Sustainability assessment of entire forest value chains: Integrating stakeholder perspectives and indicators in decision support tools

The optimization of value chains is an important process to promote sustainable development, since value chains are closely linked to the satisfaction of human needs and combine different driving forces for environmental change. This article presents a methodological approach for the participatory development of value-chain wide sustainability indicator sets and their integration into a decision support tool in the specific case study of the chain “construction and refurbishment with wood”. There are numerous indicator sets for sustainable development of forests and sustainable forestry available at different levels, ranging from local, regional and national to global scale assessments. Some efforts were also made to integrate later production stages of forest value chains (such as wood processing) in the assessment scope (e.g. for chain-of-custody certification). However, no indicator set has so far been available covering environmental, social and economic aspects for the entire value chain of building with timber. This gap was closed through applied sustainability research in the project “Holzwende 2020: Sustainable future markets for wood in the building sector”.     

Weather,salience of climate change and congressional voting

Climate change is a complex long-run phenomenon. The speed and severity with which it is occurring is difficult to observe, complicating the formation of beliefs for individuals. We use Google search intensity data as a proxy for the salience of climate change and examine how search patterns vary with unusual local weather. We find that searches for “climate change” and “global warming” increase with extreme temperatures and unusual lack of snow. Furthermore, we demonstrate that effects of abnormal weather extend beyond search behavior to observable action on environmental issues. We examine the voting records of members of the U.S. Congress from 2004 to 2011 and find that members are more likely to take a pro-environment stance on votes when their home state experiences unusual weather.     

On the economics of energy labels in the housing market

Energy efficiency in the residential housing market can play an important role in the reduction of global carbon emissions. This paper reports the first evidence on the market adoption and economic implications of energy performance certificates implemented by the European Union. The results show that adoption rates are low and declining over time, coinciding with a negative sentiment regarding the label in the popular media. Labels are clustered among smaller, post-war homes in neighborhoods with more difficult selling conditions. We also document that geographic variation in the adoption rate of energy labels is positively related to the fraction of “green” voters during the 2006 national elections. Within the sample of labeled homes, the energy label creates transparency in the energy efficiency of dwellings. Our analysis shows that consumers capitalize this information into the price of their prospective homes.     

Values and willingness-to-pay for sustainability-certified mobile phones

ABSTRACT

This study investigated whether endorsement of personal values is associated with willingness to pay more for mobile phones with an environmental or social sustainability label. Participants were students in Sweden, Norway and Germany. A self-report inventory was used to measure willingness to pay and the importance attached to values of Schwartz’s circular model. In Sweden and Norway, participants were willing to pay, on average, 18% extra for a mobile phone with labels for environmental or social sustainability. In Germany, the corresponding share was 12%. To strive for self-enhancement values, that is, social status and prestige, as well as control and dominance over people and resources, was associated with a lower willingness to pay for mobile phones with labels for environmental or social sustainability in all three countries. Furthermore, women were willing to pay more than men for mobile phones with both kinds of sustainability labels. In Sweden and Norway, participants were, on average, willing to pay more for a mobile phone with a label for social sustainability compared to a mobile phone with a label for environmental sustainability.     

Incomplete Information and Incentives to Free Ride on International Environmental Resources

This paper studies free-riding incentives on common environmental resources in an incomplete information repeated game where abatements are perishable and perfect substitutes. Two contrasting types of perfect Bayesian equilibria emerge: For high discount factors, or low discount factors but “pessimistic” prior beliefs, the inclusion of incomplete information has no impact on the pattern of abatements. Otherwise the countries attempt to use their private information strategically and the game becomes a war of attrition. This generates an outcome where the “pessimistic” country unilaterally abates forever, and another which involves delay until the first abatement if both countries are “optimistic”.     

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.     

A characterization of sustainability with indicators

Economists favor the use of criteria to characterize sustainability. In practice, policy-makers use indicators, i.e., measurements based on the current economic state and decisions, representing given sustainability issues. In this paper, I introduce a criterion characterizing sustainability with indicators and thresholds acting as constraints. I interpret the thresholds as minimal rights to be guaranteed to all generations, and define sustainable trajectories as those satisfying all the constraints at all times. The new criterion is a “generalized” maximin criterion. The approach is applied to a simple production-consumption economy with non-renewable resources. To derive some policy recommendations on the use of indicators to deal with sustainability, I discuss the implications of such a criterion in terms of trade-off between sustainability thresholds, efficiency, and time-consistency. In particular, the resulting problem is time-inconsistent, and sustainability thresholds may be revised over time. Following the time-inconsistent policy based on indicators, with dynamic revision of the thresholds, may, however, result in a sustained utility path, and even in utility growth.     

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.     

Predicting national sustainability: The convergence of energetic,economic and environmental realities

The “constraint space” dictated by energetic, economic and environmental realities on scenarios for future organization of humanity and nature is explored from the perspective of the energy and resources driving economies. Net energy of energy sources is presented as an index (Emergy Yield Ratio; EYR) that must be evaluated for energy sources to better understand their potential contributions to society, but more important, as an indicator of the changes needed in the future if lower net yielding sources are to be relied upon. An aggregate EYR was calculated for the USA economy and shown to have decreased by 38% since 1950, from 11/1 to 6.8/1. Several measures of efficiency at the scale of national economies are explored and the data suggest that the most efficient economies are also the most energetically intense (as measured by empower intensity). An index of environmental loading is suggested as a measure to evaluate environmental efficacy. An obvious outcome is that the smallest most energetically intense countries have the highest environmental loads, and those with large land area and/or continental shelves have the lowest ratios. An Emergy Sustainability Index (EmSI) is defined, computed for countries, and proposed as a multi-dimensional measure of long-term sustainability. The most sustainable economies are those with the highest EYR and lowest environmental loads.     

Pressure cookers or pressure valves: Do roads lead to deforestation in China?

The effect of roads on forests is ambiguous. Many studies conclude that building and upgrading roads increases pressure on forests but some find that new and better roads may reduce the rate of deforestation. In this paper we use satellite remote sensing images of forest cover in Jiangxi Province, China, to test whether the existence and the size of roads (ranging from expressways to tertiary roads) in 1995 affected the level of forest cover in 2000 or the rate of change between 1995 and 2000. To account for road access for each of our 1 km² (“pixel”) units of forest cover we measure whether or not and what type of roads penetrate the “watershed” in which the pixel lies. These watersheds allow more plausible measures of accessibility than do traditional “crowfly” distance measures that ignore topography. To account for possible confounding we also use 12 additional covariates: geographic and climatic variables (e.g., elevation, slope, rainfall, temperature, soil properties); demographic and economic variables (e.g., local population and GDP per square kilometer); and distance variables (e.g., distance to the nearest provincial capital). Although simple univariate OLS regressions show that forest levels are lower and deforestation rates higher either when there is a road, or when there is a higher quality road, these results are not robust. Controlling for all of the covariates and also using recently developed covariate matching techniques to estimate treatment effects, we find that roads in China’s Jiangxi Province can most safely be described as having no impact on the level of forests and no impact on the rate of deforestation.