Mine size optimization using marginal analysis

In this study, a model to estimate the optimum mine size is developed. The model is developed on the basis of marginal analysis. The model solves for the production rate at which the present value of marginal costs equals the present value of marginal revenues—the rate that microeconomic theory shows will maximize the net present value of production from the mine.In addition, the article discusses the effects on the optimum production rate of: the physical characteristics of the deposit, economic factors, and financial factors. It has been found that, not surprisingly, as the reserve tonnage increases, the optimum mine size increases. Also, the optimum production rate increases as the ore grade increases. A direct relationship has been found between the mineral price and the optimum production rate. The optimum mine size is found to be inversely related to the expected growth rate of mineral price, while it is directly related to the expected growth rate of mining costs. A concave relationship has been found between the cost of capital and the optimum mine size.     

Transaction costs and the clean development mechanism

The emissions trading provisions of the Kyoto Protocol and its clean development mechanism (CDM) are designed to permit greenhouse gas (GHG) emission reductions at the lowest cost globally. However, to ensure climate integrity, these reductions must pass through vigilant approval, monitoring and evaluation procedures that create additional transaction costs unrelated to the physical process of eliminating GHGs. Moreover, the CDM's additionality criterion creates constraints that magnify the influence of these transaction costs on project viability. If these costs are extreme, they could undermine the success of the CDM, and possibly of the Kyoto Protocol itself. This article describes the trading provisions of the treaty, creates a working definition of transaction costs, and discusses their effects. It then analyzes the process of creating a CDM project to identify the sources of transaction costs, illustrated by an example of a fuel substitution project in Ghana. The conditions for project profitability are analyzed and compared with recent GHG emission credit prices in Europe. The specific Ghanaian results are not generalizable to all CDM projects, but the model does suggest a template that can be used to analyze the effects of project and transaction costs in other contexts.     

The costs of congestion and wilderness recreation

Existing research on the effects of congestion in wilderness areas suffers from problems associated with asking people directly what they would be willing to pay to avoid congestion under hypothetical circumstances. The work reported here is based on methodologies that infer conclusions from observed behavior. Two inferential methodologies are used to examine visitors' willingness to pay at three California wilderness areas during peak and off-peak use periods. Inferential methodologies do not provide unambiguous measures of consumer surplus. However, they do yield the conclusion that, with the exception of a relatively few individuals, solitude is not of overriding importance. Convenience of timing and the attributes of different wilderness areas appear to be more important than congestion.     

The benefits and costs of reducing emissions from the electricity sector

Recent federal policy proposals to reduce emissions of sulfur dioxide (SO(2)), nitrogen oxides (NO(x)), and mercury from the US electricity sector promise important improvements in air quality and reductions in acid deposition. The cost of achieving these reductions depends on the form and stringency of the regulation. In this research, we analyze the economic benefits and costs of the US Environmental Protection Agency's (EPA's) Clean Air Interstate Rule (CAIR) as characterized in the supplemental rule proposed in June 2004, and the Clean Air Mercury Rule (CAMR) as proposed in February 2004. The assessment integrates a model of the electricity sector, two models of atmospheric transport of air pollutants, and a model of environmental and public health endpoints affected by pollution. We model explicitly the emissions of SO(2), NO(x), mercury and carbon dioxide (CO(2)) and the effects of changes in emissions of SO(2) and NO(x) on environmental and public health. The manner in which mercury emissions are regulated will have important implications not only for the cost of the regulation, but also for emission levels for SO(2) and NO(x) and where those emissions are located. We find the economic benefits of CAIR and CAMR are far greater than the costs. Recent estimates of benefits of reductions in mercury and acidification indicate that our model captures the lion's share of quantifiable benefits. We also find that the EPA would have been justified on economic grounds in pursuing additional SO(2) emissions reductions beyond the requirements of CAIR.     

Mine infrastructure financing and the subsidy debate

This paper examines the problems Inherent in identifying and measuring infrastructure-related subsidies associated with 'greenfield' natural resource projects. The findings suggest that even if external benefits and costs are ignored, and a market-oriented estimation process is adopted, substantial problems still face policy analysts attempting to measure the extent to which such projects have been subsidized. This conclusion is demonstrated through a detailed examination of the Canadian-based North East British Columbia coal project.     

Modeling the costs and benefits of dam construction from a multidisciplinary perspective

Although the benefits of dam construction are numerous, particularly in the context of climate change and growing global demand for electricity, recent experience has shown that many dams have serious negative environmental, human, and political consequences. Despite an extensive literature documenting the benefits and costs of dams from a single disciplinary perspective, few studies have simultaneously evaluated the distribution of biophysical, socio-economic, and geopolitical implications of dams. To meet the simultaneous demands for water, energy, and environmental protection well into the future, a broader view of dams is needed. We thus propose a new tool for evaluating the relative costs and benefits of dam construction based on multi-objective planning techniques. The Integrative Dam Assessment Modeling (IDAM) tool is designed to integrate biophysical, socio-economic, and geopolitical perspectives into a single cost/benefit analysis of dam construction. Each of 27 different impacts of dam construction is evaluated both objectively (e.g., flood protection, as measured by RYI years) and subjectively (i.e., the valuation of said flood protection) by a team of decision-makers. By providing a visual representation of the various costs and benefits associated with two or more dams, the IDAM tool allows decision-makers to evaluate alternatives and to articulate priorities associated with a dam project, making the decision process about dams more informed and more transparent. For all of these reasons, we believe that the IDAM tool represents an important evolutionary step in dam evaluation.     

A fresh look at the benefits and costs of the US acid rain program

The US Acid Rain Program (Title IV of the 1990 Clean Air Act Amendments) has achieved substantial reductions in emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) from power plants in the United States. We compare new estimates of the benefits and costs of Title IV to those made in 1990. Important changes in our understanding of and ability to quantify the benefits of Title IV have occurred. Benefits to human health now take a much higher profile because the contribution of SO2 and NOx emissions to the formation of fine particulate (PM2.5) is substantial, and evidence of the harmful human health effects of PM2.5 has emerged in the last 15 years. New estimates of the health benefits of PM2.5 reductions are the largest category of quantified health and environmental benefits and total over 100 billion US dollars annually for 2010 when the program is expected to be fully implemented. Although important uncertainties exist in any specific estimate of the benefits, even if the estimates were calculated using more limiting assumptions and interpretations of the literature they would still substantially exceed the costs. Estimates of annualized costs for 2010 are about 3 billion US dollars, which is less than half of what was estimated in 1990. Research since 1990 also suggests that environmental problems associated with acid deposition and nitrogen deposition are more challenging to resolve than originally thought and will require larger reductions in emissions to reverse. The greater than expected benefits to human health, the greater vulnerability of natural resources and ecosystems, and the lower than expected costs all point to the conclusion that further reductions in SO2 and NOx emissions from power plants beyond those currently required by Title IV are warranted.     

Opportunity costs of implementing forest plans

Intellectual concern with the National Forest Management Act of 1976 has followed a course emphasizing the planning aspects of the legislation associated with the development of forest plans. Once approved, however, forest plans must be implemented. Due to the complex nature of the ecological systems of interest, and the multiple and often conflicting desires of user clientele groups, the feasibility and costs of implementing forest plans require immediate investigation. For one timber sale on the Coconino National Forest in Arizona, forest plan constraints were applied and resulting resource outputs predicted using the terrestrial ecosystem analysis and modeling system (TEAMS), a computer-based decision support system developed at the School of Forestry, Northern Arizona University, With forest plan constraints for wildlife habitat, visual diversity, riparian area protection, and soil and slope harvesting restrictions, the maximum timber harvest obtainable was reduced 58% from the maximum obtainable without plan constraints.Former Graduate Student at Northern Arizona University.     

四川某煤矿矿井废水处理优化设计应用与调试

本文以四川某煤矿矿井废水处理工程为例,介绍了该工程比较优化的方案应用,即依据该工程所处的地势,将废水处理站建在坡度比较大的地方,采用多座斜管沉淀池并联运行,提高了沉淀效率。矿井水全部自流进入各构筑物,大幅减少了投资及设备维护费用。在工艺调试阶段,先在实验室进行一系列矿井废水混凝试验。结果表明,采用PAC和PAM配合投加絮凝效果最好,最佳投药量PAC为25mg／L,PAM为4m/L。该工程构筑物简单,处理效果好,出水达到GB20426—2006排放标准。     

Influence of production costs and inventories on mineral prices

The purpose of this article is to broaden understanding of the factors which exert major influences on prices for industrial metals beyond the widely recognized tendency for prices and inventories to move in opposite directions. Specifically, the relationship between inventory levels and price volatility is examined. In addition, the relationship between prices and production costs is also examined. A few thoughts are expressed on the relationship between prices and industry structure. The paper includes a qualitative discussion about why a link should exist between prices and production costs, a graph illustrating the relationship between prices and inventories, and econometric equations quantifying the relationship between prices, production costs and inventories.     

The hidden costs of relocating sand and gravel mines

Mining of construction aggregate is often unwelcome near communities because of its disamenities or because it can destroy prime farmland and displace other desirable land uses. Such conflicts have led to prohibitions against mining near cities or on high-value farmland, causing these operations to be relocated to more distant locations. The cost of this relocation may go unnoticed if they are indirect, diffused and rise gradually over time, but they may be significant due to the high transportation cost of moving these materials long distances.     

Infill McMansions: Style and the psychophysics of size

The number and size of infill oversized houses, or McMansions, has increased in the U.S. and the world. To maintain desirable neighborhood appearances, communities should know what constitutes “too big.” This paper reports six studies that used color simulations of blocks of houses to examine compatibility and visual appeal in relation to attributes of the infill house and its context. Following psychophysical findings, the relative size of the infill house should have larger effects on response than its actual size. The studies confirmed that the infill ratio had more weight than size for perceived compatibility. Compatibility did not always translate into visual appeal. For visual appeal, infill style had larger effects than did size or size ratio, height had larger effects than width, and, for larger sizes and ratios, infill ratio had larger effects than actual size. To maintain visual quality in relation to infill houses, communities should first seek an architecturally compatible style, and then try to control its relative size (the infill façade area). Tests of responses to real infill houses can show how well these findings generalize.     

Exploring the co-benefits (and costs) of home gardening for biodiversity conservation

ABSTRACT

Despite growing evidence pointing to the multiple benefits of home gardening, few studies have considered the health and well-being benefits perceived by gardeners who are principally motivated by biodiversity conservation (i.e. home gardening for biodiversity conservation). This study explores the environmental, social and economic co-benefits (and costs) of home gardening for biodiversity conservation in the City of Winnipeg, Canada. A total of 42 semi-structured interviews (30–60?min each) were conducted with 50 home gardeners who were formally certified or locally recognised for undertaking multiple gardening activities that promote biodiversity conservation. Thematic analysis revealed that study participants self-reported a range of environmental, psychological, physiological and social outcomes associated with their home gardening experiences. Despite home gardening often being a solitary activity, most gardeners valued the multiple forms of social interaction that occurred during important social events in their garden, or when connecting with passers-by. Home gardeners also cited benefits related to connection to nature and place attachment; attention restoration; reduced stress and anxiety; improved mood; satisfaction and pride; increased self-esteem and courage to do things differently in life; and, important education or learning opportunities. However, conflicts relating to the nexus between biodiversity and perceived tidiness of gardens emerged, which raise important ethical and social justice issues for sustainability planning. We compare key insights to the benefits (and costs) of community gardening and make some recommendations for future research, including how to engage more disadvantaged groups in gardening for conservation.     

The costs to farmers and estate owners of public access to the countryside

This paper considers the external costs of public access on privately‐owned farm and estate land in Scotland. The increased costs and reductions in income associated with public access are found to be highly variable and site‐specific, with the main effects on land in areas of high population density or high scenic quality, or with recreational attributes. Although costs were on average higher for estates, reflecting their larger area and recreational potential, on a per‐hectare basis the costs of access were greater for the farm sector. Whilst much of the public access exists through de facto rights on open‐access land, there was evidence for an increasing commercialization of open‐air recreation, particularly with respect to more specialized activities. The discussion considers the extent to which the costs of access for land managers are reflected in policies determining the public provision of countryside access.     

Regional intergovernmental institutions: Participation benefits and costs

Evaluators frequently cite the absence of effective participation by constituent governments and the need for consensus or even unanimity prior to action as the causes of poor performance by regional resource management institutions. Major governments either will not join the regional institution, will not participate even if legally members, or will exercise a veto over many important management projects.This paper examines the variables that may cause these problems and provides an improved understanding of why rational political actors would act in ways that inhibit the efficient management of resources. Among the principal variables determining participation are expected benefits of collective decisions, perceived losses of autonomy and representation, the number and homogeneity of other participants, decision costs, and the decision rule used to determine actions. Analysis of these factors suggests why consensus and unanimity decision rules are frequently chosen and why participation is usually limited.     

Mine capacity and mineral price

The loss of foreign mineral supplies may affect domestic supply and price. To investigate the assumption that prices, a simple mine investment model that relates mine capacity to deposit attributes is used. A test of the model to see how well it approximates industry investment practice illustrates its accuracy. The model suggests that price changes can substantially affect the optimal capacity of planned or existing mines as well as the mineral supply in the USA.     

Application of modeling and simulation tools in costs and pollution monitoring

This paper presents the development and application of process modeling and simulation tools to aid in the monitoring and measuring of pollution from industry, and investigate a plant's overall performance. A case study of a generic reduction plant is investigated, taking into account the underlying principles that determine the amount of fluoride emissions released from the plant's processes. The simulation study includes the investigation of the gas cleaning system within the plant, such as the system's operating relationships between the scrubbing efficiency, wear of the scrubber filter bags, maintenance costs and its response to the change of scrubbing circulation. Two sets of simulation runs are performed to seek a balance for the plant's overall system performance, taking into account environmental issues (fluoride emissions) and cost. The final simulation result demonstrates that cost savings can be achieved when the plant operates in a cleaner manner.     

Ownership property size,landscape structure,and spatial relationships in the Edwards Plateau of Texas (USA): landscape scale habitat management implications

The present research focused on using spatial analysis to determine relationships among land ownership property sizes and landscape structure, with a focus on conservation management implications. Indices and metrics of ownership property sizes and landscape structure were calculated for 20 km buffer areas around 31 North American Breeding Bird Survey transects, 12 located within the Edwards Plateau ecoregion and 18 in contiguous ecoregions. The number of bird species observed at each transect provided a measure of avian species richness associated with land cover classes for each respective transect (González in Urban influence on diversity of avifauna in the Edwards Plateau of Texas: effect of property sizes on rural landscape structure, Texas A&M University, 2005). Spatial correlations were calculated between each pair of the landscape indices. Spatial analysis identified a “threshold of habitat fragmentation” for the 500 acre (ac) ownership property size. Significant spatial correlations among variables showed that property sizes lower than 500 ac produced habitat fragmentation represented by a decrease in mean patch size (MN) and proximity among habitat patches (Index PROX). Spatial analysis also made possible the prioritization of ecological sub-regions of the Edwards Plateau for conservation or restoration. The Live Oak-Mesquite Savannah showed the highest average ownership property size (7305 ac) and the highest values of patch richness. Based on the results, management in the Live Oak-Mesquite Savannah sub-region should focus on the conservation of land mosaic diversity to assure native avian species turnover (Whittaker 1972). In Balcones Canyon Lands, 64 % of land was covered by farms smaller than 500 ac and the overall average ownership property size was above the threshold of fragmentation (1440 ac), implying that management policies there should focus both on habitat conservation and on restoration. In contrast, 71 % of land in the Lampasas Cut Plains was covered by farms smaller than 500 ac, and average ownership property size was very close to the fragmentation threshold (625 ac). Consequently, the results indicate that management in the Lampasas Cut Plains sub-region should focus on habitat restoration (e.g., corridors that connect isolated habitat patches). In general, the threshold of ownership property size, 500 ac, is important for conservation planning because below that threshold of property size, habitat patch size begins to decrease and the distance between equivalent patches of habitat increases. Isolated patches act as islands within a sea of less suitable habitat which produce negative effects on biodiversity. Identifying the spatial characteristics indicative of habitat fragmentation, or the likelihood thereof, is an important issue for conservation planning in places with urban sprawl influence.     

Modelling the costs of fox predation and preventive measures on sheep farms in Britain

Economic analysis is a useful tool to aid decisions on what to do about wildlife impacts, such as those of vertebrate predators on livestock farmers. The case-study of lamb predation by foxes in Britain is used to develop a theoretical economic model, with the aim of determining a financially optimal solution to minimise the total costs of livestock predation at the farm-level. Total costs include output losses and expenditure on preventive and control measures, in this case indoor housing and lethal fox control. The model is tested empirically with data from a questionnaire survey of sheep farmers and field data on fox population densities in Britain. Regression analyses are used to determine the relationships between lamb losses and expenditure on indoor housing, fox population density and other non-management characteristics. The effect of fox abundance on the cost of fox control is also assessed. Marginal analysis is used to determine the total cost-minimising solution from the farmer's point-of-view, in terms of how many ewes should be housed indoors and for how long, as well as how many foxes should be killed in addition to any lethal control already carried out. Optimal solutions vary according to farm characteristics, including flock size and the regional location of farms. In all cases, to minimise the costs of predation, as many ewes as possible should be housed. However, it is not worthwhile housing them for more than a day after lambing. Efficient fox predation management does not necessarily mean that lamb losses should be reduced to zero, and additional fox control is not worthwhile on the majority of farms. The analysis provides a framework for future evaluations of wildlife impacts and cost-effective management of these problems.