Economic Values and Corporate Financial Statements

Corporate financial statements do not include environmental values. This deficiency has contributed to the criticism that company managers do not include environmental impacts in the internal decision-making process. The accounting profession has not developed effective environmental reporting guidelines. This situation contributes to a second problem: the apparent inability of corporate reports to provide useful information to external parties. It has been suggested that by using nonmarket valuation methodologies, financial statements can be used to measure progress toward sustainable development. Nonmarket valuations are not generally accepted by the accounting profession. They are too subjective to support effective decisions, and too costly to obtain. Furthermore, demand for this sort of information appears small. Some of these issues may be resolved over time. The most serious challenge, however, concerns how enhanced financial reports would be used. Financial statements are supposed to help investors assess the amount, timing, and uncertainty of future cash flows. A substantial portion of environmental value is based on nonuse benefits, much of which will never be realized in company cash flows. In other words, the role of financial statements would have to change. Furthermore, since there is no general agreement as to the meaning of sustainable development, efforts to operationalize the term have been fraught with difficulty. Moreover, monetization of environmental values could jeopardize their preservation, leaving some to question the overall objective of this form of reporting. For these reasons, while it is to be hoped that better reporting of environmental impacts will be forthcoming, the greatest advances will likely be outside the financial statements themselves.     

Normality of Hydrological Data1

ABSTRACT: Assessment of normality of hydrological data has been based upon subjective judgments. This paper aims to provide an objective method for such an assessment by introducing three computationally simple statistical tests. Application to some stream flow data indicates that (1) for annual values, at least one of the three sequences- original, square root, and logarithmic - can be considered to be normally distributed; and (2) most monthly stream flows are skew and neither the square root nor the logarithmic transformation is able to render their sequences in all the 12 months normal.     

Evaluation of soil erosion risk using Analytic Network Process and GIS: A case study from Spanish mountain olive plantations

The study presents an approach that combined objective information such as sampling or experimental data with subjective information such as expert opinions. This combined approach was based on the Analytic Network Process method. It was applied to evaluate soil erosion risk and overcomes one of the drawbacks of USLE/RUSLE soil erosion models, namely that they do not consider interactions among soil erosion factors. Another advantage of this method is that it can be used if there are insufficient experimental data. The lack of experimental data can be compensated for through the use of expert evaluations. As an example of the proposed approach, the risk of soil erosion was evaluated in olive groves in Southern Spain, showing the potential of the ANP method for modelling a complex physical process like soil erosion.     

On accounting for sustainable development and accounting for the environment

Economic sustainability or intergenerational equity entails maintaining social well-being by decisions about investments in different types of assets. Under certain conditions, consumption can be sustained by depleting resources, or various kinds of natural capital, while building up other kinds of capital. Theoretically, the choices involve the use of a set of accounting prices. The question becomes one of finding and implementing accounting prices that express the roles of the various capital goods in achieving the objective of the economy.Hartwick's rule holds that an economy can be sustained if the value of the total, net investment in the economy, evaluated at those accounting prices, is zero. The rule applies to a special, abstract economic model which expresses a social objective different from the discounted-utilitarian objective on which national accounting is based. Different objectives give rise to different accounting prices. Because the prices may not be right, the zero net-investment rule using available national-accounting prices cannot generate a condition for sustaining an economy.Still, environmental accounting is a tool which, used prudently, can make an important contribution to social decision-making. This paper expands upon these ideas by discussing the incorporation of natural resource and intangible environmental costs and benefits into green accounting at the firm as well as the economy level. Common techniques of mine valuation and standard corporate accounting are the bases for this extension to the valuation of and accounting for decisions concerning the environment.     

Value of intelligence applied to networks

A methodology is proposed to complement the subjective “value” of intelligence with an objective metric of “impact” of information on network models. This is a deterministic one-way sensitivity analysis similar to value of information used in inference diagrams. It would measure the impact of a piece of information on a network’s metric, in this case being used to answer intelligence analyst questions. This methodology suggests that the sensitivity of each link to existing analysis implies that the link has an impact on the analysis. The impact of these links can be measured quantitatively. In this paper, we explore data of tweets and apply the methodology to the links between twitter users and use the network measure of betweenness centrality to determine their quantitative impact on the overall network.     

MODELING DRINKING WATER QUALITY VIOLATIONS WITH BAYESIAN NETWORKS1

ABSTRACT: Compliance violations at community water systems are rare but represent significant human health risks. These risks are mediated by the decision schema of human operators at water treatment facilities. However, causal uncertainty among physical and human factors involved in water quality problems complicates assessment of their probability and severity. This study uses a probabilistic Bayesian network modeling approach to explore the causes of compliance violations in a sample of water treatment systems in Pennsylvania. The model presented here is one of several created by treatment system operators during an expert elicitation process. The expert model alone predicts violations poorly, suggesting that experts make inaccurate quantitative estimates. However, Bayesian networks are capable of combining the subjective expertise of treatment system operators with the objective compliance histories of the facilities they manage, and the expert model accurately predicts violations when trained with historical compliance data. Analysis of the trained network reveals those components of the treatment process, including environmental and system characteristics as well as operator decisions, that play the greatest role in determining the likelihood of major violation types. Among operator decisions, coagulant dosing and filter backwash frequency are the most important determinants of violation likelihood.     

Choice of stakeholder groups and members in multicriteria decision models

Simplistic economic objectives such as maximisation of producer profits are of little relevance in generating information to assist in the management of natural resources beyond the individual firm level. To provide data and information to support decision-making in natural resource management, it is necessary to take into account the views of various stakeholder groups and the multiple objectives of each group, through the use of some form of multicriteria analysis (MCA). Important decisions arise in the choice of stakeholder, since this will influence the management advice generated. Many groups and individuals can be affected by resource management decisions, but it would be impractical to attempt to identify the objectives and estimate their importance for each group. Also, questions arise concerning whether or not to include government agencies (which represent the broader community) and researchers as stakeholders. A further issue concerns choosing representative samples of stakeholder groups, from which to obtain preference data. Discussions with modellers and a reading of the literature would suggest that the choice of stakeholder groups and representatives is conducted haphazardly and is perhaps biased, and that a more systematic approach is needed. This article explores the above issues with reference to a number of multicriteria analyses, including local studies.     

LABORATORY EXPERIMENTS AS AN AID TO LAKE RESTORATION DECISIONMAKING1

ABSTRACT: The choice of a lake rehabilitation technique can be assisted by laboratory experiments concerned with the composition and properties of the sediments. This work on Sawgrass Lake, Pinellas County, Florida, provides an example of the type of laboratory information that can be useful towards making decisions regarding the most effective restorative techniques. Experiments include chemical analysis of sediment (water content, organic content, pesticides, nutrients), rate of sediment compaction and rehydration at ambient conditions, and the effect of treatment with alum and other chemicals.     

Ideology and wildlands management: The case of Rondeau Provincial Park,Ontario

This is a critical examination of some of the basic concepts that have guided management of parks and related reserves, often termed wildlands. Study is focussed on Rondeau Provincial Park, Ontario, and on concepts such as wilderness, primeval forest, and the Carolinian forest. Deer culling and other management policies and practices have been based upon the idea that the highly valued sassafras, tulip, and other species of the Carolinian forest are decreasing due to browsing. Field mapping and analysis of historic vegetation records indicate that this trend is not in fact occurring. Historic research also reveals difficulties in defining the Carolinian or other perceived types of forest for management purposes. A major reassessment of ideology and management policy and practice seem to be required in Rondeau and other wildlands. Vague or general concepts such as wilderness or preservation should be strongly complemented and supported by more precise statements of objectives, a learning attitude, and experimentation and research. As a result of the technical uncertainties and value judgments frequently involved, management should also be based upon the expressed preferences and continuing involvement of citizens.     

Environmental Racialization: Linking Racialization to the Environment in Canada

This paper introduces the concept of environmental racialization to account for how race is socially and spatially organized in large Canadian cities. Drawing on a theoretical analysis of the notion of intentionality as conceived in environmental justice literature, the argument is made that claims of environmental racism must include direct a connection between agent's subjective racist intent and the powerful racist outcomes. In contrast, environmental racialization recognizes that agents' intentional actions can result in unpurposeful racist outcomes, even if these outcomes are systemic. The case study of the community of Mid-Scarborough in Toronto illustrates the relevance of the concept of environment racialization.     

Geoconservation versus legislation and resources policy: New achievements,new questions—Comment on Cairncross (Resources Policy, 2011) The National Heritage Resource Act (1999): Can legislation protect South Africa's rare geoheritage resources?

In his recent article, Cairncross identified problems with legislation relevant to the conservation of national geological heritage. This permits us to pose some more general questions, which are not addressed in the noted contribution. The example given by Cairncross indicates some pitfalls linked with the “all-inclusive” nature of legislation in which geological heritage is mixed with cultural heritage. Are such laws really helpful? Even if they are inevitable, they should be prepared with great caution. Moreover, it appears sensible to discuss whether particular geological objects or geodiversity as a whole should be legally conserved. Cairncross also proposes the interesting idea of a special fund/agency for purchasing rare mineral specimens for museums. This raises a set of questions about selection criteria for minerals to be purchased, types of market to be dealt with, number of fund/agency staff, necessary financial resources, and the administration of such purchasing schemes. Broad multi-stakeholder debates are necessary in order to establish the proposed fund/agency and to facilitate its efficient work.     

Trade-offs in assessing environmental impacts

Summary The evolution of the environmental issue has moved through the early stage of technological fixes and estimable economic costs into an area of larger uncertainty and higher information costs.The economic costs of pollution control are about one percent of the GNP. The technological fixes have improved air and water quality somewhat; but in air quality little reduction in nitrogen oxides has been achieved, and in water quality about 25 percent of the water is poor or worse, with high fecal coliform bacteria.The next stage of environmental improvement is to reduce hazardous chemical elements in the environment. In these areas, the health and biological effects are still uncertain, information costs are high, and subjective judgments are common.As uncertainty and qualitative judgments have become more prominent in environmental decisions, delays have been introduced into the decision loops, raising regulatory costs, and heightening adversary stresses between business and environmentalists. The stresses place an aura of arbitrariness over regulations in a milieu where the governability of society is already questioned. This is not the time to retreat from environmental improvement, but to try to simplify the decision process. Two possible alternatives are to codify court precedents into a more rigorous reliance on agency administration law, or to revert to the common rules of civil law that complainants must show damage and cause before an award is allowable by an administrative agency. Either of these options would free the decision making process of delays and allow it to function prospectively, while allowing environmental damages from inadequate decisions to be remedied retroactively. Potential liabilities may increase, but at least the decision process could move forward without being frustrated by regulatory delays.     

Factors Determining the Post-consumer Waste Recycling Burden

The environmental burden of collecting recoverables from households is generally omitted from life-cycle analyses comparing the environmental outcome of using secondary material from post-consumer waste (PCW) with virgin feedstock. However, this burden can be considerable, depending upon the characteristics of the collection methods employed. Given that the basic objective of recycling is to secure environmental benefits, it is vital that the burden of collection through both bring/dropoff and kerbside schemes is taken into account if a valid assessment of the environmental balance resulting from PCW recycling is to be made. This paper presents survey data comparing the burden of collection for different types of recycling provision. It describes the site and spatial characteristics determining the amount of transport dedicated to collection at bring/drop-off sites. Predictor variables are identified as measures of these characteristics, and the survey data compared with them. A regression model to assess energy use at bring/drop-off sites with varying characteristics is then developed. The potential uses of the techniques presented include the evaluation of the environmental burdens of recycling provision at the waste collection authority and regional level, allowing more informed choices to be made in the development of recycling provision from an environmental standpoint.     

A Framework for Understanding and Improving Environmental Decision Making

This paper presents a framework for understanding and improving public sector environmental decision making. Within the framework, four interrelated components are discussed: (1) the environmental and cultural context-understanding this context includes understanding what people consider to be environmental problems, the goals and values that they bring to environmental problems and decision processes, specialized and common knowledge about environmental problems, and the institutional settings within which problems are addressed; (2) planning and appraisal activitiesthese activities include forecasting and monitoring exercises, evaluations of past decisions, and decisions that processes ought to be launched to solve specific environmental problems; (3) decision-making modes-these include six typical ways of conducting an environmental problem-solving process, modes which, in the framework, are called emergency action, routine procedures, analysis-centred, elite corps, conflict management and collaborative learning; (4) decision actions-these include five generic steps that are undertaken, formally or intuitively, in virtually any decision-making situation: issue familiarization; criteria setting; option construction; option assessment; and reaching a decision. In the course of describing the framework, we show a decision-making process can be adapted to incorporate sustainability concerns, including fostering sustainable environmental and social systems, meeting obligations to future generations, and searching for robust and reasonable (rather than rigidly optimal) decisions. The framework also helps to illuminate intriguing questions regarding institutional responsibility, decision process complexity and paradigms for environmental decision making.     

Environmental Racialization: Linking Racialization to the Environment in Canada

Abstract

This paper introduces the concept of environmental racialization to account for how race is socially and spatially organized in large Canadian cities. Drawing on a theoretical analysis of the notion of intentionality as conceived in environmental justice literature, the argument is made that claims of environmental racism must include direct a connection between agent's subjective racist intent and the powerful racist outcomes. In contrast, environmental racialization recognizes that agents’ intentional actions can result in unpurposeful racist outcomes, even if these outcomes are systemic. The case study of the community of Mid-Scarborough in Toronto illustrates the relevance of the concept of environment racialization.     

Removal of phthalates from aqueous solution by different adsorbents: a short review

This work presents a short review of adsorptive materials proposed and tested for removing phthalates from an aqueous environment. The objective is not to present an exhaustive review of all the types of adsorbents used, but to focus on selected types of "innovative" materials. Examples include modified activated carbon, chitosan and its modifications, β-cyclodextrin, and specific types of biomass, such as activated sludge from a wastewater treatment plant, seaweed and microbial cultures. Data from the literature do not confirm the existence of a broad-spectral adsorbent with high sorption efficiency, low production costs and environmentally friendly manufacture. According to the coefficients of Freundlich's isotherm, the most promising adsorbent of those mentioned in this work appears to be the biomass of activated sludge, or extracellular polysaccharides extracted from it. This material benefits from steady production, is cheap and readily available. Nevertheless, before putting it in practice, the treatment and adaptation of this raw material has to be taken into consideration.     

The need to integrate values into environmental curricula

Many environmental problems are controversial because of conflicting values people hold and because there is not a consensus as to which values should have precedence over others. If environmental managers are to make ethical decisions that reflect environmental values, they must have full understanding of such values and types of ethics and principles of moral reasoning to use in the decision-making process. Unfortunately, integration of values into environmental curricula has often not been explicit or comprehensive. One result is that university-trained environmental managers do not possess the knowledge, skills, and methods necessary for more ethically based decisions. An analysis of attitudes about integrating values and/or ethics into environmental curricula and approaches to do so yields the conclusion that environmental programs should more fully include teaching about values and ethics so that environmental managers can make more ethically sound decisions.     

Assessing Spatial Scale Effects on Hydrometric Network Design Using Entropy and Multi‐objective Methods

In order to facilitate water resources decisions, it is important that accurate and informative hydrometric data are collected. Combining information theory with multi‐objective optimization has led to methods of optimizing the information content provided by hydrometric networks; however, there is no available study on the effects of spatial scale and data limitation on these methods. Herein, a dual entropy multi‐objective optimization (DEMO) and a transinformation (TI) analysis were done to recommend optimal locations for additional hydrometric stations in the Madawaska Watershed. This analysis was designed to be comparative to a similar study conducted on the Ottawa River Basin which encompasses the Madawaska Watershed to allow for an investigation of the spatial scale effects in this type of network design. This study concludes that TI analysis is not adversely affected by scaling; however, the DEMO analysis is sensitive to the placement of potential station locations and the size of the study area. This study also examines the benefit of including nearby stations when the area of interest does not have a sufficient number of existing hydrometric stations for analysis. It is shown that these stations can provide useful information because their inclusion in the analysis increased the average TI in the watershed. Recommendations were made as to the ideal locations of additional stations in the Madawaska Watershed hydrometric network.