, a cost-benefit analysis has been implemented in order to evaluate a variety of CO 2 emission abatement measures in the Greek energy sector on the basis of their social (i.e. the sum of the private and external) costs and benefits, and it is compared with a cost-effectiveness analysis, which takes into account only the net financial costs of the examined interventions. The analysis clearly reveals that a significant decrease in CO 2 emissions is possible without great cost to the economy. Moreover, the monetization of environmental benefits (e.g. the restriction of impacts on human health, agriculture and biodiversity, etc.) associated with the above-mentioned interventions represents a powerful tool for highlighting priority actions in the context of a climate change mitigation policy and for quantifying their overall economic and environmental effectiveness.     

A dynamic model for intertemporal allocation of old-growth forests in the Pacific Northwest

Across the globe, continued policy debates regarding the management of old-growth forests center around the difficult task of balancing economic and ecological considerations. Though the forests of the Pacific Northwest United States are among the most studied old-growth ecosystems, ecological and economic analyses have yielded public land management directives that remain controversial. Specifically, the recently adopted Northwest Forest Plan lacks explicit goals for maintaining intergenerational equity for the use of forest resources and the diversity of old-growth ecosystems. Unlike previous studies which rely on monetary quantification of costs and benefits, this study develops and applies a conceptual framework for evaluating socially optimal Pacific Northwest old-growth forest utilization strategies. Conditions for the optimal management of old-growth forests are derived using dynamic programming. The objective function synthesizes relevant biological and economic attributes of the old-growth allocation problem. Results in the form of extraction paths are compared given social pressure for consumptive and non-consumptive benefits, as well as different planning horizons, rates of social time preference, and environmental variance. Lengthening the planning horizon results in a vast divergence of optimal policies in the absence of discounting. Extraction rates appear to approach zero as the planning horizon approaches infinity. While higher rates of social time preference increase the rate of extraction, forest stocks remaining at the terminal time period equal levels remaining with a lower discount rate. Increasing environmental variance results in a higher level of stock remaining at the terminal time period. This analysis, while specific to the old-growth controversy of the Pacific Northwest, does provide general guidelines for addressing similar problems of multiple uses of natural areas, particularly where such uses are mutually incompatible, or where one use may be irreversibly destructive to another.     

Continuing Issues in the Limitations of Pesticide Use in Developing Countries

The rationale for pesticide use in agriculture is that costs associated with pesticide pollution are to be justified by its benefits, but this is not so obvious. Valuing the benefits by simple economic analysis has increased pesticide use in agriculture and consequently produced pesticide-induced “public ills.” This paper attempts to explore the research gaps of the economic and social consequences of pesticide use in developing countries, particularly with an example of Nepal. We argue that although the negative sides of agricultural development, for example- soil, water, and air pollution; pest resistance and resurgence; bioaccumulation, bio-magnification; and loss of biodiversity and ecosystem resilience caused by the use of pesticides in agriculture, are “developmental problems” and are “unintentional,” the magnitude may be increased by undervaluing the problems in the analysis of its economic returns. Despite continuous effort for holistic system analyses for studying complex phenomena like pesticides impacts, the development within the academic science has proceeded in the opposite direction that might have accelerated marginalization of the third world subsistence agricultural communities. We hypothesize that, if these adversities are realized and accounted for, the benefits from the current use of pesticides could be outweighed by the costs of pollution and ill human health. This paper also illustrates different pathways and mechanisms for marginalization. In view of potential and overall negative impacts of pesticide use, we recommend alternative ways of controlling pests such as community integrated pest management (IPM) along with education and training activities. Such measures are likely to reduce the health and environmental costs of pesticide pollution, and also enhance the capabilities of third world agricultural communities in terms of knowledge, decision making, innovation, and policy change.     

Measuring forest ecosystem sustainability: A resource accounting approach

A new environmental paradigm has emerged, reflecting a change in the public's understanding of resource sustainability. Forest policy makers need to be better informed about such changes to achieve economic, social, and environmental objectives in a manner that balances human needs and aspirations with ecosystem constraints. As an aid to this task, a forest resource accounting system based on the key concept of natural capital could help reshape forest policies to provide an even wider spectrum of benefits for both present and future generations by maintaining and enhancing the productive capacity of forest capital. Such a resource accounting system would provide a tool for integrating multidimensional information requirements in measuring the health of both forest ecosystems and economic systems. This paper outlines some of the features of this accounting system and proposes and framework that would integrate economic and ecological characteristics of natural resources. Forest resource accounting is urgently needed to achieve the sustainability goals of ecosystem management.     

A harvest failure approach to assess the threat from an invasive species

We present the idea of using potential infringements on annual allowable harvest targets as an approach to estimate threats from invasive species to the forest products sector. The approach uses present-day harvest levels as a reference level to estimate when and where the impact of a nonnative forest pest could become economically damaging. We use a generic model that simulates spread and damage by nonnative invasive species, basic harvest and forest growth through time. The concept is illustrated with a case study of a new nonnative invasive pest, Sirex noctilio Fabricius on pine resources in eastern Canada. Impacts of invasion on wood supply, in particular, the point at which present-day harvest levels are not attainable, were identified for 77 non-overlapping geographical regions that delimit the primary wood supply areas around large mills and wood processing facilities in eastern Canada. The results identify the minimum area of a pest outbreak that could trigger harvest shortages (approximately 12.5–14 M ha of pine forests in Ontario and Quebec). Beyond this level, the amount of host resource available for harvesting in any given year declines rapidly. The failure to sustain broad-scale harvest targets may be an attractive and intuitive indicator for policy makers and regulators interested in developing control and “slow-the-spread” programs for non-native forest pests.     

Environmental and economic aspects of production and utilization of RDF as alternative fuel in cement plants: A case study of Metro Vancouver Waste Management

Municipal solid waste (MSW) disposal and management is one of the most significant challenges faced by urban communities around the world. Municipal solid waste management (MSWM) over the years has utilized many sophisticated technologies and smart strategies. Municipalities worldwide have pursued numerous initiatives to reduce the environmental burden of the MSW treatment strategies. One of the most beneficial MSWM strategies is the thermal treatment or energy recovery to obtain cleaner renewable energy from waste. Among many waste-to-energy strategies, refuse-derived fuel (RDF) is a solid recovered fuel that can be used as a substitute for conventional fossil fuel. The scope of this study is to investigate the feasibility of RDF production with MSW generated in Metro Vancouver, for co-processing in two cement kilns in the region. This study investigates environmental impacts and benefits and economic costs and profits of RDF production. In addition, RDF utilization as an alternative fuel in cement kilns has been assessed. Cement manufacturing has been selected as one of the most environmentally challenged industries and as a potential destination for RDF to replace a portion of conventional fossil fuels with less energy-intensive fuel. A comprehensive environmental assessment is conducted using a life cycle assessment (LCA) approach. In addition, cost–benefit analysis (CBA) has been carried out to study the economic factors. This research confirmed that RDF production and use in cement kilns can be environmentally and economically viable solution for Metro Vancouver.     

Total quality product design—how to integrate environmental criteria into the product realization process

Recent case studies on the financial benefits of pollution prevention programs well attest to the notion that a commitment to the environment can help profitability not only by avoiding costs and potential liabilities, but also by generating environmentally-based opportunities for competitive advantage. Achieving these benefits, however, represents a complex management challenge that requires embedding environmental concerns in the day-to-day decisions and actions of a company'S employees. This article shows how the marriage of corporate environmental stewardship and TQM, better known as TQEM, is particularly well suited to the area of product design and why environmental health and safety experts can improve a product'S environmental performance.     

Nature-based marine tourism in the Gulf of California and Baja California Peninsula: Economic benefits and key species

Ecotourism can incentivize social and environmental benefits through marine conservation, in parallel with efforts to better manage fisheries, coastal development, and other human pressures. In Mexico's Gulf of California and Baja California Peninsula (GCBP), marine ecosystems support tourism activities in many communities, but to date there have been no region-wide studies to estimate their benefits or identify key species. Based on data collected in this study, each year nature-based marine tourism in the GCBP results in 896,000 visits, US$518 million in expenditures and at least 3,575 direct jobs from formal operations. In interviews with operators, over 40 species groups were named as important; sea lions, whale sharks, whales, and marlin were the highest ranked, highlighting the importance of ecosystem-wide health for nature-based tourism sustainability. Local employment and the ability to make economic and conservation goals compatible were noted by operators as significant opportunities provided by nature-based marine tourism; challenges included pollution and declines in ecosystem health, a lack of infrastructure, poor resource management policies, and high operating costs. As nature-based marine tourism expands, a wider transition to true ecotourism, a focus on equitable benefits and collaboration between stakeholders and a cross-scale and ecosystem approach to management will be vital for achieving potential sustainable social, ecological and economic benefits.     

Evaluating sustainable forest management strategies with the Analytic Network Process in a Pressure-State-Response framework

Nowadays forestry faces a complex management situation; the understanding of sustainable forest management (SFM) has gone far beyond the original meaning of sustainable yield of timber. SFM strategies should fulfil ecological, economic and social functions without causing damage to other ecosystems. In this understanding, forest management actions cannot be seen as isolated or mono-causal. In this case study, indicators for SFM are arranged in a Pressure-State-Response (PSR) framework at forest management unit level. This framework links pressures on the environment caused by human activities with changes of environmental state (condition) parameters. Forest management also responds to these changes by instituting environmental and economic measures to reduce pressures and restore natural resources. The Analytic Network Process (ANP) is utilized to evaluate the performance of four management strategies with regard to the PSR framework on SFM. Priorities of indicators and alternatives are modelled with the ANP resulting from the interconnections to other indicators and their respective cumulative importance. The approach allows for more detailed information on the network of human influences and their impacts on forest ecosystems and goes beyond the limitations of flat-dimensioned indicator sets.     

Agribusiness Opportunity Costs and Environmental Legal Protection: Investigating Trade-Off on Hotspot Preservation in the State of São Paulo,Brazil

Prior to deforestation, São Paulo State had 79,000 km² covered by Cerrado (Brazilian savanna) physiognomies, but today less than 8.5% of this biodiversity hotspot remains, mostly in private lands. The global demand for agricultural goods has imposed strong pressure on natural areas, and the economic decisions of agribusiness managers are crucial to the fate of Cerrado domain remaining areas (CDRA) in Brazil. Our aim was to investigate the effectiveness of Brazilian private protected areas policy, and to propose a feasible alternative to promote CDRA protection. This article assessed the main agribusiness opportunity costs for natural areas preservation: the land use profitability and the arable land price. The CDRA percentage and the opportunity costs were estimated for 349 municipal districts of São Paulo State through secondary spatial data and profitability values of 38 main agricultural products. We found that Brazilian private protected areas policy fails to preserve CDRA, although the values of non-compliance fines were higher than average opportunity costs. The scenario with very restrictive laws on private protected areas and historical high interest rates allowed us to conceive a feasible cross compliance proposal to improve environmental and agricultural policies.     

Forest Insect Pest Management and Forest Management in China: An Overview

According to the Seventh National Forest Inventory (2004–2008), China’s forests cover an area of 195.45 million ha, or 20.36% of the total land area. China has the most rapidly increasing forest resources in the world. However, China is also a country with serious forest pest problems. There are more than 8,000 species of potential forest pests in China, including insects, plant diseases, rodents and lagomorphs, and hazardous plants. Among them, 300 species are considered as economically or ecologically important, and half of these are serious pests, including 86 species of insects. Forest management and utilization have a considerable influence on the stability and sustainability of forest ecosystems. At the national level, forestry policies always play a major role in forest resource management and forest health protection. In this paper, we present a comprehensive overview of both achievements and challenges in forest management and insect pest control in China. First, we summarize the current status of forest resources and their pests in China. Second, we address the theories, policies, practices and major national actions on forestry and forest insect pest management, including the Engineering Pest Management of China, the National Key Forestry Programs, the Classified Forest Management system, and the Collective Forest Tenure Reform. We analyze and discuss three representative plantations—Eucalyptus, poplar and Masson pine plantations—with respect to their insect diversity, pest problems and pest management measures.     

Effects of tree size and spatial distribution on growth of ponderosa pine forests under alternative management scenarios

Forest ecosystems may be actively managed toward heterogeneous stand structures to provide both economic (e.g., wood production and carbon credits) and environmental benefits (e.g., invasive pest resistance). In order to facilitate wider adoption of possibly more sustainable forest stand structures, defining growth expectations among alternative management scenarios is crucial. To estimate the effect of tree size and spatial distributions on growth for forest structures commonly considered in uneven-aged forest stand management, large (0.2 ha+) plots were established in 14 uneven-aged ponderosa pine stands in eastern Montana. All study trees were stem-mapped and measured for diameter and 10-year sapwood and basal area increment. A generalized growth model was developed to predict both total and merchantable 10-year basal area increment for nine hypothetical stand structures [three diameter distributions (reverse-J, irregular, flat) × three spatial distributions (clumpy, partial clumpy, uniform)]. Results indicate that the size and spatial distributions of individual trees have a considerable effect on overall stand growth. The greatest total stand growth was in stands with reverse “J” shaped tree size distributions, while the greatest merchantable stand growth was in stands with “flat” diameter distributions and uniform spatial distributions. Through better comprehension of generalized uneven-aged stand growth dynamics, forest managers may better assess the effects of alternative stand structures on stand growth while providing forest stand structures that may be more resilient in a changing climate.     

INTEGRATING SOCIAL BENEFIT COST ACCOUNTING INTO WATERSHED RESTORATION AND PROTECTION PROGRAMS1

ABSTRACT: Successful watershed management requires consideration of multiple objectives and the efficient use of scarce public and private resources. One way to address these multi-faceted issues is through Social Benefit-Cost Accounting (SBCA). SBCA is a systematic method of addressing complex social and economic issues relevant to proposed watershed management projects. Benefits of using this technique include: benefits and costs of watershed projects are better understood; politically sensitive issues tend to be put into perspective; and stakeholders' interests are placed on a level playing field. An example from Bogota, Colombia demonstrates how SBCA can be used to value the benefits and costs of a proposed project. By addressing the benefits and costs to all stakeholders, the design of watershed management programs can be improved to achieve goals in a cost-effective manner.     

Can environmental compensation contribute to socially equitable conservation? The case of an ecological fiscal transfer in the Brazilian Atlantic forest

ABSTRACT

Regions of high biodiversity often coincide with regions of poverty and conservation can imply economic and social costs for poor resident populations. Environmental compensation is considered a tool to reduce socio-environmental conflict, improve the equity of conservation and promote sustainable development. The intricacies of specific socio-ecological systems may determine how compensation payments are interpreted locally to produce outcomes. This research examines the social perceptions of an ecological fiscal transfer which intends to compensate the local public administration for the substantial costs of conservation in a hotspot of biological and social diversity in the Brazilian Atlantic forest. In this context we explore whether financial compensation (1) influences local perceptions of the conservation regime, (2) contributes towards the reconciliation of human-conservation conflicts and (3) triggers any meaningful socio-economic improvement that would counter the local costs of conservation. Results show that environmental compensation is not widely recognised as effectively benefiting the community. Local authorities consider compensation insufficient to enact a sustainable development agenda. Environmental compensation could play an important role in a policy mix for socially equitable conservation by being explicitly linked to community benefits, especially to fostering local livelihoods. The collaboration of actors operating across multiple governance levels may improve the institutional capacity of local actors to produce effective outcomes.     

Benefit-cost analysis of spruce budworm (Choristoneura fumiferana Clem.) control: incorporating market and non-market values

This study employs a benefit-cost analysis framework to estimate market and non-market benefits and costs of controlling future spruce budworm (Choristoneura fumiferana) outbreaks on Crown forest lands in New Brunswick, Canada. We used: (i) an advanced timber supply model to project potential timber volume saved, timber value benefits, and costs of pest control efforts; and (ii) a recent contingent valuation method analysis that evaluated non-market benefits (i.e., changes in recreation opportunities and existence values) of controlling future spruce budworm outbreaks in the Province. A total of six alternative scenarios were evaluated, including two uncontrolled future budworm outbreak severities (moderate vs. severe) and, for each severity, three control program levels (protecting 10%, 20%, or 40% of the susceptible Crown land forest area). The economic criteria used to evaluate each scenario included benefit-cost ratios and net present values. Under severe outbreak conditions, results indicated that the highest benefit-cost ratio (4.04) occurred when protecting 10% (284,000 ha) of the susceptible area, and the highest net present value ($111 M) occurred when protecting 20% (568,000 ha) of the susceptible area. Under moderate outbreak conditions, the highest benefit-cost ratio (3.24) and net present value ($58.7 M) occurred when protecting 10% (284,000 ha) of the susceptible area. Inclusion of non-market values generally increased the benefit-cost ratios and net present values of the control programs, and in some cases, led to higher levels of control being supported. Results of this study highlight the importance of including non-market values into the decision making process of forest pest management.     

Value Orientation and Forest Management: The Forest Health Debate

Among both forest practitioners and the general public, “forest health” has become an issue of contention. Whereas the debate over which treatments will best achieve healthy forests has been framed largely by the popular media and politicians as a struggle between industry and environmentalists, the views of the general public remain unexplored. Survey results from Oregon and Washington residents were used to assess the relationships between respondents’ self-described environmental or economic priorities and the following two variables: (1) acceptability of forest management practices and (2) perceived threats to forest health. Findings indicate that active management was generally accepted by a majority of respondents regardless of their environmental or economic orientation. Disagreement emerged, however, when the appropriateness of specific management practices within specific forest conditions was examined. Additionally, strong evidence was found for a relationship between self-described environmental or economic orientation and perceived threats to forest health. Those with an environmentally oriented viewpoint tended to perceive human-caused factors as the largest threats, whereas those with an economic orientation saw naturally occurring processes as the greatest threats. These findings suggest that the issue of contention is not active management per se. Rather, the major divisions in the forest health debate are defined by specific contexts and circumstances, as well as the management practices used.     

Improving environmental management with full environmental cost accounting

Based on the most comprehensive field research ever conducted in corporate environmental management, this article reports on the integration of environmental impacts into product costing and cost management practices in organizations. It examines approaches for identifying and tracking current environmental costs related to both current and past production. It also develops the need and prospects for a complete analysis of future environmental impacts, including both costs and benefits, and the integration of these elements into a life-cycle costing or full environmental cost accounting model. The prospects for full environmental cost accounting and the related accounting issues are analyzed. Finally, the importance of full environmental cost accounting for improving corporate environmental performance, reducing corporate environmental impacts, and increasing long-term corporate profitability is discussed.     

Info-Gap Decision Theory for Assessing the Management of Catchments for Timber Production and Urban Water Supply

While previous studies have examined how forest management is influenced by the risk of fire, they rely on probabilistic estimates of the occurrence and impacts of fire. However, nonprobabilistic approaches are required for assessing the importance of fire risk when data are poor but risks are appreciable. We explore impacts of fire risk on forest management using as a case study a water catchment in the Australian Capital Territory (ACT) (southeastern Australia). In this forested area, urban water supply and timber yields from exotic plantations are potential joint but also competing land uses. Our analyses were stimulated by extensive wildfires in early 2003 that burned much of the existing exotic pine plantation estate in the water catchment and the resulting need to explore the relative economic benefits of revegetating the catchment with exotic plantations or native vegetation. The current mean fire interval in the ACT is approximately 40 years, making the establishment of a pine plantation economically marginal at a 4% discount rate. However, the relative impact on water yield of revegetation with native species and pines is very uncertain, as is the risk of fire under climate change. We use info-gap decision theory to account for these nonprobabilistic sources of uncertainty, demonstrating that the decision that is most robust to uncertainty is highly sensitive to the cost of native revegetation. If costs of native revegetation are sufficiently small, this option is more robust to uncertainty than revegetation with a commercial pine plantation.     

Cost-benefit analysis of an accelerated vehicle-retirement programme

High taxes on new cars in Israel provide an incentive for car owners to defer the purchase of new vehicles. The result is a vehicle fleet of older, more polluting vehicles, with air pollution costs estimated at up to $530 million annually. The purpose of this paper is to conduct a cost benefit analysis (CBA) of an accelerated vehicle-retirement (AVR) programme. The analysis considers the private car fleet as well as trucks and buses. The study develops an economic model to identify the optimal payment level that will maximise the net benefit of the programme, and then apply the model to three different vehicle categories. It finds that an AVR programme for private cars may indeed yield significant net benefits, while a similar programme for trucks and buses fails to meet the cost-benefit test. For private cars, the study finds that even according to a conservative estimate, the programme will result in the voluntary retirement of approximately 98,000 private cars, with a present value net benefit of more than $50 million. This is equal to a 17% reduction in total annual private car air pollution costs for the five-year time span of the proposed programme.