The economic theory of species extinction: Comment on smith

A widely recognized article by Smith suggests that harvesting leading to species extinction may be socially optimal, provided that the species growth-potential is sufficiently low. It is shown that this conclusion hinges on special assumptions about harvest technology which, despite a superficial compatibility with neoclassical production theory, contradict a basic postulate of a pioneering article by Gordon. As soon as Gordon's postulate is taken into account, while all other aspects of Smith's model are maintained, it turns out that even a species with a very low growth potential should not become extinct.     

Calculation and use of selectivity coefficients of feeding: Zooplankton grazing

A straightforward method for calculating selectivity coefficients (W_ij) of predation from raw data, mortality rates of prey, filtering rates, feeding rates and electivity indices is derived. Results from a comparison of selectivity coefficients for the copepod Diaptomus oregonensis grazing under a number of experimental conditions suggest that W_ij's for size-selective feeding are invariant, a conclusion also supported by the leaky-sieve model. Recommendations are made on how to use W_ij's in linear and nonlinear feeding constructs for zooplankton and other animals.     

Modelling the biochemical oxidation processes in artificial conditions of waste treatment plants

For natural water bodies there are many models of biochemical oxidation of organic pollutants, from simple to complicated ones. For the artificial conditions of waste water treatment plants there are numerous models of oxidation processes too. The authors believe that a better understanding of these processes in nature would be gained if the oxidation processes in more simple artificial conditions were understood.An attempt has been made to explain the variety of types of models of waste treatment in an activated sludge system or a biofilm reactor by the diffusion mechanism of oxidation of single substrates on the one hand, and by superposition of the kinetics of oxidation of single substrates in measurements of the dynamics of oxidation of a complex pollutant on the other hand.The conditions in which zero- and first-order models are valid in the oxidation of single substrates are derived. Respective formulae for rate constants are given. Monod's model is valid in a broader range of substrate concentration variations. An approximate formula for the half-saturation constant is proposed. Satisfactory agreement with experimental data for glucose and ammonia substrates is shown.The formal character of models being used at present is claimed for multicomponent substrates. The accuracy of the calculation is largely governed by the number of model coefficients. Similar results obtained by Monod's and Grau's models, often used in practice, are emphasized.     

The economics of enforcing air pollution controls

The goal of this paper is to determine the likely effect on a firm's control actions of alternative implementation and enforcement policies available to the control agency. Three alternatives are studied, legal enforcement through the new source performance standards set forth by EPA, and two effluent fee enforcement alternatives. First, a generalized model of the effects of implementation and enforcement policies on the firm's control action is developed. This model assumes that the firm is an expected cost minimizer. The model is then applied to the case of particulate matter discharges from coal-fired power plants in order to estimate empirically the effect of policy alternatives on the firm's control efforts. Finally, the results of the model and its empirical application are used to develop policy functions which relate control to the values of various policy parameters. These results lead us to several policy recommendations.     

Simulating fish production using exponential smoothing

The variation over time of the total annual production of pe and the United Kingdom has been described quantitatively using the exponential smoothing technique. The exercise was repeated on annual mackerel landings for the same two countries. It is suggested that in some cases, the production figure for the current year can be used to simulate the following year's value. The greater variations in South Africa's annual production probably gave rise to the poorer results for these data.     

A political economy model of implementing pollution laws

A model of the implementation process as applied in pollution control is developed. It differs from previous bureaucracy models in that it subjects the control agency to pressures from both firms and procontrol citizen groups. Each of these three actors maximizes utility over environmental quality and some other variable. Environmental quality may be in the actor's preference function or it may represent derived demand. Working through the agency budget and other policy variables, each actor constrains another actor's attempts to move policy in preferred directions. This results in movement toward a concensus environmental quality, not necessarily the efficient quality. Several institutional changes are analyzed to demonstrate the workings of the model.     

Cybernetic formulation of control in ecosystems

Hierarchical control formulations are given for a simple predator-prey model: self-optimization of one subsystem, natural multi-goal optimization, man's multiparameter control of an ecosystem and man's control of a self-optimizing ecosystem. Natural multigoal optimization suggests how several levels of an ecosystem can be optimized simultaneously. The idea of management of a self-optimizing ecosystem takes into account the reactions of the ecosystem to man's activity.     

Intertemporal and intergenerational pareto efficiency revisited

This paper demonstrates that Bishop's formulation deviates in a fundamental way from our model and, in so doing, Bishop has assumed the problem away. Bishop utilizes a utility function that is too general to discriminate the time pattern of consumption from that of production. Hence, the intertemporal nature of the goods that we analyzed cannot be captured by Bishop's representation. Furthermore, we show that current benefit cost methods that discount the benefit stream of a public asset are Pareto intertemporally inefficient.     

Some political aspects of pollution control

In this paper some principles of optimal control theory are applied to an examination of the possible differences that political and economic decisions making may have in the area of pollution control. The main points are that (1) Pollution Control Boards (PCB's) may behave as though they place weights on control and benefit functions that differ from market determined weights, (2) divergencies between political and market weights impose welfar; losses, and (3) given that PCB's may be succeeded by another board the current PCB may adapt its behavior to counteract or enforce the expected future behavior of the new PCB.     

Dynamic aspects of effluent taxation under uncertainty

The optimal adjustment process for an effluent charge is derived when the firm's response to the charge is uncertain. The optimal process is shown to exhibit the dual effects of caution and probing. Because of uncertainty, society should be risk averse or cautious when setting the charge. However, because of the possibility of generating information for improved future control, this caution is balanced by the incentive to probe for additional information. Finally, if the uncertain parameters of the firm's response function are nonautonomous, their change over time must be explicitly considered to avoid bias in estimation.     

Adequacy of ecosystem models

A formal approach is developed to assess the adequacy of mathematical models to represent a given ecosystem. The procedure is based on the hypothesis that two or several models of an environment can be compared by using a vectorial approach: several model properties are analyzed and related to the model's capability to simulate the observed behaviour and to describe the ecosystem processes. The models are thus ordered from the standpoint of their adequacy. One preliminary model, a more recent one, and four lumped versions of the latter have been tested for adequacy. These models were developed by Wiegert and they describe the behaviour of an algal-fly community energetics in a thermal spring. Results obtained by our procedure agree with Wiegert's but some new points have been emphasized.     

Theory and estimation of the household production function for wildlife recreation

The household production function is an intuitively appealing way to model man's interaction with nature. This paper models the interaction between the household's behavior and publicly provided inputs into wildlife recreation. The paper shows how to compute benefits, assuming that the household production function is known. The household production function approach collapses to the simple travel cost approach when households are unable to substitute their own inputs for publicly provided inputs. In addition, the paper demonstrates the conditions under which the parameters of cost and preference functions can be identified. The conditions for identification are quite restrictive when several choices are endogenous.     

Reassessment of the Cross-Florida Barge Canal: A probability approach

This reassessment of the Corps of Engineers' study of the Cross-Florida Canal demonstrates the application of the Weibull probability distribution to handle uncertainty in benefit-cost analysis and illustrates the distribution's use to incorporate environmental considerations in project analysis. With range and probability assumptions to reflect the criticisms of the Corps' study, it is shown that the Canal was a high-risk project even with the inappropriately low discount rate used. Use of the Weibull distribution is shown to be superior to the usual point estimates and range sensitivity tests in benefit-cost analysis.     

Welfare cost of eutrophication-caused production losses: A case of aquaculture in Lake Kasumigaura

A general model for man's utilization of water resources is presented, in which the linkage between man's production activities and environmental systems is formulated based on Whitcomb's generalized joint production model and Kneese's transfer function. The general model is specified for a particular case of aquaculture in Lake Kasumigaura so as to evaluate in terms of the price data of 1978 the welfare cost of eutrophication-caused production losses under the assumption of horizontal demand curve.     

A note on the willingness to pay approach to the valuation of longevity

A modification of Freeman's model of willingness to pay for reduction of environmental risk to life is presented. Rather than treating work-related, consumption-related, and exogenous hazards as additive components of an overall level of safety, the revised model acknowledges the interdependence of these components. The results derived from this approach imply that (a) willingness to pay for a marginal reduction in risk depends upon the individual's initial level of utility; and (b) willingness to pay for a reduction in a given component of safety is related to the level of each component risk. The results of the revised model become more dramatic at higher levels of risk.     

The contribution of L. C. Gray to the economic theory of exhaustible natural resources and its roots in the history of economic thought

The paper opens with an assessment of natural resources economics up to 1913–14 when Gray published his two pioneering articles in natural resources economics (Part I). An in-depth study of Gray, weighing his contribution to the microeconomic theory of the mine and the macroeconomic theory of conservation against current literature, constitutes the main body of the paper (Part II). Gray and Hotelling's contributions to the theory of the mine are compared (Part III). The paper concludes with a comparison drawn between the author's findings and the scant attention previously paid to Gray's contributions to natural resources economics.“So far as I know, this is the first attempt to apply economic theory to this particular problem of conservation.” (H. C. Taylor, unpublished letter to C. R. Van Hise, May 23, 1913, a reference to Gray's “Economic Possibilities of Conservation”).     

A model for the analysis of seasonal aspects of water quality control

A multiseasonal mathematical programming model for the analysis of water quality control within a river basin is presented. Phenomena of interseasonal variation in flow intensity and the river's pollutant assimilative capacity are introduced into the model by defining several seasons and their characterizations by seasonal parameters. An application of the model to a typical case situation is reported. The results suggest that seasonal adjustments in the treatment levels of wastewater treatment plants involve a considerable saving potential in comparison with a situation in which treatment levels are rigidly determined for the entire year.     

Optimal quasi-market choice in the presence of pollution externalities

When the relationship between emissions and ambient pollution is known, it is possible to implement a program to achieve economically efficient pollution levels, even when the control agency knows nothing about the victim's valuation of pollution damages or about emission abatement costs. Unlike a Pigouvian tax, the program provides the correct incentives for entry and exit whether or not marginal damages from a firm's emissions vary over the range of these emissions. Through the provision of “missing” markets, sizable revenues are raised while allocative distortions are corrected.     

Modeling the annual thermal regime of lake Ohrid,Yugoslavia, using daily weather data

The time-dependent characteristics of the five weather variables which control the annual thermal response of Lake Ohrid are analyzed in detail. These are daily values for solar radiation, air temperature, humidity, wind speed and cloud cover. A simple numerical model of the lake's thermal response, forced by thermally driven density mixing, is developed and tested using observed thermal profiles for verification. The numerical model successfully reproduces the major features of the lake's thermal regime over a 6 y period from 1972 to 1977, the average root mean square value for the simulated profiles being 1.2°C with extremes of 2.2 and 0.3°C and a standard deviation of 0.4°C.