Costing the countryside

The debate on valuing the environment moved to the fore in Britain in the late 1980s, principally as the result of the interaction of two factors: growing party political competition on the environment; and difficulties the Conservative Government were experiencing in defining a distinct neo‐liberal agenda for the environment. Despite its technocratic overtones, valuing the environment has thus become part of a broader political debate. Moreover, there are a number of radical implications for decision making and the role of conservation organizations which flow from an adoption of valuation practices and we seek to identify these as well.     

Below-cost timber sales and the political marketplace

Political pressures exist to increase the economic efficiency of timber management and production on the national forests managed by the USDA Forest Service. There is growing belief both outside and within the Forest Service that current levels of timber production, and most particularly uneconomic timber production, should be reduced. Many argue that eliminating uneconomic timber management programs will both save money and reduce environmental degradation. This article traces the political evolution of the focus on economic efficiency in timber production and explores the political-institutional factors that are shaping the current policy debate. The below-cost issue is less about economic efficiency than it is about political advantage and alternative political visions of the societal role of the nation's national forests now and in the future.     

Establishing politically feasible water markets: a multi-criteria approach

A multiple criteria decision-making (MCDM) model to simulate the establishment of water markets is developed. The environment is an irrigated area governed by a non-profit agency, which is responsible for water production, allocation, and pricing. There is a traditional situation of historical rights, average-cost pricing for water allocation, large quantities of water used, and inefficiency. A market-oriented policy could be implemented by accounting for ecological and political objectives such as saving groundwater and safeguarding historical rights while promoting economic efficiency. In this paper, a problem is solved by compromise programming, a multi-criteria technique based on the principles of Simonian logic. The model is theoretically developed and applied to the Lorca region in Spain near the Mediterranean Sea.     

Decision making for multiple utilization of water resources in New Zealand

The Clutha is the largest river in New Zealand. The last two decades have witnessed major conflicts centered on the utilization of the water resources of the upper Clutha river. These conflicts have by no means been finally resolved. The focus of this article is on institutional arrangements for water resource management on the Clutha, with particular reference to the decision-making processes that have culminated in the building of the high dam. It critically evaluates recent experiences and comments on future prospects for resolving resource use conflicts rationally through planning for multiple utilization in a climate of market led policies of the present government.The study demonstrates the inevitable conflicts that can arise within a public bureaucracy that combines dual responsibilities for policy making and operational functions. Hitherto, central government has been able to manipulate the water resource allocation process to its advantage because of a lack of clear separation between its two roles as a policy maker and developer. The conflicts that have manifested themselves during the last two decades over the Clutha should be seen as part of a wider public debate during the last two decades concerning resource utilization in New Zealand. The Clutha controversy was preceded by comparable concerns over the rising of the level of Lake Manapouri during the 1960s and has been followed by the debate over the think big resource development projects during the 1980s.The election of the fourth Labour government in 1983 has heralded a political and economic policy shift in New Zealand towards minimizing the role of public intervention in resource allocation and major structural reforms in the relative roles of central and regional government in resource management. The significance of these changes pose important implications for the future management of the Clutha.     

Environmental policy expansion in the EU: the intriguing case of bioinvasion regulation

ABSTRACT

While bioinvasion was an issue of low political salience in Europe, a new regulation addressing it was adopted in 2014 with strong support. This article analyzes the making of the regulation as an intriguing case of policy expansion amid economic crisis. Based on theoretical literature on drivers of EU policy integration and policy dismantling, alternative plausible explanations are explored. Our main finding is that development of economic policy consensus among member states on trade-environment nexus was crucial for progress towards regulatory action. Policy consensus has been driven by a confluence of three domestic factors: trade liberalization, market disintegration, and changing ideas about the desirability of EU-level law, with the European Commission as policy entrepreneur. Low political salience has also had an important effect. It has increased the influence of transnational conservation alliances, which have played a significant catalytic role in building consensus by shifting consciousness to economic reward of policy action vs inaction, and bringing international models for legislative reform to the EU jurisdiction.     

Policy context as a factor of bias in the valuation of environmental goods – a dual-process theories perspective

When ecosystem services value estimates are applied in the economic assessment of environmental policies, high accuracy of these estimates is required. One of the directions in the scientific discussion on biases in stated preference (SP) valuation surveys builds on dual-process theories of judgment. The paper contributes to this literature by presenting an experiment where two types of judgment were induced via separate versus joint valuation of environmental goods. The results demonstrated that policy relevance of environmental issues, e.g. the need for conservation measures increases emotional response, causing a larger bias in the separate design as it involves ‘valuation by feeling.’ This finding suggests that the context of a specific policy, which is often the reason for conducting SP surveys, influences the answers, thereby making the results less reliable for use in cost–benefit analysis.     

Analysing Conflict between Cultural Heritage and Nature Conservation in the Australian Alps: A CVM Approach

The contingent valuation method (CVM) can be useful for assessing the non-market economic values associated with government land use decisions. A particular variant of CVM, which is based on dichotomous choice responses, has become widely used. Previous studies have employed a variety of techniques for analysing dichotomous choice CVM data to produce estimates of economic welfare changes. This paper summarizes these analytical options, and illustrates their application in a case study concerning cattle grazing on the Bogong High Plains in the Australian Alps. This case study is one of the few to assess the non-market economic value of cultural heritage conservation using contingent valuation, and is also unusual in that the competing values are both non-market in character. Nature conservation and heritage values were separately measured using two independent surveys. Mean willingness to pay for nature conservation and cultural heritage were estimated using a range of parametric and nonparametric methods.     

Implementing Participatory Decision Making in Forest Planning

Forest policy decisions are often a source of debate, conflict, and tension in many countries. The debate over forest land-use decisions often hinges on disagreements about societal values related to forest resource use. Disagreements on social value positions are fought out repeatedly at local, regional, national, and international levels at an enormous social cost. Forest policy problems have some inherent characteristics that make them more difficult to deal with. On the one hand, forest policy decisions involve uncertainty, long time scales, and complex natural systems and processes. On the other hand, such decisions encompass social, political, and cultural systems that are evolving in response to forces such as globalization. Until recently, forest policy was heavily influenced by the scientific community and various economic models of optimal resource use. However, growing environmental awareness and acceptance of participatory democracy models in policy formulation have forced the public authorities to introduce new participatory mechanisms to manage forest resources. Most often, the efforts to include the public in policy formulation can be described using the lower rungs of Arnstein’s public participation typology. This paper presents an approach that incorporates stakeholder preferences into forest land-use policy using the Analytic Hierarchy Process (AHP). An illustrative case of regional forest-policy formulation in Australia is used to demonstrate the approach. It is contended that applying the AHP in the policy process could considerably enhance the transparency of participatory process and public acceptance of policy decisions.     

Applied landscape economics: a personal journey of discovery

Putting cash values on the environment facilitates commoditization and political capture of evaluation. However, individual citizens may also wish to know the appropriate trade‐off of values, in order to use political power properly. Willingness‐to‐pay offers insight into consumers’ valuation of landscape, but routine application of economic methods to land use decisions meets major problems, especially the data needs of cost — benefit analysis in face of the urgency of decisions, and the insensitivity of conventional methods to subtle landscape changes. These problems require the citizen‐as‐consumer to make personal judgements of value, but to link those values to a cash scale for the purpose of making trade‐offs. Such judgements can be entered into an orderly framework, in which the judgements can be exposed for comment, which itself exposes the assumptions of commentators. The decision about routing electricity transmission lines in Scotland provides an example. Recent interest in environmental economics gives the opportunity to broaden the scope of the method.     

Ethics and Environmental Attitudes With Implications for Economic Valuation

This paper tests the hypothesis that different ethical belief systems are unrelated to the attitude an individual takes towards the environment. More specifically, the neoclassical economic approach is seen to require a belief in utilitarianism while many individuals may operate on the basis of a deontological or rights-based approach to decision-making. The concern with this relationship arises from the use of the cost–benefit analysis approach to environmental policy and the specific application of the contingent valuation method. Evidence is found to support the view that environmentalists choose to operate on a rights-based approach which rejects the relative welfare arguments of economics and positively attributes compensation to future generations for environmental damages. This implies that the contingent valuation of environmental attributes will lead to values which are biased towards technocentric optimists and against the environmental movement. In terms of policy, environmental management on the basis of totalling economic values is liable to be undemocratic because of the systematic exclusion of a section of the general public.     

What are the implications of human rights for minerals taxation?

This article examines the relationship between a state's taxation of mineral revenues and the human rights obligation to use ‘maximum available resources’ to further citizens' welfare. These both have implications for understanding the other but there has been little attention to their interaction.Contemporary (economic and policy) approaches to mineral taxation revolve around economic rent and providing a ‘neutral’ economic environment that does not influence investment decisions. There is no reference to human rights obligations—these are just part of the state's general responsibilities for which it can legitimately raise taxes. Taxation analysis largely ignores whether the state wants money to ensure there is adequate food for the population, or instead to stage the Miss Universe pageant.Human rights has relevance for the state's management of resources. The requirement for states to apply ‘maximum available resources’ to fulfil human rights suggests that mineral extraction (and taxation) should occur as fast as possible to be applied for the human rights of the current population A more considered analysis weighs against such a literal interpretation. Nevertheless, the requirement of using ‘maximum available resources’ to fulfil human rights has important implications for mineral taxation.     

Can Red Pay for Blue? Methods to Estimate the Added Value of Water in Residential Environments

As a result of climate changes, more land is now needed in the Netherlands for water retention in towns and the countryside. Recently, this perceived need has resulted in new forms of water management and spatial planning strategies. Multi-functional land use is an option such as housing in combination with retention lakes. Some argue that the market potential is high and that water has an added value in residential environments. This added value could be used to compensate for non-profitable investments such as the creation of lakes. The key question is how to value this amenity. It is argued that non-economists often assume that a valuation is just a technique. The authors challenge this by presenting an overview of economic perspectives as well as techniques. A literature review reveals the main valuation perspectives and suggests estimated added values of 10‐15% for the seashore, 5‐10% for river locations (streams), and 5% for lakes.     

A comparison of alternative contingent valuation elicitation treatments for the evaluation of complex environmental policy

Attempts to evaluate the economic benefits associated with complex environmental policies, using the contingent valuation (CV) method, have been dogged by controversy. In particular, debate has centred on the influence of embedding and related effects on the validity of CV willingness-to-pay (WTP) estimates. This paper discusses these effects in the context of identifying the most appropriate WTP elicitation treatment to evaluate the willingness to pay for the various elements of a multi-dimensional environmental policy. The findings of an empirical experiment demonstrate that a top-down allocation treatment, which uses independent sub-samples for individual policy components, provides the most reliable treatment to value all aspects of a multi-dimensional policy, whilst also overcoming embedding bias problems.     

Effects of spatial and temporal scales on cultural services valuation

The monetary valuation of ecosystem services has proved to be a powerful tool for influencing management decisions, as it can be used to quantify the relative importance of various ecosystem functions. However, these valuation methods are rarely implemented with adequate care; in particular, they do not consider spatial and temporal variations in the services offered and demanded. This paper examines the effect of heterogeneity on the valuation of cultural services offered by the Doñana natural protected area in Spain. We apply the zonal travel cost method at various spatial scales, and the individual travel cost method at various temporal scales. We conclude that economic valuation techniques must account for spatial and temporal heterogeneity if they are to provide accurate and realistic information.     

Intelligent Databases Assist Transparent and Sound Economic Valuation of Ecosystem Services

Assessment and economic valuation of services provided by ecosystems to humans has become a crucial phase in environmental management and policy-making. As primary valuation studies are out of the reach of many institutions, secondary valuation or benefit transfer, where the results of previous studies are transferred to the geographical, environmental, social, and economic context of interest, is becoming increasingly common. This has brought to light the importance of environmental valuation databases, which provide reliable valuation data to inform secondary valuation with enough detail to enable the transfer of values across contexts. This paper describes the role of next-generation, intelligent databases (IDBs) in assisting the activity of valuation. Such databases employ artificial intelligence to inform the transfer of values across contexts, enforcing comparability of values and allowing users to generate custom valuation portfolios that synthesize previous studies and provide aggregated value estimates to use as a base for secondary valuation. After a general introduction, we introduce the Ecosystem Services Database, the first IDB for environmental valuation to be made available to the public, describe its functionalities and the lessons learned from its usage, and outline the remaining needs and expected future developments in the field.     

Contested and polluted terrain

This paper examines the new Ontario guidelines for the clean-up of contaminated sites using Toronto as an empirical case. The contention of the paper is that Ontario's new soil clean-up policy is the product of a set of embedded understandings about the economy, about the environment and about deep interconnections between the environment and the economy. These understandings are, to a large degree, specifically local. We contextualise the new guidelines by arguing that they contribute to restructuring the political economy of Toronto from an industrial to a global city. The analysis is based on, among other sources, a series of interviews with policy makers, scientists, bankers, insurance representatives and other knowledgeable individuals in the debate on polluted soil clean-up. Substantively, the paper focuses on the introduction of various risk-assessment processes into the debate on contaminated sites. The paper concludes that these processes need to be made subject to democratic rather than purely technocratic processes of evaluation and decision making.     

Science-Policy Interactions in MPA Site Selection in the Dutch Part of the North Sea

At the 7th conference of the parties to the Convention on Biological Diversity (CBD-COP7, Kuala Lumpur, 2004) it was agreed to establish a global network of marine and coastal protected areas by 2012. The defined objectives of this MPA-network are based on the ecosystem approach: to protect biodiversity and other ecological values, and to ensure sustainable use. The (inter)national policy guidelines state that the selection of MPAs should be based on scientific information and ecological criteria only. As a signatory to the Convention, the Netherlands is now faced with meeting this obligation, and the process of designating the first Marine Protected Areas (MPAs) in the Dutch part of the North Sea is currently in progress. We focus on the science–policy interactions that are part of this Dutch MPA selection process. By taking a closer look at the contemporary site selection process as well as its historical background, we show that ecological, socio-economic and political considerations cannot always be easily separated. Uncertainty is high and the ultimate selection and delimitation of candidate sites rather seems to be the result of a balancing act between ecological, socio-economic and political interests, in which scientific and policy guiding procedures blend with ad-hoc political decision making, and with expert judgment in cases where data is lacking. As such, this paper presents an example of present-day environmental policy making in action.     

Politicisation and professional expertise in the policy of nature conservation

In this paper, the policy of nature conservation in Norway is analysed, with a particular focus on policy development during the last decade moving in the direction of multi-level governance. It is argued that the logic of policy making has shifted from what can be described as 'the politics of expertise' to a process of 'politicisation'. A process of politicisation can be observed both in terms of the nature of arguments being used, and in terms of who the dominant actors are. The subjects of analysis are issues taken up by the political parties in the Parliament, and the paper focuses on two controversial questions. One is about the localisation of conservation areas on private land and the state's liability for compensation. The other is the question of whether the management of conservation areas, and in particular national parks, should be under the control of local government or the state environmental bureaucracy. The analysis documents a process moving in the direction of more complex governance structure involving more actors and broader local participation challenging the role of the professional bureaucracy.     

Perception of Forest Values in the Alpine Community of Trentino Region (Italy)

Values are generally defined as social facts that orientate individual and collective actions, and consequently influence political, economic and social systems. The evaluation of natural resource values is considered an important instrument to support decision making in environmental policy. The forest is an important renewable resource that provides a mix of social, economic and environmental values for society. The paper presents a survey method to collect and analyse individual preferences relating to three macro-categories of forest values. The survey method was tested in the Trentino region (north-east of the Italian Alps) and will soon be extended to other areas. The results of the questionnaires provided evidence that the forest economic value is perceived as least important, while the environmental values were appreciated the most. Regarding the principle social variables, males tended to give higher scores to all three macro-categories compared to females. Moreover, people with a low education also gave higher scores to all three categories in comparison to the more educated individuals.     

Costa Rican Environmental Service Payments: The Use of a Financial Instrument in Participatory Forest Management

The core element of the Costa Rican forestry policy is a financial instrument called the environmental service payment. This instrument rewards forest owners for the environmental services (the mitigation of greenhouse gases, the protection of watersheds and scenic beauty, and the development of biodiversity) their forests provide. In this article, the experiences with this new instrument are analyzed by focusing on the way interests are represented and access is granted, the openness of information exchange, whether social learning occurred, and whether decision-making authority is shared. The analysis is based on a survey conducted in the Huetar Norte Region and on in-depth interviews with the major stakeholders. The Costa Rican case indicates that financial instruments can be used to share responsibilities and that stakeholders can successfully cooperate on forest issues. It also shows that such a participatory approach is only promising if certain cultural, economic, organizational, and political conditions are met.