On natural resource substitution

We present a simple dynamic model to get some key insights about the substitution of renewable for nonrenewable resources and the consequences for sustainability. We highlight the role of the elasticity of substitution (technological component) to determine the adjustment of production as a response to scarcity and growing ability of resources (environmental component). In some cases, the model predicts a smooth substitution of renewable for nonrenewable resources, but this process could work in the opposite direction if renewable resources are temporarily beyond their maximum sustainable yield, so that their marginal natural growth is negative. If substitution possibilities are high enough, it may be optimal to suspend the extraction of a resource to allow the biomass to regenerate. A production process is more likely to be sustainable the more heavily it depends on renewable, rather than nonrenewable resources.     

IMPACTS OF WATER USE EFFICIENCY ON ENERGY DEVELOPMENT1

ABSTRACT: To help meet national energy demands, interest has been focused on the coal, oil shale, and uranium deposits of the Upper Colorado River Basin. Several energy output projections for the basin have been presented based upon water availability. Inherent in all these analyses are estimates as to the rate of water use in each energy development. New energy technologies are characterized by parameters extrapolated from small scale energy facilities. The data provide projected costs, conversion efficiencies, and material inputs and outputs. Alternative techniques for process cooling and solids handling provide variable rates of water use which affect other conversion parameters. Results from a mathematical model are used in analyzing the sensitivity of an optimal energy development strategy for the Upper Colorado River Basin. The impacts of alternative water use rates are investigated in terms of net energy output, total cost, and displacements in the development strategy. Similarly, controls and regulations on energy resource development are evaluated.     

Project appraisal and planning for overdeveloped countries: I. The costing of nonrenewable resources

In cost-benefit analysis, natural resources, like other factors of production, should be costed as a mixture of marginal social cost of exploiting additional resources and lost marginal social benefit of forgone alternative uses, according to the way in which extra resources are made available to a project. For a nonrenewable resource, changes in future marginal social cost and marginal social benefit are likely to add significantly to the immediate elements of cost, as successively less tractable resource stocks are exploited. Of the several reasons given for ignoring these future costs, the most plausible is that technological advance justifies a heavy discount on the future. However, neither historical nor logical arguments demonstrate the inevitability of efficacious technological advance.     

Are intensive agricultural practices environmentally and ethically sound?

Soil is fragile and nonrenewable but the most basic of natural resources. It has a capacity to tolerate continuous use but only with proper management. Improper soil management and indiscriminate use of chemicals have contributed to some severe global environmental issues, e.g., volatilization losses and contamination of natural waters by sediments and agricultural fertilizers and pesticides. The increasing substitution of energy for labor and other cultural inputs in agriculture is another issue. Fertilizers and chemicals account for about 25% of the production energy investment in agriculture. An additional 60% is accounted for by machinery, gasoline, electricity, and power-related inputs. Fertilizer additions to cropland are not utilized fully and significant amounts, depending on conditions, are either lost in surface runoff or leached into the ground water. The annual discharge of dissolved solids from agricultural lands to the waterways in the USA is substantial. The increasing use of herbicides in agriculture is a threat to the quality of surface and ground water, although this threat is dependent upon both the chemistry of the compound and the ecosystem in which it is used. Especially within the Third World, development of an environmental ethic and environmental laws have not kept pace with the increase in pesticide use. Above all is the severe and global problem of soil degradation currently occurring at the rate of five to seven million hectares per year. The policy and moral aspects of these issues are discussed.     

不确定条件下矿产资源的最优开采

通过一个连续时间的随机动态规划模型,探讨了市场需求、资源存量的不确定性以及勘探活动对矿产资源价格和开采速度的影响,并给出了随机条件下Hotelling法则的表达形式.模型结果显示:不确定性对资源价格变化速度的影响主要取决于开采成本,如果相对于资源存量来说开采成本是不变的或者开采的规模成本是不变的,则不确定性对资源价格的变化速度没有影响.反之,如果开采的规模成本是递增的,则不确定性会加速资源价格的变化.此外,不确定性的存在将加快资源的开采速度.至于勘探活动,它一方面降低了地质条件的不确定性,另一方面增加了资源的存量,所以勘探活动降低了资源价格和开采速度的变化率,减少了不确定性对资源开采的影响.     

Green jobs,livelihoods and the post-carbon economy in African cities

This article examines the potential contribution of household scale off-grid renewable energy generation to the post-carbon economy. The large-scale focus of the green jobs agenda in high-income countries obscures how small-scale technologies can be a transformative source of employment in developing economies. Debates about what constitutes a green job and their value leaves out the everyday practice of green livelihoods carried out by the urban poor across the African continent in unfavourable institutional contexts where nonrenewable fuel is subsidised and renewable energy inputs are heavily taxed. The article presents experiences from field work in several countries, including Egypt, Nigeria and Kenya to provide practical examples of communities pursuing strategies of income generation, community empowerment and environmental preservation. We argue that scholars and practitioners concerned with both social justice and environmental preservation should embrace a definition of green jobs that is bottom-up or people-centred. The grassroots experiences highlighted illustrate the important role of non-governmental organisations in supporting transformative, locally sustainable green employment and livelihoods by piloting demonstration projects, fostering innovation, conducting research, forming coalitions and engaging in advocacy when local institutions and market conditions make both consumers and providers risk averse to off-grid renewable energy adoption.     

U.S. Electric Utilities and Renewable Energy: Drivers for Adoption

Renewable energy can address rising demand for energy, environmental protection, energy security, and job creation. This paper assesses resource, economic, social, and political drivers for the adoption of renewable energy. Analysis of the data collected from over 100 interviews with utility managers reveals that production tax credits significantly influence the percent of renewable energy in a utility's portfolio. The availability of renewable energy resources, economic drivers, social influences, and political drivers such as renewable portfolio standards and government grants are not significant drivers. Understanding these drivers can help electric utilities, governments, and other stakeholders with their efforts to reap the benefits of renewable energy.     

Emergy analysis of municipal wastewater treatment and generation of electricity by digestion of sewage sludge

This study examines and evaluates, by using emergy analysis, the use of environmental resources for wastewater treatment in a Swedish town. Emergy analysis was applied, while it facilitates the comparison of resource use of substantially different kind. In the emergy analysis, all resources are assessed on the basis of the amount of direct and indirect solar energy required in their generation. The study also includes an evaluation of the amount of emergy associated with the production of wastewater. On the basis of our analysis, we suggest that the large amount of emergy that wastewater contains are in proportion to the amount of resources employed for wastewater treatment and the extensive effects on surrounding ecosystems of discharge of untreated wastewater. The use of local renewable natural resources in Swedish municipal wastewater treatment systems is negligible compared with the use of purchased inputs, processed largely with the support of fossil energy. A drastic shift of this order would demand that extensive land areas surrounding human settlements be (indirectly or directly) devoted to wastewater treatment. These areas are not accessible today. Our analysis also indicates that resource requirements from the economy in the production of electricity by the digestion of sewage sludge is about two times the total resource use for generation of the average mix of electricity used in the town. We, therefore, conclude that if the only reason to digest the sludge were to produce electricity, it would be more resource-efficient to purchase the electricity on the Swedish distribution net. Accordingly, there is no resource economy in producing biomass to digest just to increase the energy production at the wastewater treatment plant.     

Resource diplomacy in a Canadian perspective

Concern for the supply of resources—renewable and nonrenewable—has been evident during the 1970s. All countries seek to increase the economic and social returns from the exploration, processing and distribution of minerals so as to improve the quality of life of their people. Proper resource management is imperative because of the interdependence of the mineral sector with other leading sectors of the economy and also because of the importance of minerals in the web of international economics. This paper emphasises the significance of recent international events as they affect the mineral industry and the Canadian position in the ever changing world of resource diplomacy.     

Long-term trends in the Real real prices of primary commodities: Inflation bias and the Prebisch-Singer hypothesis

Following the Boskin et al., (1996) report, it became widely recognized that price indexes in the U.S. and elsewhere overstate inflation. Svedberg and Tilton (2006) highlighted that this inflation bias may have important implications for estimated long-term trends in nonrenewable resource prices. ST construct an inflation-bias corrected CPI (and PPI) for the U.S. and use their corrected deflator(s) to define a so-called ‘real real’ price of copper. Their ‘real real’ price of copper is then used to re-estimate long-term trends in real copper prices. This paper proposes a quick method for obtaining inflation-bias-corrected estimates of long-run trends in real primary commodity prices directly from estimates in the published literature. Our approach obviates the need re-do existing empirical studies using a corrected or ‘real real’ price of nonrenewable resources. The two approaches are mathematically equivalent.     

Pricing of Natural Gas in Developing Countries

The uncertain supply and increasing cost of petroleum products since 1973 has spurred on the development of alternative forms of energy. Natural gas is a major source of energy in over 50 developing countries. In these countries natural gas has many uses as a substitute for other fuels or as a feedstock. This paper discusses the economic concept for pricing of natural gas, in particular marginal costs, and estimates the economic cost of natural gas in developing countries under a wide range of conditions. The marginal cost of natural gas estimated for these countries is far below the border price of competing fuels. Because natural gas is in its early days of development, gas supply costs are not expected to rise in these countries within the next two decades as already proven reserves are tapped.     

A comprehensive set of resource use indicators from the micro to the macro level

Many of today's most urgent environmental problems arise from increasing volumes of worldwide production and consumption and the associated use of natural resources, including renewable and non-renewable raw materials, energy, water and land. Solid indicators to measure different dimensions of anthropogenic resource use are essential for designing appropriate policy measures for a sustainable management of these resources. Based on a brief review of the current state of the art of resource use indicators, this paper suggests a new set of complementary resource use indicators, combining existing measures for resource use. The suggested indicator set covers the core resource input categories of materials, water and land area and includes the output category of greenhouse gas emissions. This set can be applied consistently from the micro level of products and companies up to the macro level of countries and world regions. All suggested indicators take a life-cycle wide perspective on production and consumption activities. This set of indicators deals with the issue of the overall scale of the human production and consumption system. It can be regarded as the general indicator framework, based on which more specific indicators, for example, on different environmental impacts related to natural resource use, can be calculated.     

Project appraisal and planning for overdeveloped countries: II. Shadow pricing under uncertainty

In the uncertainty that surrounds the future availability of nonrenewable natural resources and the efficacy of technological advance, the economic costing of resources should be undertaken probabilistically. While optimistic assumptions entail little change from the costing procedures used in conventional cost-benefit analysis, even moderately pessimistic assumptions lead to a much increased cost for nonrenewable resources. These lead in turn to a reappraisal of the value of investment and of the cost ascribed to other factors of production. Even when optimistic assumptions are deemed the more plausible, a utility-maximizing evaluation may still give more emphasis to pessimism.     

Discourses of on-farm wind energy generation in the UK farming press

As the owners of the majority of land in the U.K., farmers are well placed to contribute to renewable energy targets. Media coverage can both drive and reflect farmers’ views about renewable energy but has been largely unexplored to date. This article uses discourse analysis to examine the evolution of coverage of one form of renewable energy – on-farm wind – in the U.K. farming press from 1980 to 2013. We identified a diverse debate with five major discourses. On-farm wind turbines are alternatively represented as: profitable farm diversification opportunities; producers of clean energy; important for rural development and sources of conflict. Although press coverage predominantly encourages wind energy production, a further discourse advises farmers to ‘Proceed with Caution’. While emphasising images and values which have widespread affinity among U.K. farmers, the press have increasingly employed an economic frame, constructing wind energy generation as a farm diversification strategy. The most recent farming press coverage predominantly encourages an instrumental approach to wind energy, crowding out other (non-economic) rationales and marginalising local community concerns. This appears to reflect the financial orientation of recent policy support (particularly Feed-in Tariffs), and may have long-term costs in enabling sustainable energy production systems.     

ADMINISTRATION OF GROUND WATER AS BOTH A RENEWABLE AND NONRENEWABLE RESOURCE1

ABSTRACT: Ground water is intended to be administered in many western states as a flow or renewable resource. In Idaho, this administration is based on the appropriation doctrine of water rights. Two generalizations may be made concerning ground water. First, water artificially discharged from an aquifer system must deplete the total resource by that amount; water consumptively pumped from a well must be derived from either increased recharge, decreased discharge or a decrease of water in storage. Second, the annual rate of recharge to a ground-water system is often only a small percentage of the total resource in storage. Ground water may be divided into flow and stock portions. In those basins where the second generalization is true, most ground water may be classified as stock. However, only the flow portion of ground water may be developed if utilization of the resource is to be enjoyed over an infinite period. Data from the Raft River Basin in Idaho indicate that the flow and stock characteristics of ground water are time dependent. The resource exhibits the characteristics of both a renewable and nonrenewable resource. As a result, present administrative techniques do not provide for effective management of the resource.     

Conditions for a 100% renewable energy supply system in Japan and South Korea

In the wake of the Fukushima nuclear accident, alternative energy paths have been discussed for Japan, but except for a few studies the assumption is usually made that Japan is too densely populated to be suited for a near-100% sustainable, indigenous energy provision. The studies emphasizing renewable energy have proposed the use of photovoltaic power as the main source of electricity supply, in combination with diurnal battery storage and supplemented by other renewable sources such as wind, hydro, and geothermal power. Here, an alternative approach is explored, with wind and derived hydrogen production as the main energy source, but still using solar energy, biofuels, and hydropower in a resilient combination allowing full satisfaction of demands in all sectors of the economy, i.e., for dedicated electricity, transportation energy as well as heat for processes and comfort. Furthermore, the possible advantage of establishing a regional energy system with energy interchange and coordinated management of the mix of renewable energy resources across a wider region is discussed. As the closest neighbor, the energy system of South Korea is considered, first regarding the possibility of a similar full renewable energy reliance, and then for possible synergetic effects of connecting the Korean and the Japanese energy systems, in order to be able to better cope with the intermittency of renewable energy source flows.     

基于能值分析的城市生态效率研究——以南京市为例

本文采用能值分析和数据包络分析方法,构建了城市物质代谢生态效率的度量模型,从代谢流量和生态效率两个角度评价了南京市生态经济系统1990～2010年间的可持续发展情况。结果表明：（1）21年来,南京地区的能值产出率和可持续指标不断降低,环境负载率呈持续增长趋势;（2）南京城市系统生态效率总体呈波动上升趋势,1990～2006年间资源生态效率一直低于环境生态效率,2006年后开始有所提升。虽然南京市生态效率有所提高,但未来的发展面临快速增长的环境压力等阻碍。为此,南京应优化进口能值组成,加大可更新资源开发力度,提高不可更新资源利用率,实现废弃物资源化等。     

Sustainability under siege: Transport costs and corruption on West Africa's trade corridors

We use recent data on transport costs in West Africa, including the added burden of bribes and enforced delays, to show how such costs represent a deterrent to investment in — and therefore the sustainability of — agricultural assets. We focus on data for two important tree crops in West Africa, cashew and shea. We also have data for the transport of onions between Niger and the urban market in Accra, Ghana. Our data allow us to predict plausible increases in farm‐gate prices from a reduction in transport costs and bribes. A 10% reduction in the total transport costs (actual costs plus corruption costs) of onions from Niger could result in a 12‐13% price increase to onion farmers. Similar elasticities are 2% for cashew in Ghana and 7% for shea in Mali. These feasible price increases would encourage farmers to improve onion production, and to protect and improve production from cashew and shea trees, thereby enhancing the sustainability of agro‐forestry in West Africa. We call these price increases the “sustainability dividend”.     

On technical change in the elasticities of resource inputs

This article analyses growth of an economy where the substitutability between non-renewable and renewable resource inputs changes over time. We allow for exogenous technical change in the elasticity of substitution (EoS) between these two types of resources as well as for biased factor-augmenting technical change. Our main results are: (1) sustained technical change in the EoS is enough to overcome resource constraints; (2) productivity-enhancing technical change is most beneficial when directed to the resource which is currently most important for production; (3) the speed of productivity-enhancing technical change is crucial for its usefulness to overcome resource constraints; (4) sustainability depends critically on the type of technical change.     

The hotelling valuation of natural resources: some further results

This paper tests the Hotelling Valuation Principle (HVP) for natural resources using data from oil and gas ‘pure plays’ such as royalty trusts and master limited partnerships. The results support the HVP which specifies that the value of any mineral reserve may be predicted by the market price of the resource, net of extraction costs. Regression results also indicate that a Box-Cox transformation of variables provide a better means of estimating the functional relationship between the value of an exhaustible natural resource and its market price.