Can market-based policies accomplish the optimal floodplain management? A gap between static and dynamic models

The purpose of this short article is to set static and dynamic models for optimal floodplain management and to compare policy implications from the models. River floodplains are important multiple resources in that they provide various ecosystem services. It is fundamentally significant to consider environmental externalities that accrue from ecosystem services of natural floodplains. There is an interesting gap between static and dynamic models about policy implications for floodplain management, although they are based on the same assumptions. Essentially, we can derive the same optimal conditions, which imply that the marginal benefits must equal the sum of the marginal costs and the social external costs related to ecosystem services. Thus, we have to internalise the external costs by market-based policies. In this respect, market-based policies seem to be effective in a static model. However, they are not sufficient in the context of a dynamic model because the optimal steady state turns out to be unstable. Based on a dynamic model, we need more coercive regulation policies.     

Efficient management of marine resources in conflict: An empirical study of marine sand mining, Korea

This article develops a dynamic model of efficient use of exhaustible marine sand resources in the context of marine mining externalities. The classical Hotelling extraction model is applied to sand mining in Ongjin, Korea and extended to include the estimated marginal external costs that mining imposes on marine fisheries. The socially efficient sand extraction plan is compared with the extraction paths suggested by scientific research. If marginal environmental costs are correctly estimated, the developed efficient extraction plan considering the resource rent may increase the social welfare and reduce the conflicts among the marine sand resource users. The empirical results are interpreted with an emphasis on guidelines for coastal resource management policy.     

Valuation of externalities of selected waste management alternatives: A comparative review and analysis

Accessible and transparent data on the social costs of externalities is crucial to waste management researchers, decision-makers, and managers, if waste management strategies are to be successfully analyzed and implemented. The primary objective of this study, which is based on a thorough review of existing literature and research, was to assist the abovementioned in their decision-making with reliable recent data, by mapping, gathering, analyzing, and comparing different valuation results of external costs associated with various types of pollution and disamenities related to landfilling and incineration of solid waste.The second objective was to assess the suitability and reliability of various valuation methods and techniques that were implemented in the reviewed valuation studies, as well as the transferability of valuations across sites.The paper focuses on studies conducted since 1990, because in dynamic fields such as the waste sector, externalities, and valuation, it is essential to stay current with the most recent information and valuations.We discuss the issues and the limits of the valuation techniques and analyze the estimates of all the studies, presenting the results in the form of intervals and averages of damage costs. In spite of the inconsistencies evident in the variability in the results we reviewed, the outcome of this first comprehensive critical analysis is significant and the valuations obtained in this study provide estimates of orders of magnitude of external costs that can be used by decision makers in the waste sector to address important policy questions associated with social welfare.     

Mining economics and the environment

A mining operation can affect the environment adversely and create costs to others that are external to the mining firm, if no constraints are imposed. To deal with this problem of externalities, various regulatory steps can be taken, eg effluent taxation, subsidies, regulation of emissions by command, and use of emission permits that are tradeable. Bargaining between the polluter and the damaged party over the level of production and compensation remains a more theoretical option. Regardless of what regulatory approach is adopted to transform external costs into internal costs, the resulting higher costs will have an impact on the decisions of a mining firm. Information processes, traditionally focused on finding deposits, have now been broadened to include an environmental dimension. Operating practices can be modified to reflect the need for stable long-term solutions of waste disposal problems. On the industry level, environmental regulation may lead to sterilization of resources, to higher prices for some commodities and to distortions of competitiveness among commodity producing countries.     

Green taxes, blue taxes

Central governments are facing increasingly stringent demands to lead the clean-up of public resources. Historically, governments have chosen legislation and regulation to address these concerns and achieved mixed results, but another tool of public policy holds significant promise and is gaining ground in the policy debate: 'green' taxes. The potential of a tax system to mitigate environmental externalities is explored. The theory of pollution tax is reviewed and a comparison of two country cases where taxes have been designed explicitly to reduce industrial effluents and improve the quality of fresh water resources is presented. If structures to approximate social costs are federally mandated and regionally implemented, a comprehensive tax system can constitute an integral part of an effective response to private spoliation of the commons.     

水资源多目标协同配置:全价值基础上的框架研究

从资源的视角而言,水资源具有的社会、经济、生态属性中,社会属性和生态属性所提供的生态功能和服务多是外部性和非市场的,其价值在纯粹的市场驱动下难以充分实现。从资源管理视角而言,水资源多目标协同配置的实质是水资源多重属性功能和服务的均衡。因此,将具有外部性的社会、生态功能和服务与具有经济价值的功能和服务同时纳入配置框架,是实现多目标协同配置实践的关键问题。本文在回顾水资源配置和水资源非市场价值评估的相关研究的基础上,围绕我国现行水资源配置存在的主要问题,通过水资源的全价值(市场价值和非市场价值)将其多属性功能和公众意愿纳入水资源多目标协同配置中,从水资源管理信息系统、全价值评估和配置管理的绩效评价三个方面构建了水资源配置的多目标协同框架,最后提出相关的保障政策建议。     

Tribal communities,the forests,the fisher folk and the river: whither water justice?

Excessive exploitation of and skewed access to dwindling water resources raise serious water justice concerns. Environmental justice movements and related literature have raised critical questions regarding the unequal distribution of the costs and benefits of a development paradigm that is founded on excessive exploitation and appropriation of natural resources. This paper explores the growing relevance of a water justice framework that addresses both the social and ecological aspects of water use and appropriation, with reference to a four-decade long water conflict over the Chaliyar River in Kerala, South India. It highlights how ecosystem degradation and denial of justice go hand in hand. The paper argues that the framing and articulation of the conflict in a partisan manner led to the glossing over of certain critical features, thus preventing a full view of water injustices. It also failed to inform subsequent policies and practices in this regard.     

Determining the socially optimal recycling rate

What municipal recycling rate is socially optimal? One credible answer would consider the recycling rate that minimizes the overall social costs of managing municipal waste. Such social costs are comprised of all budgetary costs and revenues associated with operating municipal waste and recycling programs, all costs to recycling households associated with preparing and storing recyclable materials for collection, all external disposal costs associated with waste disposed at landfills or incinerators, and all external benefits associated with the provision of recycled materials that foster environmentally efficient production processes. This paper discusses how to estimate these four components of social cost to then estimate the optimal recycling rate.     

The Commons in Transition: Agrarian and Environmental Change in Central and Eastern Europe

This paper analyzes institutional dynamics surrounding common-pool resources in postsocialist Central and Eastern Europe. It is conceived in close conjunction with the case studies by Penov, Schleyer, and Wasilewski and Krukowski (this issue). The purpose of this paper is to frame the individual case inquiries, compare their findings, and relate those to broader agrarian and environmental changes in the region.The case studies report a broad shift in resource governance from the previously dominant legal and administrative state hierarchies towards markets. In addition, state power has moved from central towards local authorities. The waning and decentralization of state power has caused the emergence of significant gaps between property legislation and rights-in-practice, which have been particularly stark in fragmented political systems. The discrepancy between legal texts and rights-in-practice leads to the exclusion of wider interests in favor of individual interests in the management of common-pool resources, resulting in resource deterioration and dwindling resource stocks. Thus, the comparative assessment suggests a tentative framework for understanding the effects of postsocialist transformations on governance of the commons and environmental change in Central and Eastern Europe. Its findings indicate an additional dimension to the diversity and distributive conflicts characterizing postsocialist privatization: the distribution of various rights to a resource among different actors. The findings also suggest the need for postsocialist states to take an active role in the governance of common-pool resources, particularly in the enforcement of legal rights. Note: This version was published online in June 2005 with the cover date of August 2004.     

Is Municipal Solid Waste Recycling Economically Efficient?

It has traditionally been argued that recycling municipal solid waste (MSW) is usually not economically viable and that only when externalities, long-term dynamic considerations, and/or the entire product life cycle are taken into account, recycling becomes worthwhile from a social point of view. This article explores the results of a wide study conducted in Israel in the years 2000–2004. Our results reveal that recycling is optimal more often than usually claimed, even when externality considerations are ignored. The study is unique in the tools it uses to explore the efficiency of recycling: a computer-based simulation applied to an extensive database. We developed a simulation for assessing the costs of handling and treating MSW under different waste-management systems and used this simulation to explore possible cost reductions obtained by designating some of the waste (otherwise sent to landfill) to recycling. We ran the simulation on data from 79 municipalities in Israel that produce over 60% of MSW in Israel. For each municipality, we were able to arrive at an optimal method of waste management and compare the costs associated with 100% landfilling to the costs born by the municipality when some of the waste is recycled. Our results indicate that for 51% of the municipalities, it would be efficient to adopt recycling, even without accounting for externality costs. We found that by adopting recycling, municipalities would be able to reduce direct costs by an average of 11%. Through interviews conducted with representatives of municipalities, we were also able to identify obstacles to the utilization of recycling, answering in part the question of why actual recycling levels in Israel are lower than our model predicts they should be.     

资源开发利用的环境经济学分析

资源开发利用产生的环境问题作为资源产业发展中的负产品，已成为资源产业能否可持续发展的关键。本文运用经济学理论，通过对资源开发利用地区环境容量和资源开发利用经济行为的分析，指出资源开发利用环境问题的实质是外部不经济性。为了实现在生态环境不被破坏的前提下资源开发利用经济效益最大化，需主动进行环境治理并取适当的经济手段。     

Household Demand for Waste Recycling Services

Municipalities everywhere are coping with increasing amounts of solid waste and need urgently to formulate efficient and sustainable solutions to the problem. This study examines the use of economic incentives in municipal waste management. Specifically, we address the issue of recycling, if and when this waste management option is—on social welfare grounds—a preferred solution.A number of studies have recently assessed the monetary value of the externalities of alternative solid waste management options. In the present context, these subsidies could be interpreted as the implicit value of the benefits from reducing environmental externalities associated with landfilling as perceived by local government authorities. We surmise that the difference between mean households willingness to pay (WTP) for recycling services, via the purchase of a subsidized waste disposal facility, and the above (proxy) value of externalities reflects the difference between private and public perception regarding the negative externality associated with landfilling. We believe that this information is useful in determining the level of subsidization needed (if at all) to sustain any recycling program.The study is unique in the sense that its conclusions are based on revealed household behavior when faced with increased disposal costs, as well as information on WTP responses in hypothetical but related (and, therefore, familiar) scenarios. The article also explores the influence of the subsidization schemes on recycling rates. It was found that with low levels of effort needed to participate in a curbside recycling program, households participation rates are mainly influenced by economic variables and age, and households are willing to pay a higher price for the recycling scheme. When the required effort level is relatively high, however, households would pay a lower price, and the rate is influenced mainly by their environmental commitment and by economic considerations. We found that in both cases a subsidy would be required in order to achieve an efficient level of recycling. The median price that households are willing to pay for recycling devices is found to be about NIS 370 (New Israeli Shekel, approximately $90).     

The Impact of Traffic Noise on the Values of Single-family Houses

The objective of this paper is to provide an empirical analysis of the impact traffic noise has on the values of single-family houses. Under the assumption that negative externalities are capitalized into house values, the hedonic price method is used. Issues of asymmetric information and disequilibrium are discussed and tested. Furthermore, the cost-benefit valuation has been corrected for the existence of property tax. Noise pollution was found to have a substantial negative effect on housing values. A single-family house of SEK975 000 would sell for SEK650 000 if located near a road where noise is loud, equivalent to a total discount of 30%.     

Bioenergy project appraisal in sub‐Saharan Africa: Sustainability barriers and opportunities in Zambia

Although there is continuing debate surrounding biofuel cultivation (especially in developing nations) in relation to issues of exploitation, land grabbing, poverty alleviation and energy security, there is a lack of empirical evidence to assess how these debates are playing out in practice on the ground. Drawing on political ecology discourse, this paper examines case studies of biofuel production in Zambia and the effects they have on environmental and social sustainability. During April and May 2011, data were collected on two case study projects involving Jatrophacurcas feedstock cultivation in Zambia. Semi‐structured interviews were used to ascertain views from affected stakeholders (local farmers, local environmental, social, and agronomic experts, and investors) on the biofuel projects and their environmental and social impacts. The findings suggest that the uneven distribution of costs and benefits are brought about by imbalances in knowledge, access to resources and the allocation of social and political influence (often associated with broader discourses of development), and this provides a likely rationale for a lack of sustainability in biofuel projects. Drawing on these viewpoints, as well as on field observations, this paper outlines the barriers and opportunities linked to Jatrophacurcas project sustainability.     

A Transactions Cost Approach to the Theoretical Foundations of Water Markets1

Abstract: Water marketing is often cited as a means of alleviating the stresses attached to allocation of water use. Frequently, marketing is suggested in a context that implies substitution of competitive markets for the allocation based on the prior appropriation doctrine. This study examines water marketing from the perspective of a transactions cost approach to the private and broad social agreements (contracts) that support water allocation. It examines the major behavioral challenges faced by any contract, and the alternative approaches to those challenges, with respect to water allocation. It also examines the impact of market design on the existence of externalities, costs imposed by transactions on society and individuals not party to the transaction. It finds that the most robust water market designs will be found in systems with sufficient property rights protection to support investment, sufficient hydrologic information to provide accurate analysis of third party effects, conjunctive management of surface and groundwater, and a governance structure capable of administering the rules while not determining outcomes.     

Wildlife conservation through people-centred approaches to natural resource management programmes and the control of wildlife exploitation

While the Convention on Biological Diversity (1992) introduced a new and progressive outlook on conservation, the South African government has failed to produce a comprehensive legal body of legislation to give effect to its varied obligations. Inconsistency and incompleteness of regulations governing wildlife conservation in conjunction with the failure to implement objectives to conserve wildlife through restricted exploitation with the political, social and economic motives of community conservation must be seen as major contributions to failed conservation goals. This paper analyses post-apartheid conservation laws and policies and argues that current plans for people-centred approaches to natural resource management programmes have been unsuccessful in operationalizing policy goals of biodiversity conservation and sustainable development into transparent plans for implementation. In fact, legal instruments and implementation plans seem to focus on the benefit-sharing components of community participation and therefore fail to address important issues of resource exploitation. It is suggested that where communities are expected to take part in the management of wildlife resources, the responsibility for sustainable wildlife management must be linked to the benefit-sharing instruments of the programmes. However, these would not deal with 'outsiders' like poachers and poaching driven by commercial interests. The paper proposes a model that allows communities to take control over wildlife resources.     

流域管理:权力产权的外部性问题

水资源的自然、经济和社会属性要求政府对流域的开发和利用进行管理,以解决个体使用者的外部性问题.但实际上由于政府并不是只有单一目标的统一组织,在分权体制下,不同区域、部门的政府单元掌握着实际权力.由于权力也存在外部性,各管理区域、部门之间存在利益冲突,导致政府的管理失效.解决政府权力外部性的办法:一是要转变政府职能,改变政府的激励机制;二是严格界定各政府单元的权力界限,对流域进行统一管理.     

Beyond BAT: Selecting optimal combinations of available techniques,with an example from the limestone industry

Technological choices are multi-dimensional and thus one needs a multi-dimensional methodology to identify best available techniques. Moreover, in the presence of environmental externalities generated by productive activities, ‘best’ available techniques should be best from Society's point of view, not only in terms of private interests. In this paper we present a modeling framework based on methodologies appropriate to serve these two purposes, namely linear programming and internalization of external costs. We develop it as an operational decision tool, of interest for both firms and regulators, and we apply it to a plant in the lime industry. We show why, in this context, there is in general not a single best available technique (BAT), but well a best combination of available techniques to be used (BCAT).     

‘Enclosing country park land and the conservation of military heritage:’ an Ostromian interpretation of the fools’ paradise

British colonial military heritage structures in Hong Kong are in a state of ruin and government neglect. Urgent attention is required in the form of active management to avoid the loss of valuable heritage resources and the negative impact on the landscape and environment. This paper explores two possible alternatives – user participation and social entrepreneur participation – to achieve innovative solutions to rent dissipation of these structures situated in isolated areas within protected-area boundaries, with a focus on a specific case. Emphasis is placed on fostering public participation, involving the allocation of some property rights. Elinor Ostrom's diagnostic approach to common-pool resource problems is applied to both solutions to determine the conditions necessary to achieve the objectives. The discussions are informed by social entrepreneurship principles and a version of the Coase Theorem, the latter coinciding with Ostrom's view regarding the role of property rights in achieving sustainable outcomes.     

A PROPOSED METHOD OF EVALUATING FLOOD DAMAGES TO HISTORIC HOMES - AN EXTERNALITY APPROACH1

ABSTRACT: Traditional procedures for evaluating flood damages to residential dwellings do not reflect intrinsic values when applied to historic homes. Such structures are worth more than that determined by using depth-damage curves provided by insurance companies who assess damage values based upon current labor and material costs. The evaluation of the worth of a historic home and subsequent damages due to inundation can be regarded as a problem of externalities. An assessment technique reflecting historic amenities or what has been termed replication cost is proposed in this paper. Replication costs would have widespread use not only in solving flood dammage problems, but also in any study where historic entities are subject to damages from catastrophies such as hurricanes, soil and beach erosion, and increasing urbanization. If adopted as a technique, it would enhance and preserve the ever-decreasing enclaves of historic homes and neighborhoods.