The return of returnable bottles: A study of consumers' and retailers' attitudes and practices concerning returnable bottles

The authors highlight the importance of the trippage of a returnable bottle to the current beverage container debate. Results of recent surveys of consumers and retailers are presented, which show that the reasons for low trippages in the UK are more complex than the conventional diagnosis that ‘consumers cannot be bothered to return bottles’. In many instances consumers thought that the ‘returnable bottle was ‘non- returnable’ and many consumers found it difficult to return bottles to the shops. Making it easier for consumers to return the bottle would appear to be a more effective method of raising trippage than increasing the deposit levels.     

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.     

A Lifecycle Assessment and Economic Valuation of Recycling

The financial costs of recycling schemes fail to account for external costs and benefits such as environmental pollution, road congestion and accidents. This paper compares the environmental and social impacts of a kerbside collection scheme for recyclable household waste, with a bring scheme, using lifecycle assessment. Economic valuation is used to assign relative weights to these impacts. A second comparison examines the relative external costs of recycling and landfill disposal of waste. The results show that the kerbside collection scheme has a lower external cost than the bring scheme, but this is of less importance than the benefits to be gained within the manufacturing system by using secondary materials. It is concluded that the combination of lifecycle assessment and economic valuation is an effective means of evaluation to direct the sustainable development of waste management.     

A model of costs and resources for rural and peri-urban water supply and sanitation in the 1990s

This article develops a model of cost and financing strategies for rural and peri-urban water supply and sanitation. It suggests that significant progress towards the World Summit for Children's goal of universal access to water supply and sanitation can be made if a combination of strategies is adopted. On the cost side, significant cost reductions should be possible through efficiency in resource use and reduction of system management costs. On the financing side, it suggests restructuring the financing of the sector with improved efficiency and greater cost recovery in urban services; full recovery of operation and maintenance costs; cost sharing through community contributions in kind such as local labour and financially in rural and peri-urban water supply for basic levels of service depending on willingness and ability to pay and full cost recovery for higher levels of service; a high degree of cost recovery in rural and peri-urban sanitation; development of institutional structures for both collection and management of revenues; development of alternate financing mechanisms such as rural credit schemes and revolving funds, adapted in specific country contexts, including the required institutional mechanisms; and additional allocations from governments and external support agencies. Additional government or external financing alone, while critical, will not of itself lead to effectiveness in the use of resources. Equally, cost recovery alone cannot lead to universal access and sustainable solutions. A composite set of actions is needed within which building capacities of institutions and people is necessary for sustainability .     

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.     

Ecosystem Management on Public Lands: An Application of Optimal Externality to Timber Production

While there are increasing numbers of non-consumptive forest uses on public lands, some silvicultural management systems provide little flexibility for the realization of non-commodity values. Traditional economic decision-making tools, such as net present value, are often applied in a manner which inadequately accounts for the full value of the resource. As a result, sub-optimal management practices are often implemented. By applying a marginal analysis of the optimal externality of different silvicultural systems, it is possible to identify the optimal timber management strategy in terms of the total costs of the timber harvest under alternative uses. Although difficulties arise in valuing non-consumptive uses, contingent valuation with averting costs estimates can establish a lower bound on society's willingness to pay for foregone timber harvesting. Low impact harvest operations and “new forestry” techniques, such as selection harvest cuts, are helpful in reducing the external costs of timber cutting. Therefore, the implementation of such systems may actually increase the socially optimal area of public lands to be harvested under a multiple-use designation.     

Damage costs of nitrogen fertilizer in Europe and their internalization

This paper estimates the environmental impacts and damage costs (‘external costs’) of synthetic nitrogen fertilizer and discusses options for reducing these impacts, including their consequences for farmers and for producers of fertilizer. The damage costs of the fertilizer life cycle that could be estimated are large, about 0.3 [euro]/kg_N (compared to the current market price of about 0.5 [euro]/kg_N); much of that is due to global warming by N₂O and CO₂ emissions during fertilizer production and N₂O emissions from fertilized fields. Policy options for internalizing these costs are discussed, and the consequences of reduced fertilizer input on crop yield are explored. If the damage costs were internalized by a pollution tax or tradable permits that are auctioned by the government, the economic consequences would be heavy, with a large revenue loss for farmers. However, if it is internalized by tradable permits that are given out free, the revenue loss for farmers is small. The loss for fertilizer producers increases linearly with the amount of external cost that is internalized, by contrast to the loss for farmers which increases quadratically but is very small for a damage cost of 0.3 [euro]/kg_N. Expressed as a change in the fertilizer-dependent part of the farmers' revenue (crop yield × crop price – fertilizer used× fertilizer price), the decrease is less than 0.5% for most crops; the losses are larger only for crops with low [euro]/ha revenue. Averaged over wheat, barley, potatoes, sugar beet and rapeseed, the loss to farmers is about 0.1% in the UK and 0.4% in Sweden. The revenue loss for fertilizer producers is larger, about 8% in the UK and 14% in Sweden.     

Transportation energy in global cities: sustainable transportation comes in from the cold?

The energy, environmental and social benefits of sustainable transportation, i.e. public transit, biking and walking, have long been recognized but are now mainstream in global and local transportation policy debates. However, the economic value of sustainable transportation has always been seen as secondary, unless many external costs were included. The results of a new global study show that cities with significant sustainable transportation systems have reduced costs on road construction and maintenance; better operating cost recovery and fuel-efficiency; fewer road accidents and less air pollution. In overall terms, the percentage of city funds going to transportation is reduced. The data show that cities with the most roads have the highest transportation costs and the most rail-oriented cities have the lowest. Further, the most sprawling cities have the highest direct and indirect costs for transportation. Thus, strategies to contain sprawl, to reurbanize, to build new rail systems into car-dependent suburbs with focussed sub-centers, and to facilitate biking and walking, not only will improve energy efficiency but will reduce costs to the economy of a city. Strategies that build freeways and add to sprawl will do the opposite. Trends indicate that moves toward sustainable urban patterns are beginning. The need to operationalize sustainable transportation strategies in planning and engineering practice and in the politics of infrastructure funding remains a major challenge. Some cities are showing how this can be done.     

A case study on project-level CO2 mitigation costs in industrialised countries: the Climate Cent Foundation in Switzerland

This paper analyses CO₂ emissions reduction costs based on project data from the Climate Cent Foundation (CCF), a climate policy instrument in Switzerland. Four conclusions are drawn. First, for the projects investigated, the CCF on average pays €63/ton. Due to the Kyoto Protocol, the CCF buys reductions only until 2012. This cut-off increases reported per ton reduction costs, as the additional lifetime project costs are set in relation to reductions only until 2012, rather than to reductions realised over the whole lifetime. Lifetime reduction costs are €45/t. Second, correlation between CCF's payments and lifetime reduction costs per ton is low. Projects with low per ton reduction costs should thus be identified based on lifetime per ton reduction costs. Third, the wide range of project costs per ton observed casts doubts on the widely used identification of the merit order of reduction measures based on average per ton costs for technology types. Finally, the CCF covers only a fraction of additional reduction costs. Decisions to take reduction efforts thus depend on additional, non-observable and/or non-economic motives. Any generalisation of results has to consider that this analysis is based on prospective costs of a sub-sample of projects in Switzerland.     

A reappraisal of WRI's estimates of greenhouse gas emissions

Excessive emissions of certain trace gases such as carbon dioxide, methane, nitrous oxide, carbon monoxide and chlorofluorocarbons are likely to result in global warming due to increased concentration of these greenhouse gases (GHGs). Therefore, measures to control GHG emissions are essential and the current international debate is on how to arrive at optimal GHG limitation strategies. To set emission targets or to distribute the burden of costs of various control measures, it is necessary to identify the major emitters. The World Resources Institute has assessed countrywide contributions to global GHG emissions for 1987. This paper disagrees with the basic approach adopted by WRI because it fails to apportion sinks on a logical basis by keeping in mind equity considerations; it does not account for the residence time of different GHGs; and it uses unreliable and outdated data for estimating the emissions. Using recent and reliable data for India and Brazil as well as the IPCC global warming potential for various GHGs, the shares in global emissions have been recalculated. The paper concludes that if only current emissions are considered there is considerable bias against those countries which are latecomers to the process of industrialization.     

The impasse over limits to growth: A suggested course of research

An analysis of the long-term demands, supplies and costs for phosphorus is employed as an example of ‘worst case’ research. Worst case research attempts to bound the problems posed in The Limits to Growth relating to running out of minerals and other raw materials by studying the costs of obtaining such materials from some vast source such as common rock. Since the costs of extracting minerals from these near infinite sources are as high as they would go for thousands of years, they represent the upper limit or worst case outlook, especially since the estimated costs are based on current technology. Recycling, conservation and other possibilities are also examined. At least in certain cases it may be possible from such research to make clearer judgements about the questions of exhaustion posed by the ’limits to growth’ literature.     

In Search of Stability – Investigating Flexible and Stable Production Strategies for an Optimised Steel Plant

It is crucial for a steel making production system to operate at the lowest possible production cost, while satisfying stability and reliability conditions. To plan future production strategies, it is therefore important to be able to model the system behaviour when internal and external parameters are changed. In this study the sensitivity and stability of an optimised solution, of an integrated steel plant, have been investigated. The solution’s sensitivity has been analysed taking both internal process changes and external price variations into account, through applying both simulation and optimisation. The analysis also includes both costs and environmental issues such as carbon dioxide and sulphur emissions. Based on the methodology suggested, it is possible to determine the stability of the system solution, including both economic and environmental performance.     

Constructing genuine savings indicators for Ireland, 1995-2005

In this paper we compute the genuine savings indicators for the Republic of Ireland over the period 1995-2005. We expand and improve existing World Bank's estimates by: a) using data collected from official Irish sources; b) employing the net present value method to assess resource depreciation; c) including external costs from SO(2) and NOx emissions; and d) estimating human capital accumulation using the returns to education. We also perform a sensitivity analysis to check the robustness of our estimates to different assumptions and parameters. Our estimates are consistently smaller than the World Bank's and negative in the first years of the period considered.     

Life-cycle assessment: A survey of current implementation

Life-Cycle Assessment (LCA) is an analytical tool that evaluates the environmental consequences of a product, process, or activity across its entire life cycle. LCA is used internationally by government and industry to obtain a comprehensive perspective of the interactions between an activity and the environment and provides a method to systematically identify opportunities for improvement. The framework is integrated into environmental management programs motivated by market awareness, public perception, and cost savings. The use of LCA is driven by external forces such as eco-labels and the recent development of the ISO 14000 standards. However, LCA has many shortcomings that need to be addressed. The concerns of poor data quality, data availability, high implementation costs, subjectivity, and lack of standardization have sent LCA into a state of flux. In light of the recent surge of interest in LCA, the authors of this article have conducted a corporate survey that targets the implementation of LCA. Their goal is to determine the level of activity of LCA among known practitioners and to elucidate common themes. This article presents their findings from responses by 34 companies that were known to be actively involved in LCA or contemplating its future use.     

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).     

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.     

EFFICIENCY OF HYDROLOGIC DATA COLLECTION SYSTEMS ROLE OF TYPE I AND II ERRORS1

ABSTRACT The efficiency of hydrologic data collection systems is relevant to solution of environmental problems, scientific understanding of hydrologic processes, model-building and management of water resources. Because these goals may be overlapping and non-commensurate, design of data networks is not simple. Identified are four elements of error or risk in such networks: (a) choice of variables and mathematical model for the same process, (b) accuracy of model parameter estimates, (c) acceptance of wrong hypothesis or rejection of correct hypothesis and (d) economic losses associated with error. Of these four, the classical hypothesis testing problem is specifically evaluated in terms of costs of type I and II errors for simple and composite hypotheses; mathematical models for these economic analyses also include costs of sample data and costs of waiting while new data is obtained. An illustrative computational example focuses on the hypothesis that natural recharge might be augmented by a system of pumping wells along an ephemeral channel. The relationship of the hypothesis testing problem to Bayesian decision theory is discussed; it is felt that the latter theory offers a more comprehensive framework for design and use of hydrologic data networks.     

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.     

Economic Valuation of a Mangrove Ecosystem Threatened by Shrimp Aquaculture in Sri Lanka

Mangrove ecosystems in Sri Lanka are increasingly under threat from development projects, especially aquaculture. An economic assessment is presented for a relatively large (42 ha) shrimp culture development proposed for the Rekawa Lagoon system in the south of Sri Lanka, which involved an extended cost–benefit analysis of the proposal and an estimate of the “total economic value” (TEV) of a mangrove ecosystem. The analysis revealed that the internal benefits of developing the shrimp farm are higher than the internal costs in the ratio of 1.5:1. However, when the wider environmental impacts are more comprehensively evaluated, the external benefits are much lower than the external costs in a ratio that ranges between 1:6 and 1:11. In areas like Rekawa, where agriculture and fisheries are widely practiced at subsistence levels, shrimp aquaculture developments have disproportionately large impacts on traditional livelihoods and social welfare. Thus, although the analysis retains considerable uncertainties, more explicit costing of the environmental services provided by mangrove ecosystems demonstrates that low intensity, but sustainable, harvesting has far greater long-term value to local stakeholders and the wider community than large shrimp aquaculture developments.     

Environmental Assessment Framework for Policy Applications: Life Cycle Assessment,External Costs and Multi-criteria Analysis

The paper presents a framework for the analysis of external costs of environmental burdens, namely an impact pathway analysis, often coupled with the inventory stage of life cycle assessment (LCA). The ground rule is: quantify as much as possible in terms of burdens (pollutant emissions, etc.), impacts, and their monetary equivalent, then use multi-criteria analysis (MCA) for any remaining impacts that are considered to be too uncertain or defy quantification through to monetization. Although MCA could be used directly on estimates of burdens or impacts, monetary valuation provides a mechanism for consistent weighting of impacts categories based on assessment of public preference. Further advantages of extending LCA through detailed impact assessment combined with monetary valuation are that it greatly simplifies MCA by combining a large number of different environmental impact categories, thereby avoiding an unmanageably large number of criteria, and also facilitates cost benefit analysis (CBA). The risks are noted of inappropriate use of the tools or interpretation/use of the results, and recommendations are made for improved practice. These points are illustrated with examples. The key messages are: (1) that policies should be targeted correctly to give a clear signal which source of a burden should be reduced by how much; (2) that analysts should take into account the needs of policy makers and the link between the analysis and possible policy applications; and (3) that current LCA practice gives limited guidance in both areas, largely through a lack of consideration of the relative and absolute importance of different types of impact. However, this is precisely the strength of external costs analysis, particularly when used with MCA.