Between economics and ecology: some historical and philosophical considerations for modelers of natural capital

Natural capital models attempt to remediate the relationship between economics and ecology either by conjoining models and theories from each discipline or by finding a type of phenomena that can be meaningfully measured by both fields. The developmentof a widely accepted model which integrates economics and ecologyhas eluded researchers since the early 1970s. This paper offers an historical and philosophical perspective on some of the conceptual problems or obstacles that hinder the development ofnatural capital models. In particular, the disciplinary assumptions of economic science and ecological science are examined and it is argued that these assumptions are antithetical. Hence, the development of an effective and acceptednatural capital model will require that economics and ecology reconsider their self-conceptions as sciences. For the purposesof theoretical research and practical policy, the paper cautionsagainst confusing the issue of whether or not economic models accord with ecological models with the issue of whether or not economic activities accord with ecological realities.     

Natural capital in ecology and economics: an overview

The Brundtland Commission report, Our Common Future, defined sustainable development as development that meets the needs of the present without compromising the ability of futuregenerations to meet their own needs. Although the idea of sustainable development has been widely accepted, it has proveddifficult to identify and implement policies and practices thatpromote sustainable economic growth. Some economists, environmental scientists and policy analysts believe that they can transform the consensus about sustainability into manageablepractices. They propose to accomplish this feat with a set of new ideas about the relationships between the economy and theenvironment offered under the banner of 'natural capital'. An ideal account of natural capital would be one or more standard measures or models that would allow the direct comparison of environmental goods, like forests, fresh water and clean air, with economic goods, like money, capital and productivity. By bringing economic science and environmental science to an objective common ground, a natural capital model has the potentialto provide a concrete means of comparing the economic and ecological costs and benefits of particular policies and programmes. This paper offers a survey and analysis of several new contributions to the formation of the natural capital concept from economists, ecologists, policy analysts, biometricians, foresters and a philosopher. The paper concludes that existingmicroeconomic theory may be 'ungreenable', if it is not reformulated. While macroeconomic approaches to natural capitalhave been more successful, they share the limitation that ecosystems and species are valued solely in monetary terms. These problems are taken to suggest that the development of a successful natural capital model may require economic theory tobe recast to include non-monetary social preferences and values.     

Incorporating natural capital into economy-wide impact analysis: a case study from Alberta

Traditionally, decision-makers have relied on economic impactestimates derived from conventional economy-wide models. Conventional models lack the environmental linkages necessary for examining environmental stewardship and economic sustainability, and in particular the ability to assess the impact of policies on natural capital. This study investigatesenvironmentally extended economic impact estimation on a regionalscale using a case study region in the province of Alberta knownas the Foothills Model Forest (FMF). Conventional economic impactmodels are environmentally extended in pursuit of enhancingpolicy analysis and local decision-making. It is found that theflexibility of the computable general equilibrium (CGE) modelingapproach offers potential for environmental extension, with a solid grounding in economic theory. The CGE approach may be the tool of the future for more complete integrated environment andeconomic impact assessment.     

Policy Characterization of Ecosystem management

This paper provides a comparison of ecosystem management (EM) to the traditional regulatory management approach and outlines the characteristics of EM from a policy perspective, defining the conditions under which this management tool can be successfully implemented. Ecosystem management is a collaborative and integrative tool focused on balancing societal needs, economic growth, and environmental protection to ensure the long-term ecological integrity of a particular ecosystem. The characteristics of this particular tool include: (1) its holistic approach to environmental problems; (2) its integration of values (economic, social, and environmental) through a collaborative, multi-partner, decision making structure; (3) its reliance on science to guide decisions and set boundaries; and (4) its ability to learn from the implementation of decisions (adaptive management). Examples are draw from Environment Canada's various regional ecosystem initiatives.     

Measuring the wealth of nations

The sustainability of development is closely linked to changes intotal per capita wealth. This paper presents estimates of the wealth of nations for nearly 100 countries, broken down into produced assets, natural resources and human resources. While thelatter is the dominant form of wealth in virtually all countries,in low income natural resource exporters the share of natural resources in total wealth is equal to the share of produced assets. For low income countries in general, cropland forms thevast majority of natural wealth. The analysis suggests the process of development can be viewed as one of portfolio management: sustainable development entails saving the rents fromexhaustible resources, managing renewable resources sustainably,and investing savings in both produced assets and human resources.     

Economic development and environmental protection: an ecological economics perspective

This paper argues on both theoretical and empirical grounds that, beyond a certain point, there is an unavoidable conflictbetween economic development (generally taken to mean 'materialeconomic growth') and environmental protection. Think for a moment of natural forests, grasslands, marine estuaries, salt marshes, and coral reefs; and of arable soils, aquifers, mineraldeposits, petroleum, and coal. These are all forms of 'natural capital' that represent highly-ordered self-producing ecosystemsor rich accumulations of energy/matter with high use potential (low entropy). Now contemplate despoiled landscapes, eroding farmlands, depleted fisheries, anthropogenic greenhouse gases,acid rain, poisonous mine tailings and toxic synthetic compounds.These all represent disordered systems or degraded forms of energy and matter with little use potential (high entropy). The main thing connecting these two states is human economic activity. Ecological economics interprets the environment-economyrelationship in terms of the second law of thermodynamics. The second law sees economic activity as a dissipative process. Fromthis perspective, the production of economic goods andservices invariably requires the consumption of available energy and matter. To grow and develop, the economynecessarily 'feeds' on sources of high-quality energy/matter first produced by nature. This tends to disorder and homogenizethe ecosphere, The ascendance of humankind has consistently been accompanied by an accelerating rate of ecological degradation, particularly biodiversity loss, the simplificationof natural systems and pollution. In short, contemporary political rhetoric to the contrary, the prevailing growth-oriented global development paradigm is fundamentally incompatible with long-term ecological and social sustainability. Unsustainability is not a technical nor economic problem as usually conceived, but rather a state of systemic incompatibilitybetween a economy that is a fully-contained, growing, dependent sub-system of a non-growing ecosphere. Potential solutions fly inthe face of contemporary development trends and cultural values.     

A statistical F test for the natural attenuation of contaminants in groundwater

Natural attenuation (NA) is a catchall explanation for the overall decay and slowed movement of the contaminants in the subsurface. One direct support to NA is to demonstrate that contaminant concentrations from monitoring wells located near the source are decreasing over time. The decrease is summarily expressed in terms of an apparent half-life that is determinedfrom the line best fitting the observed log-transformed concentration data and time. This simple (time-only) decay modelassumes other factors are invariant, and so is flawed when complicating factors – such as a fluctuating water table – are present. A history of the water-table fluctuation can track changes in important NA factors like recharge, groundwater flow direction and velocity, as well as other non-NA factors like volume of water in and purged from the well before a sample is collected. When the trend in the concentrations is better associated with the water table rising or falling, any conclusionabout degradation rate may be premature. We develop simple regressions to predict contaminant concentration (c) by two line models: one involving time (c c(t)), and another involving groundwater elevation (c c(z)). We develop a third model that includesboth factors (c c(t, z)). Using an F-test to compare the fits to the models, we determine which modelis statistically better in explaining the observed concentrations. We applied the test to sites where benzene degradation rates had previously been estimated. The F-testcan be used to determine the suitability of applying non-parametric statistics, like the Mann-Kendall, to the concentration data, because the result from the F-test canindicate instability of the contaminant plume that may bemasked when the water table fluctuates.     

Changes of Land Use and of Ecosystem Service Values in Sanjiang Plain, Northeast China

Agricultural activities, especially reclamation, are considered major threats to the wetland ecosystems in Sanjiang Plain, the largest concentrated area of the freshwater wetlands in China. In the past decades, the area of the cultivated land and its grain production have been increased at the cost of wetlands shrinkage. The large-scale land reclamation severely affected the ecosystems in this region. However, such effects at the regional scale are seldom evaluated quantitatively. We used three datasets of LANDSAT MSS and/or TM imagery to estimate the area changes and the transition of land use types from 1980 to 2000. We also valued changes in ecosystem services delivered by each land category using value coefficients published by Costanza et al. [Nature 387, 1997, 253–260]. Sensitivity analysis suggested that these estimates were relatively robust. Finally, the contribution of various ecosystem functions was ranked to the overall value of the ecosystem services in this study. According to our estimates, the total annual ecosystem service values in Sanjiang Plain have declined by about 40% between 1980 and 2000 ($156284–182572.18 million in total over 20 years). This substantial decline is largely attributed to the 53.4% loss of wetlands. For individual ecosystem functions, waste treatment, water supply and disturbance regulation account for more than 60% to the total ecological values. During those two decades, the contribution of disturbance regulation, cultural and recreation decreased, while the contribution of water regulation, nutrient cycling, food production, raw materials and climate regulation increased during the same period. We also put forward a few proposals concerning the future land use policy formulation and sustainable ecosystems. They are adjusting the ‘food first’ agricultural policy, establishing more nature reserves for wetlands, creating systems for the rational use of water, harnessing the degraded cultivated land and encouraging eco-tourism.     

Global climate change and regional sustainable development: the case of Mackenzie Basin in Canada

Cohen et al. [16] suggest that in order to explore ways to bring climate change (CC) and sustainable development (SD) research together, it is necessary to develop more heuristic tools that can involve resource users and other stakeholders. In this respect, this paper focuses on methodological development in research to study climate change impacts and regional sustainable development (RSD). It starts with an introduction of an integrated land assessment framework (ILAF) which is part of the integrated phase of the Mackenzie Basin Impact Study (MBIS) in Canada. The paper then provides some articulation on how the integrated approach was applied in the Mackenzie Basin to show implications of climate change for RSD.     

Ecological Monitoring for Assessing the State of the Nearshore and Open Waters of the Great Lakes

The Great Lakes Water Quality Agreement stipulates that the Governments of Canada and the United States are responsible for restoring and maintaining the chemical, physical and biological integrity of the waters of the Great Lakes Basin Ecosystem. Due to varying mandates and areas of expertise, monitoring to assess progress towards this objective is conducted by a multitude of Canadian and U.S. federal and provincial/state agencies, in cooperation with academia and regional authorities. This paper highlights selected long-term monitoring programs and discusses a number of documented ecological changes that indicate the present state of the open and nearshore waters of the Great Lakes.