Hartwick's rule and maximin paths when the exhaustible resource has an amenity value

This paper studies the maximin paths of the canonical Dasgupta–Heal–Solow model when the stock of natural capital is a direct argument of well-being, besides consumption. Hartwick's rule then appears as an efficient tool to characterize solutions in a variety of settings. We start with the case without technical progress. We obtain an explicit solution of the maximin problem in the case where production and utility are Cobb–Douglas. When the utility function is CES with a low elasticity of substitution between consumption and natural capital, we show that it is optimal to preserve forever a critical level of natural capital, determined endogeneously. We then study how technical progress affects the optimal maximin paths, in the Cobb–Douglas utility case. On the long run path of the economy capital, production and consumption grow at a common constant rate, while the resource stock decreases at a constant rate and is therefore completely depleted in the very long run. A higher amenity value of the resource stock leads to faster economic growth, but to a lower long run rate of depletion. We then develop a complete analysis of the dynamics of the maximin problem when the sole source of well-being is consumption, and provide a numerical resolution of the model with resource amenity. The economy consumes, produces and invests less in the short run if the resource has an amenity value than if it does not, whereas it is the contrary in the medium and long runs. However, and without surprise, the resource stock remains for ever higher with resource amenity than without.     

Pollution Permits and Sustainable Growth in a Schumpeterian Model

In Chapter 4 of their book (“Endogenous Growth Theory,” MIT Press, Cambridge, MA (1998)), Aghion and Howitt introduce environmental pollution in an aggregate Schumpeterian model and characterize the optimal path. In this paper, we study the equilibria in a decentralized economy compatible with their model. First, we study the trade-off between environmental quality and growth and identify the channels of transmission of environmental policy into growth performance. Then, we compute the levels of the tools which are used to implement the optimum.     

The optimal use of non-renewable resources: The theory of extraction

The traditional theory of exhaustion is revised to allow for long run capital mobility. This model is extended to include the impact of cumulative environmental damages on the optimal path of resource use. Models and optimal markets are then analyzed for cases where minerals are available over a continuum of quality and where recycling ameliorates inevitable exhaustion of non-renewable resources. Finally, the impact of technological change on long run trends in mineral prices is examined.     

Cross-Hauling of Polluting Factors

This paper analyzes the investment/environment overlap using a two stage model of two jurisdictions. Capital exports are modeled as choice variables for capital owners who weigh income considerations against the effects of capital exports on the quality of their local environments and on environmental policy. This framework reveals that capital owners have an incentive to cross-haul polluting factors across jurisdictions when direct controls are used to regulate emissions and that this cross-hauling induces policymakers to ratchet up environmental policies in both locations. The importance of instrument type and commitment on environmental policy is also analyzed.     

A characterization of sustainability with indicators

Economists favor the use of criteria to characterize sustainability. In practice, policy-makers use indicators, i.e., measurements based on the current economic state and decisions, representing given sustainability issues. In this paper, I introduce a criterion characterizing sustainability with indicators and thresholds acting as constraints. I interpret the thresholds as minimal rights to be guaranteed to all generations, and define sustainable trajectories as those satisfying all the constraints at all times. The new criterion is a “generalized” maximin criterion. The approach is applied to a simple production-consumption economy with non-renewable resources. To derive some policy recommendations on the use of indicators to deal with sustainability, I discuss the implications of such a criterion in terms of trade-off between sustainability thresholds, efficiency, and time-consistency. In particular, the resulting problem is time-inconsistent, and sustainability thresholds may be revised over time. Following the time-inconsistent policy based on indicators, with dynamic revision of the thresholds, may, however, result in a sustained utility path, and even in utility growth.     

A cultural model of private provision and the environment

This paper analyses an overlapping generations model of environmental externalities and capital accumulation where private contributions to environmental quality are motivated by a desire to socialize others into environmental attitudes. In this framework, the formation of environmental preferences is the result of a cultural transmission process depending on the extent of private contributions. In the short run, we show that three equilibria may arise: a first one where all green agents contribute to the environment, a second one where nobody contributes to the environment and a third interior one. We show that the capital-accumulation process and the change in preferences that occur in this economy lead the interior equilibrium to be selected, in which some, but not all, green agents contribute to the environment. The model thus provides an economic rationale for the gap between the number of people who care about the environment and the number who adopt pro-environmental behaviours. We also show that the fraction of contributors rises with capital, so that we explain the negative relationship between this gap and country income. Last, we show that this gap is particularly detrimental for welfare, and analyse the impact of a number of public policies.     

The endowment effect,discounting and the environment

There is a considerable body of evidence showing that our preferences exhibit both reference dependence and loss aversion, a.k.a. the endowment effect. In this paper, we consider the implications of the endowment effect for discounting, with a special focus on discounting future improvements in the environment. We show that the endowment effect modifies the discount rate via (i) an instantaneous endowment effect and (ii) a reference-updating effect. Moreover we show that these two effects often combine to dampen the preference to smooth consumption over time. What this implies for discounting future environmental benefits may then depend critically on whether environmental quality is merely a factor of production of material consumption, or whether it is an amenity. On an increasing path of material consumption, dampened consumption smoothing implies a lower discount rate. But on a declining path of environmental quality and where we derive utility directly from environmental quality, it implies a higher discount rate. On non-monotonic paths, loss aversion specifically can give rise to substantial discontinuities in the discount rate.     

Flexible foraging strategies in a diving seabird with high flight cost

How central-place foragers change search strategy in response to environmental conditions is poorly known. Foragers may vary the total distance travelled and how far they range from the central place in response to variation in the distribution of their prey. One potential reason as to why they would extend the length of their foraging trip and its distance from the colony would be to increase prey quality or quantity, despite incurring higher transit costs. To test this trade-off hypothesis in a species with high flight costs, we recorded the foraging behaviour of razorbills (Alca torca) using state-of-the-art techniques that log both individual horizontal (flight activity) and vertical (dive activity) movements. We show that the distance that razorbills travelled to foraging locations increased with sea-surface temperature, which may relate to higher prey quality or quantity. This relation is supported by an indirect index of patch quality, based on dive profiles, which also increased with travel distance from the colony. Furthermore, we show that this index was highest during the daily peak in diving activity, around midday. Taken together, these results suggest that razorbills are capable of adjusting their search strategies sensitively in response to proximate environmental cues.     

NEATS: A Network Economics Approach to Trophic Systems

The main principle of the economic approach to a trophic system we propose here lies in assuming that there is a transfer of food along a path between a prey and a predator if, for the predator, the benefits are greater than costs of predation on this path. Conversely, if the costs exceed the benefits, there are no flows. This trade-off, considered all along the food chains of an ecosystem, together with ecological processes (assimilation, somatic maintenance) results in a model coupling mass balance equations (biological constraints) and complementarity principles (Walras’ law). Here is the core of the Network Economics Approach to Trophic Systems (NEATS).     

Adaptive reversals in acid tolerance in copepods from lakes recovering from historical stress.

Anthropogenic habitat disturbance can often lead to rapid evolution of environmental tolerances in taxa that are able to withstand the stressor. What we do not understand, however, is how species respond when the stressor no longer exists, especially across landscapes and over a considerable length of time. Once anthropogenic disturbance is removed and if there is an ecological trade-off associated with local adaptation to such an historical stressor, then evolutionary theory would predict evolutionary reversals. On the Boreal Shield, tens of thousands of lakes acidified as a result of SO2 emissions, but many of these lakes are undergoing chemical recovery as a consequence of reduced emissions. We investigated the adaptive consequences of disturbance and recovery to zooplankton living in these lakes by asking (1) if contemporary evolution of acid tolerance had arisen among Leptodiaptomus minutus copepod populations in multiple circum-neutral lakes with and without historical acidification, (2) if L. minutus populations were adaptively responding to reversals in selection in historically acidified lakes that had recovered to pH 6.0 for at least 6-8 years, and (3) if there was a fitness trade-off for L. minutus individuals with high acid tolerance at circum-neutral pH. L. minutus populations had higher acid tolerances in circum-neutral lakes with a history of acidification than in local and distant lakes that were never acidified. However, copepods in circum-neutral acid-recovering lakes were less acid-tolerant than were copepods in lakes with longer recovery time. This adaptive reversal in acid tolerance of L. minutus populations following lake recovery was supported by the results of a laboratory experiment that indicated a fitness trade-off in copepods with high acid tolerances at circum-neutral pH. These responses appear to have a genetic basis and suggest that L. minutus is highly adaptive to changes in environmental conditions. Therefore, restoration managers should focus on removing environmental stressors, and adaptable species will be able to reverse evolutionary responses to environmental disturbance in the years following recovery.     

生态补偿的理论基础:一个分析性框架

总结分析了生态补偿的理论基础框架和基本理论依据。认为,自然资源环境利用的不可逆性是生态补偿的自然要求和生态学基础;环境资源产权权利界定是生态补偿的法理基础和制度经济学基础;公共物品属性是生态补偿政策途径选择的公共经济学基础;外部性的内部化是生态补偿的核心问题和环境经济学基础;自然资源环境资本论是生态补偿的价值基础和确定补偿标准的理论依据。     

Human preferences for facial masculinity change with relationship type and environmental harshness

In humans (Homo sapiens), sexual dimorphism in face shape has been proposed to be linked to quality in both men and women. Although preferences for high-quality mates might be expected, previous work has suggested that high quality may be associated with decreased investment in partnerships. In line with a trade-off between partner quality and investment, human females have been found to prefer higher levels of masculinity when judging under conditions where the benefits of quality would be maximised and the costs of low investment would be minimised. In this study, we examined facultative preferences for masculinity/femininity under hypothetical high and low environmental harshness in terms of resource availability in which participants were asked to imagine themselves in harsh/safe environments. We demonstrate that environmental harshness influences preferences for sexual dimorphism differently according to whether the relationship is likely to be short or long term. Women prefer less-masculine male faces and men prefer less-feminine female faces for long-term than short-term relationships under conditions of environmental harshness. Such findings are consistent with the idea that high-quality partners may be low investors and suggest that under harsh ecological conditions, both men and women favour a low-quality/high-investment partner for long-term relationships. For short-term relationships, where investment is not an important variable, preferences for sexual dimorphism were similar for the low and high environmental harshness conditions. These results provide experimental evidence that human preferences may be contingent on the environment an individual finds itself inhabiting.     

A power-efficiency trade-off in resource use alters epidemiological relationships

Trade-offs play pivotal roles in the ecology and evolution of natural populations. However, trade-offs are probably not static, invariant relationships. Instead, ecological factors can shift, alter, or reverse the relationships underlying trade-offs and create critical genotype x environment (G x E) interactions. But which ecological factors alter trade-offs or create G x E interactions, and why (mechanistically) do they do this? We tackle these questions using resource quality as the central ecological factor and a case study of disease in the plankton. We show that clonal genotypes of a zooplankton host (Daphnia dentifera) exhibit a "power-efficiency" trade-off in resource use, where powerful (fast-feeding) host clones perform well on richer algal resources, but more efficient (slow-feeding) clones perform relatively well on poorer resources. This resource-based trade-off then influences epidemiological relationships due to fundamental connections between resources and fecundity, transmission rate (an index of resistance), and replication of a virulent fungal parasite (Metschnikowia bicuspidata) within hosts. For instance, using experiments and dynamic energy budget models, we show that the power-efficiency trade-off overturned a previously detected trade-off between fecundity and transmission risk of hosts to this parasite. When poorer resources were eaten, transmission risk and fecundity were negatively, not positively, correlated. Additionally, poor resource quality changed positive relationships between yield of infectious stages (spores) and host fecundity: those fecundity-spore relationships with poor food became negative or nonsignificant. Finally, the power-efficiency trade-off set up an interaction between host clone and resource quality for yield of fungal spores: powerful clones yielded relatively more spores on the better resource, while efficient clones yielded relatively more on the poorer resource. Thus, the physiological ecology of resource use can offer potent, mechanistic insight linking environmental factors to epidemiological relationships.     

A mixed Bentham–Rawls criterion for intergenerational equity: Theory and implications

This paper proposes a welfare criterion that balances the need for development and the concern for the least advantaged generations, and explores its implications. This criterion, called the mixed Bentham–Rawls criterion, moderates the effect of discounting, yet permits some degree of intertemporal trade-off. It is a weighted average of two terms: (a) the sum of discounted utilities and (b) the utility level of the least advantaged generation. We derive necessary conditions to characterize growth paths that satisfy our criterion, and show that in some models with familiar dynamic specifications, an optimal path exists and displays appealing characteristics.     

Optimal Environmental Health Regulations with Heterogeneous Populations: Treatment versus “Tagging”

In this paper, we develop a model of population level environmental health risk with individuals that are heterogeneous in their susceptibility to environmental toxins. This framework allows us to determine when it is optimal to target vulnerable subgroups of the population with special exposure-reducing treatments. Our analytic results show that the potential economic gains from targeted policies will depend critically on the quality of existing capital, the degree of returns to scale in treatment technologies, and the size and sensitivity of the vulnerable population. An empirical application of the model is extended to the case of cryptosporidium in drinking water supplies.     

利用私人资本进行环保基础设施建设

借助私人资本进行环保基出设施建设已经成为世界性的潮流，我国要解决环保“十五”计划巨大的投资任务，也必须将私人资本引入到环保基础设施中来。引入私人资本进行环保基础设施建设有两条途径，一是成立国家环保基金扶持私营环保企业的发展，二是通过资本市场吸引私人资本进入环保基础设施领域。     

The role of technological change

We develop an optimal growth model that includes several important new features. First, technological change is endogenously related to the growth of “knowledge.” Investment may be directed either towards physical capital or knowledge (or both). Knowledge becomes an effective substitute for scarce resources by increasing the technical efficiency of resource utilization both for consumption and in capital. Nevertheless, a finite quantity resource must be embodied in capital and a finite flow is required for depreciation. Thus, there is an upper limit to technical efficiency and economic growth is thus ultimately limited by the availability of renewable resources. For a simple aggregate production function it is shown that technical efficiency never approaches unity on an optimal path.     

Alternative strategies in avian scavengers: how subordinate species foil the despotic distribution

Trade-offs in species’ traits can mediate competition and enable coexistence. A key challenge in ecology is understanding the role of species’ trade-offs in maintaining diversity, and evolutionary trade-offs between the abilities of competing species are best understood by considering how competitive advantages change along an environmental gradient. Previous studies of such trade-offs are generally limited to two-species systems and a single trade-off. In this study, I consider the effect of trade-offs in search efficiency and competitive abilities on habitat use patterns among a diverse avian scavenger guild. I hypothesize that species’ dominance status and search efficiency will both be correlated with patch quality. Using counts of searching birds in areas that vary in habitat quality in terms of both wildlife and human settlement density and observations at experimental carcasses, I assess the competitive ability, search efficiency, and habitat use of seven avian scavenger species in Masai Mara National Reserve, Kenya. Findings support the hypothesis with Bateleurs, a species with high search efficiency, and Ruppell’s, Lappet-faced, and White-backed vultures, species with high individual or social dominance, preferentially exploiting habitats of high quality, while Tawny eagles and Hooded vultures, species with low search efficiency and competitive ability, prefer habitats of low quality. This paper demonstrates the importance of considering multiple strategies for assessing the effect of competition on habitat use within complex communities.     

Environmental policy and human capital inequality: A matter of life and death

This paper analyzes the economic implications of an environmental policy when we account for the life expectancy of heterogeneous agents. In a framework in which everyone suffers from pollution but health status also depends on individual human capital, we find that the economy may be stuck in a trap in which inequality rises steadily, especially when the initial pollution intensity of production is too high. We emphasize that such inequality is in the long run costly for the economy in terms of health and growth. Therefore, we study whether a tax on pollution associated with an investment in pollution abatement can be used to address this situation. We show that a stricter environmental policy may allow the economy to escape from the inequality trap while enhancing the long-term growth rate when the initial inequality in human capital is not too large.     

Pollution and Capital Markets in Developing Countries

It is said that firms in developing countries do not have incentives to invest in pollution control because of weak implementation of environmental regulations. This argument assumes that the regulator is the only agent that can create incentives for pollution control, and ignores that capital markets, if properly informed, may provide the appropriate financial and reputational incentives. We show that capital markets in Argentina, Chile, Mexico, and the Philippines do react to announcements of environmental events, such as those of superior environmental performance or citizens' complaints. A policy implication is that environmental regulators in developing countries may explicitly harness those market forces by introducing structured programs of information release pertaining to firms' environmental performance: public disclosure mechanisms in developing countries may be a useful model to consider given limited government enforcement resources.