The benefits and costs of reducing emissions from the electricity sector

Recent federal policy proposals to reduce emissions of sulfur dioxide (SO(2)), nitrogen oxides (NO(x)), and mercury from the US electricity sector promise important improvements in air quality and reductions in acid deposition. The cost of achieving these reductions depends on the form and stringency of the regulation. In this research, we analyze the economic benefits and costs of the US Environmental Protection Agency's (EPA's) Clean Air Interstate Rule (CAIR) as characterized in the supplemental rule proposed in June 2004, and the Clean Air Mercury Rule (CAMR) as proposed in February 2004. The assessment integrates a model of the electricity sector, two models of atmospheric transport of air pollutants, and a model of environmental and public health endpoints affected by pollution. We model explicitly the emissions of SO(2), NO(x), mercury and carbon dioxide (CO(2)) and the effects of changes in emissions of SO(2) and NO(x) on environmental and public health. The manner in which mercury emissions are regulated will have important implications not only for the cost of the regulation, but also for emission levels for SO(2) and NO(x) and where those emissions are located. We find the economic benefits of CAIR and CAMR are far greater than the costs. Recent estimates of benefits of reductions in mercury and acidification indicate that our model captures the lion's share of quantifiable benefits. We also find that the EPA would have been justified on economic grounds in pursuing additional SO(2) emissions reductions beyond the requirements of CAIR.     

The costs and benefits of packaging waste management systems in Europe: the perspective of local authorities

Local authorities are generally in charge of household packaging waste management operations, particularly in countries with Green Dot schemes or similar extended producer responsibility systems. This leads to the need of establishing a system of financial transfers between the packaging industry and the local authorities (regarding the costs involved in selective collection and sorting). In the present study, the costs and benefits of recycling, from the perspective of local authorities, are compared for Portugal, Belgium and Italy (in Lombardia region), adopting the same economic–financial methodology. The results show that the industry is not paying the net cost of packaging waste management. If the savings attained by diverting packaging waste from other treatment operations are not considered, it seems that the industry should increase the financial support to local authorities. However, if the avoided costs with other treatments are considered as a benefit for local authorities, the costs are generally outweighed by the benefits, and the financial support could, therefore, be reduced.     

The costs and benefits of a migratory species under different management schemes

This paper analyses how different management schemes influence the exploitation and economics of a wildlife population--the moose (Alces alces)--that is both a value (harvesting income) and a pest (forestry damage). Two regimes are explored; the unified management scheme where the wildlife manager aims to find harvesting quotas that maximise the overall benefit of the moose population, and the market solution where the landowners follow their narrow self-interests and maximise their private profit. Because the moose is partly a migratory species, these regimes will differ both with respect to harvesting income and browsing damage, and the landowners will experience different profit. The unified scheme is very similar to the actual Scandinavian management, while the market solution is closer to the management policy one finds in North America. In the first part of the paper it is shown how the harvesting quotas and browsing damage under these two regimes are influenced by dispersal as well as other ecological and economic factors. In the last part of the paper it is demonstrated that under the unified management regime the present practice of neglecting migration may lead to sub-optimally sized populations of migrating moose and an overall economic loss. It is also shown that neglecting migration leads to a substantial profit transfer among the landowners. The model is supported by a real life numerical example.     

Regional intergovernmental institutions: Participation benefits and costs

Evaluators frequently cite the absence of effective participation by constituent governments and the need for consensus or even unanimity prior to action as the causes of poor performance by regional resource management institutions. Major governments either will not join the regional institution, will not participate even if legally members, or will exercise a veto over many important management projects.This paper examines the variables that may cause these problems and provides an improved understanding of why rational political actors would act in ways that inhibit the efficient management of resources. Among the principal variables determining participation are expected benefits of collective decisions, perceived losses of autonomy and representation, the number and homogeneity of other participants, decision costs, and the decision rule used to determine actions. Analysis of these factors suggests why consensus and unanimity decision rules are frequently chosen and why participation is usually limited.     

A fresh look at the benefits and costs of the US acid rain program

The US Acid Rain Program (Title IV of the 1990 Clean Air Act Amendments) has achieved substantial reductions in emissions of sulfur dioxide (SO2) and nitrogen oxides (NOx) from power plants in the United States. We compare new estimates of the benefits and costs of Title IV to those made in 1990. Important changes in our understanding of and ability to quantify the benefits of Title IV have occurred. Benefits to human health now take a much higher profile because the contribution of SO2 and NOx emissions to the formation of fine particulate (PM2.5) is substantial, and evidence of the harmful human health effects of PM2.5 has emerged in the last 15 years. New estimates of the health benefits of PM2.5 reductions are the largest category of quantified health and environmental benefits and total over 100 billion US dollars annually for 2010 when the program is expected to be fully implemented. Although important uncertainties exist in any specific estimate of the benefits, even if the estimates were calculated using more limiting assumptions and interpretations of the literature they would still substantially exceed the costs. Estimates of annualized costs for 2010 are about 3 billion US dollars, which is less than half of what was estimated in 1990. Research since 1990 also suggests that environmental problems associated with acid deposition and nitrogen deposition are more challenging to resolve than originally thought and will require larger reductions in emissions to reverse. The greater than expected benefits to human health, the greater vulnerability of natural resources and ecosystems, and the lower than expected costs all point to the conclusion that further reductions in SO2 and NOx emissions from power plants beyond those currently required by Title IV are warranted.     

Estimating the value of foresight: aggregate analysis of natural hazard mitigation benefits and costs

Hazard mitigation planners claim that foresighted present actions and investments produce significant future benefits. However, they have difficulty in supporting their claims, since previously their evidence typically was derived from individual case studies. Constituents and decision makers are often sceptical, believing that individual cases are either inapplicable to their situation or non-randomly selected to support a particular view. Planners need objective evidence based on a large body of experience to support the case for mitigation. Such is the unique contribution of a recent U.S. study that found that each dollar spent in three federal natural hazard mitigation grant programs (the Hazard Mitigation Grant Program, Project Impact, and the Flood Mitigation Assistance Program) saves society an average of $4 in future avoided losses. Complementing the aggregate benefit-cost analysis with community-based evaluations, the study yielded insights on how planners can improve long-term community resilience in the face of extreme events. Valuable lessons for mitigation planners and policy makers emerged: the need to consider a wide variety of losses, the importance of mixing qualitative with quantitative analysis, the value of averaging results over a large number of projects, and the need to more explicitly address social issues and data collection in order to reduce vulnerability and enhance resilience to cope with twenty-first century hazards.     

Dealing with electronic waste: modeling the costs and environmental benefits of computer monitor disposal

The importance of information technology to the world economy has brought about a surge in demand for electronic equipment. With rapid technological change, a growing fraction of the increasing stock of many types of electronics becomes obsolete each year. We model the costs and benefits of policies to manage 'e-waste' by focusing on a large component of the electronic waste stream-computer monitors-and the environmental concerns associated with disposal of the lead embodied in cathode ray tubes (CRTs) used in most monitors. We find that the benefits of avoiding health effects associated with CRT disposal appear far outweighed by the costs for a wide range of policies. For the stock of monitors disposed of in the United States in 1998, we find that policies restricting or banning some popular disposal options would increase disposal costs from about US dollar 1 per monitor to between US dollars 3 and US dollars 20 per monitor. Policies to promote a modest amount of recycling of monitor parts, including lead, can be less expensive. In all cases, however, the costs of the policies exceed the value of the avoided health effects of CRT disposal.     

Environmental benefits and economic costs of manure incorporation on dairy waste application fields

Model simulations performed representing dairies in a 93000 ha watershed in north central Texas suggest that manure incorporation results in reduced phosphorus (P) losses at relatively small to moderate cost to producers. Simulated manure incorporation with a tandem disk on fields double-cropped with sorghum/winter wheat resulted in up to 33, 45, and 37% reductions in per hectare sediment-bound, soluble, and total P losses in edge-of-field runoff, relative to simulated surface manure applications. The effects of incorporation were evaluated at three different manure application rates. On aggregate across all three manure application rates, significant declines in P losses were obtained with incorporation except for sediment-bound P losses under the N-based manure application rate scenario.We found that the practice of incorporating manure shortly after it has been broadcast on the soil surface could help reduce P losses in such situations where P-based rates alone prove inadequate. The cost the producer incurs when manure is incorporated is on average about 1% of net returns when manure is applied at the N rate and 2-3% when it is applied at alternative P-based rates. In practice the costs could be lower because producers may substitute the manure incorporation operation for a tandem disk operation performed prior to manure application. As more and more dairy producers switch to the use of sorghum and corn silage in dairy rations and consequent on-farm production of these forages, the practice of manure incorporation may help to reduce phosphorus losses resulting from dairy manure applications to fields with these forage crops.     

Modeling materials flow of waste concrete from construction and demolition wastes in Taiwan

Material flows of concrete from construction and demolition (C&D) waste in Taiwan have grown considerably over the last two decades, Hsiao et al. (2001). This increased flow puts pressure on limited national disposal capacity and has indirectly caused ecological damage to domestic riparian zones used as sources of natural aggregate. Using existing statistics and literature sources for C&D waste generation in Taiwan we have developed a dynamic model of domestic material flows of concrete waste and employ statistical analyses to obtain projections of future material flows. Our major findings are: (1) Taiwan’s rate of waste concrete generation in 2001 for the residential and commercial construction industry was approximately 2.4 Million Metric Tons (MMT) per year, averaging 0.11 metric tons of waste concrete generated annually by each Taiwanese; (2) Around the year 2009, the national rate will more than triple to exceed the spike in C&D concrete waste generation that occurred after the Chi Chi earthquake 9/21/99, 8.5 MMT. (3) Aside from pilot-scale development of waste concrete utilization technology, nationwide recycling rates remain negligible. Without resource recovery, the volume of C&D waste generation by 2009 is projected to occupy nearly 7% of all existing and planned domestic landfill capacity. A target is established to raise resource recovery rates for waste concrete to 50% by 2005 and a 100% nationwide recycling rate by 2009.     

Environmental,economic and social costs and benefits of a packaging waste management system: A Portuguese case study

The impact of the management of packaging waste on the environment, economic growth and job creation is analyzed in this paper. This integrated assessment intends to cover a gap in the literature for this type of studies, using the specific case study of the Portuguese packaging waste management system (SIGRE).The net environmental benefits associated with the management of packaging waste, are calculated using the Life Cycle Assessment methodology. The results show that, for the categories studied, the impacts associated to SIGRE's various activities are surpassed by the benefits associated to material and energy recovery, with special focus on recycling. For example, in 2011 SIGRE avoided the emission of 116 kt CO₂ equiv. – the equivalent carbon emission of the electricity consumption of 124.000 households in Portugal.The economic impact of SIGRE is evaluated through Input–Output Analysis. It was found that SIGRE's activities also have a significant economic impact. For example, their added value are ranked amongst the upper third of the economic activities with highest multiplier effect at national level: this means that for each Euro of value added generated within SIGRE, 1.25 additional € are added to the rest of the economy (multiplier effect of 2.25).Regarding the social impacts of SIGRE, the number of direct jobs associated with the system is estimated to be more than two thousand and three hundred workers. Out of these, 83% are connected to the management of municipal waste packaging (selective collection and sorting), 15% are connected to the management of non-municipal packaging waste and only 2% are connected to the Sociedade Ponto Verde (SPV, green dot society in English) – the management entity responsible for SIGRE.In general terms, the results obtained provide quantitative support to the EEA (2011) suggestion that moving up the waste hierarchy – from landfilling to recycling – creates jobs and boosts the economy.     

Project coordinators’ views on climate adaptation costs and benefits – justice implications

ABSTRACT

As local climate adaptation activity increases, so does the number of questions about costs, benefits, financing and the role that economic considerations play in adaptation-related decision-making and policy. Through five cases, covering a range of climate risks and types of adaptation measures, this paper critically examines Swedish project coordinators’ perceptions of costs and benefits in already-implemented climate adaptation measures. Our study finds that project coordinators make use of different system boundaries – on temporal, geographical and administrative scales – in their cost/benefit evaluations, making the practice of determining adaptation costs arbitrary and hard to compare. We further demonstrate that the project coordinators interpret costs and benefits in a manner that downplays the intangible environmental and social costs and benefits arising from the adaptation measures, despite their own experience of how such measures negatively impact upon social value. The exclusion of social and environmental costs and benefits has severe implications for justice, as it can bias decisions against people and ecosystems that are affected negatively. Based on the findings, we propose three tentative social justice dilemmas in local climate adaptation planning and implementation: 1. Cost and benefit distribution across scales; 2. The identification and valuation of non-market effects; and 3. The equitable allocation of costs and benefits.     

The costs and benefits of reforestation in Liping County, Guizhou Province, China

Reducing greenhouse gases in the atmosphere is becoming a pressing issue for the global community. Afforestation and reforestation are promoted worldwide as an effective means of sequestering carbon. For its national interest and global concerns, China has made great efforts to protect its existing forests and develop programs of afforestation and reforestation. Based on two surveys recently conducted in Liping County, Guizhou province, this paper investigates the economic changes associated with the implementation of the "Grain For Green" policy. Based on the analytical framework of benefit cost analysis, this paper concludes that the implementation of the reforestation of sloping agricultural land policy would not be possible if there were no government subsidies for the peasants. The short term economic returns of land and labour from forestation are substantially lower than those generated from grain or cash crop production on the steep slope lands. The government subsidies provide great economic incentives for peasants to take part in the project. The subsidies in fact have elevated peasant income in rural Liping. The estimated potential economic returns of plantations over the long run indicate that the removal of the government financial subsidies would not create an economic crisis for the peasants if the current market conditions continue.     

EcoMetrics: Integrating direct and indirect environmental costs and benefits into management information systems

This article suggests a set of metrics that may impact both profitability and environmental quality, capture and quantify eco-efficiency costs and benefits, and help managers understand and focus on tangible, yet difficult-to-quantify benefits (such as improved morale, innovation, etc.). In order to do this, it will frame the issues pertinent to developing eco-efficiency metrics; identify criteria for effective metrics to enable companies/consultants/etc. to discuss, evaluate, and select program metrics; outline the universe of possible metrics; suggest key metrics for a typical company; identify data quality, availability and other constraints; and suggest a methodology for incorporating environmental metrics into operating metrics. [Note: This article is not intended to provide a definitive overview of environmental metrics; rather, it proposes an operational framework for considering, selecting, and implementing metrics that are meaningful in both environmental and business terms. For an overview, see for example, Environmental Policy Performance Indicators;¹ Company Environmental Reporting;² The Greening of Industrial Ecosystems;³ Measuring Corporate Environmental Performance⁴]. The flow and embodiment of materials and energy in production and consumption activities of the economy underlie both economic growth and environmental perturbations… [Yet] existing accounting systems can prevent modern firms from internalizing environmental costs and considerations, and can compound difficulties encountered in effecting environmentally preferable changes⁵.     

Estimating the benefits and costs to mountain bikers of changes in trail characteristics,access fees,and site closures: choice experiments and benefits transfer

Mountain biking is an increasingly popular leisure pursuit. Consequences are trail degradation and conflicts with hikers and other users. Resource managers often attempt to resolve these problems by closing trails to mountain biking. In order to estimate the impact of these developments, a model has been devised that predicts the effects of changes in trail characteristics and introduction of access fees, and correlates these with biker preference on trail selection. It estimates each individual's per-ride consumer's surplus associated with implementing different policies. The surplus varies significantly as a function of each individual's gender, budget, and interest in mountain biking. Estimation uses stated preference data, specifically choice experiments. Hypothetical mountain bike trails were created and each surveyed biker was asked to make five pair-wise choices. A benefit-transfer simulation is used to show how the model and parameter estimates can be transferred to estimate the benefits and costs to mountain bikers in a specific area.     

Determination of optimum minimum flow from a dam by using energy analysis

The proposed restoration of an abandoned hydroelectric dam on the Quinebaug River, Connecticut, is studied using energy analysis. The analysis considers the effects of alternative minimum flow releases, ranging from 0 to 34 cubic meters per second (cms), on the total energy flow of the affected system. The principal system components affected by differing minimum flows are hydroelectric power generation, aquatic habitat, and gross aquatic ecosystem productivity.The minimum flow alternative resulting in the highest annual energy flow in the affected system is considered optimal. From this purely analytical point of view, the optimum minimum flow is 0 cms, due to the short length and low productivity of the regulated reach, and the lack of floodplain interactions.Simulations of longer and more productive river reaches were conducted. For very short, unproductive reaches, in the absence of a floodplain, the contribution of aquatic community productivity to total system energy flow is negligible compared to hydroelectric generation. Optimum minimum flows are higher for longer and more productive reaches. For such cases the operation of hydroelectric dams could reduce total system energy flow because the energy supplied by hydroelectric generation may be offset by losses in aquatic productivity due to diminished riverine habitat.     

Environmental benefits from the use of the residual biomass in nurseries

Every year, nurseries waste about 40 t of residual biomass for each ha of potted plants cultivation. The European nursery sector deals with about 90,000 ha of cultivated land and 120,000 ha of nurseries, with a turnover of 19.8 billion Euros in 2011. In recent years, a number of Italian projects highlighted that GHG (greenhouse gas) emissions for the nursery sector range between 37 tCO₂eq/ha/year and 45 tCO₂eq/ha/year for potted plants, mainly due to the consumption of electric energy, plastics and peat. Moreover, other studies analyse the impacts associated to nurseries, recommending best practices for energy reductions and waste recycle or reuse. Therefore, the present work focused its attention to the possible environmental benefits associated to the reuse of residues (wood and substrate) of potted plants that are discarded from the nursery production chain. GHG emissions and fossil energy requirement were quantified by considering the CO₂eq (CO₂ equivalent) and the CER (cumulative energy requirement) respectively, in order to assess the environmental impacts of two different scenarios proposed for the materials recovery. Final results highlighted that the solutions which are able to recover the substrate and the wood allow impact reductions compared to landfill disposal. In particular, the scenario consisting in the immediate separation of the substrate from the root-plant system and the successive chipping of wood for energetic reuse, allows higher savings than those obtainable through shredding and subsequent wind separation. Moreover, for what concerns the CO₂eq, an adequate use of the residual biomass make it possible to compensate the GHG emissions of the nurseries up to 15%.     

The benefits of proactive environmental quality: Tips from a successful small business

Who says environmental quality has to cost a bundle? Or that it's out of reach of the typical smaller company? In fact, says this article, a proactive environmental quality program offers significant cost-avoidance opportunities and can allow a company to reap positive public relations rewards. The combination of a total quality production program and a proactive environmental quality program is a formidable force for success. And you don't have to be a big company to be an environmental leader.© 1999 John Wiley & Sons, Inc.