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.     

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.     

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.     

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.     

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.     

Direct and indirect benefits of improving river quality: quantifying benefits and a case study of the River Klang,Malaysia

This paper describes the potential benefits to be gained from improving the quality of urban rivers and evaluates the methods commonly used to quantify such benefits. The difficulties encountered in quantifying non-use benefits in developing countries are discussed with particular reference to the River Klang that drains the urban conurbation of Kuala Lumpur in Malaysia, where as in many other locations in developing countries the only potential benefits are the most difficult to justify, namely indirect and non-use benefits.     

Carbon dynamics and land-use choices: building a regional-scale multidisciplinary model

Policy enabling tropical forests to approach their potential contribution to global-climate-change mitigation requires forecasts of land use and carbon storage on a large scale over long periods. In this paper, we present an integrated modeling methodology that addresses these needs. We model the dynamics of the human land-use system and of C pools contained in each ecosystem, as well as their interactions. The model is national scale, and is currently applied in a preliminary way to Costa Rica using data spanning a period of over 50 years. It combines an ecological process model, parameterized using field and other data, with an economic model, estimated using historical data to ensure a close link to actual behavior. These two models are linked so that ecological conditions affect land-use choices and vice versa. The integrated model predicts land use and its consequences for C storage for policy scenarios. These predictions can be used to create baselines, reward sequestration, and estimate the value in both environmental and economic terms of including C sequestration in tropical forests as part of the efforts to mitigate global climate change. The model can also be used to assess the benefits from costly activities to increase accuracy and thus reduce errors and their societal costs.     

Managing for biodiversity from the electric utilities' perspective

The quality and sustainability of the natural environment is a matter of inestimable value and is critical to public health and welfare. All species have a purpose, and they exist for the betterment of other species. It is, therefore, incumbent on all humans to do their part in the preservation of this vast, diverse ecosystem called Earth. All humans are the beneficiaries, the ultimate customers, of a sound environment—water that is safe to drink, air that can be breathed, and soil that will sustain crops. There must be a commitment to leaving a clean and healthy planet for generations to follow, an earth which is enhanced, not diminished, by humans' presence.     

Women and community water supply programmes: An analysis from a socio-cultural perspective

Community water supply programmes are seen as instrumental in achieving the goal of ‘safe’ water for all. Women, a principal target group of these programmes, are to be benefited with greater convenience, enhanced socio‐cultural opportunities and better health for themselves and their families, provided through improved water facilities. Water supply programmes largely consist of three essential components, namely: technology, people and institutions. Although such programmes are intended to benefit women members of local communities, scant attention is paid to the impacts of the socio‐cultural context of the community on these programmes. This article explores the influence of social and cultural intricacies on the implementation of community water supply programmes, and assesses their effectiveness. The article offers important lessons for the design and implementation of this type of programme. It concludes that the local socio‐cultural context sets the stage for programme implementation, being a dynamic factor that determines actual access to water sources, more so than mere physical availability, which is often used as a criterion for programme performance. The article stresses the urgent need to integrate socio‐cultural factors as a fourth dimension in designing community water supply programmes, and suggests practical measures for enhancing the effectiveness of such programmes.     

Political benefits as barriers to assessment of environmental costs in Brazil's Amazonian development planning: The example of the Jatapu Dam in Roraima

Development projects are rapidly changing the landscape in Brazilian Amazonia. Environmental impact assessments have been required since 1986, and the regulatory system is evolving as precedents are set by each new development project. The Jatapu Dam in Roraima provides an illustration of underlying impediments to assessment of environmental costs and to due consideration being given to these assessments when decisions are made. The high priority placed on the dam by the Roraima state government is unexplainable in terms of economic returns. The place of the dam in a long-term political strategy provides the best of several possible explanations, any one of which is incompatible with a rational weighing of economic and environmental costs and benefits. A number of lessons can be drawn from the experience of Jatapu, but some of the problems have no solution. The barriers to rational decision making illustrated by Jatapu apply to development projects in many parts of the world.     

Modeling pollutant release from a surface source during rainfall runoff

Though runoff from manure spread fields is recognized as an important mode of nonpoint-source pollution, there are no models that mechanistically describe transport from a field-spread manure-type source. A mechanistic, physically based model for pollutant release from a surface source, such as field-spread manure, was hypothesized, laboratory tested, and field-applied. The primary objective of this study was to demonstrate the potential applicability of a mechanistic model to pollutant release from surface sources. The laboratory investigation used stable sources and a conservative "pollutant" (KCl) so that the dynamic effects of source dissolution and chemical transformations could be ignored and transport processes isolated. The field investigation used runoff and soluble reactive phosphorus (SP) data collected from a dairy-manure-spread field in the Cannonsville watershed in the Catskills region of New York State. The model predictions corroborated well with observations of runoff and pollutant delivery in both the laboratory and the field. "Pollutant" release from surface sources was generally predicted within 11% of laboratory KCl measurements and field SP observations. Laboratory flume runoff predictions with 15 and 26% errors for 25 and 15 mm h(-1) simulated rainfall intensity experiments, respectively, represented root mean square errors of less than 0.2 mLs(-1). A 26% error was calculated for overland flow predictions in the field, which translated into approximately a 39 mLs(-1) error. Results suggest that the hypothesized model satisfactorily represents the primary mechanisms in pollutant release from surface sources.