Estimating the Relative Efficiency of Brazilian Publicly and Privately Owned Water Utilities: A Stochastic Cost Frontier Approach1

Abstract: This paper assesses cost efficiencies of Brazilian public and private companies of water supply. To measure the efficiency, we used a stochastic frontier model derived from the translog family – a specification similar to a Cobb‐Douglas including a quadratic term in log output. The model parameters are estimated by maximum likelihood using Brazilian data for the year 2002. Statistical inference leads to the conclusion that there is no evidence that private firms and public firms are significantly different in terms of efficiency measurements.     

Enduring decisions: Evaluating environmental impacts for sustainability planning

This paper aims to establish a framework in which potential methods for evaluating environmental impacts can be considered, with particular reference to the UK planning system. To do this a number of complementary ways of conceptualising sustainable development and making it more practical are outlined. Some basic arguments about the meaning of sustainability are reviewed; and some common misconceptions about the concept exposed. The concept of sustainability constraints is outlined and a functional distinction between quantitative and qualitative constraints is proposed. The adoption of sustainability constraints based on measures of environmental capacity is proposed. These suggest significant reductions in consumption of most environmental resources. The efficiency and sufficiency strategies that would be needed to meet the proposed quantified constraints are outlined. In conclusion, evaluation processes and indicators of sustainability, including environmental foot-printing and environmental impact assessment, are discussed, offering some pointers towards the type of measures that will be needed to help implement sustainability strategies.     

Evaluation of coastal zone sustainability: an integrated approach applied in Shanghai Municipality and Chong Ming Island

A systems approach has been applied to the examination of sustainable development in the coastal zone. This complex system is envisaged as comprising three sub-systems: environment and resources, economic development and society. A sustainability indicator system based on these three sub-systems has been set up to evaluate the nature of development in the coastal zone. The administrative regions of the Municipality of Shanghai and Chong Ming Island (in the Yangtze Estuary) have been selected as two coastal zones in which to demonstrate the feasibility and effectiveness of the approach. The approach indicated that the development process in Shanghai is one of weak sustainability with relatively rapid social and economic development at the cost of environment and resource degradation. In contrast, social and economic development in Chong Ming County has been limited to protect the regional environment and resources indicating a more sustainable approach to development.     

On natural resource substitution

We present a simple dynamic model to get some key insights about the substitution of renewable for nonrenewable resources and the consequences for sustainability. We highlight the role of the elasticity of substitution (technological component) to determine the adjustment of production as a response to scarcity and growing ability of resources (environmental component). In some cases, the model predicts a smooth substitution of renewable for nonrenewable resources, but this process could work in the opposite direction if renewable resources are temporarily beyond their maximum sustainable yield, so that their marginal natural growth is negative. If substitution possibilities are high enough, it may be optimal to suspend the extraction of a resource to allow the biomass to regenerate. A production process is more likely to be sustainable the more heavily it depends on renewable, rather than nonrenewable resources.     

Integrating industrial ecology principles into a set of environmental sustainability indicators for technology assessment

This paper focuses on the environmental component of sustainability of technology, taking into account the role of industrial ecology. Assessment of environmental sustainability of technology traditionally focuses on immediate impact of technology on the environment through quantifying resource extraction and generated emissions. However, technology does not only exchange materials with the environment but also with the industrial society as a whole, the so-called industrial metabolism. A higher compatibility of a specific technology with the industrial system, as studied in industrial ecology, can result in lower resource extraction and reduced waste emission, indirectly contributing to a better environmental sustainability.Starting from the considerations above and based on the second law of thermodynamics, the paper presents a set of five environmental sustainability indicators for the assessment of products and production pathways, integrating industrial ecology principles. The indicators, all scaled between 0 and 1, take into account: (1) renewability of resources; (2) toxicity of emissions; (3) input of used materials; (4) recoverability of products at the end of their use; (5) process efficiency.The applicability of the elaborated set of indicators is illustrated for different production pathways of alcohols (petrochemical and oleochemical based), polyethylene end-of-life options and electricity production from non-renewable (natural gas and fossil oil) and renewable resources (hydropower, photovoltaic conversion of solar irradiation).     

Global trends in gold mining: Towards quantifying environmental and resource sustainability

In recent years, due to public concern over perceived and actual environmental impacts, the global mining industry has been moving towards a more sustainable framework. For gold mining, there are a number of fundamental issues with regard to assessing sustainability. Commonly perceived as a finite and non-renewable resource, long-term gold production trends include declining ore grades and increasing solid wastes (tailings, waste rock) and open cut mining. Conversely, core sustainability issues include water, energy and chemical consumption and pollutant emissions—also known as ‘resource intensity’. It is important to recognise the links between gold production trends and resource intensity, as this is critical for understanding future sustainability challenges. This paper links data sets on historic gold mining production trends with emerging sustainability reporting to estimate resource intensity, demonstrating the sensitivity of ore grade for gold production and sustainability. Final judgement of the sustainability of gold mining must take account of the sensitivity of the ore grade in the resource intensity of gold production. This has implications for environmental policy and sustainability reporting in the gold mining sector.     

Sustainability in context: An Australian perspective

This article examines the concept of sustainability (sustainable development, sustainable societies) with a view to providing a means of considering the idea in such a way as to be more useful to concerns of policy. A brief background is given, covering the historical development of the concept, the constituent ecological and social concerns that lie behind it, and some aspects of the sustainability debate in Australia. Some attributes of a sustainable future, as evident from the literature, are listed. The value base of the concept is recognized, and the correct place for sustainability concerns is identified within a simple policy-making model. The complexity of such a model in the real world is explored using a list of thecontexts of sustainability, illustrated with examples from Australian natural resource management. Finally, the more dynamic and flexible nature of patterns of production and consumption in more sustainable societies is recognized and explained, as are two guiding directives to be applied in the search for models which display characteristics of sustainability.     

Land Resource Sustainability for Urban Development: Spatial Decision Support System Prototype

Land resource sustainability for urban development characterizes the problem of decision-making with multiplicity and uncertainty. A decision support system prototype aids in the assessment of incremental land development plan proposals put forth within the long-term community priority of a sustainable growth. Facilitating this assessment is the analytic hierarchy process (AHP), a multicriteria evaluation and decision support system. The decision support system incorporates multiple sustainability criteria, weighted strategically responsive to local public policy priorities and community–specific situations and values, while gauging and directing desirable future courses of development. Furthermore, the decision support system uses a GIS, which facilitates an assessment of urban form with multiple indicators of sustainability as spatial criteria thematically. The resultant land-use sustainability scores indicate, on the ratio-scale of AHP, whether or not a desirable urban form is likely in the long run, and if so, to what degree. The two alternative modes of synthesis in AHP—ideal and distributive—provide assessments of a land development plan incrementally (short-term) and city-wide pattern comprehensively (long-term), respectively. Thus, the spatial decision support system facilitates proactive and collective public policy determination of land resource for future sustainable urban development.     

Emergy Assessment of a Wheat-Maize Rotation System with Different Water Assignments in the North China Plain

Sustainable water use is seriously compromised in the North China Plain (NCP) due to the huge water requirements of agriculture, the largest use of water resources. An integrated approach which combines the ecosystem model with emergy analysis is presented to determine the optimum quantity of irrigation for sustainable development in irrigated cropping systems. Since the traditional emergy method pays little attention to the dynamic interaction among components of the ecological system and dynamic emergy accounting is in its infancy, it is hard to evaluate the cropping system in hypothetical situations or in response to specific changes. In order to solve this problem, an ecosystem model (Vegetation Interface Processes (VIP) model) is introduced for emergy analysis to describe the production processes. Some raw data, collected by investigating or observing in conventional emergy analysis, may be calculated by the VIP model in the new approach. To demonstrate the advantage of this new approach, we use it to assess the wheat-maize rotation cropping system at different irrigation levels and derive the optimum quantity of irrigation according to the index of ecosystem sustainable development in NCP. The results show, the optimum quantity of irrigation in this region should be 240–330 mm per year in the wheat system and no irrigation in the maize system, because with this quantity of irrigation the rotation crop system reveals: best efficiency in energy transformation (transformity = 6.05E + 4 sej/J); highest sustainability (renewability = 25%); lowest environmental impact (environmental loading ratio = 3.5) and the greatest sustainability index (Emergy Sustainability Index = 0.47) compared with the system in other irrigation amounts. This study demonstrates that application of the new approach is broader than the conventional emergy analysis and the new approach is helpful in optimizing resources allocation, resource-savings and maintaining agricultural sustainability.     

Measuring sustainable development using a multi-criteria model: A case study

This paper shows how Multi-criteria Decision Analysis (MCDA) can help in a complex process such as the assessment of the level of sustainability of a certain area. The paper presents the results of a study in which a model for measuring sustainability was implemented to better aid public policy decisions regarding sustainability. In order to assess sustainability in specific areas, a methodological approach based on multi-criteria analysis has been developed. The aim is to rank areas in order to understand the specific technical and/or financial support that they need to develop sustainable growth.The case study presented is an assessment of the level of sustainability in different areas of an Italian Region using the MCDA approach. Our results show that MCDA is a proper approach for sustainability assessment. The results are easy to understand and the evaluation path is clear and transparent. This is what decision makers need for having support to their decisions. The multi-criteria model for evaluation has been developed respecting the sustainable development economic theory, so that final results can have a clear meaning in terms of sustainability.     

Useful indicators of urban sustainability: Some methodological issues

This paper considers methodological questions concerning indicators of sustainability, which have arisen in the course of an EPSRC-supported project investigating a systems approach to assessing the sustainability of cities. The project aimed: (a) to develop a methodology, the Reference Sustainability System (RSS), for representing the energy, resource and material flows, on which the environmental sustainability of cities depends; (b) to show how this methodology could contribute to a more systematic assessment of the potential of technological and resource management strategies to enhance urban sustainability. Systems models of the material or resource flows caused by the household demand for paper, energy, water and bottled water have been constructed. The project has highlighted the complexity of assessing the contributions of specific technologies and strategies to enhanced sustainability. Particular issues raised include the relative merits and problems of using externality valuation methods compared to physical indicators, the difficulties of aggregating environmental impacts, the question of where system boundaries should be drawn in a life cycle analysis, and the need to consider both distant and local impacts which arise from the end-use demands of urban populations. The paper explores these issues, through the use of modelling results from the case studies. Particular emphasis is placed on the communication of research results to policy makers, interested organisations and the public, drawing on recent experience with the dissemination of results from the project's first case study relating to waste-paper management options.     

Communicative diagnosis of cost-saving options for reducing nitrogen emission from pig finishing

Reducing nitrogen emission from livestock production is usually perceived as costly. Nevertheless, production process related measures addressing the transformation of input(s) into output(s) may result in a cost-saving reduction of nitrogen emission. This paper explores the separate and combined use of traditional key performance indicators and an environmentally adjusted Data Envelopment Analysis (DEA) to reveal firm-specific cost-saving mechanisms for pig-finishing farms. Traditional key performance indicators are easy to communicate but have shortcomings when assessing benchmarks for comparative farm analysis. The environmentally adjusted DEA decomposes both cost and environmental efficiencies into technical and allocative efficiency components, separating the physical production analysis from price and nutrient content information. DEA makes efficiency benchmarks and improvement paths explicit, but the practical value of such efficiency scores is low. This paper proposes to take advantage of both methods: concrete benchmarks and eligible improvement paths are assessed using frontier methods, while the decision variables that steer farmers towards changes are described in terms of traditional key performance indicators. This leads to an improved diagnosis that is easy to communicate to farmers and may therefore facilitate decision support. Our pig-finishing case study shows that farms can achieve economic-environmental win–win situations through improving technical, cost allocative and cost efficiencies, which are mainly driven by feed conversion. Less technical efficient farms are found to require a lower delivery weight in order to minimize costs, which shows the farm-specificity of economic-environmental improvement advice.     

Regional climatic mapping as a tool for sustainable development

In the framework of an EU project on sustainable village development in China (SUCCESS), the natural climate resource was evaluated. Climate is seen as a potential for sustainability, an improvement of social life, agricultural production and reduction of air pollution problems. In this respect, thermal comfort conditions, microclimates and ventilation patterns were studied in seven Chinese villages and climate maps were drawn. Following planning recommendations, they can be transferred to decision-makers for their village development. In this framework, the paper presents a general methodology of urban climate mapping, carried out in China, applicable to all countries and climates.     

Environmental and Ecological Aspects in the Overall Assessment of Bioeconomy

Bioeconomy solutions potentially reduce the utilization demand of natural resources, and therefore, represent steps towards circular economy, but are not per se equivalent to sustainability. Thus, production may remain to be achieved against losses in natural resources or at other environmental costs, and materials produced by bioeconomy are not necessarily biodegradable. As a consequence, the assumption that emerging bioeconomy by itself provides an environmentally sustainable economy is not justified, as technologies do not necessarily become sustainable merely through their conversion to using renewable resources for their production. A source of the above assumption is that the utility of bioeconomy is mostly assessed in interaction between technology developers and economists, resulting in biased assessment with private commercial technology benefits being included, but environmental costs, especially longer term ones, not being sufficiently considered in the economic models. A possible solution to this conceptual contradiction may come from bioethics, as a strong concept in environmental ethics is that no technological intervention can be imposed on nature beyond its receptive capacity. To achieve a better balanced analysis of bioeconomy, environmental and ecological, as well as non-economic social aspects, need to be included in the overall assessment.     

The Environmental sustainability of mining in Australia: key mega-trends and looming constraints

At first ‘sustainable mining’ could be perceived as a paradox—minerals are widely held to be finite resources with rising consumption causing pressure on known resources. The true sustainability of mineral resources, however, is a much more complex picture and involves exploration, technology, economics, social and environmental issues, and advancing scientific knowledge—predicting future sustainability is therefore not a simple task. This paper presents the results from a landmark study on historical trends in Australian mining, including ore milled, ore grades, open cut versus underground mining, overburden/waste rock and economic resources. When complete data sets are compiled for specific metals, particular issues stand out with respect to sustainability—technological breakthroughs (e.g. flotation, carbon-in-pulp), new discoveries (e.g. uranium or U), price changes (e.g. Au, boom/bust cycles), social issues (e.g. strikes), etc. All of these issues are of prime importance in moving towards a semi-quantitative sustainability model of mineral resources and the mining industry. For the future, critical issues will continue to be declining ore grades (also ore quality and impurities), increased waste rock and associated liabilities, known economic resources, potential breakthrough technologies, and broader environmental constraints (e.g. carbon costs, water). For this latter area, many companies now report annually on sustainability performance—facilitating analysis of environmental sustainability with respect to production performance. By linking these two commonly disparate aspects—mining production and environmental/sustainability data—it becomes possible to better understand environmental sustainability and predict future constraints such as water requirements, greenhouse emissions, energy and reagent inputs, and the like. This paper will therefore present a range of fundamental data and issues which help towards quantifying the resource and environmental sustainability of mining—with critical implications for the mining industry and society as a whole.     

Planning Models for Sustainable Water Resource Development

This paper intends to present a critical review of the planning models that can be used for sustainable water resource development. Three types of models are identified and assessed: (1) economic analysis models; (2) decision analysis models; and (3) systems analysis models. The methodology adopted in this paper is based on first describing the different types of models and then synthesizing and evaluating these models in terms of their theoretical underpinnings, applications, strengths and weaknesses. Each model is investigated with respect to its utility in addressing sustainability in water resource management. The study concludes that decision-based and system-based models may offer a wider spectrum of concepts than economic models in addressing multi-objective, multi-actor or 'wicked' problems in water management and resource sustainability.     

Energy,exergy analysis,and sustainability assessment of different engine powers for helicopter engines

The rapid decrease of energy resources has accelerated studies on energy efficiency. Energy efficiency refers to the effective use of energy, in other words, completing a specific task to the required standard by using less energy. Exergy is an effective instrument to indicate the effective and sustainable use of energy in systems and processes. Transportation is an important part of human life. The studies on energy saving and the effective use of energy in different areas around the world have also increased for transportation systems and vehicles. With the more effective use of fuel, there will be potential benefits for the environment as well as a reduction in operating costs. This study includes energy and exergy analyses as well as a sustainability assessment by using C₈H₁₆ as a fuel at different engine powers (150–600 SHP (shaft horse power)), for the piston-prop helicopter engine. The maximum exergetic sustainability index was found at the power that provided the maximum energy and exergy efficiency. As a result of this index, the lowest waste exergy ratio, the lowest exergy destruction factor, and the lowest environmental impact factor were obtained. The highest exergy destruction and the highest exergy loss value were obtained at maximum power (600 SHP).     

Systematic regional planning for multiple objective natural resource management

On-ground natural resource management actions such as revegetation and remnant vegetation management can simultaneously affect multiple objectives including land, water and biodiversity resources. Hence, planning for the sustainable management of natural resources requires consideration of these multiple objectives. However, planning the location of management actions in the landscape often treats these objectives individually to reduce the process and spatial complexity inherent in human-modified and natural landscapes. This can be inefficient and potentially counterproductive given the linkages and trade-offs involved. We develop and apply a systematic regional planning approach to identify geographic priorities for on-ground natural resource management actions that most cost-effectively meet multiple natural resource management objectives. Our systematic regional planning approach utilises integer programming within a structured multi-criteria decision analysis framework. Intelligent siting can capitalise on the multiple benefits of on-ground actions and achieve natural resource management objectives more efficiently. The focus of this study is the human-modified landscape of the River Murray, South Australia. However, the methodology and analyses presented here can be adapted to other regions requiring more efficient and integrated planning for the management of natural resources.     

Total-factor water efficiency of regions in China

Water is a limited and unevenly distributed resource in China, with the per capita amount of water resource there only about one-fourth of the world's average. However, water is an essential resource for people's lives and economic development. Over the past two decades China has seen the fruit of its rapid economic growth; nevertheless, a severe water shortage is behind this prosperous scenario and is becoming worse. Efficient water supply is certainly essential for the sustainable development of human beings. This paper analyzes water efficiency by incorporating water as an input as well as using conventional inputs such as labor employment and capital stock. An index of a water adjustment target ratio (WATR) is established from the production frontier constructed by data envelopment analysis (DEA) including water as an input. The water efficiency of regions is obtained from a total-factor framework with both residential and productive water use. A U-shape relation is discovered between the total-factor water efficiency and per capita real income among areas in China. The central area has the worst water efficiency ranking and the total adjustment amount of water used there is around three-fourths of China's total. More efficient production processes and advanced technologies need to be adopted in the central area to improve its water efficiency, especially for its productive use of water.