Time perspective and climate change policy

The tendency to foreshorten time units as we peer further into the future provides an explanation for hyperbolic discounting at an inter-generational time scale. We study implications of hyperbolic discounting for climate change policy, when the probability of a climate-induced catastrophe depends on the stock of greenhouse gasses. We characterize the set of Markov perfect equilibria (MPE) of the inter-generational game amongst a succession of policymakers. Each policymaker reflects her generation's preferences, including its hyperbolic discounting. For a binary action game, we compare the MPE set to a “restricted commitment” benchmark. We compare the associated “constant-equivalent discount rates” and the willingness to pay to control climate change with assumptions and recommendations in the Stern Review on Climate Change.“…My picture of the world is drawn in perspective…. I apply my perspective not merely to space but also to time”—Ramsey.     

Minimax regret discounting

The paper considers an environmental policy decision in which the appropriate approach for discounting future costs and benefits is unknown. Uncertainty about the discount rate is formulated as a decision under Knightian uncertainty. To solve this, we employ minimax regret, a decision criterion that is much less conservative then the related criterion maximin—in particular, it can be shown to implement a “proportional response” in that it equally balances concern about the mistake of doing too little with that of doing too much. Despite the criterion's balanced nature, the minimax regret solution mimics a policy that maximizes the present discounted value of future net benefits with an effective (certainty-equivalent) discount rate that declines over time to the lowest possible rate. In addition to reinforcing Weitzman's (1998) original limiting result, the approach generates concrete policy advice when decision makers are unable to specify a prior over possible discount rates. We apply it to the Stern–Nordhaus discounting debate and find that the effective discount rate converges to the Stern rate in just under 200 years.     

Testing genuine savings as a forward-looking indicator of future well-being over the (very) long-run

Genuine Savings (GS) have been much used in recent years as an indicator of a country's sustainability. According to some theorists (e.g. Arrow et al., 2012), under certain conditions a country with a positive level of GS should experience non-declining future utility, given the assumption of unlimited substitutability among all forms of capital (sometimes called “weak” sustainability). This paper reports the first very long-run tests of GS (also called comprehensive investment or adjusted net savings) as a forward-looking indicator of future well-being. We assemble data for British capital back to 1765, and construct several net investment measures which are used as indicators of two alternative measures of future well-being: consumption per capita and real wages. An allowance for a “value of time” due to exogenous technological progress is included in some GS measures, and we demonstrate the importance of this measure and the choice of discount rate over the very long-run. On the whole, our results do not reject the postulated relationship between GS and future well-being, and show GS can be a forward looking indicator of future well-being for periods of up to 100 years.     

What did Lotka really say? A critical reassessment of the “maximum power principle”

This paper presents a critical discussion of the so-called “maximum power principle”, often quoted in studies about the energy balance of living systems and also known in the emergy literature as “maximum em-power principle”. Several authors consider this principle highly relevant and some even proposed it as a “fourth law of thermodynamics”. A critical analysis of the original source, namely Alfred Lotka's 1921-22 papers, conducted both in an historical perspective (the connection between Lotka's writings and the ongoing debate at his time) and in a more modern context, leads to a more detailed and less biased assessment. It turns out that in spite of Lotka's very anticipatory and incredibly sharp vision of the possible interconnections between the second law of thermodynamics and evolutionism, doubts arise about the general applicability of his “maximum power principle”. From an accurate analysis of his writings, it can be concluded that: (a) Lotka explicitly and consistently addressed the “optimal use” of the flow of exergy (available energy), and therefore the quantity defined as “em-power” is an incorrect interpretation of Lotka's constrained maximum power principle; (b) “Lotka's principle” can be reformulated within Ziegler's “maximum entropy production” or Prigogine “minimum entropy generation” paradigm only under two different respective sets of rather stringent additional conditions which Lotka was probably already aware of but never explicitly stated.     

Climate treaties and approaching catastrophes

If the threshold that triggers climate catastrophe is known with certainty, and the benefits of avoiding catastrophe are high relative to the costs, treaties can easily coordinate countries' behavior so as to avoid the threshold. Where the net benefits of avoiding catastrophe are lower, treaties typically fail to help countries cooperate to avoid catastrophe, sustaining only modest cuts in emissions. These results are unaffected by uncertainty about the impact of catastrophe. By contrast, uncertainty about the catastrophic threshold normally causes coordination to collapse. Whether the probability density function has “thin” or “fat” tails makes little difference.     

Optimization of an artificial neural network for identifying fishing set positions from VMS data: An example from the Peruvian anchovy purse seine fishery

The spatial behavior of numerous fishing fleets is nowadays well documented thanks to satellite Vessel Monitoring Systems (VMS). Vessel positions are recorded on a frequent and regular basis which opens promising perspectives for improving fishing effort estimation and management. However, no specific information is provided on whether the vessel is fishing or not. To answer that question, existing works on VMS data usually apply simple criteria (e.g. threshold on speed). Those simple criteria generally focus in detecting true positives (a true fishing set detected as a fishing set); conversely, estimation errors are given no attention. For our case study, the Peruvian anchovy fishery, those criteria overestimate the total number of fishing sets by 182%. To overcome this problem an artificial neural network (ANN) approach is presented here. In order to set both the optimal parameterization and use “rules” for this ANN, we perform an extensive sensitivity analysis on the optimization of (1) the internal structure and training algorithm of the ANN and (2) the “rules” used for choosing both the relative size and the composition of the databases (DBs) used for training and inferring with the ANN. The “optimized” ANN greatly improves the estimates of the number and location of fishing events. For our case study, ANN reduces the total estimation error on the number of fishing sets to 1% (in average) and obtains 76% of true positives. This spatially explicit information on effort, provided with error estimation, should greatly reduce misleading interpretations of catch per unit effort and thus significantly improve the adaptive management of fisheries. While fitted on Peruvian anchovy fishery data, this type of neural network approach has wider potential and could be implemented in any fishery relying on both VMS and at-sea observer data. In order to increase the accuracy of the ANN results, we also suggest some criteria for improving sampling design by at-sea observers and VMS data.     

Estimation of thermodynamic parameters of the biosphere, based on remote sensing

A method that allows the estimation of the thermodynamic parameters of the biosphere has been developed. It results in the subdivision of the following four phase states of the biosphere: three equilibrium states: “white planet” with high albedo and low entropy; temperate forest in winter with high entropy; and desert with high entropy; and one nonequilibrium state: the “active forests” with low entropy, high information gain and the highest exergy values. The phase shift to a nonequilibrium state happens when albedo is less than 0.2.     

The model of long-term evolution of the carbon cycle

The weathering processes and their role in the formation of the atmospheric carbon and, as a consequence, on the climate are considered. The model operates in the framework of “active planetary cover”, i.e. considering the interactive role of the biosphere, looking at its development as a non-linear evolutionary system of so-called “virtual biospheres”.     

Testing the impact of social forces on the evolution of Sahelian farming systems: A combined agent-based modeling and anthropological approach

This article presents the results of a methodology based on an extensive sociological fieldwork in three different sites settled along a gradient of aridity in Nigerien Sahel. This fieldwork led to build a set of rules for the behaviour of individuals in non-pastoralist villages. We implemented these rules into an agent-based model simulating three village archetypes. Each archetype includes biophysical, economical, social agricultural and livestock modules. Results from simulations with no social transition processes show that villages specialize themselves into different economic activities according to natural resource specificities: A decreasing intensification gradient is observed from the most favoured site, with more local productions and good ecological indicators, to the less-favoured site, with a growing proportion of the population wealth coming from migration remittances and “off-shore” livestock. Two family transition processes were implemented, following field observations and literature-based hypotheses: family organizations evolve between a patriarchal mode and a non-cooperative mode following tensions due to income redistribution. Family inheritance systems evolve from a “customary” one-heir mode to a “local Muslim” mode in which all males inherits land. This evolution depends on family tensions due to land availability. Once introducing these processes, the population of each site differentiates itself into specialized groups according to size, assets and social status. Meanwhile, the group proportions and specializations strongly vary according to the sites but they are all characterized by the emergence of individualistic family types and the increase of the village populations’ robustness.     

A revised calculation of the econometric factors α- and β for the Extended Exergy Accounting method

Extended Exergy Accounting (“EEA”) is a method to compute the space- and time integral of the primary exergy required to produce a good or a service: the extended exergy of a commodity measures its “embodied exergy”, including externalities (Labour, Capital and Environmental Costa). A crucial point of the method is the calculation of two econometric coefficients, commonly referred to as “α” and “β”,used to calculate the extended exergy equivalents of Labour and Capital respectively. In previous applications of the EEA method, these coefficients have been assigned approximate values estimated on the basis of global system considerations. In this paper, a novel procedure is described that leads to the calculation of “exact” values of both econometric coefficients, based on detailed exergy- and monetary balances of the Society to which the EEA is applied. It is shown that both α and β depend in a non-trivial way from the consumption patterns, the technological level and the life- and socio-economic standards of each Country. It is also shown that the values are substantially different for developed (OECD) and underdeveloped Countries, and representative samples of values are calculated and critically analysed. On the basis of these new model coefficients, the specific exergy equivalents of Labour (ee_L) and of Capital (ee_K) are calculated, and shown to differ from the values used in previous EEA calculations.     

Assessing geobiosphere work of generating global reserves of coal, crude oil, and natural gas

A teacher of ours used to say, “Like ice in a fire, something for nothing you will never acquire”, which is a poetic equivalent of “there is no such a thing as a free lunch”. Human economies are dependent on high quality fossil fuels and will likely continue depending on them for some time to come. Value of a resource is not only what one pays for it, or what can be extracted from it, but also value can be attributed to the “effort” required in its production. In this analysis we apply the emergy synthesis method to evaluate the work invested by the geobiosphere to generate the global storages of fossil energy resources. The upgrading of raw resources to secondary fuels is also evaluated. The analysis relies on published estimates of historic, global net primary production (NPP) on land and oceans, published preservation and conversion factors of organic matter, and assessments of the present total global storages of coal, petroleum, and natural gas. Results show that the production of coal resources over geologic time required between 6.63E4 (±0.51E4) seJ/J and 9.71E4 (±0.79E4) seJ/J, while, oil and natural gas resources required about 1.48E5 (±0.07 E5) seJ/J and 1.70E5 (±0.06E5) seJ/J, respectively. These values are between 1.5 and 2.5 times larger than previous estimates and acknowledge a far greater power of fossil fuels in driving and shaping modern society.     

Implementing optimal taxes using tradable share permits

This paper presents a simple system for efficient regulation under asymmetric information. Each firm's income is controlled by a tax that depends on the firm's own output and on a parameter construed as a share permit. These “shares of total expected output” lower a firm's tax burden and are acquired in a competitive market. By employing this scheme, the planner only requires knowledge of marginal damage to induce the first-best outcome. Relative to a traditional cap-and-trade approach the system increases expected social welfare.     

Can household consumers save the wild fish? Lessons from a sustainable seafood advisory

Conservation organizations seeking to reduce over-fishing and promote better fishing practices have increasingly turned to market-based mechanisms such as environmental sustainability labels (eco-labels) in order to shift patterns of household consumption. This paper presents an analysis of consumer response to an advisory for sustainable seafood adopted by a regional supermarket in the United States. The advisory consisted of a label in which one of three traffic light colors was placed on each fresh seafood product to inform consumers about its relative environmental sustainability. Green meant “best” choice, yellow meant “proceed with caution,” and red meant “worst choice”. Using a unique product-level panel scanner data set of weekly sales and taking advantage of the random phase-in of the advisory by the retailer, we apply a difference-in-differences identification strategy to estimate the effect of the advisory on overall seafood sales as well as the heterogeneous impact of the advisory by label color and whether the seafood met additional health-related criteria. We find evidence that the advisory led to a statistically significant 15.3% decline in overall seafood sales, a statistically significant 34.9% decline in the sale of yellow labeled seafood, and a statistically significant 41.3% decline in the sale of yellow labeled seafood on a mercury safe list. We find no statistically significant difference in sales of green or red labeled seafood.     

Projecting landscape changes in southern Chile: Simulation of human and natural processes driving land transformation

We describe a simulation model representing the most important human and natural factors driving land use and cover changes (LUCC) in southern Chile. We evaluate the model by examining its ability to simulate LUCC observed over the past three decades, conduct a sensitivity analysis of simulated trends to changes in important model parameters, and use the model to project likely landscape transformations over the next decade under “as usual,” “pessimistic,” and four “optimistic” scenarios. The model consists of five submodels representing LUCC on two distinct soil formations (volcanic ash and gleysols) and four major land use categories: native forest, agricultural land, shrubland, and urban land. Land use and cover sub-categories include old growth forests, secondary forests, and low and flooded shrubland. The model simulated well general historic trends in forest cover, agricultural land, shrubland, and urban land: from a forest-dominated landscape in 1976 to a landscape dominated by shrubland and agricultural land by 2007. Forest loss, forest degradation by logging and clearing for agriculture were the most important direct drivers of LUCC: forest logging and clearing were most important from 1976 to 1985, whereas after 1985 logging for firewood, driven by population growth, was most important. Sensitivity analysis indicated that model projections of general trends in the main land use and cover categories were not overly sensitive to changes in important model parameters, although further study is necessary to improve our estimates of the proportion of pasture requirements supplied by clearing low shrubland. Projections of LUCC suggested that a reduced amount of secondary forest would be left by 2017 if no actions are taken to reduce forest loss (“as usual”). Increasing population (“pessimistic scenario”) resulted in similar trajectories than those predicted by the as usual scenario, whereas reducing logging for firewood and increasing forest recruitment from shrubland could reduce loss of native forest by nearly one-third (“optimistic scenarios”). Surprisingly, shrubland exhibited the most complex and influential dynamics in all scenarios, being the immediate outcome of forest loss and the main long-term source of land for agriculture, urban expansion, and forest recovery. Few studies in Chile, or elsewhere, have considered the importance of this intermediate successional stage. Of the scenarios simulated, financial incentives targeted toward channeling shrubland into regenerated forest seemed most promising, although obstacles to such a management strategy exist.     

Human transformities in a global hierarchy: Emergy and scale in the production of people and culture

In emergy research, transformities are of fundamental importance. They are factors that are used to convert the inputs to a process into emergy. Once placed in emergy units, the inputs to any process can then be added together or compared. Furthermore, as a product of an emergy analysis, new transformities for outputs can be used in other analyses. By this process the collection of known transformities grows, and subsequent emergy analyses become more accurate. Human labor is often a critical input to an emergy analysis. Transformities for humans have only been roughly estimated based on education level, and should be judged as first approximations. This paper refines the existing values for human services, using similar techniques, but with some different assumptions. The result is a larger range of human transformities, expanded at both lower and upper ends that range from 7.53E4 to 7.53E13. There are many applications of this knowledge, from improving empirical studies to expositions of hierarchy that more reliably “locate” humans, economic production, and information within energy transformation hierarchies.     

Using accelerometer,high sample rate GPS and magnetometer data to develop a cattle movement and behaviour model

The study described in this paper developed a model of animal movement, which explicitly recognised each individual as the central unit of measure. The model was developed by learning from a real dataset that measured and calculated, for individual cows in a herd, their linear and angular positions and directional and angular speeds. Two learning algorithms were implemented: a Hidden Markov model (HMM) and a long-term prediction algorithm. It is shown that a HMM can be used to describe the animal's movement and state transition behaviour within several “stay” areas where cows remained for long periods. Model parameters were estimated for hidden behaviour states such as relocating, foraging and bedding. For cows’ movement between the “stay” areas a long-term prediction algorithm was implemented. By combining these two algorithms it was possible to develop a successful model, which achieved similar results to the animal behaviour data collected. This modelling methodology could easily be applied to interactions of other animal species.     

Dynamics of the TIT FOR TAT strategy during predator inspection in the guppy (Poecilia reticulata)

Summary One well-known solution to the iterated Prisoner's Dilemma is the TIT FOR TAT strategy. This strategy has three characteristics associated with it. TIT FOR TAT is nice (cooperates on the first move of a game), retaliatory (plays defect against an individual that defected on the prior move), and forgiving (cooperates with an individual which has defected in the past but cooperates in the present). Predator inspection behavior in guppies (Poecilia reticulata) was examined in order to determine whether guppies displayed these three characteristics. Results indicate that while it can be quite difficult to translate the abstract concepts of niceness, retaliation, and forgiveness into measurable behaviors, the data support the hypothesis that guppies display the three characteristics associated with the TIT FOR TAT strategy.The selfish herd and dilution effect are discussed as possible alternative explanations for the observed behavior. These hypotheses alone were insufficient to explain the results.     

Green clubs

This paper treats programs in which firms voluntarily agree to meet environmental standards as “green clubs”: clubs, because they provide non-rival but excludable reputation benefits to participating firms; green, because they also generate environmental public goods. The model illuminates a central tension between the congestion externality familiar from conventional club theory and the free-riding externality familiar from the theory on private provision of public goods. We compare three common program sponsors—governments, industry, and environmental groups. We find that if monitoring of the club standard is perfect, a government constrained from regulating club size may prefer to leave sponsorship to industry if public-good benefits are sufficiently low, or to environmentalists if public-good benefits are sufficiently high. If monitoring is imperfect, an important question is whether consumers can infer that a club is too large for its standard to be credible. If they can then the government may deliberately choose an imperfect monitoring mechanism as a way of regulating club size indirectly. If they cannot then this reinforces the government's preference for delegating sponsorship.     

What does ecological modelling model? A proposed classification of ecological niche models based on their underlying methods

Species distribution model is the term most frequently used in ecological modelling, but other authors used instead predictive habitat distribution model or species-habitat models. A consensual ecological modelling terminology that avoids misunderstandings and takes into account the ecological niche theory does not exist at present. Moreover, different studies differ in the type of niche that is represented by similar distribution models. I propose to use as standard ecological modelling terminology the terms “ecological niche”, “potential niche”, “realized niche” models (for modelling their respective niches), and “habitat suitability map” (for the output of the niche models). Therefore, the user can understand more easily that models always forecast species’ niche and relate more closely the different types of niche models.