Natural resources,governance and institutional quality: The role of resource funds

This paper investigates the relationship between resource funds, governance and institutional quality in resource-rich countries. The study is motivated by the relatively recent and inconclusive debate on resource funds and on their role in the addressing of the “resource curse”. The estimation results suggest that resource funds may be associated with governance and institutional quality improvements. The analysis complements the debate on the tools of addressing the “resource curse” and on the determinants of governance and institutional quality. The findings remain important for their policy implications. The estimation results suggest that resource funds may prove useful tools in the hands of the policy makers in the attempt to address governance and institutional quality deterioration induced by resource abundance.     

Regional development benefits of mineral projects

This paper discusses the development impact of mining and mineral processing on the regions in which they are located. The discussion is organized so as to be of relevance for policy formulation in resource-rich developing countries which consider the exploitation of their mineral wealth. The hypothesis is that mining technology, interpreted in a broad sense, has undergone a profound change since 1900. In consequence, experiences of mineralbased regional development in the industrialized countries around the turn of the century are of little relevance to the Third World in the 1980s. Contemporary mineral ventures have very weak regional development repercussions in the absence of forceful policies specifically directed towards the regional development goal.     

Natural resources and 'gradual' reform in Uzbekistan and Turkmenistan

Among low‐income transition reformers, natural resource rents are an important initial condition that helps explain choice of reform strategy. Resource‐rich Uzbekistan and Turkmenistan and resource‐poor China and Vietnam all claim to pursue gradual reform, but their strategies differ. In China and Vietnam, low resource rents have nurtured developmental political conditions and encouraged efficient resource use, which initially promoted agriculture as a dynamic market sector, capable of absorbing labour from the lagging state sector. In contrast, the scale and ease of natural resource rent extraction in the Central Asian countries has consolidated authoritarian governments that postpone reform. Despite high energy rents, Uzbekistan and Turkmenistan still extract agricultural rents in ways that repress farm incentives, perpetuate environmental degradation and liquidate irrigation assets. Uzbekistan uses its rents to subsidize a manufacturing sector, that is neither dynamic nor competitive. As its dynamic sector, Turkmenistan promotes natural gas exports that depend on volatile markets. Resource‐driven development models suggest that reform is required in both countries to avert a growth collapse. Turkmenistan's large energy rent‐stream may postpone a collapse for some years, but Uzbekistan's position is already precarious: it has run down its rural infrastructure and accumulated sizeable foreign debts and will require external assistance to recover from a growth collapse. Such assistance should be made conditional on accelerated economic and political reform.     

Tradable planning permits versus auctioned tradable development rights: different trading agents,different policy outcomes

The tradable planning permit (TPP) policy seeks to limit the land take by development. It can be used in countries where development rights are vested by land-use planning to certain landowners only. TPPs are traded among public authorities. We introduce here a new policy, called the auctioned tradable development rights (ATDR) policy, which takes advantage of unvested rights of development and of trading among private actors. We compare the TPP, the ATDR policy and our baseline land-use planning model using a set of criteria. There are trade-offs within compared models. Both trading policies extend opportunities for land protection from development in exchange for higher transaction costs (highest in the ATDR policy). Trading policies seek also to recapture a part of development rent, decrease rent-seeking, and locate new development more effectively from the investors' perspective. However, trading among public authorities in the TPP model may hinder attaining these effects.     

National policies for biosphere greenhouse gas management: issues and opportunities

Biosphere greenhouse gas (GHG) management consists of preserving and enhancing terrestrial carbon pools and producing biomass as a fossil fuel substitute. The discussion of this topic has focused primarily on carbon-accounting and project-level issues, particularly relating to carbon sequestration as a source of emissions credits under the Kyoto Protocol. While international consensus on these matters is needed, this paper argues that an important domestic policy agenda also deserves attention. National policies for biosphere GHG management are necessary to bring about large-scale changes in land-use, forestry, and agricultural practices and can address some of the technical and policy issues that have proven to be particularly problematic from carbon-accounting and project-level perspectives. These policies should minimize land-use and resource-management conflicts, account for collateral benefits, and ensure institutional compatibility with existing resource-management regimes. Issues relating to project permanence, leakage, and transaction costs should also be addressed. A range of policy instruments should be used and biosphere GHG management should be one component of an integrated approach to environmental and resource management. Countries promoting biosphere GHG management as an important element of their climate change strategies should be developing these domestic policies to complement international negotiations and to demonstrate that carbon sequestration and biomass production can make an effective contribution to the stabilization of atmospheric GHG concentrations.     

Natural resources and development: The gold sector in Mali

Resource-rich countries do not necessarily perform well, especially developing countries. A debate has developed since the 1990s about a “resource curse” hypothesis, which threaten to impede the resource-rich countries in taking advantage of their natural endowments. In Mali, a less-developed country, gold export has substantially increased since the 1990s. In this paper we show that widespread analyses, such as those of the Dutch disease and the quality of institutions, are not sufficient to understand what is at stake in Mali, and that the mining sector has proved to be neither a blessing nor a curse, at least until the present. Gold mining has brought budget revenues but induced few spillovers. As gold mining has now come to maturity, the die is probably cast.     

Toward sustainable use of natural resources: Nexus between resource rents,affluence, energy intensity and carbon emissions in developing and transition economies

Sustainable use of natural resources would entail ensuring that derived economic benefits today do not undermine the welfare of generations to come. On this basis, this study examines the nexus between natural resource rents and carbon dioxide (CO₂) emissions disaggregated into production and consumption-based (i.e., trade-adjusted) CO₂ emissions for a selected panel of 45 developing and transition economies over the period 1995–2017. The empirical model also incorporates the impacts of population, affluence, and energy intensity. The results show that affluence increases production-based CO₂ emissions by 1.407%, with the EKC's predicted inverted U-shaped curve only explaining consumption-based CO₂ emissions. Economic reliance on natural resource rents and energy intensification contribute 0.022% and 0.766%, respectively, to CO₂ emissions embedded in territorial production inventories and 0.035% and 0.583%, respectively, to CO₂ emissions embedded in consumption inventories. The bootstrap non-causality test shows that historical data on each variable has significant predictive power for future CO₂ emissions from both sources. The historical information about natural resource rents has significant predictive power over the future levels of affluence and energy intensity. Clearly, the results show that the environmental impact of natural resource rents is stronger when CO₂ emissions are adjusted for trade and varies among the countries, with Bangladesh, Guinea, India, Malaysia, Mexico, Nigeria, Pakistan, Saudi Arabia, Vietnam, and Zimbabwe among the most affected countries. Overall, this study provides motivation for policies to keep the use of natural resources within sustainable limits.     

Environmental and resource sustainability of Chinese cities: A review of issues,policies, practices and effects

This paper synthesizes the English literature on current issues, policies and practices, and their effects on environmental and resource sustainability in China's ongoing urbanization. Aspects of urban sustainability reviewed include air, water, solid waste, energy efficiency, transportation and land use. It shows that Chinese cities have been and probably will continue to be struggling with issues such as air pollution, scarcity of clean water, solid waste and greenhouse gas emissions. But there are many opportunities for improvement. It suggests shortages of existing policies and major gaps in knowledge and practice, which can be helpful to policy makers, planners and researchers in China and other developing countries.     

Dutch disease and policy adjustments to the oil boom: A comparative study of Indonesia and Mexico

Dutch disease and, more recently, resource curse thesis have been critical issues for development of resource abundant economies. This paper attempts a comparison between Indonesia and Mexico in their policy adjustments to the oil boom with special reference to the Dutch disease. There exists a striking contrast, especially in their fiscal, foreign borrowing, and exchange rate policies, and confirms the conventional understanding that a booming government should be conservative, as was the case in Indonesia, in its macroeconomic management to avoid the Dutch disease. Equally significant, investment use of oil revenues to strengthen the tradable sector is another factor responsible for Indonesian success. Mexico provides a clear-cut example of the resource curse thesis, but Indonesia is an exception.     

Do natural resources and economic components exhibit differential quantile environmental effects?

In view of the resource curse assumption, the environmental aspects of resource utilization are arguably posing more dangers to human existence. In the Middle East and North Africa (MENA) region, the region that holds more than 60% and 50% of the world's oil and gas reserves respectively, the need to examine the contribution of natural resources to environmental quality among other factors cannot be overemphasized. By leveraging on the novelty of observing the differential impact of natural resources and other economic components such as income and primary energy utilizations across the quantiles of carbon emission, this study implements the quantile regression approach alongside other relevant techniques to analyze data between 1990 and 2018 for selected countries in the MENA region including Saudi Arabia, Iran, Kuwait, Qatar, Algeria, Morocco, Oman, Egypt, and the United Arab Emirates (UAE). The result posits that natural resource utilization generally hampers the environment across the quantiles. However, this negative effect decreases until the 50th quantile before starting to rise again toward the upper quantiles. Additionally, primary energy utilization and globalization respectively worsen and improve environmental quantile, especially toward the upper quantiles while income affirms the inverted U-shaped hypothesis across the entire quantiles. Moreover, there is a statistically significant one-way directional causality from natural resources, economic expansion, primary energy use, and globalization to carbon emission levels. Hence, the study offers environmentally friendly resource utilization policies to the MENA economies and other resource-rich states by extension.     

Mineral wealth and the economic transition: Kazakstan

The exploitation of mineral wealth can amplify the problems of the transition economies in three basic ways. First, the rebound of the real exchange rate that characterises a successful transition may be augmented by the capital inflow required to expand mineral production. This can cause both recession in the short-run and lower growth in the medium-term. Second, when the mineral revenues expand, the Dutch Disease effects may intensify the transition-related shrinkage of the non-mining tradeable sector, thereby retarding economic diversification and rendering the economy vulnerable to external shocks. Third, a mineral boom tends to concentrate revenue on the government, which may use it to postpone difficult decisions on economic reform and/or dissipate the revenue due to weak financial markets and inadequate public accountability. Kazakstan, like oil-rich Azerbaijan, is a late reformer and displays evidence of a faster transition rebound than other less resource-rich countries in the CIS do. However, Kazakstan has two advantages over Azerbaijan. First, Kazakstan has a more diversified mineral endowment with which to counter any trend towards single commodity specialization. Second, Kazakstan is making a later start on oil expansion so that it can learn from the experience of Azerbaijan. Priorities for Kazakstan are the continuation of prudent economic policies, the creation of institutions to enhance the transparency of the revenue flows, and the use of environmental accounting to provide a rationale for the deployment of the oil rents.     

Environmental accounting as a management tool in the Mediterranean context: the Spanish economy during the last 20 years

Although human presence is one of the main characteristics of the Mediterranean identity since ancient times, a false dialectic between conservation and social-economic development has emerged in recent decades. On the one hand, an economic growth policy is taken as the paradigm of social-economic development; on the other hand, there is a multi-scale conservation policy, in which natural protected areas, as patches of preserved nature, are used as one of the main tools to deal with the challenge of sustainability. The Mediterranean Basin is the habitat of many unique species and one of the 25 main biodiversity hotspots in the world, and as a consequence a strong conservation policy has been used to protect environmental values. At the same time, Mediterranean countries are deeply involved in promoting strong economic growth policies, which are not always compatible with environmental ones. In this paper, Spain has been studied as one model of this situation. Due to political reasons, Spanish economic growth and conservationist policies were pursued together during the last 20 years. As a result, Spain owns one of the largest networks of natural protected areas in Western Europe, and at the same time it has experienced one of the strongest periods of economic growths in the European and Mediterranean context during the 1980s and 1990s. An historical series of resource use in five annual periods in the last 20 years of conservation policy, and the effects on the preservation of natural capital have been investigated by means of the eMergy (spelled with an 'm') synthesis approach, which was used to characterize the flow of environmental services supplied by ecosystems, but not in monetary terms. This study shows that Spain is becoming less self-sufficient and more inefficient in resource use, comprehensively measured in eMergy terms. A large part of Spain's economy depends on imported goods and services, and most economic activities are based on tourist services and associated construction, which promotes intensification in the urban use of the territory and more intense environmental impacts and resource use intensification of those countries supplying the raw materials. The consequence is a decoupling of the Spanish economy from local environmental services and the increase of Ecological footprint of Spain, measured by means of eMergy-based indicators. In spite of the increase in number, area and associated budget of the natural protected areas and other conservation measures, the general sustainability of the nation is decreasing.     

典型发达国家适应气候变化资金机制及对中国的启示

气候变化是全人类面临的严峻挑战,我国受到气候变化的不利影响更为显著,加快采取雄心勃勃的适应气候变化行动显得尤为重要,但资金机制一直是我国适应进程中的主要障碍,亟须借鉴国际经验构建完善适应气候变化的资金机制。基于此,本文首先简要分析国际适应气候变化资金机制的基本情况,然后选取适应进程较为完善的美、英、德、日等典型发达国家,分别从适应政策体系、国内适应资金和国际援助资金等三个方面梳理总结各国适应气候变化资金机制,最后分析我国适应气候变化资金机制及存在的问题,并提出对我国适应气候变化资金机制的启示。研究发现,《联合国气候变化框架公约》及其气候变化国际谈判进程是各国推进适应气候变化资金机制的主要动因,发达国家重视适应政策的法制化,但政策力度和运行模式有所不同,公共部门是各国适应资金的主要来源,私人资金潜力尚待挖掘,国际气候援助注重减缓与适应并重,但援助力度有待加强。未来我国应从完善适应气候变化顶层设计、建立适应气候变化资金保障机制、提高适应气候援助力度、加强国际交流与合作等方面完善我国适应气候变化资金机制。     

Integrating environmental policies into local practices: The politics of agri-environmental and energy policies in Rural Finland

The paper focuses on the interplay between policy implementation and heterogeneous everyday social practices that, we argue, finally determine the success of environmental policies. We compare two empirical case studies to show how the targets of international climate policy and the agri-environmental policy of the EU have been achieved in energy production and agriculture in rural Finland. The focus of our analysis is on the power effects of these policies at the level of local natural resource management practices. Our analysis revealed tensions that arose during the implementation of the policies and showed that the policies modified the local actors' capacities to act. Therefore, we claim that policy practices should be analysed and appreciated as sites for the articulation of conflict and difference, as places of social and cultural contestation.     

Rare earth elements in China: Policies and narratives of reinventing an industry

After top producer China decided in 2010 to tighten its export quotas for rare earth elements (REE), major customers feared being cut off from the valuable metals. The trade dispute intensified when the EU, the USA, and Japan brought the case before the WTO. The export controls raise questions about China’s intentions and strategies. This article argues that China’s export policy should not be viewed in isolation. The export controls are embedded in a greater transformation of the strategic REE industry. Beijing promotes a broad set of policies, including industry reorganization, resource conservation, and environmental protection. Next, the article examines three narratives that may be constitutive of the Chinese policy. Findings indicate that the geopolitical narrative, which sees natural resources as instruments of power politics, can be only partly attributed to China’s REE policies. The major driving motives are domestic concerns for resource conservation and environmental protection, as well as the development of competitive downstream industries.     

New mercantilism: A perspective on how politics is shaping world metal supply

The major countries consuming metals tended historically to be also the major countries producing them. It was in their interest to promote mine development to provide low cost raw materials. Over the past fifty years, the share of global production accounted for by consuming countries has declined and producers and consumers of metals have been slowly moving into separate camps having distinct and differing interests. As a consequence of this, governments of producing countries have become more focused on how to maximise the benefit of metal extraction to their economies rather than on how to supply cheap raw materials; a tendency which has found expression in resource nationalism. Governments of consuming countries have in response become increasingly concerned about the implications of this tendency to their economic development and some countries, most notably China, have adopted robust policies to secure their supplies. Through their actions to influence capital flows within the mining industry and to force metals trade into channels which better serve their national interests (a process characterised here as ‘new mercantilism’), metal producing and metal consuming countries are reshaping global supply.     

英国资源综合利用政策模式对我国相关政策顶层设计的启示

本文采用政策分析法,对比中英资源综合利用的政策及实施手段,着重剖析英国政策工具及经验,为我国相关政策的硕层设计提出建议。分析指出：英国资源综合利用的政策属于固体废弃物管理的框架,优点为管理部门职责清晰、政策实施的动力明确。本文建议我国资源综合利用政策的顶层设计可以从五个方面借鉴英国模式。第一,我国有必要明确资源综合利用概念中“资源”的内涵;第二,引入抑制型、强制型政策工具,以强化资源综合利用政策的实施;第三,明确企业应遵守的法律、法规、可享受的具体优惠政策;第四,结合我国资源综合利用的水平、现状,制定资源综合利用技术标准,让相关的政策更具有可操作性;第五,规范各行业的综合利用活动并加强执法监督。     

SOUND POLICY OR SMOKE AND MIRRORS: DOES ECOSYSTEM MANAGEMENT MAKE SENSE?1

ABSTRACT: Protection of ecosystems as entities on the landscape has attracted a wide range of support. Ecosystem-based public policies are claimed to be more effective, efficient, and scientifically sound than other approaches to environmental and natural resource policy. The ecosystem concept was never intended to serve as a public policy guide or to determine landscape units for land management purposes. This paper critically examines the use of the ecosystem concept in public policy and land use management and analyzes the proposed rule to manage the National Forest System according to ecosystem management principles. The concept is found to be unsuitable as a basis for guiding environmental and natural resource public policies in general while the proposed rule to manage the national forests according to ecosystem management principles is shown to be incoherent.     

Pollution Control Policies and Natural Resource Dynamics: A Theoretical Analysis

Policies for the management of natural resources and the resources themselves interact to form complex systems. In this paper, we present a highly simplified model that can be used to study the general features of those systems. The model has three state variables, the abundance of the resource, environmental pollution, and the capital devoted to pollution control. We analyse it graphically using the singular perturbation approach. Two modes of behavior are possible; stationary and cyclic. When the abundance of the resources varies cyclically, the length of the period of resource scarcity depends on population size, economic activity, pollution per unit of output, and policy constraints. We distinguish between two classes of policies, one in which decision-makers base their investments in pollution control capital on the abundance of the resource, and another in which those decisions depend on the amount of pollution. We show that policies based on the observation of pollution are safer than those based on resource abundance, because in the latter case, small changes in policy variables can lead much more easily to a collapse of the resource. Increases in population size, even when accompanied by an equiproportional increase in the pollution control budget can lead to a change from stationary to cyclic behavior, especially where policies are based on resource abundance.     

Using environmental accounts to promote sustainable development: Experience in southern Africa

Environmental accounts bring together economic and environmental information in a common framework to measure the contribution of the environment to the economy and the impact of the economy on the environment. They enable governments to set priorities, monitor economic policies more precisely, enact more effective environmental regulations and resource management strategies, and design more efficient market instruments for environmental policies. This article uses examples from the regional environmental accounting programme in southern Africa to demonstrate the usefulness of environmental accounts to policy-making and natural resource management. The examples address the contribution of natural capital endowments (minerals and fisheries) to sustainable development in Botswana and Namibia; the economic importance of non-market forest goods and services in South Africa; and the socio-economic impact of current water allocation and pricing policies in Botswana, Namibia and South Africa. While there are many additional policy applications, these few provide a powerful argument for the use of environmental accounts in all countries.