Double-dipping in environmental markets

There is an increasing tendency to use markets to induce the provision of environmental services. As such markets increase in scope, potential market participants might sell multiple environmental services. The question we consider here is whether participants in such markets should be allowed to sell credits in more than one market simultaneously. Some have argued in favor of such “double-dipping”, because it would make the provision of environmental services more profitable. In practice however, most programs do not allow double-dipping. We show that if the optimal level of pollution abatement is sought, then double-dipping maximizes societal net benefits. However, if pollution policies are set in a piecemeal fashion, then the caps for each market are unlikely to be optimal and, in this second-best setting, a policy prohibiting double-dipping can lead to greater social net benefits. We explore conditions under which a single-market policy is preferred, or equivalently, where piecemeal policies are likely to yield particularly inefficient outcomes.     

Local‐Scale Dynamics and Local Drivers of Bushmeat Trade

Bushmeat management policies are often developed outside the communities in which they are to be implemented. These policies are also routinely designed to be applied uniformly across communities with little regard for variation in social or ecological conditions. We used fuzzy‐logic cognitive mapping, a form of participatory modeling, to compare the assumptions driving externally generated bushmeat management policies with perceptions of bushmeat trade dynamics collected from local community members who admitted to being recently engaged in bushmeat trading (e.g., hunters, sellers, consumers). Data were collected during 9 workshops in 4 Tanzanian villages bordering Serengeti National Park. Specifically, we evaluated 9 community‐generated models for the presence of the central factors that comprise and drive the bushmeat trade and whether or not models included the same core concepts, relationships, and logical chains of reasoning on which bushmeat conservation policies are commonly based. Across local communities, there was agreement about the most central factors important to understanding the bushmeat trade (e.g., animal recruitment, low income, and scarcity of food crops). These matched policy assumptions. However, the factors perceived to drive social‐ecological bushmeat trade dynamics were more diverse and varied considerably across communities (e.g., presence or absence of collaborative law enforcement, increasing human population, market demand, cultural preference). Sensitive conservation issues, such as the bushmeat trade, that require cooperation between communities and outside conservation organizations can benefit from participatory modeling approaches that make local‐scale dynamics and conservation policy assumptions explicit. Further, communities’ and conservation organizations’ perceptions need to be aligned. This can improve success by allowing context appropriate policies to be developed, monitored, and appropriately adapted as new evidence is generated. Dinámicas a Escala Local y Conductores Locales del Mercado de Carne de Caza     

An overview of the environmental finance policies in China: retrofitting an integrated mechanism for environmental management

Considering the significant roles of the policies in developing environmental finance, an overview is conducted on the environmental finance policies （EFPs） in China. This paper analyzed the definition, scope, evolution and main instruments of EFPs. The implementation progress of financial activities on each instrument are investigated respectively. Then the experiences learned from and failures discovered in the development of the EFPs are discussed well recommendations for further improvement of the EFPs and their implementation are provided. Our study found that the EFPs have been established in China after a four-phase evolution since the early 1980s. The policies have played a critical role in leading to a rapid development in environmental finance by involving more financial instruments to accomplish the objective-led environmental plans. Driven by the policies, the new green credit （GC）, green security （GS）, and green insurance （GI） instruments have been phased in as supplements to the conventional command and control approaches to improve the environmental governance of financial activities and pollution sources. However, the market mechanism of financial institution is limited due to their defensive and incapable performance on implementation some of EFP instruments. To further strengthen the effectiveness of EFPs in facilitating environmental man- agement, recommendations are made mainly on the aspects including developing more specific policy guidelines, enhancing information sharing and disclosure, providing sufficient economic incentives, establishing environmental liabilities with financial activities, and involving issues related to climate change, and biodiversity and ecosystem service.     

Environmental policy à la carte: Letting firms choose their regulation

Under uncertainty, the optimal choice between price and quantity instruments depends on the technology of the regulated firms, which is often private information. We consider an environmental policy that delegates the prices-versus-quantities decision to the firms by offering them the choice between an emissions tax and permit trading. Such an approach is currently used in Swiss climate policy. We provide a detailed characterization of the optimal policy and show that this approach reduces expected social costs compared to a pure tax or permit-trading regime. We demonstrate that an optimal allocation of firms to instruments can be achieved despite substantial informational constraints, and that all firms gain from the introduction of the instrument choice compared to optimally designed single-instrument policies. Furthermore, we discuss the conditions under which this approach is likely to be preferable to a hybrid regulation.     

The data not collected on community forestry

Conservation and development practitioners increasingly promote community forestry as a way to conserve ecosystem services, consolidate resource rights, and reduce poverty. However, outcomes of community forestry have been mixed; many initiatives failed to achieve intended objectives. There is a rich literature on institutional arrangements of community forestry, but there has been little effort to examine the role of socioeconomic, market, and biophysical factors in shaping both land‐cover change dynamics and individual and collective livelihood outcomes. We systematically reviewed the peer‐reviewed literature on community forestry to examine and quantify existing knowledge gaps in the community‐forestry literature relative to these factors. In examining 697 cases of community forest management (CFM), extracted from 267 peer‐reviewed publications, we found 3 key trends that limit understanding of community forestry. First, we found substantial data gaps linking population dynamics, market forces, and biophysical characteristics to both environmental and livelihood outcomes. Second, most studies focused on environmental outcomes, and the majority of studies that assessed socioeconomic outcomes relied on qualitative data, making comparisons across cases difficult. Finally, there was a heavy bias toward studies on South Asian forests, indicating that the literature on community forestry may not be representative of decentralization policies and CFM globally.     

Parks versus PES: Evaluating direct and incentive-based land conservation in Mexico

Protected areas (PAs) and payments for ecosystem services (PES) are the top two mechanisms available for countries to achieve international REDD agreements, yet there are few empirical comparisons of their effects. We estimate the impacts of PAs and PES on forest conservation, poverty reduction, and population change at the locality level in Mexico in the 2000s. Both policies conserved forest, generating an approximately 20–25% reduction in expected forest cover loss. PES created statistically significant but small poverty alleviation while PAs had overall neutral impacts on livelihoods. Estimates by individual policy type for the same level of deforestation risk indicate that biosphere reserves and PES balanced conservation and livelihood goals better than strict protected areas or mixed-use areas. This suggests that both direct and incentive-based instruments can be effective, and that policies combining sustainable financing, flexible zoning, and recognition of local economic goals are more likely to achieve conservation without harming livelihoods.     

Learning and the transformative potential of citizen science

The number of collaborative initiatives between scientists and volunteers (i.e., citizen science) is increasing across many research fields. The promise of societal transformation together with scientific breakthroughs contributes to the current popularity of citizen science (CS) in the policy domain. We examined the transformative capacity of citizen science in particular learning through environmental CS as conservation tool. We reviewed the CS and social‐learning literature and examined 14 conservation projects across Europe that involved collaborative CS. We also developed a template that can be used to explore learning arrangements (i.e., learning events and materials) in CS projects and to explain how the desired outcomes can be achieved through CS learning. We found that recent studies aiming to define CS for analytical purposes often fail to improve the conceptual clarity of CS; CS programs may have transformative potential, especially for the development of individual skills, but such transformation is not necessarily occurring at the organizational and institutional levels; empirical evidence on simple learning outcomes, but the assertion of transformative effects of CS learning is often based on assumptions rather than empirical observation; and it is unanimous that learning in CS is considered important, but in practice it often goes unreported or unevaluated. In conclusion, we point to the need for reliable and transparent measurement of transformative effects for democratization of knowledge production.     

Graduated stringency within collective incentives for group environmental compliance: Building coordination in field-lab experiments with artisanal gold miners in Colombia

Small-scale gold mining is important to rural livelihoods in the developing world but also a source of environmental externalities. Incentives for individual producers are the classic policy response for a socially efficient balance between livelihoods and the environment. Yet monitoring individual miners is ineffective, or it is very costly, especially on frontiers with scattered small-scale miners. We ask whether monitoring at a group level effectively incentivizes cleaner artisanal mining by combining lower-cost external monitoring with local collective action. We employ a mining-framed, threshold-public-goods experiment in Colombia's Pacific region, with 640 participants from frontier mining communities. To study compliance with collective environmental targets, we vary the target stringency, including to compare increases over time in the stringency versus decreases. We find that collective incentives can induce efficient equilibria, with group compliance – and even inefficient overcompliance – despite the existence of equilibria with zero contributions. Yet, for demanding targets in which the reward for compliance barely outweighs the cost, compliance can collapse. Those outcomes improve with past successes for easier targets, however, so our results suggest gain from building coordination via graduated stringency.     

How the diversity of human concepts of nature affects conservation of biodiversity

Protecting nature has become a global concern. However, the very idea of nature is problematic. We examined the etymological and semantic diversity of the word used to translate nature in a conservation context in 76 of the primary languages of the world to identify the different relationships between humankind and nature. Surprisingly, the number of morphemes (distinct etymological roots) used by 7 billion people was low. Different linguistic superfamilies shared the same etymon across large cultural areas that correlate with the distribution of major religions. However, we found large differences in etymological meanings among these words, echoing the semantic differences and historical ambiguity of the contemporary European concept of nature. The principal current Western meaning of nature in environmental public policy, conservation science, and environmental ethics–that which is not a human artifact–appears to be relatively rare and recent and to contradict the vision of nature in most other cultures, including those of pre-Christian Europe. To avoid implicit cultural bias and hegemony–and thus to be globally intelligible and effective–it behooves nature conservationists to take into account this semantic diversity when proposing conservation policies and implementing conservation practices.     

Evidence of variable discount rates and non-standard discounting in mortality risk valuation

Time discounting is central to the valuation of future health and mortality risks in public sector allocative decision-making, particularly for environmental policies with delayed health impacts. Using a Risk-Risk trade-off survey, we elicit discount rates for fatality risks and establish discounting functional forms on both a sample and an individual level. We find wide variation in implicit discount rates for fatality risk between individuals, as well as between-individual heterogeneity in discounting functional forms. In aggregate, the sample is best characterised by subadditive discounting. Our work has implications for the academic investigation of intertemporal choice involving mortality risks, and potentially for the evaluation of policy options with delayed mortality risk outcomes. A thought experiment cautions against the standard practice of assuming that exponential discounting characterises society's time preferences.     

The welfare effects of fuel conservation policies in a dual-fuel car market: Evidence from India

We estimate a model of vehicle choice and kilometers driven to analyze the long-run impacts of fuel conservation policies in the Indian car market. We simulate the effects of petrol and diesel fuel taxes and a diesel car tax, taking into account their interactions with the pre-existing petrol fuel tax and car sales taxes. At levels sufficient to reduce total fuel consumption by 7%, the increased diesel and petrol fuel taxes both yield deadweight losses (net of externalities) of about 4 (2010) Rs./L. However, at levels sufficient to reduce total fuel consumption by 2%, the increased petrol fuel tax results in a deadweight loss per liter of fuel conserved that is greater than that caused by the diesel fuel tax. This reflects both the high pre-existing tax on petrol fuel and the high own-price elasticities of fuel demand in India. A tax on diesel cars that results in the same diesel market share as the large diesel fuel tax actually has a negative deadweight loss per liter of fuel conserved. The welfare effects of all three policy instruments are positive, once the external benefits of reducing fuel consumption are added to the excess burden of taxation.     

Effect of Local Cultural Context on the Success of Community‐Based Conservation Interventions

Abstract: Conservation interventions require evaluation to understand what factors predict success or failure. To date, there has been little systematic investigation of the effect of social and cultural context on conservation success, although a large body of literature argues it is important. We investigated whether local cultural context, particularly local institutions and the efforts of interventions to engage with this culture significantly influence conservation outcomes. We also tested the effects of community participation, conservation education, benefit provision, and market integration. We systematically reviewed the literature on community‐based conservation and identified 68 interventions suitable for inclusion. We used a protocol to extract and code information and evaluated a range of measures of outcome success (attitudinal, behavioral, ecological, and economic). We also examined the association of each predictor with each outcome measure and the structure of predictor covariance. Local institutional context influenced intervention outcomes, and interventions that engaged with local institutions were more likely to succeed. Nevertheless, there was limited support for the role of community participation, conservation education, benefit provision, and market integration on intervention success. We recommend that conservation interventions seek to understand the societies they work with and tailor their activities accordingly. Systematic reviews are a valuable approach for assessing conservation evidence, although sensitive to the continuing lack of high‐quality reporting on conservation interventions.     

Alternatives to biodiversity offsets for mitigating the effects of urbanization on stream ecosystems

Globally, offset schemes have emerged in many statutory frameworks relating to development activities, with the aim of balancing biodiversity conservation and development. Although the theory and use of biodiversity offsets in terrestrial environments is broadly documented, little attention has been paid to offsets in stream ecosystems. Here we examine the application of offset schemes to stream ecosystems and explore whether they suffer similar shortcomings to those of offset schemes focused on terrestrial biodiversity. To challenge the applicability of offsets further, we discuss typical trajectories of urban expansion and their cascading physical, chemical and biological impacts on stream ecosystems. We argue that the highly connected nature of stream ecosystems and urban drainage networks can transfer impacts of urbanization across wide areas, complicating the notion of like‐for‐like exchange and the prospect of effectively mitigating biodiversity loss. Instead, we identify in‐catchment options for stormwater control, which can avoid or minimize the impacts of development on downstream ecosystems, while presenting additional public and private benefits. We describe the underlying principles of these alternatives, some of the challenges associated with their uptake, and policy initiatives being trialed to facilitate adoption. In conclusion, we argue that stronger policies to avoid and minimize the impacts of urbanization provide better prospects for protecting downstream ecosystems, and can additionally, stimulate economic opportunities and improve urban liveability.     

Prices vs quantities with multiple pollutants

We examine the choice of policy instruments (price, quantity or a mix of the two) when two pollutants are regulated and firms' abatement costs are private information. Whether abatement efforts are complements or substitutes is key determining the choice of policies. When pollutants are complements, a mixed policy instrument with a tax on one pollutant and a quota on another is sometimes preferable even if the pollutants are identical in terms of benefits and costs of abatement. Yet, if they are substitutes, the mixed policy is dominated by taxes or quotas.     

Valuing nature in a general equilibrium

We explore the consequences of modeling the demand for environmental quality improvements as a fully integrated part of a general equilibrium demand system in an applied general equilibrium (or CGE) analysis. Demand for non-market goods depends on a full range of relative prices as well as environmental outcomes. We simulate the effects of reducing two air pollutants to improve human health and three ecosystem services provided to households. The ecosystem services make non-separable contributions to household utility. We find that willingness to pay measures of use-based ecosystem services are impacted by changes in demand for complementary market goods. Demand for these goods shifts due to pollution reductions that enhance ecosystem services. Partial equilibrium estimates of these use values can be measured with substantial error if they fail to account for the general equilibrium adjustments caused by pollution. Over 300 calibrations of the model identify the model features important to these errors. We find that effects on ecosystem services associated with non-use values have important implications for the feedback effects on use related measures of economic tradeoffs. This is due to how our model integrates market and non-market effects, reflecting the non-market services importance to general equilibrium market outcomes.     

Developing an interdisciplinary and cross‐sectoral community of practice in the domain of forests and livelihoods

Although significant resources are being spent researching and fostering the relationship between forests and livelihoods to promote mutually beneficial outcomes, critical gaps in understanding persist. A core reason for such gaps is that researchers, practitioners, and policy makers lack the structured space to interact and collaborate, which is essential for effective, interdisciplinary research, practice, and evaluation. Thus, scientific findings, policy recommendations, and measured outcomes have not always been synthesized into deep, systemic understanding; learning from practice and implementation does not easily find its way into scientific analyses, and science often fails to influence policy. Communities of practice (CofPs) are dynamic sociocultural systems that bring people together to share and create knowledge around a common topic of interest. They offer participants a space and structure within which to develop new, systemic approaches to multidimensional problems on a common theme. Uniquely informed by a systems‐thinking perspective and drawing from the scientific and gray literatures and in‐depth interviews with representatives of established CofPs in the natural resource management and development domain, we argue that a well‐designed and adequately funded CofP can facilitate interdisciplinary and cross‐sectoral relationships and knowledge exchange. Well‐designed CofPs integrate a set of core features and processes to enhance individual, collective, and domain outcomes; they set out an initial but evolving purpose, encourage diverse leadership, and promote collective‐identity development. Funding facilitates effective communication strategies (e.g., in person meetings). We urge our colleagues across sectors and disciplines to take advantage of CofPs to advance the domain of forests and livelihoods.     

Fishing quota markets

In 1986, New Zealand responded to the open-access problem by establishing the world's largest individual transferable quota (ITQ) system. Using a 15-year panel dataset from New Zealand that covers 33 species and more than 150 markets for fishing quotas, we assess trends in market activity, price dispersion, and the fundamentals determining quota prices. We find that market activity is sufficiently high in the economically important markets and that price dispersion has decreased. We also find evidence of economically rational behavior through the relationship between quota lease and sale prices and fishing output and input prices, ecological variability, and market interest rates. Controlling for these factors, our results show a greater increase in quota prices for fish stocks that faced significant reductions, consistent with increased profitability due to rationalization. Overall, this suggests that these markets are operating reasonably well, implying that ITQs can be effective instruments for efficient fisheries management.     

Incorporating Social and Cultural Significance of Large Old Trees in Conservation Policy

In addition to providing key ecological functions, large old trees are a part of a social realm and as such provide numerous social‐cultural benefits to people. However, their social and cultural values are often neglected when designing conservation policies and management guidelines. We believe that awareness of large old trees as a part of human identity and cultural heritage is essential when addressing the issue of their decline worldwide. Large old trees provide humans with aesthetic, symbolic, religious, and historic values, as well as concrete tangible benefits, such as leaves, branches, or nuts. In many cultures particularly large trees are treated with reverence. Also, contemporary popular culture utilizes the image of trees as sentient beings and builds on the ancient myths that attribute great powers to large trees. Although the social and cultural role of large old trees is usually not taken into account in conservation, accounting for human‐related values of these trees is an important part of conservation policy because it may strengthen conservation by highlighting the potential synergies in protecting ecological and social values. Incorporación del Significado Social y Cultural de Árboles Añejos a Políticas de Conservación