NIEO revisited: A new international environmental order in the making

In the past, most of the attempts to improve the situation of the developing countries have focused on economic policy, on the conditions of international trade, on aid and direct investment. A debate on a New International Economic Order (NIEO) was launched in the 1970s (c.f. Tinbergen, 1976)—and largely failed (c.f. Simonis, 1989). This paper shows that environmental policy could be a more effective lever for improving the lot of the developing countries; the near future may see the evolution of a new international environmental order which is likely to better link environmental protection and economic development.     

Minerals and the Common Fund for Commodities

This paper reviews the role of minerals in the Integrated Programme for Commodities and the objectives and problems of the Second Account of the Common Fund for Commodities (CFC). It focuses on the least developed countries in Africa, providing specific suggestions for R&D to improve mineral exploration techniques in rain forest and savanna regions; to reduce mine exploration costs; to design equipment suitable for mining narrow veins; to improve concentrating methods for certain ores and to optimize byproduct recovery; to reduce environmental impacts; and to use the waste products of mining. It also discusses demand oriented CFC projects and their policy implications.     

Crisis in the Commodities Market Are the LDCs to Blame?

Many analysts blame the LDCs for the present oversupply crisis in certain commodity markets, and suggest that a reduction in the loans provided by multinational agencies would oblige them to reduce production levels. The underlying assumption is that the producers in LDCs can react like their counterparts in North America to a temporary decline in prices.
A detailed comparison between two copper producers, one in the United States and the other in Zambia, leads to a very different conclusion. Unlike its North American counterpart, because of social and technical conditions, the Zambian company would not draw any benefit from a temporary closure. Its policy is, very logically, to maximize output, with the support of a government which wants to keep both employment and foreign exchange earnings high. Although this policy relies on external finance, it is very doubtful that a change in lending policies could impose significant production cuts. Any analysis of the commodity market should take into account the diversity of the producers, and particularly the low flexibility of mines in the LDCs.     

“One thing leads to another”—Commodities,linkages and industrial development

With a particular focus on low income economies in SSA, this paper addresses the nature and determinants of linkages from the commodities sectors and challenges the received view that enclave development is an inherent characteristic of resource extraction, particularly in the hard and energy commodities sectors. It argues that there has been a steady increase in linkage development and that there are significant opportunities for deepening this process. The opportunities may be greater for backward than for forward linkages, particularly in the minerals and energy sectors. In making this case, this Discussion Paper draws on the experience of high income countries which have resource intensive economic structures, the geographical specificity of many resources and the growing interest of large resource extracting firms in outsourcing the production of inputs which are outside of their core competences and in supporting local production of some inputs, it sets out a general model of linkage development which distinguishes between win–win and win–lose outcomes.     

From the erosion of crude oil prices to reorganization of the oil industry

Comparison of data on world energy consumption for 1986, 1987 and 1988 indicates that the consumption of all forms of energy increased during the period, but the demand for oil increased at a lesser rate than that of other energy sources. Although the pattern varies between countries, the overall picture is one of increased use of natural gas, coal, nuclear and hydropower as an energy source. Part of the reason for the low growth in oil demand is the oil conservation measures put in place when oil was much more expensive, but may partly be due to the scepticism of many people about the future movement of oil prices. The likely continuation of a low growth market for oil has led some oil exporting countries to move downstream in an effort to secure a dependable market for their oil and oil products.     

The crude oil market and the gold market: Evidence for cointegration,causality and price discovery

Given that the gold market and the crude oil market are the main representatives of the large commodity markets, it is of crucial practical significance to analyze their cointegration relationship and causality, and investigate their respective contribution, from the perspective of price discovery, to the common price trend so as to interpret the dynamics of the whole large commodity market and forecast the fluctuation of crude oil and gold prices.     

Dynamics of global oil prices,exchange rate and precious metal prices in India

This study examines cointegration and Granger causality among global oil prices, precious metal (Gold, Platinum and Silver) prices and Indian Rupee–US Dollar exchange rate using daily data spanning from 2nd January 2009 to 30th December 2011. ARDL bounds tests indicate that the series are cointegrated. Toda–Yamamoto version of Granger causality has been employed to establish the causation amongst the variables. The study also examines generalized error variance decomposition of variables due to various shocks in the system. Such information provides insight into the transmission links between the global oil market and the Indian precious metals and foreign exchange market. These have the potential for significant impact in further research, portfolio management and central bank policy design.     

Calculating resource restoration for an oil discharge in Lake Barre,Louisiana, USA

Under the United States Oil Pollution Act of 1990, natural resource trustees are charged with assessing natural resource impacts due to an oil spill and determining the type and amount of natural resource restoration that will compensate the public for the impacts. Habitat equivalency analysis is a technique through which the impacts due to the spill and the benefits of restoration are quantified; both are quantified as habitat resources and associated ecological services. The goal of the analysis is to determine the amount of restoration such that the services lost are offset by services provided by restoration. In this paper, we first describe the habitat equivalency analysis framework. We then present an oil spill case from coastal Louisiana, USA, where the framework was applied to quantify resource impacts and determine the scale of restoration. In the Louisiana case, the trustees assessed impacts for oiled salt marsh and direct mortality to finfish, shellfish, and birds. The restoration project required planting salt-marsh vegetation in dredge material that was deposited on a barrier island. Using the habitat equivalency analysis framework, it was determined that 7.5 ha of the dredge platform should be planted as salt marsh. The planted hectares will benefit another 15.9 ha through vegetative spreading resulting in a total of 23.4 ha that will be enhanced or restored as compensation for the natural resource impacts.     

An economic appraisal of the Australian oil and gas industry

The author assesses Australian oil and gas production within the context of overall domestic energy supply and demand. Future domestic production of petroleum is unlikely to meet more than 60% of domestic demand after this decade, although gas reserves should be adequate until 2000. Important economic issues - leasing, royalties, taxation, pricing, and exploration incentives - and their relationship to future supply and demand, are identified and evaluated.     

Alberta's oil sands reclamation policy trajectory: the role of tense layering,policy stretching,and policy patching in long-term policy dynamics

As the Canadian oil sands development matures, an increasingly important policy activity is reclamation. Reclamation has received limited attention compared with the broader discussion of oil sands expansion, however, and its past direction and future trajectory are unclear. Recent moves to reform the policy in Alberta have been interpreted simultaneously as a major change and a marginal adaptation to the existing framework. This article employs a historical-institutional perspective to help reconcile this debate and further understanding of changes to Alberta's oil sands reclamation policies over the past half century. It traces the factors and outlines the processes which have driven its evolution since 1963 with special attention paid to the 2011 Oil Sands Progressive Reclamation Strategy, the most recent attempt to reform oil sands reclamation policy. The article reveals a complex long-term pattern of policy development in which processes of ‘tense layering’ of new initiatives on top of old elements resulted in a constantly shifting policy landscape as existing policy instruments and settings were ‘stretched’ to cover new circumstances but failed to resolve tensions between successive policy layers. After 1993, however, a more reflective process was put into place in which policy feedback informed alterations intended to reduce or remove tensions between successive layers. Such a policy ‘patching’ process is shown to have helped resolve tensions associated with earlier stretching of the existing regime and adds to the vocabulary of more general studies of policy dynamics.     

Effects of spent engine oil on the growth parameters, chlorophyll and protein levels of Amaranthus hybridus L.

The susceptibility of Amaranthus hybridus L. seedlings to spent engine oil was investigated in soil supplemented with concentrations of oil ranging from 1–5 percent v/w. Parameters considered were relative growth rate (RGR), leaf area ratio (LAR), whole plant height, leaf area, leaf number, chlorophyll and protein levels. A relationship was found to exist between the inhibitory effects and the treatment concentrations. After seventy days growth in the treated soils, the mean height and leaf area of plants in soils treated with 5 percent spent engine oil were 27.0±1.25 cm and 5.63±0.36 cm². These were significantly different (at p=0.05) from the respective values of 41.4±0.8 cm and 13.44±0.22 cm² for the control plants. Levels of total chlorophyll (per gram fresh weight of leaves) and protein (per gram dry weight of whole plant) were higher in the control plants compared with those grown in oil treated soil. Results obtained from the growth analysis showed the inhibitory effects of spent engine oil on Amaranthus hybridus L.     

Restructuring the arrangements between government and state enterprises in the oil and mining sectors

The article analyses the relationship between governments and state-owned enterprises (SOEs) in the oil and minerals sectors. The case is made that SOEs in these sectors have distinct peculiarities of behaviour, and are beset with specific difficulties in addition to typical problems common to SOEs in all sectors. The reasons for the uniqueness of SOEs in the oil and minerals sector stem mainly from their large size, their capacity to earn and borrow foreign currency, their strategic importance and other factors.
The key to understanding and reforming state oil and mining enterprises lies in recognizing that their sub-optimal behaviour is often caused by conflicts within government regarding control of the SOE's financial flows, including the natural resource rent. These conflicts are frequently aggravated by the inappropriateness of fiscal arrangements between these SOEs and their governments. Guidelines for reforming these arrangements are offered, which, in some respects, differ considerably from those applicable to conventional state-owned enterprises outside the natural resources sector.     

Policy issues pertaining to the oil and gas sector in India

This article discusses the various phases in petroleum product consumption in India from 1960 to 1996, and analyses the changes in consumption patterns. Consumption is growing rapidly although the intensity of petroleum use and the proportion of petroleum in the overall secondary energy consumption is actually on the decline, especially since the mid-1980s. The proportion of middle distillates in total consumption, especially HSD (High Speed Diesel) which accounts for 45%, is very high mainly because of distortions caused by Government subsidies. The article also analyses expected demand for petroleum products up till the year 2010, emphasizing the need to address the particularly fast growing demand for middle distillates. Further, the article discusses various policy issues pertaining to upstream and downstream activities of oil and gas supply, and emphasizes the need for increased investment in exploration and development, better management of existing reserves, rationalization of pricing policies and the creation of modern infrastructure to meet growing needs.     

Nigerian Supreme Court and ownership of offshore oil

This article discusses the decision of the Supreme Court of Nigeria on the constitutional provision dealing with the sharing of revenues derived from natural resources located within the states of the Federation, the ‘derivation principle.’ Although the case relates to the interpretation of a constitutional provision, the arguments of the parties suggest that the real battle was — and still is — about the ownership and control of Nigeria's offshore oil. The article details the legal history and precedents as well as constitutional provisions relevant to the case. Disagreements arose over legal questions such as the seaward boundaries of littoral states (from which oil revenues are derived), and whether a distinction can be made between offshore and onshore oil revenues in applying a 13% constitutionally prescribed derivation principle. The article shows that, in its judgment, Nigeria's Supreme Court relied heavily on rules of international law, while failing to apply existing Nigerian laws and constitutional provision, and argues that the decision might have been different had the court investigated and invoked the legislative history of the provision in question, as required in Nigerian law. Furthermore, it is argued that the court was wrong to disregard the provision of the law which had abolished any distinction between onshore and offshore natural resources in the application of the derivation principle. The article concludes that the legal tug of war is set to continue for some years.