Water Consumption and Long-run Socio-economic Development: an Intervention and a Principal Component Analysis for the City of Milan

This paper analyses the evolution of water consumption in Milan during the twentieth century. However, dealing with a century time series raises some complicated statistic and econometric issues. To study the main research questions outlined by the literature, as the presence of consumption habits and the link between consumption and price, we use a quite original approach – based on intervention analysis and principal component analysis (PCA) – which seems to be more adequate than “regression-type” approaches to study a so long time series. Results indicate (1) how some events have modified the normal evolution of per-capita water consumption; (2) that per-capita water consumption is a very persistent series, namely, that water users should have well-developed consumption habits; (3) that per-capita consumption and water price present a strong negative correlation.

Disequilibrium and Indivisibility of Pollution Control Equipment Under a Permit-Trading System: A Case Study of Kao-Hsiung and Ping-Tung Counties in Taiwan

A mixed-integer programming model that minimizes the social abatement cost is used to investigate whether a market equilibrium condition could be reached in a newly proposed permit-trading market for nitrogen oxide control in Taiwan. Unlike in previous studies, unit pollution abatement cost is determined endogenously by incorporating technology adoption as a binary decision variable. The results show that when technologies are lumpy and irreversible, disequilibrium might occur due to firms’ inability to manage their emission levels after installing equipment with fixed size and control capacity.

A Global Model Tracking Water, Nitrogen, and Land Inputs and Virtual Transfers from Industrialized Meat Production and Trade

Rising populations and incomes throughout the world have boosted meat demand by over 75% in the last 20years, intensifying pressures on production systems and the natural resources to which they are linked. As a growing proportion of global meat production is traded, the environmental impacts of production become increasingly separated from where the meat is consumed. In this paper, we quantify the use of three important resources associated with industrial livestock production and trade—water, land, and nitrogen—using a country-specific model that combines trade, agronomic, biogeochemical, and hydrological data. Our model focuses on pigs and chickens, as these animals are raised predominantly in intensive systems using concentrated, compound feeds. The results describe the geographical patterns of environmental resource use due to meat production, trade, and consumption. We show that US feed, animal, and meat destined for export require almost as much nitrogen and land, and 20% more water, than products destined for domestic consumption. Model results also demonstrate that among various production factors, improvements in crop yields and animal feed conversion efficiencies result in the most significant reductions in environmental harm. By explicitly tracking the externalities of meat production, we hope to bolster suppliers’ accountability and provide better information to meat consumers.

On Limits to the Use of Linear Markov Strategies in Common Property Natural Resource Games

We derive conditions that must be satisfied by the primitives of the problem in order for an equilibrium in linear Markov strategies to exist in some common property natural resource differential games. These conditions impose restrictions on the admissible form of the natural growth function, given a benefit function, or on the admissible form of the benefit function, given a natural growth function.

The Precautionary Principle as a Robust Cost-Effectiveness Problem

This paper offers an interpretation of the precautionary principle in terms of a safety target that a decision-maker has to reach at a minimal cost in a robust way. A two-period model is used. The precautionary principle corresponds to a situation in which the decision-maker, facing an ex ante indecision, is not able to reach a safe target from the initial condition in a worst-case framework. However, he can efficiently succeed whenever the uncertainty at the second period is revealed to him. An example coping with the management of a renewable resource illustrates the general results of the paper.

Environmental Objectives,Cost Efficiency,and Multivariate Stochastic Control

This paper is concerned with the cost efficiency in achieving the Swedish national air quality objectives under uncertainty. To realize an ecologically sustainable society, the parliament has approved a set of interim and long-term pollution reduction targets. However, there are considerable quantification uncertainties on the effectiveness of the proposed pollution reduction measures. In this paper, we develop a multivariate stochastic control framework to deal with the cost efficiency problem with multiple pollutants. Based on the cost and technological data collected by several national authorities, we explore the implications of alternative probabilistic constraints. It is found that a composite probabilistic constraint induces considerably lower abatement cost than separable probabilistic restrictions. The trend is reinforced by the presence of positive correlations between reductions in the multiple pollutants.

Probabilistic Modelling of Cattle Farm Distribution in Australia

A probabilistic Bayesian method called weights of evidence (WofE) was used to develop a synthetic dataset of cattle farm locations at a national scale across Australia. The synthetic dataset was required for the modelling of livestock movements with a view to assessing biosecurity implications. The WofE method is based on the analysis of spatial relationships between evidential patterns with respect to an event, such as the actual location of a farm. The evidential patterns of cattle farms were derived from maps of land use, land tenure, drainage systems, roads, settlements and long-term averaged rainfall. These evidential patterns were used for delineating and ranking land areas suitable for cattle farming. For each evidential pattern statistics such as a positive weight, a negative weight and a contrast were calculated for estimating the degree of correlation between the evidential patterns and known farm locations. The integrated evidential patterns of known farms were then used for estimating posterior probabilities and splitting land into five different classes according to its suitability for farming.

A Sensitivity Analysis of an Integrated Modelling Approach to Assess the Risk of Wind-borne Spread of Foot-and-mouth Disease Virus from Infected Premises

The sensitivity of an integrated model to assess the potential for wind-borne spread of foot-and-mouth disease (FMD) to variations in key parameters controlling different physical and biological processes was evaluated. The estimated number of farms at risk is sensitive to the virus strain used and the accompanying effective contact rate. The C Noville strain increased the estimated number of exposed farms ranked as high and medium risk of being infected by a factor of 5, compared to the baseline, based on the O UKG 2001 strain. The inclusion of a model for biological ageing of the virus can also have a significant effect on the concentration patterns arising from transport and dispersion of the virus. Its inclusion has the practical advantage of markedly reducing the time required for the calculations. The estimated number of farms affected by exposure to high and medium virus concentrations is not grossly sensitive to attenuation caused by temperature or relative humidity effects. Changes in susceptibility to infection, as determined by the parameter θ in the exposure-risk model, does not change the configuration of the virus plumes, but it does change the distribution of farms at risk by risk category. These findings suggest that a good understanding of characteristics (excretion rates from infected animals, susceptibility of different species to infection, virus survival, etc.) of the virus strain involved in an FMD outbreak is necessary to provide a reliable assessment of the risk of wind-borne spread. In the event of an incursion of FMD, provision for laboratory studies on the virus will be an essential component of the disease response and should be factored into contingency plans.

KLUM@GTAP: Introducing Biophysical Aspects of Land-Use Decisions into a Computable General Equilibrium Model a Coupling Experiment

In this paper, the global agricultural land use model Kleines Land Use Model is coupled to an extended version of the computable general equilibrium model (CGE) Global Trade Analysis Project in order to consistently assess the integrated impacts of climate change on global cropland allocation and its implication for economic development. The methodology is innovative as it introduces dynamic economic land-use decisions based also on the biophysical aspects of land into a state-of-the-art CGE; it further allows the projection of resulting changes in cropland patterns on a spatially more explicit level. A convergence test and illustrative future simulations underpin the robustness and potentials of the coupled system. Reference simulations with the uncoupled models emphasise the impact and relevance of the coupling; the results of coupled and uncoupled simulations can differ by several hundred percent.

A Flexible Global Warming Index for Use in an Integrated Approach to Climate Change Assessment

Global Warming Potential (GWP) is an index used to measure the cumulative radiative forcing of a tonne of greenhouse house gas (GHG) relative to that of a ‘reference’ gas (CO₂). Under the Kyoto Protocol, GWP can be used as a fixed index to govern the trade-off between different GHGs in a multi-gas approach to GHGs abatement. The use of fixed GWPs has been criticized for not being very cost effective compared to the use of some flexible indices. To gain wider acceptance, however, a flexible index must also prove to be easy to use, and the economic gains from its adoption must be significant. In this paper, we develop a flexible index based on the concept of marginal rather than cumulative or average global warming potentials. These marginal global warming potentials (MGWPs) can be endogenously determined within a climate model given a particular climate objective based on radiative forcing level. The MGPWs are then linked to the marginal abatement costs of the GHGs, which are also endogenously determined within an economic model. When the two concepts are linked in this way, the result is a cost-effective way of achieving a particular climate change objective with multigas abatement. We show that the savings in costs when using this flexible MGPWs can be significant, and more importantly, they are not uniformly distributed across different regions.