Policies towards proposals for large-scale natural resource projects: Attenuation versus postponement

The authors examine the problem of dealing with the environmental impact of uranium mining in Australia and consider its wider implications. Government, faced with unknown environmental and social damage from the initiation of uranium mining in northern Australia, has initiated an environmental impact assessment procedure. This requires the appellant company to provide information about the proposed project and its alternatives and is often followed by a period of ‘postponement’. This is compared with an alternative procedure, ‘attenuation’, allowing the project to proceed on a reduced scale in order to obtain information. Comparisons are made between the information which might be obtained by the two alternative procedures and the expected relative benefits and costs from a postponed project and an attenuated project.     

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.     

Optimal rate of natural resource depletion

We have written a critique of the doctrine that the rate of resource depletion is best determined by the market system. As a matter of internal logic, the free enterprise doctrine implicitly assumes that resource limitations do not constrain economic growth, and proceeds through discounting and other arguments to conclude what was really assumed. Nor does the doctrine account for the factors that have substantially affected the actual rate of depletion. The doctrine implicitly and erroneously assumes that a stylized US tenure system is predominant throughout the world. Nor again does it account for the determination of the peripheral margin of extraction.     

Natural resource availability: Some economic aspects

This paper treats some of the more important aspects of natural resource availability. This includes a definition of real or opportunity costs in resource extraction as compared to money costs; some economics of secondary materials and recycling; energy resources; and a demonstration of the effect of exponential growth in resource use on the time to resource exhaustion. The paper concludes with a short note on econometrics and commodity models.     

Taxing mineral resource projects : Papua New Guinea, Indonesia and the Philippines

Within the context of a case study of three Asia/Pacific countries' mineral taxation regimes, this article examines the impact of individual fiscal instrucments, and the total fiscal package, on investor risk perceptions, investor returns and government receipts. It shows that under conditions of uncertainty and risk aversion on the part of investors, significant gains in expected government revenues can be achieved without seriously affecting the investors' ex-ante assessments of projects by a judicious selection and mix of fiscal instruments.     

Marine shrimp aquaculture and natural resource degradation in Thailand

Rising demand for shrimp in the developed nations has helped to foster a dramatic growth in marine shrimp aquaculture, particularly in South America and South Asia. In Thailand, Marine shrimp aquaculture is now an important earmer of foreign exchange. The growth in Production has been achieved through the expansion of the culture area and the adoption of intensive production methods. The conversion of near-shore areas to shrimp culture, however, is proving to have many consequences that impinge on the environmental integrity of coastal areas. This paper reviews the development of Thailand's marine shrimp culture industry and examines the nature of the environmental impacts that are emerging. It then discusses the implications these have for rural poor and the long-term viability of the culture industry.     

Stakeholder analysis for natural resource management in developing countries

The purpose of this paper is to share our ideas and experience of developing and applying stakeholder analysis to natural resource management, and to stimulate further development of its concepts and methodologies. Stakeholder analysis emerged in response to the perceived deficiency of conventional economic and social approaches for assessing and designing projects and policies. It is emphasized, however, that it is intended to complement rather than replace existing methods. The paper sets out the principles of stakeholder analysis (SA) and provides indicative guidelines for conducting SA in different situations. SA is an approach and procedure for gaining an understanding of a system by means of identifying the key actors or stakeholders in the system, and assessing their respective economic interests in that system. It is shown to have particular advantages for getting to the heart of many natural resource problems and for understanding the conflicts of interest and trade offs that may threaten the success of a project or policy. The paper discusses the origins of SA, the contexts of its application, how one goes about it, and quotes examples from northern Thailand .     

Patterns in natural resource policy: The US experience

Institutional arrangements (formal governmental policies) are the key to many resource problems. However, few efforts have been made to explain changes in natural resource policy over time. This paper traces the changing pattern in US resource policy during the 20th century. Trends in natural resource institutions since 1900 are divided into three distinct periods. Each period is characterized in terms of the criteria used to evaluate policy, the management tools used to implement policy, the role of government in resource policy, and distributional issues of the day. The paper ends with speculation about the source of fundamental changes in resource policy and the role of economists in the policy-making process.     

Transaction costs and community-based natural resource management in Nepal

Transaction costs in community-based resource management are incurred by households attempting to enforce property right rules over common resources similar to those inherent in private property rights. Despite their importance, transaction costs of community-based management of common pool resources (CPRs) are often not incorporated into the economic analysis of participatory resource management. This paper examines the transaction costs incurred by forest users in community forestry (CF) based on a survey of 309 households belonging to eight different forest user groups (FUGs) in the mid hills of Nepal. The analysis reveals that the average 'poor' household incurred Nepalese rupees (NRS) 1265 in transaction costs annually, while wealthier 'rich' households incurred an average of NRS 2312 per year. Although richer households bear higher proportions of such costs, transaction costs for CF management as a percentage of resource appropriation costs are higher for poorer households (26%) than those of middle-wealth (24%) or rich households (14%). There are also village differences in the level of transaction costs. The results show that transaction costs are a major component of resource management costs and vary according to socio-economic status of resource users and characteristics of the community.     

The role of analytical science in natural resource decision making

There is a continuing debate about the proper role of analytical (positivist) science in natural resource decision making. Two diametrically opposed views are evident, arguing for and against a more extended role for scientific information. The debate takes on a different complexion if one recognizes that certain kinds of problem, referred to here as “wicked” or “trans-science” problems, may not be amenable to the analytical process. Indeed, the mistaken application of analytical methods to trans-science problems may not only be a waste of time and money but also serve to hinder policy development. Since many environmental issues are trans-science in nature, then it follows that alternatives to analytical science need to be developed. In this article, the issues involved in the debate are clarified by examining the impact of the use of analytical methods in a particular case, the spruce budworm controversy in New Brunswick. The article ends with some suggestions about a “holistic” approach to the problem.     

Managing environmental aspects associated with the development of domestic and international power projects

Increasingly, a key component in the financial success of developing and operating domestic and international energy projects is the management of environmental issues. This article outlines an environmental management system for developing and acquiring power projects. The specific issues addressed include the development and communication of an environmental policy and the development and use of environmental expectations. These expectations are designed to manage the environmental components of the dynamic development process and provide a framework for enhancing team effectiveness in addressing environmental issues. Examples of expectations for each development phase are provided. © 1998 John Wiley & Sons, Inc.     

A systems approach to the evaluation of natural resource management initiatives

Adopting a new paradigm for natural resource and environmental policy that emphasises continuous change, adaptation and learning demands a new approach to evaluation to enable improvements in the way these initiatives contribute to sustainable resource use. Evaluation is fundamental to identifying change, supporting an adaptive approach that is flexible enough to meet the challenge of change, and enabling learning at individual, community, institutional and policy levels. Based on a consideration of changing approaches to natural resource management (NRM) policy and observations and experiences in the practical assessment of on-the-ground initiatives, the authors develop a set of principles for evaluation in NRM that: (a) addresses evaluation from a systems perspective, (b) links objective to consequence, (c) considers the fundamental assumptions and hypotheses that underpin core policy or program objectives, (d) is grounded in the natural resource, policy/institutional, economic, socio-cultural and technological contexts of implementation in practice, (e) establishes practical and valid evaluation criteria by which change can be monitored and assessed, (f) involves methodological pluralism including both quantitative and qualitative methods to ensure rigour and comprehensiveness in assessment, and (g) integrates different disciplinary perspectives (i.e. social, economic, environmental, policy and technological). The paper develops a systems-based evaluation framework that incorporates these principles and also recognises the multiple levels and nested nature of NRM policy, namely: problem characterisation, policy formulation and intent, program logic, and on-ground implementation. Finally, we demonstrate its utility through application to three contrasting Australian case studies: a community-based Integrated Catchment Management policy implementation; a resource information delivery system; and the development of a Decision Support System.     

Dynamics of local governance in natural resource conservation in the Okavango Delta,Botswana

There has been a shift in natural resource management worldwide. This paper describes how modern institutions and policies influence management and shape access to and utilization of resources by rural communities in the Okavango Delta, Botswana. It is rooted in the framework of adaptive co‐governance within social‐ecological systems, and employs a critical literature review to analyse access to and use of natural resources in rural Botswana. Prior to the establishment of community‐based natural resource management (CBNRM) in Botswana in 1989, resource governance was dominated by strong traditional institutions that were responsible for natural resource management and decision‐making. Contemporary natural resource governance is characterized by a bureaucratic system that invariably undermines the role of traditional institutions in natural resource governance. Findings indicate that policies and regulatory instruments deny rural communities adequate access to and utilization of resources available within their immediate environment. In spite of an orientation towards an anthropocentric approach to natural resource management (as in the case of CBNRM), the current governance system continues to undermine the inclusion of local resource users as legitimate stakeholders in the decision‐making process.     

Boundary spanners as trust ambassadors in collaborative natural resource management

Collaboration is a growing trend in agency-led natural resource management in the USA, carrying the promise of defusing conflict and incorporating a broader range of stakeholder ideas. However, concerns exist that confrontational or litigious groups may use collaborative forums to their organization's own advantage. We conducted case studies on three collaboratives to understand how these efforts have influenced the behavior of environmental groups who were previously at odds with the managing agency, the US Forest Service. Results suggest that trust between boundary spanners from historically adversarial groups can support a realignment of the accountabilities they feel. As rational, affinitive, and procedural trust developed, boundary spanners began to advocate, within their home organizations, for the collaborative's goals. Key activities driving these realignments included the development of fair and transparent procedures governing the collaborative group, structured interaction designed to build consensus, and planned informal interactions that revealed shared values among collaborative participants.     

Complex property rights and Coasean bargaining in natural resource management

ABSTRACT

This paper contributes to the debate on whether private or common property rights are better for advancing the sustainable management of natural resources. This contest between public and private ownership is often exaggerated, we claim, because in the real world, complex entitlements with varying degrees of privateness/publicness prevail. Property rights belonging to families, companies, clubs, corporations, and communities are simultaneously common to the members/shareholders and private to the entities. We call these entitlements private-common entitlements. When we acknowledge this complexity, it becomes evident that neither private nor common ownership rights are alone responsible for resource depletion. Instead, depletion is caused by freeriding or evading the payment of the full price of natural resources. This invites Coase’s solution to resource allocation. Therefore, the key problem is whether and how Coasean bargaining is employed to allocate ownership over resources threatened by depletion. We contribute to the debate by showing that Coase’s approach promotes not only economically efficient but also ecologically sustainable resource management. Often, this approach would lead to the establishment of largely private property or control rights by largely collective/public entities. We apply this theoretical framework to the development of a ski resort in Pirin Mountain, Bulgaria.     

Practicing natural resource management with a policy orientation

All natural resource managers want to contribute to successful conservation programs. Having and applying an explicit policy orientation is indispensable. The policy sciences are described and a case is made that, if natural resource managers utilize this set of conceptual and applied tools in their natural resource work, their effectiveness could be enhanced. The policy sciences offer a contextual, problem-oriented, and multimethod approach to meeting complex problems. Two kinds of knowledge are needed to solve problems—substantive knowledge about the resource and process knowledge about the decision and policy processes used to derive courses of management action. The interplay of science, analysis, and politics are examined. The wildlife management community is used to illustrate many points, including the important role implementation plays in the overall policy process.     

Lenses for learning: visual techniques in natural resource management

In this study, we explored the use of selected visual techniques (e.g. video, photography, diagramming) in facilitating learning among Indigenous communities living in remote protected areas at sites in Vietnam and Australia. The techniques were employed during interviews and workshops aimed at accessing and enhancing local peoples' perspectives on their landscape and on specific natural resource management issues. The effectiveness of the different techniques for enabling learning varied markedly with the context, highlighting the need for facilitator skill and flexibility in application of techniques. Visual techniques helped to engage participants; encourage unrestrained and lateral thinking; provide opportunities for self-expression and reflection; and to expose participants to perspectives of other community members. Valuable insights emerged on broad aspects of learning and these were incorporated into a simple model that highlights three types of conceptualisation found to be important in these processes.     

Corruption in natural resource management: Implications for policy makers

Corruption is the main reason why resource-rich countries perform badly in economic terms. Corruption in resource-rich countries takes two main forms, rent-seeking and patronage. Resource rents induce rent-seeking as individuals compete for a share of the rents rather than use their time and skills more productively. And resource revenues induce patronage as governments pay off supporters to stay in power, resulting in reduced accountability and an inferior allocation of public funds. This paper systematically reviews the literature on natural resources and corruption, and outlines the main policy implications for donors and domestic policy makers. A main conclusion is that priority should be given to policies that address rent-seeking and patronage. In other words, policy in resource-rich countries should be less about macro-economic management and more about institutions to prevent rent-seeking and patronage, and about giving the right incentives to players in the resource sector. Moreover, all policies need to take into account their impact on rent-seeking and patronage, and some current policies may actually be harmful in this respect.     

Organisational aspects of public engagement in European energy infrastructure planning: the case of early-stage CCS projects

Recent years have witnessed a proliferation of studies on public perceptions of carbon capture and storage (CCS), accompanied by efforts to translate such knowledge into toolkits for public engagement and communication. At the same time, both literature and toolkits have paid little attention to the organisational dynamics and views of project implementers with regard to public engagement. Here we investigate the views of project development consortia employees in five European CCS projects, focusing on their experience of organisational norms and structures relating to engagement. Finding that planning for this engagement has, in several cases, been hampered by a lack of shared internal vision on engagement and communication within the project consortia, at least initially, we draw upon the socio-technical approach to technology embedment and new institutional theory, to observe that internal organisational alignment is crucial in multi-organisational projects when seeking effective public engagement and communication. We observe that this aspect of internal organisation is not yet reflected in the toolkits and guidelines designed to aid engagement in CCS projects. Engagement guides need to direct the attention of project implementers not only in specific outward directions, but also towards reflexively considering their own internal structures, perspectives, motivations, expectations and aims in relation to engagement and communication practice.