Sustainability as the key to prioritize investments in public infrastructures

Infrastructure construction, one of the biggest driving forces of the economy nowadays, requires a huge analysis and clear transparency to decide what projects have to be executed with the few resources available. With the aim to provide the public administrations a tool with which they can make their decisions easier, the Sustainability Index of Infrastructure Projects (SIIP) has been defined, with a multi-criteria decision system called MIVES, in order to classify non-uniform investments. This index evaluates, in two inseparable stages, the contribution to the sustainable development of each infrastructure project, analyzing its social, environmental and economic impact. The result of the SIIP allows to decide the order with which projects will be prioritized. The case of study developed proves the adaptability and utility of this tool for the ordinary budget management.     

Project justification and EIA: Anything goes?

Environmental Impact Assessment (EIA) incorporates environmental aspects into decision-making, but sometimes it is not effective in rejecting projects with dubious justification, significant impacts and little social utility, especially when they have political support. EIA is expected to achieve sustainable development, but without calling development into question; however, it should be able to ask the question of whether development is really necessary. Although EIA is political, as a part of the decision-making process, politicization must be limited to prevent it from becoming a mere instrument for giving an “environmental veneer” to development. Some measures thar can help avoid unjustified projects are: adopting administrative justice approach to EIA; minimising politicization of EIA agencies; improving transparency in decision-making and proportionality of EIA procedures; carrying out pre-feasibility studies; increasing the scope of SEA; allowing more than one SEA or EIA procedure for the same development throughout the planning process; strengthening the justification of the project in EIA documents; or making the scoping phase mandatory at least for major projects.     

Transition to Lead-Free Products in the US Electronics Industry: A Model of Environmental,Technical, and Economic Preferences

The European Union’s Restriction on the Use of Certain Hazardous Substances (Directive 2002/95/EC) targeted at electronic products took effect in 2006. In contrast, the USA has no comparable national policy on these products. To understand corporate responses to policy differences across jurisdictions, we conducted a structured-questionnaire survey of individuals in 109 companies that are representative of the US electronics industry. The results reveal that 70% of these companies have already adopted lead-free solder for electronics with 49% of the total preferring the SnAgCu formulation, despite uncertainties associated with environmental impacts of this alternative alloy. We use a modified life cycle impact assessment method based on endpoint modeling approach to derive weighting factors that represent the respondents’ value system for tradeoffs among environmental impacts. We use a modified fuzzy Technique for Order Preference by Similarity to Ideal Solution approach to evaluate technical criteria dominance in declared preferences. A statistical model of corporate behavior is also presented. The results provide the first systematic framework that accounts for environmental impact, technological challenge, and business strategy concurrently toward formulating a comprehensive national policy for materials selection in electronic products.     

An environmental pressure index proposal for urban development planning based on the analytic network process

This paper introduces a new approach to prioritize urban planning projects according to their environmental pressure in an efficient and reliable way. It is based on the combination of three procedures: (i) the use of environmental pressure indicators, (ii) the aggregation of the indicators in an Environmental Pressure Index by means of the Analytic Network Process method (ANP) and (iii) the interpretation of the information obtained from the experts during the decision-making process.The method has been applied to a proposal for urban development of La Carlota airport in Caracas (Venezuela). There are three options which are currently under evaluation. They include a Health Club, a Residential Area and a Theme Park. After a selection process the experts chose the following environmental pressure indicators as ANP criteria for the project life cycle: used land area, population density, energy consumption, water consumption and waste generation. By using goal-oriented questionnaires designed by the authors, the experts determined the importance of the criteria, the relationships among criteria, and the relationships between the criteria and the urban development alternatives.The resulting data showed that water consumption is the most important environmental pressure factor, and the Theme Park project is by far the urban development alternative which exerts the least environmental pressure on the area. The participating experts coincided in appreciating the technique proposed in this paper is useful and, for ranking ordering these alternatives, an improvement from traditional techniques such as environmental impact studies, life-cycle analysis, etc.     

Environmental economic impact assessment in China: Problems and prospects

The use of economic valuation methods to assess environmental impacts of projects and policies has grown considerably in recent years. However, environmental valuation appears to have developed independently of regulations and practice of environmental impact assessment (EIA), despite its potential benefits to the EIA process. Environmental valuation may be useful in judging significance of impacts, determining mitigation level, comparing alternatives and generally enabling a more objective analysis of tradeoffs. In China, laws and regulations require the use of environmental valuation in EIA, but current practice lags far behind. This paper assesses the problems and prospects of introducing environmental valuation into the EIA process in China. We conduct four case studies of environmental economic impact assessment (EEIA), three of which are based on environmental impact statements of construction projects (a power plant, a wastewater treatment plant and a road construction project) and one for a regional pollution problem (wastewater irrigation). The paper demonstrates the potential usefulness of environmental valuation but also discusses several challenges to the introduction and wider use of EEIA, many of which are likely to be of relevance far beyond the Chinese context. The paper closes with suggesting some initial core elements of an EEIA guideline.     

Soft cost elements: Exploring management components of project costs in green building projects

This paper reveals the non-technical elements that affect construction project costs, known as soft cost elements (SCEs). These elusive elements have received little attention although they are significant in influencing management decisions of a project. There is much interest in the mitigation of cost for green projects, but the focus is generally leaning towards hard cost aspects. Information about SCEs remains obscure. Qualitative approach is adopted in this research using face-to-face unstructured interviews with 12 respondents consisting of green building project experts who have been involved in many projects certified by the Malaysia Green Building Index (GBI). A total of 4 project cost datasheets were also analysed to confirm the SCEs in the project budget and to enable a clear definition of the SCEs term. The results show that SCEs are tangible and not hidden in nature. Although they constitute smaller percentage in the project cost, the implications of SCEs are far-reaching and can influence critical management decisions. There are 8 SCEs identified which are divided into 3 main categories: 1) Design Influence (project brief preparation, consultant fees and green certification); 2) Authority Requirement (pre-development charges and contribution charges); and 3) Development Provision (marketing, project overheads and security of funding). This study is practical and relevant for both green and conventional construction project, with an additional of ‘green certification’ element for green projects. The paper provides new insight into the understated elements that drive project cost from a managerial perspective and indicates key areas for future studies on project cost.     

Environmental assessment in The Netherlands: Effectively governing environmental protection? A discourse analysis

Environmental assessment (EA) aims to enhance environmental awareness and to ensure that environmental values are fully considered in decision-making. In the EA arena, different discourses exist on what EA should aim for and how it functions. We hypothesise that these discourses influence its application in practice as well as its effectiveness in terms of achieving the above goals. For instance, actors who consider EA as a hindrance to fast implementation of their projects will probably apply it as a mandatory checklist, whereas actors who believe that EA can help to develop more environmentally sound decisions will use EIA as a tool to design their initiatives. In this paper we explore discourses on EA in The Netherlands and elaborate on their implications for EA effectiveness. Based on an innovative research design comprising an online survey with 443 respondents and 20 supplementary semi-structured interviews we conclude that the dominant discourse is that EA is mainly a legal requirement; EAs are conducted because they have to be conducted, not because actors choose to do so. EA effectiveness however seems reasonably high, as a majority of respondents perceive that it enhances environmental awareness and contributes to environmental protection. However, the ‘legal requirement’ discourse also results in decision-makers seldom going beyond what is prescribed by EA and environmental law. Despite its mandatory character, the predominant attitude towards EA is quite positive. For most respondents, EA is instrumental in providing transparency of decision-making and in minimising the legal risks of not complying with environmental laws. Differences in discourses seldom reflect extreme opposites. The ‘common ground’ regarding EA provides a good basis for working with EA in terms of meeting legal requirements but at the same time does not stimulate creativity in decision-making or optimisation of environmental values. In countries characterised by less consensual political cultures we may expect more extreme discourses on EA, the consequences of which are reflected upon in this paper.     

The effectiveness of the mitigation hierarchy in environmental impact studies on marine ecosystems: A case study in France

While the development of maritime economic activity is increasingly encouraged, the consideration of its impacts constitutes a real challenge. The limitations of the implementation of the mitigation hierarchy have been widely discussed in scientific literature, yet data on marine biodiversity offset practices remains scarce. In this study, we investigated the use of Environmental Impact Assessments (EIAs) as suitable instruments to achieve the No Net Loss objective. Drawing on a French approach developed for the initial assessment of the European Marine Strategy Framework Directive, we examined the pressures and impacts related to various marine development projects and the effectiveness of the mitigation hierarchy in limiting these. An analysis of 55 recent French environmental impact studies showed that only 7% of the proposed measures had the aim of offsetting predicted degradation of sites of remarkable biodiversity. This can be partly explained by the lack of a clear definition of ‘significant impact’, which varies greatly depending on what is impacted, in turn allowing socio-economic activities to benefit more easily from offset. Furthermore, offsetting does not always constitute the final step of the mitigation hierarchy, highlighting the need to reinforce avoidance and reduction steps. Although we acknowledge the role of EIA in mitigating the negative impacts of development projects, synergies with other European marine environmental policies such as the Marine Strategy Framework Directive (MSFD) and the Maritime Spatial Planning directive (MSP) should be developed in order to improve current practices.     

Selecting Species for Marine Assessment of Radionuclides Around Amchitka: Planning for Diverse Goals and Interests

Considerable attention has been devoted to selecting bioindicator species as part of monitoring programs for exposure and effects from contaminants in the environment. Yet the rationale for selection of bioindicators is often literature-based, rather than developed with a firm site-specific base of data on contaminant levels in a diverse range of organisms at different trophic levels in the same ecosystem. We suggest that this latter step is an important phase in the environmental assessment process that is often missing. In this paper we address the problem of how to select a wide range of species representing different trophic levels that serve as a basis for selecting a few species suitable as bioindicators. We illustrate this with our assessment of radionuclides on Amchitka Island, Alaska. We propose a multi-stage process for arriving at the list of available species that includes review of literature, review by experts experienced in the area, review by interested and affected parties, selection of trophic levels or groups for analysis, arraying of possible species, and selection of species within each trophic level group for sample collection. We first had to identify all likely species, then narrow our focus to those we could collect and analyze. In all cases, review includes suggestions for possible target species with justifications. While this method increases the up-front costs of developing bioindicators for an ecosystem, it has the advantage of providing information for selection of species that will be most informative in the long run, including those that are the best bioaccumulators, thus providing the earliest warning of any potential environmental consequences. Further, the recognition that a range of stakeholder's needs and interests should be included increases the utility for public-policy makers, and the potential for continued usage to establish long-term trends.     

Assessing disproportionate costs to achieve good ecological status of water bodies in a Mediterranean river basin

Water management is becoming increasingly important as the demand for water grows, diversifies, and includes more complex environmental concerns. The Water Framework Directive (WFD) seeks to achieve a good ecological status for all European Community water bodies by 2015. To achieve this objective, economic consideration of water management must be given to all decision-making processes. Exemption (time or level of stringency) from the objectives of the EU Directive can be justified by proving that the cost of implementing measures is disproportionate to the benefits. This paper addresses the issue of disproportionate costs through a cost-benefit analysis (CBA). To predict the costs, the function costs method is used. The quantification of environmental benefits is more complex, because they are not determined by the market. As an alternative to stated preference methods, we use the distance function approach to estimate the environmental benefits of improving water quality. We then apply this methodological approach to a Mediterranean River Basin in Spain. The results show that the achievement of good status could not be rejected based on the criterion of disproportionate costs in this river basin. This paper illustrates that CBA is a useful tool to inform policy and decision making. Furthermore, it is shown that economics, particularly the valuation of environmental benefits, plays a crucial role in fulfilling the environmental objectives of the WFD.     

Exploring Environmental and Economic Trade-offs Associated with Aggregate Recycling from Decommissioned Forest Roads

Forest road decommissioning is a pro-active mechanism for preventing future habitat degradation and for increasing the likelihood of endangered salmonid survival in the western U.S. High implementation costs however preclude many desirable projects from being undertaken, especially on federally owned land. Previous research and real-world applications have demonstrated the cost savings potential of reusing aggregate recovered from forest roads during decommissioning. These cost savings can effectively subsidize decommissioning projects, suggesting an economic benefit associated with improving environmental benefit. We present a mixed integer, multiple objective formulation to identify the efficient trade-off surface between conflicting economic and environmental criteria, where environmental benefit is defined as the hazard weighted length of roads decommissioned. We compare nondominated frontiers identified with and without the opportunity to recycle aggregate. Our results suggest that aggregate recycling promotes a synergistic relationship between cost savings (subsidy) and environmental performance, where subsidies generally increase with increasing environmental performance. Effective subsidy values can reach 31% of total expenditure, at the maximum level of environmental benefit. Transportation managers are therefore able to recover and reuse a nonrenewable resource, while at the same time promoting economic and environmental efficiency.     

Coupling climate and economic models in a cost-benefit framework: A convex optimisation approach

In this paper, we present a general method, based on a convex optimisation technique, that facilitates the coupling of climate and economic models in a cost-benefit framework. As a demonstration of the method, we couple an economic growth model à la Ramsey adapted from DICE-99 with an efficient intermediate complexity climate model, C-GOLDSTEIN, which has highly simplified physics, but fully 3-D ocean dynamics. As in DICE-99, we assume that an economic cost is associated with global temperature change: this change is obtained from the climate model, which is driven by the GHG concentrations computed from the economic growth path. The work extends a previous paper in which these models were coupled in cost-effectiveness mode. Here we consider the more intricate cost-benefit coupling in which the climate impact is not fixed a priori. We implement the coupled model using an oracle-based optimisation technique. Each model is contained in an oracle, which supplies model output and information on its sensitivity to a master program. The algorithm Proximal-ACCPM guarantees the convergence of the procedure under sufficient convexity assumptions. Our results demonstrate the possibility of a consistent, cost-benefit, climate-damage optimisation analysis with a 3-D climate model.     

Optimizing environmental monitoring networks with direction-dependent distance thresholds

In the direction-dependent approach to location modeling developed herein, the distance within which a point of demand can find service from a facility depends on direction of measurement. The approach is effective for environmental location problems in which an underlying process with a prevailing gradient (e.g., wind or water flow) influences the interaction between sites in a modeled field. The utility of the approach is illustrated through an application to groundwater remediation.     

A Strategic Project Appraisal framework for ecologically sustainable urban infrastructure

Actors in the built environment are progressively considering environmental and social issues alongside functional and economic aspects of development projects. Infrastructure projects represent major investment and construction initiatives with attendant environmental, economic and societal impacts across multiple scales. To date, while sustainability strategies and frameworks have focused on wider national aspirations and strategic objectives, they are noticeably weak in addressing micro-level integrated decision making in the built environment, particularly for infrastructure projects. The proposed approach of this paper is based on the principal that early intervention is the most cost-effective and efficient means of mitigating the environmental effects of development projects, particularly macro infrastructure developments. A strategic overview of the various project alternatives, taking account for stakeholder and expert input, could effectively reduce project impacts/risks at low cost to the project developers but provide significant benefit to wider communities, including communities of future stakeholders. This paper is the first exploratory step in developing a more systematic framework for evaluating strategic alternatives for major metropolitan infrastructure projects, based on key sustainability principles. The developed Strategic Project Appraisal (SPA) framework, grounded in the theory of Strategic Environmental Assessment (SEA), provides a means of practically appraising project impacts and alternatives in terms of quantified ecological limits; addresses the neglected topic of metropolitan infrastructure as a means of delivering sustainability outcomes in the urban context and more broadly, seeks to open a debate on the potential for SEA methodology to be more extensively applied to address sustainability challenges in the built environment. Practically applied and timed appropriately, the SPA framework can enable better decision-making and more efficient resource allocation ensuring low impact infrastructure development.     

A program-level management system for the life cycle environmental and economic assessment of complex building projects

Climate change has become one of the most significant environmental issues, of which about 40% come from the building sector. In particular, complex building projects with various functions have increased, which should be managed from a program-level perspective. Therefore, this study aimed to develop a program-level management system for the life-cycle environmental and economic assessment of complex building projects. The developed system consists of three parts: (i) input part: database server and input data; (ii) analysis part: life cycle assessment and life cycle cost; and (iii) result part: microscopic analysis and macroscopic analysis. To analyze the applicability of the developed system, this study selected ‘U’ University, a complex building project consisting of research facility and residential facility. Through value engineering with experts, a total of 137 design alternatives were established. Based on these alternatives, the macroscopic analysis results were as follows: (i) at the program-level, the life-cycle environmental and economic cost in ‘U’ University were reduced by 6.22% and 2.11%, respectively; (ii) at the project-level, the life-cycle environmental and economic cost in research facility were reduced 6.01% and 1.87%, respectively; and those in residential facility, 12.01% and 3.83%, respective; and (iii) for the mechanical work at the work-type-level, the initial cost was increased 2.9%; but the operation and maintenance phase was reduced by 20.0%. As a result, the developed system can allow the facility managers to establish the operation and maintenance strategies for the environmental and economic aspects from a program-level perspective.     

Modelling Environmental Risk Using the Upper Partial Moment: a Safety-First Approach

The objective of the paper is to model economic-environmental trade-offs using a safety-first approach. The novelty of the approach is in the use of the empirically estimated flexible production risk and environmental risk functions that create a clear link between the source of the pollution, the production risk due to input use and the environmental outcome. Simulated production data and an environmental indicator were used to estimate a production function and environmental response function for every production year. The response functions were incorporated into an upper partial moment model, which ensures compliance to the user-specified environmental goal by enforcing the environmental constraint. Production decisions are significantly impacted by the presence of an environmental constraint due to the substantial compliance costs. Any changes in the intensive and extensive margin made by risk-averse decision-makers impact the size of the compliance cost faced by producers. The presence of an environmental constraint impact production decisions significantly with substantial compliance costs. While, fertiliser application technique have very little effect on the size of compliance costs. The greatest difference in compliance cost is therefore due to changes in the use of fixed resources.     

The role of 'Big Society' in monitoring the state of the natural environment

Environmental monitoring is essential for assessing the current state of the environment, measuring impacts of environmental pressures and providing evidence to government. Recent UK government announcements have indicated an increased role for 'Big Society' in monitoring. In this paper, we review available literature concerning the use of citizen science for monitoring, present examples of successful volunteer monitoring work and highlight important issues surrounding the use of volunteers. We argue that in order to ensure that environmental monitoring continues to be effective it is important to learn from examples where volunteers are currently used, acknowledging constraints and identifying potential approaches which will help to maximise both their engagement and data quality. Effective partnerships between environmental monitoring organisations and volunteers may thus aid the UK in developing robust coordinated monitoring systems that will be less vulnerable to funding variances.     

Indifference curves as a tool for environment impact assessment

Use of indifference curves, defined as functionality between development index and pollution load to evaluate environmental impact, is proposed. Existing Battelle environmental evaluation methodology is subjective in its approach. The use of indifference curves lends a more objective approach to environment assessment methodology. The extent of environmental damage we are prepared to accept, for a development, can be explained by Willingness to Pay and Willingness to Accept approach. The application of proposed approach has been demonstrated taking an example of Power plant set up in forest area. The curves clearly show that cost of EMP considering mitigation of ecological damage is higher than the EMP mitigating impacts of air and water pollution only. The example stresses the need for willingness to accept along with willingness to pay.     

Confronting reality in strategic environmental assessment in Slovenia — Costs and benefits

We enlarge on the viewpoint published in the Environmental Impact Assessment Review in 2012 — A viewpoint on the approval context of strategic environmental assessments. Additional alerts concerning the procedural ineffectiveness of the strategic environmental assessment (SEA) process from the cost–benefit point of view are advanced. The major contribution to the long lasting, costly SEA processes, comes from ultraistic treatment of Natura 2000.The case study deals with a plan for constructing a traffic bypass around Škofljica, a town near Ljubljana. Based on their conclusions the authors propose that the following elements of the SEA procedure should be improved and optimised:

• –CBA for SEA should become a regular component when measuring its effectiveness.
• –Concretisation of expected SEA inputs to the plan should clarify its role at the earliest stage of the process.
• –SEA should contribute interactively to the optimisation of alternatives; cost–benefit analysis of the SEA process could support this process.
• –Nature protection interest should be confronted and balanced with wider development interests as formulated in the plan and should not be applied in absolute terms (e.g. Natura 2000).

     

The corporate impact of addressing social issues: a financial case study of a project in Peru

Large, multinational resource development projects can affectmany aspects, including social, economic and ecological realities, in the regions where they operate. Social and environmental issues that are usually ignored in such projectsare increasingly affecting the financial future of multinationalcorporations in negative ways. In this article, we advance the argument that corporations can successfully manage these issuesand that if they choose to view these management efforts as an investment rather than an expense, they may well acquire a competitive advantage over companies that do not. We describe asa case study the Camisea natural gas and condensates developmentproject in Peru, operated by Shell Prospecting and Development Peru (SPDP). Camisea is one of the first projects anywhere inthe world to conduct a detailed analysis of key industry-relatedsocial issues and the processes, required investment and financial impact of managing them. The Camisea example supportsthe argument that addressing social and environmental concerns makes financial sense. In present value terms, the benefit ofmanaging these concerns was expected to surpass the cost investment by approximately US$50 million.