Making decisions about environmental management when conventional economic analysis cannot be used

A process is described for making comparative valuations of a wide range of environmental management activities when the combined social, economic, managerial, and political benefits of some (but not all) of these activities cannot be adequately described in economic terms and when budgetary constraints do not permit funding of all activities under consideration. The process accounts for subjective judgment and contains a formal rigorous decision strategy that takes the place of intuition when quantitative and qualitative values of environmental activities need to be evaluated.     

A comparison of new economic methods in USSR environmental policy with western approaches

Previous comparative studies on environmental policies in the East and West mainly focused on relating differing features of environmental management to different political, social/economic, and ideological conditions in both systems. The present article attempts to identify common experiences. In this respect, an obvious similarity can be seen in the fact that environmental management in the East and West emerged as a regulatory “command and control” approach, which was supplemented later by economic incentives. The 1988 USSR Resolution “On the Radical Transformation of the System of Natural Conservation” introduces a set of economic instruments as one of its main elements. This is less a radical change of environmental policy than a determined acceleration of previous approaches. Existing and newly designed economic methodologies provoke a comparison with similar approaches in market economies. The economic methods designed in the 1988 resolution include charges for the use of natural resources and the emission of pollutants, which are notable for their firm commitment to reduce emissions even below set regulatory standards. While experiences with this approach may be of great interest for Western countries, liability regulations of the United States can be of great use for designing relevant provisions implementing the USSR resolution. A number of bilateral treaties have demonstrated already the political relevance of an East-West exchange of experience in environmental management.     

An economic analysis of environmental protection and management: An example from the Philippines

Summary The island of Palawan covers some 12000 km² and is located in the southwest of the Philippines archipelago. It is a beautiful and as yet relatively unspoilt island but in recent years the social and economic pressures on its natural resources and environment have begun to mount. If present trends continue, severe environmental damage will result. In recognition of this danger, the Philippines government and the European Economic Community have commissioned the preparation of an Integrated Environmental Program (IEP) for the island, as part of an overall economic development program. Phase one of the IEP study comprised an assessment of the island's resources and present situation and the formulation of a plan for the future protection of its environment, taking due account of the need for continuing economic development.An analysis was made of the likely economic returns from the proposed environmental protection program, using conventional benefit-cost analysis methodology. Due to the inadequate data base and the wide-ranging assumptions which had to be made, this was inevitably very approximate in nature. It was carried out in terms of the three main types of conservation activity proposed, namely land-based conservation, mangrove conservation and inshore marine conservation, and the program as a whole. The main benefits and costs were identified and, where appropriate, quantified for inclusion in the analysis.Choice of discount rate and length of analysis period are critical factors affecting the economics of environmental protection, which essentially involves the pursuit of long-term rather than short-term gains, output in the immediate future being restricted to the level of long-term sustained yield for the benefit of future generations. Use of the high discount rates customarily applied for project analysis in countries such as the Philippines (typically, 10–15 percent) places a heavy premium on short-term gains and attributes little or no value to benefits and costs further in the future. To take account of this problem the present values of costs and benefits were calculated using low discount rates of zero and 5 percent. Though this was a necessarily crude and arbitrary method of adjustment it was considered to be a better alternative than that of following normal convention and applying the high rates of discount customarily used in the Philippines.The analysis indicated that the various conservation activities could be expected to produce acceptable, though not spectacular, levels of economic return. Mangrove conservation would be particularly beneficial and the irrigation benefits from preserving river base flows and preventing an increase in peak floods, by means of catchment protection, would be high. The unquantifiable ecological and social benefits would also be substantial.Christopher Finney is Chief Economist of Hunting Technical Services Limited, UK, a major consulting firm involved in planning and implementation of agricultural development overseas, and has been with the firm since 1962. He is an agricultural economist with particular interest and experience in the fields of irrigation, livestock, farm mechanisation, general agriculture and conservation. He has worked on a wide variety of projects in numerous countries in Africa, Asia and Latin America. Mr Stanley Western is a senior soil scientist and land use planner with the same company. Since joining the firm in 1960 he has undertaken a very wide range of resource assessment and planning assignments in Asia, Africa and Latin America. He was Team Leader on the Palawan Integrated Environmental Program planning study.     

Mining manganese nodules: Potential economic and environmental effects ag]

This article examines the economic implications of mining or of not mining manganese nodules and summarizes potential ecological consequences. Apart from possible net economic benefits to certain countries, mining the nodules is not regarded as an economic or strategic necessity. It is concluded that expansion of basic research on oceanfloor ecosystems must be granted high priority. It is in the best interest of developed countries to become signatories of the LOS Convention in order to participate in the development of the regulatory framework and to avoid the antagonism of the international community.     

Sustainable management of demolition waste—an integrated model for the evaluation of environmental, economic and social aspects

A model is presented for evaluating waste management systems for their contribution to a sustainable development, including environmental, economic and social aspects. The model was tested in a case-study, where groups of long-term unemployed people were offered both education on environmental issues and practical work with the recovery and recycling of building and demolition waste as a form of vocational development. Application of the suggested model revealed the overall effects on sustainability of different methods of waste management. In addition, negative aspects of the systems analysed were identified, which led to discussions about possible improved practices within the waste management systems. Two of the waste management systems investigated (the recycling of steel and re-use of sanitary porcelain) showed a potential contribution to sustainable development in all of the aspects studied. Preparing bricks for re-use showed the largest potential for eco-efficiency, but had negative effects on sustainability from the social perspective of health and the working environment. The possibility of further use of the model and the remaining obstacles to such analyses are discussed. One observation is that the data collection needed to perform this kind of sustainability analysis is resource-demanding, and that it would therefore be better to identify a smaller number of key indicators.     

Water and economic development: The role of variability and a framework for resilience

The article advances the hypothesis that the seasonal and inter‐annual variability of rainfall is a significant and measurable factor in the economic development of nations. An analysis of global datasets reveals a statistically significant relationship between greater rainfall variability and lower per capita GDP. Having established this correlation, we construct a water resources development index that highlights areas that have the greatest need for storage infrastructure to mitigate the impacts of rainfall variability on water availability for food and basic livelihood. The countries with the most critical infrastructure needs according to this metric are among the poorest in the world, and the majority of them are located in Africa. The importance of securing water availability in these nations increases every day in light of current population growth, economic development, and climate change projections.     

The link between 'green' and economic success: environmental management as the crucial trigger between environmental and economic performance

The link between environmental and economic performance has been widely debated in the literature for the last ten to fifteen years. One view is that improved environmental performance mainly causes extra costs for the firm and thus reduces profitability. However, also the opposite has been argued for: improved environmental performance would induce cost savings and increase sales and thus improve economic performance. Theoretical and empirical research have provided arguments for both positions and have not been conclusive so far. This article discusses reasons for the different views and the differences in empirical research and presents a theoretical framework to explain the coexistence of the conflicting views. It is argued that not merely the level of environmental performance, but mainly the kind of environmental management with which a certain level is achieved, influences the economic outcome. The model presented provides implications for both empirical research and company management in practice. Research and business practice should focus less on general correlations and more on causal relationships of eco-efficiency, i.e. the effect of different environmental management approaches on economic performance.     

Theoretical orientations in environmental planning: An inquiry into alternative approaches

In the process of devising courses of action to resolve problems arising at the society-environment interface, a variety of planning approaches are followed, whose adoption is influenced by—among other things—the characteristics of environmental problems, the nature of the decision-making context, and the intellectual traditions of the disciplines contributing to the study of these problems. This article provides a systematic analysis of six alternative environmental planning approaches—comprehensive/rational, incremental, adaptive, contingency, advocacy, and participatory/consensual. The relative influence of the abovementioned factors is examined, the occurrence of these approaches in real-world situations is noted, and their environmental soundness and political realism is evaluated. Because of the disparity between plan formulation and implementation and between theoretical form and empirical reality, a synthetic view of environmental planning approaches is taken and approachesin action are identified, which characterize the totality of the planning process from problem definition to plan implementation, as well as approachesin the becoming, which may be on the horizon of environmental planning of tomorrow. The suggested future research directions include case studies to verify and detail the presence of the approaches discussed, developing measures of success of a given approach in a given decision setting, and an intertemporal analysis of environmental planning approaches.     

Compensating aboriginal cultural losses: An alternative approach to assessing environmental damages

We first identify six primary problems with conventional practice: lack of context, inadequate participation from aboriginal communities, exclusion of important losses, reliance on market-based measures, neglect of uncertainty, and inadequate treatment of time. We then propose a different approach to compensation, based on insights from the decision sciences and structured decision making. Using case-study examples, we discuss how the proposed approach might address common sources of cultural loss and, in a concluding section, summarize some of the implications for compensation agreements and for environmental management practices.     

A human ecological assessment of air quality management: A convergence in economic and ecological thinking?

Traditional air pollution management practices are examined using the human ecological framework adopted by Boyden and others (1981) in their study of Hong Kong—the biohistorical or biosocial approach. The subsequent analysis of current air quality management practices assesses their effectiveness in protecting the overall health of both humans and the natural environment. The uncertainties inherent in air pollution management practices which emerge highlight the need to reduce emissions rather than rely on scientific knowledge to define clean air. The assessment also clearly defines roles for research in various areas such as atmospheric models, health effects, and environmental damage. The final recommendations emphasize the need for the introduction of such incentives to reduce emissions as economic instruments and warn against using health information to define clean air. Health and environmental damage information can, however, be used in risk assessment strategies together with atmospheric dispersion models.     

An integrative methodological framework for sustainable environmental planning and management

Sustainable environmental planning and management require effective integration of ecological, socioeconomic, and institutional elements. This paper presents an integrative methodological framework for sustainable environmental planning and management. The development of this integrative framework is accomplished by combining two complementary analytical approaches—Hufschmidt's conceptual framework for watershed planning and management and the ABC resource survey method. The combined methodological framework seeks to delineate and synthesize essential ecological information utilizing an integrative resource survey method. This method generates classifications of environmental significance and constraint. Areas of environmental significance and constraint are then linked to appropriate and acceptable resource management actions, implementation tools (e.g., education, technical assistance), and institutional and organizational arrangements. The integrative methodological framework was developed for application in the Rio Fortuna watershed in Costa Rica's Arenal Conservation Area. The watershed is characterized by a variety of land and resource uses, including biologically diverse and ecologically fragile protected areas, small-parcel agriculture, cattle ranching, and tourism.     

Decision making: With applications for environmental management

The two major processes of decision making, behavioral interactions and decision analysis, are discussed. Comparisons are made between the Delphi and NGT methods of behavioral interaction. Three different types of decision analysis are compared, including the Goals Achievement Matrix, Concordance Analysis, and the Simple Multi-Attribute Rating Technique. Decision making problems characteristic of environmental studies are reviewed. A method of decision making that combines the best qualities of other methods is suggested. The overall purpose of this paper is to make the technical knowledge of decision making useful to environmentalists, businessmen, citizens, and politicians, and to improve the process of policy making in environmental studies.     

An environmental sustainability based budget allocation system for regional water quality management

A budget allocation system for regional water quality management to achieve environmental sustainability was developed in this study to assist a local authority with making appropriate budget allocations for improving Regional Water Environmental Sustainability (RWES) in an efficient manner. The system consists of visions and goals, RWES indicators, and an analysis of budget allocation versus RWES. Visions and goals define task priorities for improving water environmental sustainability. Indicators are used to measure the progress of related tasks toward RWES goals. These indicators are classified by the Driving Force-State-Response (DSR) framework to facilitate the analysis of relationships among indicators. Linkages between budget allocation and indicators are also analyzed, and the result is used to assess whether the available budget is allocated properly to raise the RWES. The applicability of the system is demonstrated by a case study involving a local environmental protection authority.     

Particulates pollution management and economic analysis of small rural enterprises in mountain areas: A case study of Wenquan town in China

At present, many rural enterprises in China's mountainous areas are developing rapidly, and due to poor planning and improper management, in an uncontrolled manner. These small enterprises are making atmospheric pollution far more serious and more difficult to control than before. Thus, as is the case with most developing countries, China is facing the challenge of managing the increased environmental pollution that is accompanying its economic development. This paper examines the case of cement dust pollution in the town of Wenquan in Sichuan province in order to determine how to adjust the relationship between development of rural enterprises and atmospheric environmental pollution in mountainous areas. Using the single objective linear programming method, and based on the principle of overall optimization, an optimal control plan for different pollution sources was worked out and an economic assessment on reclamation of cement dust was completed. According to our analysis, after implementation of this plan for four years, two months, the concentrations of suspended particles in Wenquan will achieve the requirement of the national third-order ambient air quality standard; the current serious dust pollution will be completely controlled; and the reclamation of cement dust will totally compensate for the cost of dust control and will result in 92,000 yuan of pure profit per year. At that time, the economy and environment will be in harmony.     

An economic modelling approach to the design and delivery of sustainable waste minimisation clubs: Prospects in the new policy framework

Since the early 1990s, waste minimisation clubs have been important sources of information for industry in the UK on clean technology and sustainable waste management practice. Despite this contribution, concern has grown about the declining number of clubs, their performance and the likelihood that they will continue to play a key role in national policy.This paper examines the evidence available and provides estimates of how the numbers varied in England since the first clubs were formed. The results presented indicate that, after initial expansion, numbers went into decline. The paper then explores, using economic theory, why this pattern should have developed and suggests it to be a function of how clubs were designed and managed. The results of the analysis are used to propose alterations in how future clubs could be designed so that they continue to contribute effectively to the development of sustainable waste management in UK industry. These lessons are of value to policy in both the UK and other countries considering the development of this important tool of waste strategy. The paper concludes with a number of suggestions for future research.     

An approach for integrating economic impact analysis into the evaluation of potential marine protected area sites

Marine protected areas (MPAs) are one tool that can be used in the comprehensive management of human activities in areas of the ocean. Although researchers have supported using MPAs as an ecosystem management tool, scientific research on MPAs in areas other than fisheries and fisheries management is limited. This paper presents a model for designing marine protected areas that protect important components of the ecosystem while minimizing economic impacts on local communities. This model combines conservation principles derived specifically for the marine environment with economic impact assessment. This integrated model allows for consideration of both fishery and non-fishery resources and activities such as shipping and recreational boating. An illustration of the model is presented that estimates the total economic impacts on Massachusetts' coastal counties of restricting fishing and shipping at certain sites in an area in the southern Gulf of Maine. The results suggest that the economic impacts on the region would differ according to the site in which shipping and fishing were restricted. Restricting activities in certain sites may have considerable impacts on local communities. The use of the model for evaluating and comparing potential MPA sites is illustrated through an evaluation of three different policy scenarios. The scenarios demonstrate how the model could be used to achieve different goals for managing resources in the region: protecting important components of the ecosystem, minimizing economic impacts on the local region, or a combination of the two.     

An introduction to reverse logistics for environmental management: A new system to support sustainability and profitability

The private-sector marketplace has identified the reengineering of the structure and management of the supply chain as a great untapped business opportunity. In traditional supply chains poorly structured operational and financial decision making institutionalized the poor management of material resources. This nonoptimized management process results in the generation of impaired material resources, which leads to solid and hazardous waste, as well as additional operating costs throughout the supply chain. The way in which the marketplace is addressing the issue of impaired material resources is by transferring the ownership and liability of impaired resources from the customer back to the supplier. The marketplace is also implicitly saying that the supplier must redesign its products to eliminate/minimize waste, or if the supplier fails to accomplish this goal, the supplier will be forced to absorb the costs associated with managing impaired material resources. The ramifications of this change are truly of historical proportions. The utility of a material resource to create wealth has throughout the centuries almost always required its ownership. Ownership has also denoted that the owner accept any liabilities created by the material resource. This is now all about to change. To support this change, a vastly expanded infrastructure and new management systems will have to be developed. This article shows how to manage the supply chain and impaired material resources. The new system that will operationally and financially manage these changes as well as create new organizational decision-making drivers is Reverse Logistics Management (RLM).     

Regional policy and recession: a new role for planning?

The recent central government paper on regional industrial development heralds a reduced role for regional policy, in contrast with the Regional Studies Association inquiry into regional problems in the U.K. A brief exploration of the central government views leads to the paper concluding with a call for an increase in regional planning and for regional planning authorities.     

Sustainable innovation in wastewater management: lessons for nutrient recovery and reuse

Urine diversion (UD) has great potential to contribute to sustainably managing wastewater by separating urine at the source and recovering nutrients for reuse in agriculture. While factors enabling the UD technology in Sweden are thought to involve policies supporting nutrient recovery/reuse, on closer inspection, the variable success of UD systems has revealed that critical factors for success also relate to human-centred issues of social organisation, participation and incorporation of social knowledges of a variety of stakeholders into the decision-making process in which new technologies are trialled and adopted. Through the analytical lens of strategic niche management, we consider how early experimentation in UD has involved user participation and whether internal processes of learning, networking and visioning have been consciously considered and to what effect. As niche experiments are enabled/disabled not only by informal institutions such as values and social norms but also formal regulatory institutions, we have concurrently analysed the broader environment in which policies and institutions influence, to varying degrees, the uptake of UD.