Green accounting and sustainability of the Peruvian metal mining sector

This paper estimates the true economic income of Peru’s metal mining sector for the period 1992–2006, using a model of green economic income based on Hamilton (2000). The total depletion of natural capital caused by metal mining is calculated by estimating, on the one hand, the depreciation of mining resources (using the Hotelling rent approach) and, on the other, the environmental degradation provoked by metal mining activities. The results show that the total loss of natural capital represents between 31% and 51% of the metal mining GDP and between 2% and 4.9% of Peru’s GDP. On the other hand, correcting the usual GDP measure produced by the traditional National Account System (NAS) for the total loss of natural capital caused by mining activities shows that the GDP traditional measure overestimated by 51–64% the true economic income generated by Peruvian's metal mining sector during the period 1992–2006. The importance of the generation, taxation, and disposition of mining economic rents for Peru’s sustainable development in the future is also discussed.     

Mining development,income growth and poverty alleviation: A multiplier decomposition technique applied to China

Mining has grown rapidly and is expected to continue to develop solidly in the future with the economic development in China. Based on this trend, how an increase in the outputs of mining sectors affects household income and poverty alleviation is an issue worthy of study. A multiplier decomposition method within a social accounting matrix (SAM) framework shows the linkages through which a mining sector's output contributes to household income growth and poverty alleviation. The decomposition applied to China reveals that mining development has more significantly positive impacts on the high and middle income household than low income household. Moreover, the decomposition incorporated with the Foster, Greer and Thoerbecke (FGT) poverty measure shows that the ‘coal’ sector contributes most to poverty alleviation and the low income household group, which has the biggest poverty rate, is the smallest beneficiary from the mining development. Thus, the policy implication is proposed that the government should give appropriate adjustment on the distribution of income between rich and poor households and help the unskilled human capital from the household group at a low income level to handle advanced technology of mining through education and training to reduce poverty more effectively.     

Capital allowance schemes for mining projects in LDCs

The capital allowance structure for mining projects in developing countries affects the supply price of investment by determining the payback period, reinvestment and the timing of government receipts. Using the capital allowance structures of Sierra Leone, Tanzania, Zambia, Botswana, Papua New Guinea and Malaysia, the article develops a financial model and examines the effect of capital allowances on foreign investor and host government cash flows under various cost-price conditions. The study stresses the importance to governments of making accelerated depreciation a flexible tool to trade off against other elements in the fiscal package. From the government viewpoint, faster write-offs of capital are preferable to a tax holiday. The article places particular emphasis on evaluating the relationship between capital allowances, income tax and a rent resource tax.     

Mining and development: Are they compatible in South America?

Taking issue with the view that mining as an activity is necessarily beneficial to Third World countries, the author examines experience in South America. Possible non-beneficial aspects of mining in a developing country include its high capital intensiveness — when capital is liable to be scarce and unemployment high — and the potential for small but powerful groups, such as miners, to exercise a disproportionate influence on the political and economic life of the country. Furthermore, working conditions in many South American mines are extremely poor. Ways must be found to develop mining techniques more appropriate to developing countries.     

Economic and social effects analysis of mineral development in China and policy implications

Mineral development has contributed greatly to China's economic and social development. Many challenges remain, however, including environmental pollution and resource waste in practice, as well as a dearth of systematic theoretical research. The goal of this study is to analyze the economic and social effects of various mineral developments in China from diversified perspectives, so as to provide the basis for the formulation of China's mineral development policy. The input–output effects, industrial linkage effects and income distribution effects of different mining industries are quantitatively analyzed by adopting basic hypotheses of input–output economics, industrial linkage model and income distribution antitheses based on the latest available official data from China Statistical Yearbook from 2004 to 2010 and the 2007 Input–Output Table of China. The empirical results obtained in this study indicate that all mineral development industries, especially coal mining and washing, and petroleum and natural gas extraction industries, have given a strong impetus to the increase of China's fixed asset investment and GDP. Moreover, they have provided a large number of jobs, thereby alleviating ongoing employment pressure, and they have also played a positive role in promoting China's technology investment. The analysis of industrial linkages demonstrates that mining industries are basic to the national economy and produce a significant impetus to its downstream industries, but create weak pull effects in terms of national economic development. From the perspective of income distribution, mining industries play an important role in increasing China's fiscal revenue and per capital income. Hence, China's mineral development policy should (1) encourage additional investment in technology for exploration and development to insure sufficient supply and expand the input effects; (2) attract additional talent to work in remote regions; (3) optimize the industrial structure and promote the industrial transformation in resource regions; (4) adjust the interest distribution between the central and local governments to enable the local regions to become more self-sufficient; and (5) enhance the legal environment so that companies can more readily undertake their social responsibilities voluntarily.     

Causal interactions between environmental degradation,renewable energy,nuclear energy and real GDP: a dynamic panel data approach

Renewable energy as well as nuclear energy are low carbon power that presents the life cycle emissions of greenhouse gases than fossil fuel energy. However, analyzing the relationship between the consumption of renewable energy, consumption of nuclear energy, CO₂ emissions and economic growth is crucial for the economic and energy policy decision; we address this question for developed countries. This paper deals with the relationships between nuclear energy, environmental degradation, real GDP and renewable energy. We apply a panel data model for a global panel consisting of nine developed countries during the period 1990–2013. The group studied consists of Canada, France, Japan, Netherlands, Spain, Sweden, Switzerland, UK and the USA. The empirical findings suggest that: (1) a causal link between emissions and real income, (2) a unidirectional causality running from renewable energy to nuclear energy, (3) a unidirectional causal relationship running from capital to environmental degradation, (4) a unidirectional causal relationship running from income to nuclear energy consumption, since the growth hypothesis is valid, (5) a unidirectional causality running from capital to income, (6) no an outstanding role of renewable energy use in the contribution of CO₂ emissions.     

A conceptual approach to model sand–gravel extraction from rivers based on a game theory perspective

Sand–gravel mining is a significant parameter of economic development and social welfare function in modern societies. As demand for aggregate increases in construction industry, conflicts for the availability of the resource and environmental impacts become more intense. The present paper describes the contested status quo in riverbed sand–gravel mining activities with an example from Greece, as a case study. The scope is to propose a methodology about good governance of the mining sector that promotes a sustainable sharing of aggregate resource by securing environment and safekeeping revenues in the mining trade market.     

基于主成分—聚类分析的贫困县（区）经济发展研究——以陕南地区国家级贫困县（区）为例

采用国内生产总值、人均纯收入、城镇固定资产投资、社会消费品零售总额等11个指标,运用主成分分析法对陕南地区20个国家级贫困县（区）的经济发展水平进行了评价,在此基础上运用聚类分析法将贫困县（区）分成四种类型：第一类是＂第二、第三产业并进型＂的汉滨区,第二类是＂特色农业带动型＂的商州区,第三类是＂优势矿业驱动型＂的洛南县和旬阳县,第四类是＂传统农业主导型＂的其余16个贫困县,针对各类型贫困县（区）提出相应的发展对策。     

Risk attitudes and mitigation among gold miners and others in the Suriname rainforest

This article analyses the question: do attitudes towards risk influence participation in small‐scale gold mining, a hazardous activity that generates uncertain income? This question is examined by measuring and comparing the risk attitudes of gold miners and non‐mining community members in the rainforest of Suriname, South America. The author presents a multivariate model to predict the duration of work in mining areas as a function of risk tolerance, age, education, and household demographics. The results suggest that a greater tolerance to risk increases the duration of a person's mining career. However, attitudes explain only a fraction of the variation in occupational choices. Qualitative data suggest that these choices are primarily shaped by local barriers to human capital development and by national economic volatility. Given their marginal position in society and the multitude of mining risk mitigation strategies, it is questionable whether gold mining exposes Suriname forest peoples to greater risks than other subsistence alternatives. The author argues that sensitivity to local historical and cultural conditions would improve the efficiency of policies aimed at developing a more sustainable mining industry. By zooming in on the daily lives of miners, anthropology can complement macro‐scale analyses and contribute to policy interventions in the small‐scale mining sector.     

China's Minerals Future: 1985–2005

China has embarked on major economic and social changes to revitalize the Chinese economy, increase labor productivity, and improve the material standard of living of the Chinese people. This paper assumes that China will achieve its goal of a per capita income of US$800 in 2000, open-door policies will be maintained, and nonfuel mineral commodity consumption will increase as GDP per capita increases. Projections are made of production, trade and consumption of 14 nonfuel minerals for the period 1985–2005. China is projected to increase its net imports to these 14 minerals from about US$5000 million in 1985 to about US$12000 million in constant dollars in 2005. China's investment climate will become more favorable for those multinational companies that bring with them clear comparative advantages in minerals exploration, mining and processing technologies and marketing, and are prepared to develop in-depth Chinese expertise.     

Determining the optimal tax on mining

This article examines three arguments often raised in support of higher taxes on mining and finds them wanting: First, the wealth or economic rents associated with particularly rich deposits rightfully belong to the citizens of the host country. Second, mining companies should compensate the State and the public for their use of mineral resources, given the intrinsic value arising from their non‐renewable nature. Third, the division of the wealth created by mining is unfair. Too much goes to mining companies, and too little to the host country to promote economic development. It suggests instead that host governments should maximize the net present value of the social benefits flowing from their mineral sector. In practice, unfortunately, it is often difficult to know whether this objective is served by raising or lowering the level of taxation on mining.     

Mining and development in the region of Antofagasta

The objective of this paper is to analyse the effect of mining on economic and social development in the region of Antofagasta from 1985 to 2008. Analysis of development is restricted to spheres described by available indicators used by several international and non-governmental organizations such as income distribution, education, health, poverty, human development and security, satisfaction, cost of living, income per capita, GDP per capita, employment, productive activity, added value and its distribution. Correlation between some of these variables is estimated as well as the gap between these indicators and those of developed countries.     

The transformation and successful development of small-scale mining enterprises in developing countries

Proponents have long argued that small-scale mining, given proper direction and support, can contribute substantively to the socioeconomic development of rural areas in developing countries. The attitudes of governments, commercial mining companies and donor agencies have been coloured by the haphazard, informal, often dangerous and seemingly wasteful character of much local mining activity, especially at the smallest scale. Yet this 'artisanal' activity has come to assume a critical economic welfare function in many countries, especially those which have suffered through extended periods of environmental and economic stress. This paper argues that this type of mining, because of both its upside potential and its problematic nature, cannot be ignored: neither can it be eradicated. Instead, explicit and sustained attention from governments, non-government organizations, the private sector and donor agencies is advocated for an effort to rationalize and formalize this type of mining, to increase its economic and technical efficiency, and to maximize its social benefits and minimize its disadvantages.     

Economics and GHG emission reduction of a PLA bio-refinery system—Combining bottom-up analysis with price elasticity effects

This paper analyses energy savings, GHG emission reductions and costs of bio-refinery systems for polylactic acid (PLA) production. The systems comprise ‘multi-functional’ uses of biomass resources, i.e. use of agricultural residues for energy consumption, use of by-products, and recycling and waste-to-energy recovery of materials. We evaluate the performance of these systems per kg of bio-based polymer produced and per ha of biomass production. The evaluation is done using data of Poland assuming that biomass and PLA production is embedded in a European energy and material market. First, the performance of different bio-refinery systems is investigated by means of a bottom-up chain analysis. Second, an analysis is applied that derives market prices of products and land depending on the own-price elasticity of demand. Thus, the costs of bio-refinery systems depending on the demand of land and material are determined. It is found that all PLA bio-refinery systems considered lead to net savings of non-renewable energy consumption of 70–220 GJ/(ha yr) and net GHG emission reductions of 3–17 Mg CO_2eq/(ha yr). Most of these PLA bio-refinery systems lead to net costs for the overall system of up to 4600 €/(ha yr). PLA production from short rotation wood leads to net benefits of about 1100 €/(ha yr) if a high amount of a high value product, i.e. fibres, is produced. Multi-functionality is necessary to ensure the viability of PLA bio-refinery systems from biomass with regard to energy savings and GHG emission reduction. However, the multi-functional use of biomass does not contribute much to overall incomes. Multifunctional biomass use – especially the use of biomass residues for energy consumption – contributes significantly to savings of non-renewable energy sources. Own-price elasticity of the demand for materials influences the overall costs of the bio-refinery system strongly. The own-price elasticity of land demand markets could become important if bio-refineries are introduced on a large scale.     

External benefits of environmental regulation: Resource recovery and the utilisation of effluents

Summary Since 1977, stringent environmental regulation has been progressively imposed on Malaysia's most polluting industry, the palm oil mills. The impact of the regulation on international trade and producer welfare has been quite small compared to the relative benefits to society in terms of changes in the levels of dissolved oxygen in the industrial effluents. External benefits from pollution abatement have been derived. This paper presents a preliminary evaluation of the derived benefits which have a long- term potential of recycling valuable resources while maintaining competitiveness in the international palm oil trade.Dr Khalid Abdul Rahim is a member of faculty in the Department of Natural Resource Economics at the Universiti Pertanian Malaysia. Wan Mustafa Wan Ali is a research assistant in the Department. This paper is based on part of the "Intensification of Research in Priority Areas" (IRPA) project 1991–95, funded by the Government of Malaysia.     

General equilibrium effects of a supply side GHG mitigation option under the Clean Development Mechanism

The Clean Development Mechanism (CDM) under the Kyoto Protocol to the United Nations Framework Convention on Climate Change is considered a key instrument to encourage developing countries' participation in the mitigation of global climate change. Reduction of greenhouse gas (GHG) emissions through the energy supply and demand side activities are the main options to be implemented under the CDM. This paper analyses the general equilibrium effects of a supply side GHG mitigation option-the substitution of thermal power with hydropower--in Thailand under the CDM. A static multi-sector general equilibrium model has been developed for the purpose of this study. The key finding of the study is that the substitution of electricity generation from thermal power plants with that from hydropower plants would increase economic welfare in Thailand. The supply side option would, however, adversely affect the gross domestic product (GDP) and the trade balance. The percentage changes in economic welfare, GDP and trade balance increase with the level of substitution and the price of certified emission reduction (CER) units.     

European aggregates production: Drivers,correlations and trends

Aggregates constitute the biggest branch of mining by production volume and the second in value, after the sector of fossil fuels. Their close connection with the construction industry places them among the most used materials worldwide, second only to water. Despite its significance, the sector suffers from the non-systematic register of production data, resulting in weakness to study the main features affecting the sector’s structure and future capacity. The paper focuses on the aggregates production in 26 European countries. Data from available sources are gathered and combined for a 10-year period (1997–2006), as an effort to provide a clear view of the major attributes of this vital industrial sector. Through a thorough analysis, the main drivers in aggregates production are revealed and existing correlations and trends are identified. New findings are also presented, for example the significance of GDP from construction and the strong connection of aggregates production per capita with the residential building sector.     

Long-term depletion of calcium and other nutrients in eastern US forests

Both harvest removal and leaching losses can deplete nutrient capital in forests, but their combined long-term effects have not been assessed previously. We estimated changes in total soil and biomass N, Ca, K, Mg, and P over 120 years from published data for a spruce-fir site in Maine, two northern hardwood sites in New Hampshire, central hardwood sites in Connecticut and Tennessee, and a loblolly pine site in Tennessee. For N, atmospheric inputs counterbalance the outputs, and there is little long-term change on most sites. For K, Mg, and P, the total pool may decrease by 2%–10% in 120 years depending on site and harvest intensity. For Ca, net leaching loss is 4–16 kg/ha/yr in mature forests, and whole-tree harvest removes 200–1100 kg/ha. Such leaching loss and harvest removal could reduce total soil and biomass Ca by 20%–60% in only 120 years. We estimated unmeasured Ca inputs from rock breakdown, root-zone deepening, and dry deposition; these should not be expected to make up the Ca deficit. Acid precipitation may be the cause of current high leaching of Ca. Although Ca deficiency does not generally occur now in acid forest soils, it seems likely if anthropogenic leaching and intensive harvest removal continue.     

Recent developments in small-scale mining

Artisanal mining is to be viewed not only as an issue requiring mining expertise, but also as a socio-economic issue in the context of poverty, requiring multi-sectoral attention. This article traces global employment estimates in small-scale mining, outlining the extent and economic impact of small-scale mining in selected countries in Africa, Asia and Latin America. New approaches and developments are analyzed with special focus on the interrelated roles of government, the private sector, non-governmental organizations, lending institutions and the local communities. The flow of foreign capital, the creation of joint ventures, and the contribution of women are also discussed, as are strategies that have been implemented as well as recent developments including developments in the areas of health and safety.     

The cost of crop damage caused by ozone air pollution from motor vehicles

The effects of ozone air pollution on the agricultural sector are an important environmental challenge facing policy makers. Most studies of the economic impact of air pollution on agriculture have found that a 25% reduction in ambient ozone would provide benefits of at least $1–2 billion annually in the United States. This paper extends existing research by estimating the benefits of a reduction in emissions from a major source of ozone formation: motor-vehicle emissions. An agricultural production model is combined with an analysis of motor-vehicle emissions and air quality to estimate the impacts of emissions from six different motor-vehicle classes, at both the regional and national level. The benefits to the agricultural sector from completely eliminating ozone precursor emissions from motor vehicles ranges between $3·5 and $6·1 billion annually.