Economic sustainability and the preservation of environmental assets

The core requirement of sustainability is that current economic activities should not result in an excessive burden on future generations. This criterion is general enough to imply different decision rules for the preservation of environmental assets. Neoclassical economics does not have a sustainability criterion for environmental assets independent of the intertemporal efficiency criterion, which allocates environmental and man-made capital based on projected monetary benefits and costs. This criterion is examined in terms of the feasibility of valuing the benefits of environmental assets, the substitution possibilities between natural and man-made capital, and the ethical grounds for using efficiency as the sole determinant of the allocation of environmental assets. An alternative ecological sustainability criterion is the preservation of safe minimum levels of environmental assets in physical terms rather than the dollar value of a composite of natural and man-made capital. Safe minimum standards for environmental assets constrain the efficiency criterion in order to ensure the sustainability of economic systems. It is argued that the ecological approach to sustainability should limit the economic approach for decisions involving the allocation of environmental assets.     

The role of the CMEA's foreign trade monopolies in mineral markets

The business rationality of the CMEA mineral traders is bound by several characteristics of mineral production under central planning and by the mechanics of foreign trade monopoly. These characteristics include aspects such as: priority of national economic goals over trading strategies of the Foreign Trade Organisations (FTOs) in Eastern Europe; balance-of-payment problems; the organizational complexities and the weakness of the incentive mechanism, as well as the lack of an appropriate performance criterion. It is suggested that the 30 mineral trading FTOs in the CMEA tend to perform in a manner comparable to marketing departments of the Western mineral industries but are at a clear disadvantage when compared with ‘stand alone’ Western intermediaries making profits through risk taking and abhoring bureaucracy and rigidity in management.     

Harnessing the bonanza: economic liberalization and capacity building in the mineral sector

Over the past decade many developing and transition economies have liberalized their investment regimes for mining and privatized formerly state-owned mineral assets. In response, these economies have witnessed increased foreign investment in exploration and development, growth in the number and diversity of mineral projects, and the opening up of new channels for harnessing increased economic and social benefits from development in the minerals sector. The restructuring of fiscal and regulatory regimes to encourage foreign investment, and the associated influx of mining capital, technology and skills, is transforming traditional relationships between mining firms, local communities and the government. This transformation necessitates a re-evaluation of the most effective policy approaches to capture increased economic and social benefits from mineral production. This article considers effective mechanisms for improving the capacity of developing and transition countries to maximize the economic and social benefits of mineral production. Common challenges associated with minerals economies are reviewed. Consideration is given to the opportunities for harnessing foreign direct investment and the possibilities for creating new partnerships between local communities, industry, government, and multilateral development agencies through social investment projects. The article concludes with a series of recommendations for the design and implementation of policy approaches towards harnessing mineral production for economic and social benefit following the liberalization of investment regimes for mining.     

Electric power and the environment: an analysis of pollutant emissions at Argentine state-owned electric power stations

This paper describes the impact on particulate and 'greenhouse gases' emissions of substitution policies implemented by Argentine state-owned electric power stations. Those policies involve the substitution, on the one hand, of hydroelectric and nuclear energy for conventional thermal energy and, on the other hand, of natural gas for fuel oil, diesel oil and coal. As additional investments are required in conventional thermal power stations to prevent environmental pollution, the investment savings generated by substitution policies have been calculated. While the environmental impact of hydroelectric, nuclear and natural gas facilities is locally significant and is experienced in geographical areas away from cities, there can be no doubt that the substitution policies implemented in the Argentine electricity sector have overall both ecological and economic benefits.     

A Generic Bio-Economic Farm Model for Environmental and Economic Assessment of Agricultural Systems

Bio-economic farm models are tools to evaluate ex-post or to assess ex-ante the impact of policy and technology change on agriculture, economics and environment. Recently, various BEFMs have been developed, often for one purpose or location, but hardly any of these models are re-used later for other purposes or locations. The Farm System Simulator (FSSIM) provides a generic framework enabling the application of BEFMs under various situations and for different purposes (generating supply response functions and detailed regional or farm type assessments). FSSIM is set up as a component-based framework with components representing farmer objectives, risk, calibration, policies, current activities, alternative activities and different types of activities (e.g., annual and perennial cropping and livestock). The generic nature of FSSIM is evaluated using five criteria by examining its applications. FSSIM has been applied for different climate zones and soil types (criterion 1) and to a range of different farm types (criterion 2) with different specializations, intensities and sizes. In most applications FSSIM has been used to assess the effects of policy changes and in two applications to assess the impact of technological innovations (criterion 3). In the various applications, different data sources, level of detail (e.g., criterion 4) and model configurations have been used. FSSIM has been linked to an economic and several biophysical models (criterion 5). The model is available for applications to other conditions and research issues, and it is open to be further tested and to be extended with new components, indicators or linkages to other models.     

An analysis of factors leading to the establishment of a social licence to operate in the mining industry

Communities around the world have increasingly come to demand more involvement in decision making for local mining projects, a greater share of benefits from them if they are to proceed, and assurances that mineral development will be conducted safely and responsibly. At the same time, Bridge (2004) notes full legal compliance with state environmental regulations has become an increasingly insufficient means of satisfying society's expectations with regards to mining issues. There is now a recognised need for mineral developers to gain an additional ‘social licence to operate’ (SLO) in order to avoid potentially costly conflict and exposure to business risks. However, there is a correspondingly limited amount of scholarship specifically focused on SLO. More particularly, there is a need for research that uncovers those factors that lead to the issuance (or non-issuance) of a SLO in the complex and changeable environments that often characterise mineral development. In an effort to identify key determinants of SLO outcomes in the mining industry, this paper presents a comparative case study analysis of four international mining operations: Red Dog Mine in Alaska, USA; Minto Mine in Yukon, Canada; the proposed Tambogrande Mine in Peru; and the Ok Tedi Mine in Papua New Guinea. The analysis that is presented also makes use of insights from supplementary key informant interviews conducted by the author and the emerging literature on mining and communities. Five lessons for earning a SLO emerged from this analysis: (1) context is key; (2) a social licence to operate is built on relationships; (3) sustainability is a dominant concern for communities; (4) local benefits provision and public participation play a crucial role; and (5) adaptability is needed to confront complexity.     

WATER QUALITY MONITORING NETWORK DESIGN: A PROBLEM OF MULTI-OBJECTIVE DECISION MAKING1

ABSTRACT: Hydrologic data network design is a fairly complicated problem where questions as to the number of gages required, time frequencies to be selected, and benefits/costs of monitoring still remain unresolved. These issues are intensified in case of water quality variables as they are more error-prone, costly, and time consuming to sample. The basic difficulty underlying the design and evaluation of monitoring systems is the lack of an objective criterion to assess: (a) the efficiency, and (b) cost-effectiveness of a network. A statistical procedure based on the entropy principle of information theory is proposed to address the evaluation of both factors. Efficiency is measured quantitatively in terms of the information produced by a network. Similarly, benefits of monitoring are described by informative measures for an objective evaluation of cost-effectiveness. The study presented demonstrates the applicability of the entropy method in assessing the efficiency and the benefits of an existing water quality monitoring network. The method is applied for temporal and spatial features of monitoring, handled as both separate and combined problems. The results are shown in the case of the highly polluted Porsuk River in Turkey. The strengths and shortcomings of the proposed methodology are discussed, with recommendations for future research on the application of the entropy principle in network design.     

Bolivia's strategy for restructuring the state's mining sector and promoting private investment in mining

Bolivia is a country of great mineral wealth with known reserves estimated to be worth over US$7 billion. Despite this great potential wealth, in the early 1980s the mining industry of Bolivia found itself in a crisis characterized by excessive state intervention in the industry, a financially troubled state mining company, large areas of the country off-limits to mineral development, an irrational tax system which discouraged mining and labour unrest. To deal with these problems, the government decided to restructure the mining industry so as to encourage private participation. This paper describes the policies introduced to revitalize the mining industry as well as projections of what the future benefits would be to the country if those policies are successful in achieving their objectives.     

Material flow analysis of lubricating oil use in California

Petroleum lubricating oils, used throughout the economy, are distinct among petroleum products in their capacity to be recovered and recycled at the end of their useful life. Used lubricating oil is regulated at the state and federal level because of concerns about environmental impacts arising from improper disposal, although rates of recovery are not known. We present a material flow analysis of lubricants through California's economy in the years 2007–2012. We introduce a novel technique for computing aggregate waste generation from a collection of hazardous waste manifest records, and apply it in order to determine a recovery rate for used oil and to estimate the quantity of oil managed informally in the state. The records also offer a detailed view of the fate of used oils after they are recovered. We find that around 62% of lubricants are recoverable at end of life, of which 70–80% is being recovered. This rate shows a slight downward trend. If the trend is accurate, measures should be taken to improve the performance of the used oil management system. Policy opportunities exist to reduce the quantity of oil managed informally through improving access to responsible used oil management methods. These include increasing the collection of used oil from industrial sources as well as “do it yourself” oil changes, expanding in-state reprocessing capacity, and promoting increased out-of-state reprocessing of used oil. Our methods introduce new possibilities to make use of direct observation in material flow analysis, potentially improving data availability and quality and increasing the relevance of material flow methods in policy applications.     

Financial failures in mining : Implications for LDC mineral policies

The risk of financial failure among LDC mining projects, always significant, has apparently increased during recent years. This situation, which is unlikely to change in the near future, has important implications for LDC mineral policies. In particular, it can no longer be assumed that mining will generate significant government revenues, traditionally regarded as the single most important economic benefit arising from large-scale mining projects in LDCs. Many LDC governments consequently need to reassess their mineral policies and place greater stress on maximizing economic benefits which will accrue even where mines fail to generate significant profits. Two such benefits are discussed, and concrete policy measures are suggested to illustrate the initiatives available to LDCs.     

A quantitative integrated evaluation of sustainable development of mineral resources of a mining city: a case study of Huangshi,Eastern China

It is generally considered that the non-renewable nature of mineral resources will make them gradually depleted over time. However, in the perspective of development availability of mineral resources in a long-term depends not only on their currently available amounts but also on future potential mineral resources (e.g. those undiscovered and low-grade ores) and substitutive renewable resources. In addition, it is influenced by factors like technology and capital. These factors interact with each other. As a result, it is possible to make the sustainable development of mineral resources by appropriate coordination between these factors. A new concept of Degree of Sustainable Development of Mineral Resources (DSDMR) and its conceptual model are proposed in this paper in the viewpoints of system science and sustainable development to evaluate the ability of sustainable development of mineral resources for a mining city. DSDMR refers to the ability of meeting needs of present and future generations for mineral resources by their logical distribution and substitution. An indicator system and a fuzzy integrated judgment model, which involve factors of resources, economy, society, environments and intelligence, are presented. They are used to evaluate DSDMR of Huangshi city, which is the most ancient and yet one of the most important mining cities producing iron and copper in China.     

Valuing regional geoscientific data acquisition programmes: addressing issues of quantification,uncertainty and risk

Geological surveys worldwide are involved with research in support of sustainable mineral resource development.The socio-economic benefits to be derived from these activities, however, continue to raise organisational and government sector questions. Fundamental questions include whether or not the resources committed are appropriate and in economic balance with the total benefits to be derived. Another question concerns the degree to which such services should be funded by the community at large. These questions in turn raise important issues regarding the role and cost of geological surveys, the impact of their services, and how they should maximise community benefit from their activities and expertise. To assess the value of geoscientific information,standard valuation processes need to be modified. This paper reports on a methodology designed to quantify the 'worth' of programmes upgrading regional geoscientific infrastructure. An interdisciplinary approach is used to measure the impact of geoscientific information using quantitative resource assessment, computer-based mineral potential modelling, statistical analysis and risk quantification to model decision-processes and assess the impact of additional data. These modelling stages are used to address problems of complexity,uncertainty and credibility in the valuation of geoscientific data. A case study demonstrates the application of the methodology to generate a dollar value for current regional data upgrade programmes in the Geological Survey of Queensland. The results obtained are used for strategic planning of future data acquisition programmes aimed at supporting mineral resource management and stimulating effective exploration activity.     

Economic assessment of managing processionary moth in pine forests: a case-study in Portugal

This paper assesses the private and social profitability of current strategies for managing processionary moth (Thaumetopoea pityocampa) in Portuguese pine forests, looking at economic and environmental costs and benefits. Costs include the expenses for forest treatment and the social costs of threats to human health (dermatitis amongst others); benefits are assessed in terms of both revenue and social benefits such as carbon fixation and recreation. The evaluation was done using Cost Benefit Analysis (CBA) as an analytical framework. While this tool is currently applied to forest and environmental assessment and specific applications to pest management strategies are to be found in agricultural economics, rather few attempts have been made in the field of forest pest management. In order to assess and compare with--without options, a case-study was analysed for the Setúbal Peninsula, south of Lisbon, an area where extensive stands of maritime pine (Pinus pinaster) grow. The exercise has shown that CBA can be a valuable tool for assessing the economic and social profitability of pest management. The results demonstrate that the loss of revenues in the no-management option is not sufficient to make pest management profitable for private forest owners in the short-term. Conversely, a social profit is gained as pest management minimizes health risks for humans and avoids possible recreational losses.     

WILD RIVERS - METHODS FOR EVALUATION1

ABSTRACT: Two analytical methods are presented and demonstrated for evaluating the monetary and nonmonetary benefits of wild rivers. In the traditional benefit-cost context special techniques are required to show that any wild river is worthy of preservation. The methods presented allow for the possibility of low development levels in river basins to be optimal, although advanced development can also be shown to be most efficient in some circumstances. That is, the methods are not directed to the wild condition only but to the entire spectrum of development possibilities. The applications of the methods to two adjacent subbasins in the State of Washington each showed that the currently undeveloped basin should be left in its wild condition, while the partially developed basin next door should be developed even more fully.     

石油加工与石油化工废料应用于钻井液

石油加工与石油化工废料，包括废白土、酸渣、碱渣、渣油、油泥、生产润滑油添加剂的废料、废催化剂、环烷酸釜残等，在钻井液中的用途较广，可以分别用作钻井液原始组分和润滑剂、消泡剂、多效防塌剂、抑制剂、稳定剂、废钻井液固化剂以及制备这些处理剂的基础材料。文中介绍了前苏联及独联体等在这方面的研究成果和现场应用情况。     

US resources policy: The 1982 report to congress

This paper analyses the extent to which the new Reagan mineral policy will encourage increased US production, substitution, recycling and conservation, domestic stock-piling and diversification of foreign supplies. Major inadequacies of the mineral policy are the transfer of responsibility for research and development from the government to the unprepared private sector, the lack of emphasis on short-term research and development in mineral processing technology, and the lack of coordination between minerals policy and national security and foreign policy. However, overall the policy is a positive step towards reducing the current US minerals supply vulnerability.     

The Tucson Mineral Show and the market for collector minerals: The potential for artisanal and small scale miners

Minerals that are sold to collectors are often produced by artisanal and small scale miners in many developing countries. The market for collector minerals is not well understood by most government agencies or NGOs but has a large impact on the artisanal and small miners that have the opportunity to produce these minerals because of the high prices that can be realized. This paper describes the collector mineral market that is held annually in Tucson, Arizona, that analyzes the competitive forces that affect the profitability of the mineral dealers at the show and describes potential methods for artisanal and small scale miners to participate successfully in the show. Most collector minerals produced by artisanal and small-scale miners are valued for their aesthetic qualities instead of mineral content. The 43 shows that operate during the first two weeks in February make up the largest gem and mineral show in the world, the Tucson Show. The Tucson Mineral Show is a subgroup of six shows that specialize primarily in collector minerals.There are several competitive forces at the Tucson Mineral Show that can affect the profit potential of dealers that participate in the show. These forces include potential entrants, suppliers, buyers, substitutes, and rivalry among existing competitors. New entrants face several barriers to entering the market place including the supply side economies of scale, demand side benefits of scale, and capital requirements. Because of these barriers, the cost of doing business and the way that promoters organize and manage the shows, it is difficult for artisanal and small scale miners to enter the show and compete with established dealers. However, with support from entities such as local governments, non-profit organizations, and international organizations the artisanal and small scale miners have the potential to have their minerals sold at the Tucson Shows for prices that would be greater than what can be achieved in the local market. Methods to help the artisanal and small scale miners compete include direct sales or consignments to retail dealers, tailgating, development of sales co-operatives, and the creation of an artisanal/small scale mineral show.     

Application of Resource Assessment Data to Policy Decisions in Developing Countries

Information about a nation's mineral resource potential is important in regional and national development planning. Unfortunately, it is usually not possible to determine the optimum levels of investment in mineral resource assessment activities in a developing country. In addition, there is a tendency for governments to initiate expensive resource assessment projects without an understanding of the types of decision that may be influenced by the assessment data. This paper examines ten major policy issues where decisions can be substantially influenced by resource assessment information. Governments can expect to increase their benefits from investment in resource assessment activities by linking resource assessments to specified policy decisions.     

Reflections on the meaning of sustainable development in the water sector

Economic interpretations of sustainable development have concentrated on the need to maintain the aggregate capital stock intact, so as to ensure a constant stream of welfare through time. A sectoral approach to sustainability, in terms of this model, will be justified if substitution possibilities between that sector and the rest of the economy are limited. This assumption is examined in relation to the water sector, and it is found that further assumptions about substitution possibilities need to be made within the sector itself. Suggestions are offered as to how such substitutions might be made to advantage, which is contrasted to recent water management practices in England and Wales. It is argued that assumptions about substitution possibilities are in general overly restrictive, with the result that sustainability objectives fall short of optimum levels that could be achieved.     

POST-GRADUATE TRAINING AND RESEARCH IN APPLIED SCIENCE IN DEVELOPING COUNTRIES: THE CASE OF MINERAL EXPLORATION

If a developing country decides to devote scarce human and material resources to post-graduate training and research in an applied science - based on a realistic assessment that the potential benefits from such an investment are likely to exceed the benefits from alternative investments - several approaches exist. The authors examine these alternatives as they apply to mineral exploration. They argue that if recourse is made to overseas training, programmes should be restricted by aid agencies to universities that will provide applied research subjects in the trainees' own countries. 'Twinning' arrangements between institutions in developing and developed countries may be useful if faculty in the developed country university are interested in and available for overseas work and if university administrations are aware of potential problems. The authors also discuss the provision of short-term non-academic fellowships in applied research, an approach which has not been used to extent it deserves.