The Assessment of Water Resources Projects Involving Economic, Social and Environmental Costs and Benefits: The World Bank's View

In evaluating the costs and benefits of water resources development projects, the World Bank examines the economic, social and environmental aspects of the project. Some of these aspects are more easily quantified than others. The paper reviews some aspects that have been quantified by the Bank and describes others which have not. By way of illustrating the difficulty of quantification, the Bank's efforts to quantify the health hazards resulting from the introduction of irrigation projects is examined. In addition, the Bank's requirements with respect to social and environmental factors as they affect water resources projects are described.     

Explaining land management decisions to understand local landscape functions and change. Some insights from Tuscany

Structural changes in agriculture and urbanisation affect land management regimes and local landscape functions. Studying the new functions of land is as relevant as the owners' land management decisions, the replacement of farming with different activities and land uses may impact not only the local landscape's functions but also, in the long run, its structure and the environment. Drawing on a detailed case study in Tuscany based on qualitative interviews with landowners and on the understanding of the socio-economic context, this article analyses landowners' attitudes towards land property and farming in relation to individual motives as well as to local and supra-local contexts. Five relational typologies of landowners are identified: pure farmers, amenity farmers, land developers, land-with-house owners and house-with-land owners. Diverse trends – such as particular farmers’ attitudes towards land development, or the emerging role of non-professional farmers in land management – are found to raise challenges related to rural land planning and management.     

Farmers' Motivations for Adopting Conservation Practices along Riparian Zones in a Mid-western Agricultural Watershed

In the agricultural Mid-west, riparian corridors are vital for protecting biodiversity and water quality. The cumulative management decisions of hundreds of private landowners have a tremendous impact on this riparian zone. This study of 268 farmers in a typical Mid-western watershed in Michigan looked at farmer's motivations for adopting conservation practices, their current management practices along their rivers and drains as well as their future management plans. The results of the study showed that farmers are intrinsically motivated to practise conservation by such factors as their attachment to their land, rather than by motivations such as receiving economic compensation. Farmers are also likely to engage in conservation practices that make their farm appear well-managed. Furthermore, those farmers with strong intrinsic motivations were likely to adopt conservation practices that protect streams, such as maintaining a woody vegetative buffer or practicing no-till farming. This study shows that protecting riparian resources in agricultural watersheds requires strategies for conservation that respect farmers' attachment to their land and their desire to practise good stewardship.     

Economic growth,biodiversity loss and conservation effort

This paper investigates the relationship between economic growth, biodiversity loss and efforts to conserve biodiversity using a combination of panel and cross section data. If economic growth is a cause of biodiversity loss through habitat transformation and other means, then we would expect an inverse relationship. But if higher levels of income are associated with increasing real demand for biodiversity conservation, then investment to protect remaining diversity should grow and the rate of biodiversity loss should slow with growth. Initially, economic growth and biodiversity loss are examined within the framework of the environmental Kuznets hypothesis. Biodiversity is represented by predicted species richness, generated for tropical terrestrial biodiversity using a species-area relationship. The environmental Kuznets hypothesis is investigated with reference to comparison of fixed and random effects models to allow the relationship to vary for each country. It is concluded that an environmental Kuznets curve between income and rates of loss of habitat and species does not exist in this case. The role of conservation effort in addressing environmental problems is examined through state protection of land and the regulation of trade in endangered species, two important means of biodiversity conservation. This analysis shows that the extent of government environmental policy increases with economic development. We argue that, although the data are problematic, the implications of these models is that conservation effort can only ever result in a partial deceleration of biodiversity decline partly because protected areas serve multiple functions and are not necessarily designated to protect biodiversity. Nevertheless institutional and policy response components of the income biodiversity relationship are important but are not well captured through cross-country regression analysis.     

Forests and competing land uses in Kenya

Indigenous forests in Kenya, as in other developing countries, are under heavy pressure from competing agricultural land uses and from unsustainable cutting. The problem in Kenya is compounded by high population growth rates and an agriculturally based economy, which, even with efforts to control birth rates and industrialize, will persist into the next century. Both ecological and economic consequences of these pressures need to be considered in land-use decision making for land and forest management to be effective. This paper presents one way to combine ecological and economic considerations. The status of principal forest areas in Kenya is summarized and competing land uses compared on the basis of ecological functions and economic analysis. Replacement uses do not match the ecological functions of forest, although established stands of tree crops (forest plantations, fuel wood, tea) can have roughly comparable effects on soil and water resources. Indigenous forests have high, although difficult to estimate, economic benefits from tourism and protection of downstream agricultural productivity. Economic returns from competing land uses range widely, with tea having the highest and fuel wood plantations having returns comparable to some annual crops and dairying. Consideration of ecological and economic factors together suggests some trade-offs for improving land allocation decisions and several management opportunities for increasing benefits or reducing costs from particular land uses. The evaluation also suggests a general strategy for forest land management in Kenya.The views and interpretations expressed in this article are those of the authors and should not be attributed to the World Bank, its affiliated organizations, or any individual acting on their behalf.     

The carajas iron ore project: The strategy of a third world state- owned enterprise in a depressed market

This paper describes how the Carajas iron ore project was set up in February 1985 at a time of deep recession in the iron ore and steel industries. Development of the project was met with much criticism, mainly from North American steel makers, who argued that the project would only be successful through the support of a Third World government, highly dependent on foreign exchange, without any consideration being given to its economic feasibility or to the fundamentals of the market. The authors explain why the World Bank took the step of setting up the project and how its development can be partly explained by the interests of the Japanese and European steel makers. The role of the Brazilian government is explained and the authors conclude that the relatively low rate of investment anticipated by the project will be overshadowed by the high gains in foreign exchange.     

Changing Farmers' Land Management Practices in the Hills of Nepal

This paper sheds light on changing farmers' land management practices in two mountain watersheds, with and without external assistance, in the western hills of Nepal. Information used in the analysis were obtained through a survey of 300 households, group discussion, key informant interviews, and field observation conducted during April–September 1999. Confronted with ever-decreasing landholding size due to a steadily growing population and scarcity of nonfarming employment opportunities, farmers in both watersheds have increasingly adopted assorted types of structural and biological measures to control soil erosion, landslides, gully expansion, and soil nutrient loss to maintain or even enhance land productivity. Adoption of gully control measures, construction of the retention walls, alley cropping, use of vegetative measures for landslide control, mulching, and use of green manure and chemical fertilizers are found significantly high in the project area due to the provision of technical and financial support, whereas composting is found significantly high in the nonproject area. Different from the traditionally held beliefs, population pressure on a finite land resource has brought positive change in land management. However, the experience from both watersheds indicates that there is limit to the extent that resource poor farmers can respond to land degradation without any external assistance. Required is the arrangement for appropriate polices and support services and facilities enabling farmers to adopt locationally suitable and economically attractive land management technologies.     

The World Bank and Petroleum Development in the Third World

The issues that arise between state sovereignty over natural resources and the desire of the State to finance the development of its petroleum resources from external sources are briefly examined. The problem is particularly acute for the least developed countries. It is suggested that financing obtained from international agencies such as the World Bank, may provide a means for such countries to maintain full sovereignty over their petroleum resources and at the same time obtain needed financing. To this end the petroleum lending activities of the World Bank are examined both in terms of policy and in terms of the financial resources available. A special lending facility to help underwrite financial risk of petroleum exploration in the least developed countries is proposed.     

The politics of preserving natural areas in Third World States

Summary Any attempts to preserve Third World ecosystems must recognize that the ultimate decisions lie with the governments of these sovereign states, which have to deal with widespread demands for higher living standards as well as growing populations. To deal with the powerful pressures of economic growth, the most promising strategy for conservationists is to press the Western industrialized states, where the conservation movement is relatively strong, to join with the Third World in an international agreement whereby the latter would preserve portions of threatened ecosystems in exchange for compensation provided from the industralized countries, most plausibly through an agreement to reduce Third World countries' debt. To reinforce this protection, the industrialized states could agree to purchase tropical ecosystem products only from those states which agree to preserve certain portions of their ecosystems. While there would be great problems both in working out the levels of compensation and in persuading the industrialized states to participate in such a scheme, intensive lobbying by conservation groups might be enough to bring it to fruition.Dr. John Cartwright, who teaches courses in environmental politics and African politics at the University of Western Ontario, took degrees from Queen's University in Kingston, Canada, and the University of Toronto. From 1963 to 1966 he taught at the University of Sierra Leone in Freetown. He has produced three books on African politics, his most recent beingPolitical Leadership in Africa (1983). He has also been interested for many years in natural history and conservation issues, which have taken him on several visits to Latin America as well as to Africa.     

Population crisis and desertification in the Sudano-Sahelian region

People living in the area just south of the Sahara Desert in Africa face their 3rd major drought since 1900. This drought brings about famine. Drought and famine are only manifestations of more profound problems: soil erosion and degradation. They diminish land productivity which aggravates the population's poverty. Yet soil erosion and degradation occur due to an expanding population. Continued pressures on the land and soil degradation results in desertification. The UN Environment Programme's Assessment of the Status and Trend of Desertification shows that between 1978-84 desertification spread. Expanding deserts now endanger 35% of the world's land and 20% of the population. In the thorn bush savanna zone, most people are subsistence farmers or herdsmen and rely on the soils, forests, and rangelands. Even though the mean population density in the Sahel is low, it is overpopulated since people concentrate in areas where water is available. These areas tend to be cities where near or total deforestation has already occurred. Between 1959-84, the population in the Sahel doubled so farmers have extended cultivation into marginal areas which are vulnerable to desertification. The livestock populations have also grown tremendously resulting in overgrazing and deforestation. People must cook their food which involves cutting down trees for fuelwood. Mismanagement of the land is the key cause for desertification, but the growing poor populations have no choice but to eke out an existence on increasingly marginal lands. Long fallow periods would allow the land to regain its fertility, but with the ever-increasing population this is almost impossible. Humans caused desertification. We can improve land use and farming methods to stop it.     

Effects of economic growth on biodiversity in the United States

For many citizens and policymakers, the empirical relationship between economic growth and biodiversity conservation has not been sufficiently established for purposes of identifying the types of economic policies amenable to biodiversity conservation. Some think economic growth conflicts with biodiversity conservation; others think economic growth conduces biodiversity conservation. With panel data from 1997‐2011, encompassing US continental states, we developed a series of statistical models to investigate the relationships among species endangerment, human population, and economic growth as indicated by GDP and per capita GDP. Species endangerment is highly correlated with population and GDP, and per capita GDP is a significant regressor of species endangerment. Across US continental states, competitive exclusion of non‐human species occurs via human economic growth and population growth.     

DEVELOPING COMPETITION FOR WATER IN THE URBANIZING AREAS OF COLORADO1

ABSTRACT: Rapid population growth in the metropolitan area of Denver, Colorado, is causing conflicts over water use. Two cities, Thomton and Westminster, have begun condemnation proceedings against three irrigation companies to secure agricultural water rights for municipal use. This is the first condemnation proceeding against irrigation water rights for municipal use. Should the suit succeed, over 30,000 acres of presently irrigated land will lose its water supply. There are about four hundred landowners in the area; two hundred of these are commercial farmers, including truck, dairy and specialty farms. Total agricultural production amounts to about $8 million per year. About 561 jobs related to agriculture will disappear along with about $4 million in not income. Only 6.4 percent of the farmland along the Front Range is irrigated. Continued urban growth will put pressure on the water supply of much of this land. The interested parties of the region should cooperate to lessen the impact of urban growth on agricultural lands and water by forming a metropolitan water district. Such a district could share costs of development of additional municipal water and develop systems where municipalities would recycle waste water back to the irrigated lands.     

Agricultural Development and Associated Environmental and Ethical Issues in South Asia

South Asia is one of the most densely populated regions of the world, where despite a slow growth, agriculture remains the backbone of rural economy as it employs one half to over 90 percent of the labor force. Both extensive and intensive policy measures for agriculture development to feed the massive population of the region have resulted in land degradation and desertification, water scarcity, pollution from agrochemicals, and loss of agricultural biodiversity. The social and ethical aspects portray even a grimmer picture of the region with growing poverty mainly, amongst small farmers, food scarcity, and overall poor quality of life. This article reviews the historical perspective of agriculture development in the region and gives a panoramic view of the policy initiatives and their environmental as well as social and ethical spin-offs. The aim is to explore the environmental and ethical dimensions of the agricultural development in South Asia and recommend a holistic approach in formulating plans and programs to combat environmental degradation, hunger, and poverty resulting from unsustainable agricultural practices.     

Investigating biodiversity trajectories using scenarios – Lessons from two contrasting agricultural landscapes

Agriculture is the major land use at a global scale. In addition to food production, multifunctionality of landscapes, including values and ecosystem services like biodiversity, recreation and culture, is now focus for management. This study explores how a scenario approach, involving different stakeholders, may help to improve landscape management for biodiversity conservation. Local farmers and executives at the County Administrative Board were invited to discuss rural development and conditions for farmland biodiversity in two Swedish landscapes. The potential biodiversity for three future land use scenarios for the two landscapes was discussed: nature conservation, outdoor recreation and energy production, and compared with current and historical landscapes in each region.Analyses of habitat areas, connectedness and landscape diversity suggested that the energy and recreation scenarios had a negative impact on farmland biodiversity, whereas the nature conservation scenario, the current and historically reconstructed landscapes had a higher potential for biodiversity. The farmers appreciated the nature conservation scenario, but also the energy production scenario and they highlighted the need of increased subsidies for management of biodiversity. The farmers in the high production area were less interested in nature quality per se. The executives had similar opinions as the farmers, but disagreed on the advantages with energy production, as this would be in conflict with the high biodiversity and recreational values. The local physical and socio-economical conditions differ between landscapes and potentially shaped the stakeholders emotional attachment to the local environment, their opinions and decisions on how to manage the land. We stress the importance of incorporating local knowledge, visions and regional prerequisites for different land uses in conservation, since site and landscape specific planning for biodiversity together with a flexible subsidy system are necessary to reach the conservation goals within EU.     

Energy policies and collective self-reliance of the Third World

This paper reviews the broad pattern of energy use, output and consumption. The voracious consumption of non-renewable energy resources by the developed countries could exhaust this asset just when the accelerated development of the Third World would begin to gather momentum, thus denying them for their own use what is primarily their major resource. The paper underlines the critical importance of cooperative policies aimed at collective self-reliance of the Third World to ensure adequate availability of energy for its development.     

Conservation Through the Economics Lens

Although conservation is an inherently transdisciplinary issue, there is much to be gained from examining the problem through an economics lens. Three benefits of such an approach are laid out in this paper. First, many of the drivers of environmental degradation are economic in origin, and the better we understand them, the better we can conserve ecosystems by reducing degradation. Second, economics offers us a when-to-stop rule, which is equivalent to a when-to-conserve rule. All economic production is based on the transformation of raw materials provided by nature. As the economic system grows in physical size, it necessarily displaces and degrades ecosystems. The marginal benefits of economic growth are diminishing, and the marginal costs of ecological degradation are increasing. Conceptually, we should stop economic growth and focus on conservation when the two are equal. Third, economics can help us understand how to efficiently and justly allocate resources toward conservation, and this paper lays out some basic principles for doing so. Unfortunately, the field of economics is dominated by neoclassical economics, which builds an analytical framework based on questionable assumptions and takes an excessively disciplinary and formalistic approach. Conservation is a complex problem, and analysis from individual disciplinary lenses can make important contributions to conservation only when the resulting insights are synthesized into a coherent vision of the whole. Fortunately, there are a number of emerging transdisciplines, such as ecological economics and environmental management, that are dedicated to this task.     

Entangling the Complexity of Protected Area Management: The Case of Wolong Biosphere Reserve,Southwestern China

Protected Area (PA) management is a complex issue that requires the consideration of many factors and relationships. A conceptual framework for the analysis of biodiversity change, local human communities, and PA management was put forward, accordingly. Under the framework, we investigated the economic status, livelihood activities, biodiversity use and perceptions of local communities, and the land use history in Wolong Biosphere Reserve, southwestern China through household survey and document review in order to gain a better understanding of the complexity of PA management. According to the land use history, the preservation of agro-biodiversity, and the raising of productivity, ecological rehabilitation and the regulation of the human pressures are indispensable in the management of the reserve. Livelihood activities and the perceptions of local communities were largely determined by the socioeconomic background, which has important implications in solving the conflicts or incompatibilities in the reserve. In Wolong Biosphere Reserve, it is beneficial to support local farmers in solving their socioeconomic problems such as the overabundance of labor force and the lack of livelihood alternatives. Without this, there will be scarcely any effective biodiversity conservation and successful reserve management in the long term.     

Appreciation, Use, and Management of Biodiversity and Ecosystem Services in California’s Working Landscapes

"Working landscapes" is the concept of fostering effective ecosystem stewardship and conservation through active human presence and management and integrating livestock, crop, and timber production with the provision of a broad range of ecosystem services at the landscape scale. Based on a statewide survey of private landowners of "working" forests and rangelands in California, we investigated whether owners who are engaged in commercial livestock or timber production appreciate and manage biodiversity and ecosystem services on their land in different ways than purely residential owners. Both specific uses and management practices, as well as underlying attitudes and motivations toward biodiversity and ecosystem services, were assessed. Correlation analysis showed one bundle of ecosystem goods and services (e.g., livestock, timber, crops, and housing) that is supported by some landowners at the community level. Another closely correlated bundle of biodiversity and ecosystem services includes recreation, hunting/fishing, wildlife habitat, and fire prevention. Producers were more likely to ally with the first bundle and residential owners with the second. The survey further confirmed that cultural ecosystem services and quality-of-life aspects are among the primary amenities that motivate forest and rangeland ownership regardless of ownership type. To live near natural beauty was the most important motive for both landowner groups. Producers were much more active in management for habitat improvement and other environmental goals than residential owners. As the number of production-oriented owners decreases, developing strategies for encouraging environment-positive management by all types of landowners is crucial.     

Estimating the opportunity costs of biodiversity protection in the Brigalow Belt, New South Wales

The New South Wales Government recently introduced the Native Vegetation Conservation Act to protect the native grassland and woodland of the state. The Act protects biodiversity by preventing farmers from clearing such vegetation on their properties but, as a consequence, reduces farm incomes and land values. An economic model of the relationship between land value and percentage of farm in native vegetation is integrated with an ecological model of the relationship between species lost and percentage of the farms in native vegetation. The integrated framework is applied to estimate the opportunity costs of the Act for one important agricultural area of the state, the northern part of the Brigalow Belt South Bio-Region. If all the vegetation were protected, the reduction in land value would be at least 14.3%, which is an opportunity cost of at least 148.5 dollars m for the area. Both the benefits and costs of biodiversity protection must be accounted for, so risk simulations are then combined with benefit-cost analysis to compare the benefits of biodiversity protection to these costs.     

Landscape Equivalency Analysis: Methodology for Estimating Spatially Explicit Biodiversity Credits

We propose a biodiversity credit system for trading endangered species habitat designed to minimize and reverse the negative effects of habitat loss and fragmentation, the leading cause of species endangerment in the United States. Given the increasing demand for land, approaches that explicitly balance economic goals against conservation goals are required. The Endangered Species Act balances these conflicts based on the cost to replace habitat. Conservation banking is a means to manage this balance, and we argue for its use to mitigate the effects of habitat fragmentation. Mitigating the effects of land development on biodiversity requires decisions that recognize regional ecological effects resulting from local economic decisions. We propose Landscape Equivalency Analysis (LEA), a landscape-scale approach similar to HEA, as an accounting system to calculate conservation banking credits so that habitat trades do not exacerbate regional ecological effects of local decisions. Credits purchased by public agencies or NGOs for purposes other than mitigating a take create a net investment in natural capital leading to habitat defragmentation. Credits calculated by LEA use metapopulation genetic theory to estimate sustainability criteria against which all trades are judged. The approach is rooted in well-accepted ecological, evolutionary, and economic theory, which helps compensate for the degree of uncertainty regarding the effects of habitat loss and fragmentation on endangered species. LEA requires application of greater scientific rigor than typically applied to endangered species management on private lands but provides an objective, conceptually sound basis for achieving the often conflicting goals of economic efficiency and long-term ecological sustainability.