Welfare cost of eutrophication-caused production losses: A case of aquaculture in Lake Kasumigaura

A general model for man's utilization of water resources is presented, in which the linkage between man's production activities and environmental systems is formulated based on Whitcomb's generalized joint production model and Kneese's transfer function. The general model is specified for a particular case of aquaculture in Lake Kasumigaura so as to evaluate in terms of the price data of 1978 the welfare cost of eutrophication-caused production losses under the assumption of horizontal demand curve.     

Intertemporal and intergenerational pareto efficiency revisited

This paper demonstrates that Bishop's formulation deviates in a fundamental way from our model and, in so doing, Bishop has assumed the problem away. Bishop utilizes a utility function that is too general to discriminate the time pattern of consumption from that of production. Hence, the intertemporal nature of the goods that we analyzed cannot be captured by Bishop's representation. Furthermore, we show that current benefit cost methods that discount the benefit stream of a public asset are Pareto intertemporally inefficient.     

Estimating net benefits of recreation under conditions of excess demand

The public provision of outdoor recreation necessitates the development of nonmarket measures of the value of resources in recreational use. Such values can be used as surrogates for market values in the decision-making process. Another aspect of recreation as a publicly provided good is the absence of a mechanism to eliminate automatically excess demand. The absence of such a mechanism has resulted in conditions of excess demand at many recreation sites.This paper deduces the implications of excess demand for the travel cost method of benefit estimation. We show that when excess demand results in rationing at a particular site, the travel cost method will underestimate the true benefits of the site. The results are important because they help identify the direction of bias of one measure of the benefits from the use of a natural resource.     

From data and theory to environmental models and indices formation

A prerequisite for environmental indices is that they represent environmental pressure, and the state of, and impact on environmental conditions. In other words, they should capture as much as possible of the cause-effect chains they represent and relate pressure and effect to criteria of environmental quality. The approach proposed in the article attempts to link the pressure–state–impact–response framework of indicators to the integrated environmental model, based on the method of response function (MRF). The MRF allows to construct purposeful, credible models from data and prior knowledge or information. The data are usually time series observations of system inputs and outputs, and sometimes of internal states. The output of such models is presented with highly aggregated environmental indices, reflecting the main pressure–state–impact–response cause-effect chains. The proposed approach is illustrated with the example of soil erosion indices.     

The economic theory of species extinction: Comment on smith

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

Relating environmental modeling to policy issues and decisions

This paper describes a linear program-based computer model which has been developed to identify the most effective spending patterns for environmental cleanup based on public preferences and spending limitations. The inputs to the model include the costs of removing each residual studied from its various sources. The objective function is the total “value of removal”. The factor added for each residual consists of a value for the residual multiplied by the quantity or fraction removed.Results of the analysis relate to and support current and projected policy decisions by the U.S. Environmental Protection Agency (EPA) for air and water programs. In addition, the results of the analysis suggest that EPA undertake a redirection of the Nation's resources among residual control programs.     

Dynamic aspects of effluent taxation under uncertainty

The optimal adjustment process for an effluent charge is derived when the firm's response to the charge is uncertain. The optimal process is shown to exhibit the dual effects of caution and probing. Because of uncertainty, society should be risk averse or cautious when setting the charge. However, because of the possibility of generating information for improved future control, this caution is balanced by the incentive to probe for additional information. Finally, if the uncertain parameters of the firm's response function are nonautonomous, their change over time must be explicitly considered to avoid bias in estimation.     

Congestion and participation in outdoor recreation: A household production function approach

This paper examines the effects of congestion on recreational behavior within a household production model of consumer behavior. We assume that congestion affects the household's ability to produce constant quality recreational service flows and derive a reduced-form model for participation decisions in remote and developed camping. Empirical estimates of the effects of a congestion measure on the conditional probability of participation as well as on the level of participation are estimated for each activity by the type of trip using information from the 1972 National Recreation Survey. The findings suggest that congestion was most likely to affect the decision to participate and not the level once that decision had been made. While differences in these effects were observed across the activities studied, it is not clear how they should be interpreted since our congestion measure was a proxy variable likely to perform better for remote camping than developed camping.     

The economics of enforcing air pollution controls

The goal of this paper is to determine the likely effect on a firm's control actions of alternative implementation and enforcement policies available to the control agency. Three alternatives are studied, legal enforcement through the new source performance standards set forth by EPA, and two effluent fee enforcement alternatives. First, a generalized model of the effects of implementation and enforcement policies on the firm's control action is developed. This model assumes that the firm is an expected cost minimizer. The model is then applied to the case of particulate matter discharges from coal-fired power plants in order to estimate empirically the effect of policy alternatives on the firm's control efforts. Finally, the results of the model and its empirical application are used to develop policy functions which relate control to the values of various policy parameters. These results lead us to several policy recommendations.     

Control targets for the management of biological systems

Attention is focused on biological systems which are describable in terms of ordinary differential equations subject to human control inputs. The concept of an isochronal system is introduced in order to include systems for which the differential equations are valid only over regularly reoccurring time intervals.It is assumed that the control inputs are to be chosen so that an integral cost function of the state of the system, the control used, current time, and the time interval of the control program is minimized. Problems associated with minimizing this cost function over an infinitely long time interval is then considered. Difficulties inherent with minimizing a cost integral on an infinite time interval are shown to be avoided by minimizing an average of the cost function over an unknown but periodic time interval. Under proper circumstance, the optimal control program for the average cost function is either identical to or a good approximation to the optimal control program for the original cost function over an infinitely long time interval.Necessary conditions are obtained for minimizing an average cost function over an unspecified time interval subject to the system equations. For a given problem the necessary conditions will yield but a single system trajectory in the state space. For management purposes this trajectory may be thought of as a target to which the system should be driven and maintained.A number of examples illustrate the use of the necessary conditions to obtain control targets. Certain problems associated with the stability of the target solutions are illustrated with the examples.     

The contribution of L. C. Gray to the economic theory of exhaustible natural resources and its roots in the history of economic thought

The paper opens with an assessment of natural resources economics up to 1913–14 when Gray published his two pioneering articles in natural resources economics (Part I). An in-depth study of Gray, weighing his contribution to the microeconomic theory of the mine and the macroeconomic theory of conservation against current literature, constitutes the main body of the paper (Part II). Gray and Hotelling's contributions to the theory of the mine are compared (Part III). The paper concludes with a comparison drawn between the author's findings and the scant attention previously paid to Gray's contributions to natural resources economics.“So far as I know, this is the first attempt to apply economic theory to this particular problem of conservation.” (H. C. Taylor, unpublished letter to C. R. Van Hise, May 23, 1913, a reference to Gray's “Economic Possibilities of Conservation”).     

Simulating fish production using exponential smoothing

The variation over time of the total annual production of pe and the United Kingdom has been described quantitatively using the exponential smoothing technique. The exercise was repeated on annual mackerel landings for the same two countries. It is suggested that in some cases, the production figure for the current year can be used to simulate the following year's value. The greater variations in South Africa's annual production probably gave rise to the poorer results for these data.     

The theory of power and efficiency in ecology

Some previous work on the theory of power and optimal efficiency in ecology is shown to be either incorrect or of limited applicability. The standard analysis based on Atwood's machine is not valid, and the optimal efficiency for maximum power production depends on the characteristics of the individual system. For optimally foraging aquatic organisms the theoretical efficiency is less than 50% when the hydrodynamic flow is laminar, but under turbulent conditions the optimal efficiency can rise as high as 67%. Despite these restrictions it still appears plausible that ecological efficiency should be the same for broad classes of living organisms.     

Firm behavior under imperfectly enforceable pollution standards and taxes

Assuming expected profit maximization, the behavior of the firm under imperfectly enforceable pollution standards is examined. Among other results, it is found that cost subsidies can reduce the size of violation and amount of wastes, and that the shape of the expected penalty function determines the direction of the firm response to tighter standards. Under imperfectly enforceable pollution taxes, it is found, among other results, that the firm's actual level of wastes is independent of proportional changes in the expected penalty for pollution tax evasion, and that the marginal cost of actual waste reduction equals the unit tax on reported wastes. Some normative aspects of the results are discussed.     

The Economics of Household Solid Waste Generation and Disposal

We develop a household production model of waste management that explicitly incorporates many of the technical and behavioral elements germane to current regulatory and non-regulatory solid waste policy initiatives. Examination of first-order conditions shows the interaction among household preferences, these production options, and external prices and fees. A simplified simulation of our model illustrates these relationships, showing that household response elasticities can vary widely over common price ranges and that relatively large household welfare gains may be obtained by adopting curbside recycling and unit pricing programs.     

基于CVM方法分析牧民对禁牧政策的受偿意愿——以锡林郭勒草原为例

确定居民对生态措施实施的受偿意愿,对目前迫切需要的生态补偿政策制定以及生态恢复和保护的有效性具有重要的现实意义。选用锡林郭勒草原为案例区域,通过入户调查及在那达慕大会集中调查相结合的方式,调查锡林郭勒草原地区牧民对禁牧措施的态度和受偿意愿。分析结果显示:53%的牧民愿意参加禁牧,而不愿意参加禁牧主要是由于补偿标准不合理引起的。计量经济学模型分析表明,牧民对禁牧的支持态度与牧民的收入和草地面积呈正相关,与养羊数量呈负相关。牧民的受偿意愿由牧民养羊数量、受教育年限、草地现状以及对禁牧政策的支持程度决定。根据意愿调查法初步估算锡林郭勒草原地区禁牧措施实施后牧民的补偿意愿,牧民家庭对禁牧政策的平均受偿意愿为每年每户2.7717万元,人均受偿意愿为8399元,平均每1hm2草地受偿意愿为85.95元。     

Adequacy of ecosystem models

A formal approach is developed to assess the adequacy of mathematical models to represent a given ecosystem. The procedure is based on the hypothesis that two or several models of an environment can be compared by using a vectorial approach: several model properties are analyzed and related to the model's capability to simulate the observed behaviour and to describe the ecosystem processes. The models are thus ordered from the standpoint of their adequacy. One preliminary model, a more recent one, and four lumped versions of the latter have been tested for adequacy. These models were developed by Wiegert and they describe the behaviour of an algal-fly community energetics in a thermal spring. Results obtained by our procedure agree with Wiegert's but some new points have been emphasized.     

Modelling the biochemical oxidation processes in artificial conditions of waste treatment plants

For natural water bodies there are many models of biochemical oxidation of organic pollutants, from simple to complicated ones. For the artificial conditions of waste water treatment plants there are numerous models of oxidation processes too. The authors believe that a better understanding of these processes in nature would be gained if the oxidation processes in more simple artificial conditions were understood.An attempt has been made to explain the variety of types of models of waste treatment in an activated sludge system or a biofilm reactor by the diffusion mechanism of oxidation of single substrates on the one hand, and by superposition of the kinetics of oxidation of single substrates in measurements of the dynamics of oxidation of a complex pollutant on the other hand.The conditions in which zero- and first-order models are valid in the oxidation of single substrates are derived. Respective formulae for rate constants are given. Monod's model is valid in a broader range of substrate concentration variations. An approximate formula for the half-saturation constant is proposed. Satisfactory agreement with experimental data for glucose and ammonia substrates is shown.The formal character of models being used at present is claimed for multicomponent substrates. The accuracy of the calculation is largely governed by the number of model coefficients. Similar results obtained by Monod's and Grau's models, often used in practice, are emphasized.     

An analysis of joint costs in a managed forest ecosystem

This paper analyzes the tenability of line item budgeting and independently determined output costs for a managed forest ecosystem. The general problem of cost allocation in a joint production system is discussed as one of choosing paths of integration. A production structure is hypothesized for describing a managed forest ecosystem and its characteristics of “jointness” are discussed. Finally, an empirical case example is presented which indicates that cost estimates and associated means of production which result from single output costing procedures and from joint costing procedures may be significantly different in a managed forest ecosystem.