Market imperfections in recycling markets: conceptual issues and empirical study of price volatility in plastics

The effectiveness of recycling depends upon efficient functioning of secondary material markets. This paper focus on the role that price volatility can play in slowing investment and market development. However, a statistical analysis of the relative volatility of secondary and primary material prices does not confirm the widely-held belief that relative price volatility is higher in secondary than in primary materials, at least at national levels.An econometric estimation of the determinants of plastic recovery volumes in Seattle contributes to the literature in four ways: the use of monthly (as opposed to annual) data; the use of local (as opposed to national) data; the use of an explanatory variable to reflect price volatility; and, the focus on plastics, which have not been examined previously. Some tentative conclusions can be made: the results generally support the principal hypothesis that price volatility has a negative effect on recovery of secondary materials; in addition, and consistent with previous studies, price elasticities are low and insignificant; and finally, policy factors are clearly important. The concluding section treats the economic and policy implications of market inefficiency in secondary material markets.     

Irrigation and collective action: A study in method with reference to the Shiwalik Hills, Haryana

In recent years decentralized development approaches have gained prominence in the agricultural sector. A host of community based watershed management projects have been implemented that encourage community organizations to undertake management of previously government controlled irrigation systems and forests. Community organizations have been given the responsibility of managing water distribution, collection of irrigation service fees and undertaking routine maintenance of irrigation infrastructure. In this context, analysis of irrigation management has concluded that groups that are relatively homogeneous may fare better than heterogeneous groups in facilitating collective action. However, this article argues that analysis of the influence of group heterogeneity on collective action is complicated because of its multi‐dimensional nature and the presence of non‐monotonic effects in mechanisms linking heterogeneity and collective outcomes. The article discusses the importance of context specification in analysis of group heterogeneity through a discussion of elements of a joint management contract in Haryana (India), identification of key variables with a potential to explain collective action in irrigation management and construction of household endowment and water interest scores to account for the influence of group heterogeneity in facilitating collective action. In the process of applying household endowment and water interest scores, the authors highlight the role of local ecological variation and non‐farm employment in influencing collective action. Proper specification of local context enables the researchers to rely on household endowment and water interest scores to predict conflicts and potential for irrigation service provision and compliance with irrigation service rules.     

Assessing the role of learning devices and geovisualisation tools for collective action in natural resource management: Experiences from Vietnam

In northern Vietnam uplands the successive policy reforms that accompanied agricultural decollectivisation triggered very rapid changes in land use in the 1990s. From a centralized system of natural resource management, a multitude of individual strategies emerged which contributed to new production interactions among farming households, changes in landscape structures, and conflicting strategies among local stakeholders. Within this context of agrarian transition, learning devices can help local communities to collectively design their own course of action towards sustainable natural resource management. This paper presents a collaborative approach combining a number of participatory methods and geovisualisation tools (e.g., spatially explicit multi-agent models and role-playing games) with the shared goal to analyse and represent the interactions between: (i) decision-making processes by individual farmers based on the resource profiles of their farms; (ii) the institutions which regulate resource access and usage; and (iii) the biophysical and socioeconomic environment. This methodological pathway is illustrated by a case study in Bac Kan Province where it successfully led to a communication platform on natural resource management. In a context of rapid socioeconomic changes, learning devices and geovisualisation tools helped embed the participatory approach within a process of community development. The combination of different tools, each with its own advantages and constraints, proved highly relevant for supporting collective natural resource management.     

Early action to reduce greenhouse gas emissions before the commitment period of the Kyoto protocol: advantages and disadvantages

Current “business as usual” projections suggest greenhouse gas emissions from industrialized nations will grow substantially over the next decade. However, if it comes into force, the Kyoto Protocol will require industrialized nations to reduce emissions to an average of 5% below 1990 levels in the 2008–2012 period. Taking early action to close this gap has a number of advantages. It reduces the risks of passing thresholds that trigger climate change “surprises.” Early action also increases future generations' ability to choose greater levels of climate protection, and it leads to faster reductions of other pollutants. From an economic sense, early action is important because it allows shifts to less carbon-intensive technologies during the course of normal capital stock turnover. Moreover, many options for emission reduction have negative costs, and thus are economically worthwhile, because of paybacks in energy costs, healthcare costs, and other benefits. Finally, early emission reductions enhance the probability of successful ratification and lower the risk of noncompliance with the protocol. We discuss policy approaches for the period prior to 2008. Disadvantages of the current proposals for Credit for Early Action are the possibility of adverse selection due to problematic baseline calculation methods as well as the distributionary impacts of allocating a part of the emissions budget already before 2008. One simple policy without drawbacks is the so-called baseline protection, which removes the disincentive to early action due to the expectation that businesses may, in the future, receive emission rights in proportion to past emissions. It is particularly important to adopt policies that shift investment in long-lived capital stock towards less carbon-intensive technologies and to encourage innovation and technology development that will reduce future compliance costs.