THE ECONOMICS OF GEOTHERMAL POWER

This article, based on a rapporteur's report, is a synthesis of papers read before the United Nations Symposium on the Development and Utilization of Geothermal Resources, held at Pisa, Italy, in 1970. It covers a broad cross-section of experience in exploiting geothermal energy, especially in Hungary, Iceland, Italy, Japan, New Zealand, the Union of Soviet Socialist Republics and the United States of America     

THE ECONOMICS OF GEOTHERMAL POWER

This article, based on a rapporteur's report, is a synthesis of papers read before the United Nations Symposium on the Development and Utilization of Geothermal Resources, held at Pisa, Italy, in 1970. It covers a broad cross-section of experience in exploiting geothermal energy, especially in Hungary, Iceland, Italy, Japan, New Zealand, the Union of Soviet Socialist Republics and the United States of America     

THE INDUSTRIAL ECONOMICS OF COPPER PROCESSING

Developing countries have increased their activity in smelting and refining of copper in order to retain a greater proportion of the value added and to achieve more control over production and marketing. This article examines the technology and economics of copper smelting and refining and considers the advantages and disadvantages to developing countries of increased investment in copper ore processing.
Les pays en développement ont accru leur activité dans le domaine de la fonte et du raffinage du cuivre dans le but de conserver une part plus grande de la valeur ajoutée et d'établir un contrôle plus efficace sur la production et la commercialisation de cette ressource. Cet article étudie les aspects techniques et économiques de la fonte et du raffinage du cuivre. Il compare les avantages et désavantages, pour les pays en développement, de la croissance des investissements dans le traitement du minerai de cuivre.
Los países en desarrollo han incrementado las actividades de fundición y refinado de cobre con el objeto de retener una porción mayor del valor agregado y de ejercer más control sobre la producción y el mercado. Este artículo examina la tecnología y economía de la fundición y refinado del cobre y considera las ventajas y desventajas de mayores inversiones en el procesado del mineral de cobre por los países en desarrollo.     

POLITICAL RESOLUTION OF ENVIRONMENTAL CONFLICTS1

ABSTRACT Many water resources management problems ultimately require a political decision in order to formulate a course of action to follow. Metagame analysis is a nonquantitative technique that can model the decision-making process and is used in this article to arrive at a politically feasible solution to a typical water pollution problem. The output from the linear programming formulation of the problem is used as input to the “political” metagame analysis. This allows a solution to the pollution conflict that is not only physically and economically feasible according to the linear programming analysis, but politically feasible as well.     

SPATIAL ECONOMICS OF TARGETING MANURE POLICY1

ABSTRACT: Increasing specialization separates animal production from cropland, complicating manure management. To assist policy targeting efforts, we highlight areas where on-farm use of manure may be problematic. Matching confined animal production with land, on the farm- rather than at the county-level, gives our analysis an advantage over previous studies in avoiding aggregation problems. With manure-based water quality problems, data aggregated to the county level may fail to convey the heterogeneity of animal production across regions and animal types. Aggregation bias blurs the distinction between areas with specialized animal production and those that merely have numerous animals. We estimate bias from using county aggregates, show its distribution spatially and by animal sector, and link it to concentration. Ongoing vertical integration in agriculture likely alters in-county variability in facility scale and scope, and may influence decisions about which data we should gather and use.     

ECONOMICS OF SCREENING FOR PESTICIDES IN GROUND WATER1

ABSTRACT: In the United States, millions of dollars are currently spent to monitor water quality for a whole suite of organic compounds. However, results of several surveys conducted in the past decade indicate that only a few pesticides occur in a small proportion of wells. Screening methods based on historical evidence of contamination patterns and knowledge of the locales will have significant potential to reduce these costs and effectively identify contamination problems. In this paper, the economics of utilizing two screening methods, sequential analysis and sample compositing, in the design of monitoring strategies is captured In the form of mathematical models and illustrated for a state-level monitoring program. When the two methods are adopted, the total analytical cost to conclusively identify contaminated wells in a network of 4,000 wells is shown to range from $12,500 to $1,575,000 depending on the extent of contamination. In contrast, the total analytical cost of a conventional program where all the wells in the network are sampled and tested for a standard suite of pesticides at a cost of $250/sample is one million dollars. Given such wide range in costs, it is prudent to incorporate the screening concepts presented in this paper in the development of cost-effective monitoring programs.     

THE ECONOMICS OF CO-OPERATION IN SHARED WATER RESOURCES DEVELOPMENT

This article assesses the various methodologies that have been used to devise equitable approaches in the joint utilization of water resources shared by two or more countries. Noting that no single technique is applicable in all or even most situations, the article first presents a review of the approaches taken in three cases, the basins of the Uruguay, the Senegal and the Yaguaron rivers. Next, the issues raised in these cases are examined, and the three major steps in the sharing of benefits and costs in projects for the development of shared water resources are discussed. The article concludes with a number of observations concerning the present and probable future status of shared water resource negotiations. Cet article évalue les différentes méthodes que l'on emploie pour définir les manières équitables d'utiliser conjointement les ressources en eau communes à deux ou plusieurs pays. Tout en soulignant qu'il n'existe pas de technique qui puisse s'appliquer à toutes ou presque toutes les situations, l'article dans un premier temps passe en revue les méthodes utilisées dans trois cas: les bassins des fleuves Uruguay, Sénégal et Yaguaron. L'article examine ensuite les questions soulevées dans ces cas et discute des trois mesures importantes adoptées dans le partage des coûts et bénéfices dans le cas de projects conçus pour la mise en valeur des ressources en eau communes. L'article conclut par un certain nombre d'observations sur l'état actuel et l'avenir probable des négociations en matière de ressources en eau communes. Este artículo evalúa varias metodologias usadas para establecer formas de la utilización conjunta y equitativa de recursos hídricos compartidos por dos o más países. El artículo señala que no hay una técnica única aplicable a la mayoría de los casos y revisa los procedimientos seguidos en tres casos: las cuencas de los ríos Uruguay, Senegal y Yaguaron. Luego se examinan los asuntos saltantes en los tres casos y se discuten los tres pasos a seguirse en la participación de beneficios y costos de los proyectos de desarrollo de recursos hídricos compartidos. El artículo concluye con algunas observaciones concernientes a las negociaciones presentes y futuras sobre uso de recursos hídricos compartidos.     

THE ECONOMICS OF RENEWABLE ENERGY SYSTEMS FOR DEVELOPING COUNTRIES

In many parts of the Third World, projects are being developed to test such renewable energy systems as biogas plants and solar cell arrays for powering pumps and grinders. Virtually nowhere, however, has adequate work been done to determine if these systems are worth their costs. This paper outlines the cost-benefit techniques which allow systems to be evaluated from the standpoint of individual buyers (financial analysis) and the society as a whole (economic analysis). Special attention is given to problems of particular importance in reviewing energy systems, including local measurement of costs and benefits, determination of investors' discount rates, shadow-pricing and allowance for social costs. Detailed cost-benefit analyses are provided for two representative systems: a family-scale Indian biogas plant and a 5.5 kW solar cell irrigation pump on the borders of Lake Chad. The family-scale biogas plant does not appear to be profitable in either financial or economic terms under any plausible sets of assumptions. The solar cell pump has positive net benefits by economic (if not financial) measures, but is unlikely soon to be competitive with diesel power for most applications. At best, some of these devices might ultimately become competitive with expensive commercial energy. Such devices will therefore be of interest first to people now using substantial amounts of such energy – that is, the relatively wealthy. Only much later might significant benefits begin to filter down to the poor. In the light of these findings renewed attention should be given to meeting basic energy needs through less sophisticated systems. By finding systems whose benefits are commensurate with their costs, and whose costs are within reach of the poor, it may be possible to provide more energy to those most in need of it. Dans de nombreuses parties du Tiers Monde, des projets sont en cours d'exécution en vue d'évaluer des systèmes en matière d'énergie de remplacement, tels que des usines de gaz de fermentation et des assemblages de cellules solaires pour activer pompes et broyeurs. Toutefois, il semblerait qu'il n'y ait eu nulle part aucune étude valable permettant de déterminer si ces systèmes justifient leur coût. Cet article relève les techniques de coût-utilité qui permettent d'évaluer ces systèmes du point de vue des acheteurs individuels (analyse financière) et de la société dans son ensemble (analyse économique). En analysant ces systèmes, l'article souligne des problèmes d'importance particulière, y compris l'évaluation locale des coûts et profits, la détermination des taux d'actualisation d'investissement, l'estimation des prix virtuels et l'établissement de marges de coûts sociaux. Des analyses détaillées de coût-utilité sont présentées pour deux systèmes concrets: une usine de gaz de fermentation indienne à l'échelle de la famille, et une pompe d'irrigation à cellules solaires de 5,5 kW sur les rives du lac Chad. L'usine de gaz de fermentation à l'échelle de la famille ne semble ni financièrement, ni économiquement rentable quelque soient les termes plausibles des hypothèses. La pompe à cellules solaires offre des profits positifs nets selon des critères économiques (sinon financiers) mais, dans la plupart des cas, elle ne semble pas pouvoir concurrencer le moteur diesel dans un proche avenir. Au mieux, quelques-unes de ces installations peuvent à la longue concurrencer l'énergie commerciale à prix élevé. Par conséquent, elles seront d'intérêt particulier tout premièrement aux usagers de grande quantité de cette énergie, c'est-à-dire ceux possédant des moyens relativement élevés. Ce n'est que bien plus tard que les classes défavorisées pourront commencer à bénéficier sensiblement des profits qui en résulteront. Sur la base de ces données, les organisations s'intéressant aux classes défavorisées peuvent se pencher à nouveau sur la manière de répondre aux besoins essentiels en matière d'énergie en utilisant des systèmes plus simples: bois appartenant aux villages, fours à bois améliorés, pompes et broyeurs à pédales ou à bras, pompes foulantes hydrauliques, etc. En conçevant des systèmes dont les profits sont proportionnels aux coûts et dont les coûts sont à la portée des classes défavorisées, il se peut que l'on puisse mettre plus d'énergie à la disposition de ceux qui en ont le plus besoin. En muchas partes del Tercer Mundo se han llevado a cabo proyectos para ensayar sistemas de energía renovables tales como plantas de biogas, y celdas solares para operar bombas y molinos. Sin embargo practicamente en ninguna parte se ha hecho el esfuerzo apropiado para determinar si estos sistemas valen lo que cuestan. Este artículo esboza las técnicas de beneficio-costo para evaluar dichos sistemas desde el punto de vista del usuario individual (análisis financiero) y del de la sociedad como un todo (análisis económico). Se da especial atención a los problemas de importancia particular en el análisis de sistemas de energía, incluyendo mediciónes locales de costos y beneficios, determinación de la tasa de descuento del inversionista, precios-sombra y costos sociales. Detallados análisis de beneficio-costo se proveen para dos sistemas representativos: una planta de biogas en escala familiar y una bomba de agua operada por celadas solares de 5.5 kW al borde del Lago Chad. La planta de biogas a escala familiar parece no ser rentable financieramente ni económicamente bajo ninguna serie de hipótesis realistas. La bomba de celdas solares tiene un benefico económico positivo (aunque no financiero), pero es poco provable que sea competitivo con el motor diesel para la mayoría de las aplicaciones. En el mejor de los casos, alguno de estos sistemas pueden ser competitivos con una energía comercial cara. Estos sistemas en consecuencia serán de gran interés primeramente para las personas que hacen uso intensivo de energía, esto es, las personas relativamente adineradas. Pueda qui solo mucho despues beneficios significativos lleguen a los pobres. A la luz de estos resultados debe ponerse renovada atención a satisfacer las necesidades básicas de energía a través de sistemas menos sofisticados. Pueda que sea posible proveer mas energía a los que más necesitan de ella si se buscan sistemas cuyo beneficios sea proporcionados a sus costos y que dichos costos esten al alcance de los pobres.     

THE ECONOMICS OF DEEP SEA NODULES: AN APPRAISAL OF RECENT ESTIMATES

The metal resources of deep sea nodules are attracting investment from many international corporations. Commercial interest in nodule mining is related to, but not governed by, existing estimates of economic profitability of the first generation ventures. Mr. Chacko reviews some of the latest published figures on costs and revenues, and these are updated and put on a comparable basis. He then argues that more attention should be paid to the long-term objectives of corporate policy in analysing the future development of the nodule mining industry.     

VALIDATION OF POLITICAL SIMULATION MODELS -WATER RESOURCE PROJECTS1

ABSTRACT. The critical role of political processes in water resource projects has recently been placed in a new perspective [Hall, 1970]. The “political hassle” period of institutional interaction which serves to resolve political conflicts over such aspects as organizational growth and survival, responsibility for economic liabilities, and responsibility for economic benefits, requires systematic analysis in order to improve our capability to implement water projects. Failure to properly assess the political aspects of a proposed water project may result in extensive delays with significant economic losses. The complexities associated with water use and re-use have created the need for new institutional arrangements which can more effectively function to implement policies and programs. One tool which has recently become available for the research investigator concerned with institutional interactions and political processes associated with water resource projects is the technique of computer simulation of such institutional interaction. In theory, this new approach will enable the investigator to assess the political feasibility or political acceptability of a proposed water project given existing institutional structures. Furthermore, the investigator has the opportunity to experiment with new and innovative institutional arrangements which may in turn enhance the political acceptability of a proposed project. The specific material presented within this paper reports upon the validation of an existing computer simulation model designed to replicate political interactions in resource allocation problems-including water resource problems. This validation effort is done by taking an actual water problem and comparing what the political simulation models predicts in terms of political outcomes with what actually takes place. The case study in question is the formulation and legislative development of the Michigan Bond Issue for Water Pollution Control.     

THE POLITICAL INFLUENCE OF RESIDENTIAL CONSUMERS ON WATER RATES1

ABSTRACT: The regulatory process such as that for water rates can be viewed as a bargaining process between regulators, utility management, and consumers. This bargaining process involves both political and economic influences. In an attempt to empirically verify that utility rates are a product of both economic and political factors, a sample of publicly-owned water utilities was subjected to regression analysis. As expected, cost and cost-related factors were positive and significant determinants of residential water rates. Using an admittedly imperfect measure of residential user political influence, there was evidence that increased political activity results in lower water rates. Furthermore, the political influence and water rate linkage is more evident in small water utilities than in larger suppliers.     

AUBURN DAM: A CASE STUDY OF WATER POLICY AND ECONOMICS1

ABSTRACT: This paper provides a critical analysis of the Bureau of Reclamation's Auburn-Folsom South project in California. While this massive $1.5 billion project is temporarily halted for redesign for earthquake hazard, it is timely to examine its justification on economic grounds. The key finding is that several major benefit categories, irrigation and recreation, have been grossly overstated. In addition, the Bureau failed entirely to estimate the cost of use on the free-flowing American River, or a probability-weighted estimate of catastrophic loss. Revised estimates indicate that the project is not economically justified. In addition, the project has unattractive distributive effects. The implications of this case study for current revisions in U.S. water policy are explored. The Auburn study basically provides support for the U.S. Water Resource Council's draft manual of procedures for evaluating federal water resource projects.     

油气田环境保护

<正>《油气田环境保护》是国内外公开发行的环境保护类科学技术性期刊,重点报道油气田及石油炼化领域的污染现状、治理技术、管理方法、试验研究、监测手段等方面的新成果、新技术、先进经验以及国内外现行标准与发展动态,是中国石油对内对外进行宣传、技术交流的重要窗口以及中国石油、中国石化、中国海洋石油、高等院校、科研院所等广大环保工作者互相学习、互通信息的桥梁和纽带。     

ECONOMICS OF CONTROLLING NATURAL SALT SOURCES IN THE ARKANSAS RIVER BASIN1

ABSTRACT: The methodology underlying, and the estimates incorporated in the Corps of Engineers' economic evaluation of the Arkansas River Basin Chloride Control Project are evaluated and judged deficient in several ways. An improperly specified alternative cost analysis probably results in overestimates of the total regional demand for water, the demand for Arkansas River Water, and the cost-savings realized with the project in place. The quantitative effect of these errors is not determined. However, other adjustments are identified which are evaluated using the Corps' data. These adjustments reduce B/C from 2.64 to 0.57; principally as a result of corrections for over-estimates of cost-savings in steam-electric generation, and for use of improper discounting procedures and gross output-earnings ratios.     

油气田环境保护

<正>《油气田环境保护》是国内外公开发行的环境保护类科学技术性期刊,重点报道油气田及石油炼化领域的污染现状、治理技术、管理方法、试验研究、监测手段等方面的新成果、新技术、先进经验以及国内外现行标准与发展动态,是中国石油对内对外进行宣传、技术交流的重要窗口以及中国石油、中国石化、中国海洋石油、高等院校、科研院所等广大环保工作者互相学习、互通信息的桥梁和纽带。《油气田环境保护》为双月刊,国际标准开本。国际刊号:ISSN 1005-3158,国内刊号CN 11-3369/X,全年订价120元。     

A REVIEW ON DECISION MODELS IN ECONOMICS OF REGIONAL WATER QUALITY MANAGEMENT1

ABSTRACT The literature on decision models in economics of regional water quality management is reviewed and classified.