Predicting the economic and demographic impacts of long distance commuting in the resources sector: A Surat basin case study

Predicting the economic and demographic impacts of resource development on regional areas is difficult to assess because of limited availability of analysis, difficulties of predicting where workforce are likely to be based, and different impacts on communities because of variations in size and economic structures. In this study modelling has been employed to identify future employment and demographic impacts of future resource developments on communities in the Surat Basin in southern Queensland, Australia. The analysis summarises potential employment increases over multiple projects and uses multipliers from Input–Output models to assess likely impacts by local government area when future workforce might commute to or live locally in the region. The results demonstrate that recent moves to commuting workforces limit the economic impacts on local and regional communities in complex ways.     

Detection and decision-making in environmental effects monitoring

The majority of environmental effects monitoring (EEM) frameworks that have been proposed compare selected indicator variables as a means of assessing whether significant changes in stressed ecosystems have occurred. Most are deterministic in nature and do not appropriately account for the natural variability and dynamics within the systems being comapred. This suggests that the comparative procedures should be statistically based and immediately raises the issue of whether the selected comparative procedures are to be used as decision-making tools or conclusive procedures. Conclusive procedures require a significant body of evidence before rejecting the postulated null hypothesis. The costs and time involved in environmental data collection accordingly bias action toward the maintenance of a status quo approach to environmental management. if, however, EEM is treated as a decision-making procedure, risk functions that include consideration of type I and II statistical error may be developed and combined with costs to select a minimum expected loss strategy for environemental management. Examples of the interpretative difficulties and conclusion reversal phenomena caused when EEM is used as a conclusive procedure are presented. In addition, risk functions appropriate for environmental management within an EEM context are constructed and applied. Only when such tools are fully developed and applied can EEM expect to have significant impacts on minimizing environmental degradation.     

Futures markets and economic efficiency: A theoretical perspective

This article examines the role of futures markets in schieving economic efficiency. The question is introduced in a timeless, certain framework, and extended to the case where time, but not uncertainty, becomes important: it is shown that in such a framework futures markets ensure economic efficiency. Uncertainty is then introduced, and it is shown that contingent markets ensure full efficiency, but that these are cumbersome; it is also shown that futures markets, as an alternative, ensure approximate efficiency. An appendix explores more formally the relation between markets and efficiency.     

Mining compatibility with other projects in Spain: Solutions and benefits

Mining activities are compatible with other activities in space and time if they are developed together and adapted to each other. If permits are required for two projects that are not considered to be compatible, the authorities will be forced to decide which one has prevalence. In the event of conflict or dispute, it is always preferable to attempt to seek compatibility between projects rather than waste time, effort and money on contesting the prevalence decision, as costly and lengthy lawsuits will only delay the development of both projects, with the resulting loss of business opportunities. In this article, technical solutions designed to achieve mining compatibility with other projects are described in terms of benefits and synergies for the projects and benefits for the government that avoid complex decisions and proceedings and optimize revenues.     

The link between 'green' and economic success: environmental management as the crucial trigger between environmental and economic performance

The link between environmental and economic performance has been widely debated in the literature for the last ten to fifteen years. One view is that improved environmental performance mainly causes extra costs for the firm and thus reduces profitability. However, also the opposite has been argued for: improved environmental performance would induce cost savings and increase sales and thus improve economic performance. Theoretical and empirical research have provided arguments for both positions and have not been conclusive so far. This article discusses reasons for the different views and the differences in empirical research and presents a theoretical framework to explain the coexistence of the conflicting views. It is argued that not merely the level of environmental performance, but mainly the kind of environmental management with which a certain level is achieved, influences the economic outcome. The model presented provides implications for both empirical research and company management in practice. Research and business practice should focus less on general correlations and more on causal relationships of eco-efficiency, i.e. the effect of different environmental management approaches on economic performance.     

The economic effects of stratospheric ozone depletion on U.S. agriculture: a preliminary assessment

The adverse effects of stratospheric ozone depletion on human health and welfare is a major environmental concern. One potential welfare effect is reduction in plant productivity, including agricultural crops, due to increased UV-B radiation and tropospheric ozone formation. This paper evaluates the economic effects of potential changes in crop yields due to hypothetical depletions in stratospheric ozone over regions of the U.S.A. Results suggest that increases in tropospheric ozone due to a 15 per cent stratospheric ozone depletion may cause economic losses of around 0·9 billion dollars. Combined effects of both tropospheric ozone and UV-B radiation range from 1·3 to 2·5 billion dollars. These estimates are preliminary, given the high degree of uncertainty in key plant science and aerometric data.     

Mining investment and regional development: A scenario-based assessment for Northern Sweden

The way in which mineral development contributes to economic development in the region where it takes place is important for the mining industry’s relations to the local community. The purpose of this paper is to provide an assessment of the regional-economic impacts of a large-scale contemporary iron ore project in Northern Sweden (including two new mines, two processing plants, and one pellet plant). The regional input-output model rAps, provided by the Swedish government agency NUTEK is used, and it explicitly addresses the linkages between demographic development, the labour market, industrial production and the municipal finances in a consistent modelling framework. The simulation results suggest an average employment multiplier of about 2-2.5 during the maximum production phase, indicating that for every 100 jobs in mining about 100-150 jobs are supported elsewhere in the local economy. The positive impacts in this case are made possible in large because of the existing mining cluster and local suppliers in northern Sweden. Still, these results are perhaps best viewed as an indication of the potential for local economic development as they neglect, for instance, potential supply constraints (e.g., attracting the necessary labour force, road infrastructure, etc.). Specific policies to further strengthen the regional linkage effects may therefore be necessary in order for this potential to be realized in practice, and attention would preferably be paid to policy measures that have positive external spillover effects on the surrounding geographical area.     

Economic transition and environmental sustainability: effects of economic restructuring on air pollution in the Russian Federation

Economic liberalization in former socialist countries may have various implications for their environmental sustainability. Positive effects of this process are potentially associated with improved efficiency, investments into cleaner technologies, responsiveness to environmentally aware markets, and ending subsidies to heavy industries. On the other hand, market liberalization may result in weaker environmental controls, economic instabilities distracting attention from environmental issues, and increasing orientation towards profit-making leading to more intensive exploitation of natural resources. In addition, trade liberalization may result in shifts towards more pollution and resource-intensive industries. This article seeks to quantify effects of economic restructuring in Russia on air pollution from productive economic sectors in the 1990s. Air pollution in Russia had significantly declined in 1991-1999, however, this decline was largely due to economic decline, as the overall pollution intensity of the economy had decreased only slightly. The factors that affected the pollution intensity are: (1) a decrease in the combined share of industrial and transport activities in the economy and (2) changing pollution intensities of the industrial and transport sectors. The pollution intensity of the Russian industry had remained relatively stable during the 1990s. This was the result of the two opposite and mutually canceling trends: (a) increasing shares of pollution-intensive branches such as metal smelting and oil production vs. less pollution intensive manufacturing and (b) decline in pollution intensities within the industrial branches. The article proposes a methodology by which the contribution of both factors to the overall pollution intensity of the industrial sector can be quantified. The pollution intensity of the Russian transport sector appears to have declined in the first half of the 1990s and increased in the second half. The most recent trend can be explained by a rising proportion of private motorcars used for transportation of people and goods instead of traditional rail and other public transport. The findings of the paper demonstrate that shifts towards more pollution-, resource- and energy-intensive industries as a result of economic liberalization emerges as a significant negative factor of the process of economic transition threatening sustainability of emerging market economies. A research agenda to further investigate these impacts is proposed.     

Mining development,income growth and poverty alleviation: A multiplier decomposition technique applied to China

Mining has grown rapidly and is expected to continue to develop solidly in the future with the economic development in China. Based on this trend, how an increase in the outputs of mining sectors affects household income and poverty alleviation is an issue worthy of study. A multiplier decomposition method within a social accounting matrix (SAM) framework shows the linkages through which a mining sector's output contributes to household income growth and poverty alleviation. The decomposition applied to China reveals that mining development has more significantly positive impacts on the high and middle income household than low income household. Moreover, the decomposition incorporated with the Foster, Greer and Thoerbecke (FGT) poverty measure shows that the ‘coal’ sector contributes most to poverty alleviation and the low income household group, which has the biggest poverty rate, is the smallest beneficiary from the mining development. Thus, the policy implication is proposed that the government should give appropriate adjustment on the distribution of income between rich and poor households and help the unskilled human capital from the household group at a low income level to handle advanced technology of mining through education and training to reduce poverty more effectively.     

Economic assessment of the health effects related to particulate matter pollution in 111 Chinese cities by using economic burden of disease analysis

With China's rapid economic development, environmental problems have become more and more serious. Particulate air pollution is terrible in cities with large and dense population. It may lead to adverse health effects and economic costs. In this study, we calculated the health effects of pollution caused by particulate matter with aerodynamic diameters less than 10mum (PM(10)) in 111 Chinese cities in 2004 according to statistical data and epidemiological exposure-response functions. Using economic burden of disease analysis, an economic assessment of these health risks was also presented. In contrast to many previous studies that have examined individual cities, this study covered most large and medium-sized cities in China, which accounted for more than 70% gross domestic product (GDP) of China in 2004. The total economic cost caused by PM(10) pollution was estimated as approximately US$ 29,178.7 million. Mega cities such as Beijing, Shanghai, and Tianjin contribute relatively more to the total costs. The results will help policy makers in formulating more effective countermeasures and increasing public awareness to enhance environmental protection.     

Contemporary Western Rural USA Economic Composition: Potential Implications for Environmental Policy and Research

/ The rural West of the United States is considered strongly antienvironment. The traditional economic reliance of the area on natural resources has long explained this antienvironment stance. The region consistently elects federal officials who as a group consistently vote against environmental bills and seek to undo existing federal environmental regulation. These politicians defend their antienvironment actions based on their perception of the economic composition and interests of the region. Recent studies, however, have suggested that rural residents are increasingly concerned about environmental issues. These studies, however, lack a consistent theoretical basis. This article uses an alternative economic typing system to examine the economic composition of rural Idaho and suggests that the results found using the alternative typing system might provide a theoretical basis to explain why some studies are finding increased rural environmental support. The results show that rural Idaho is much more economically diverse using this alternative typing methodology compared to the outcomes of traditional USDA economic methodologies. The policy and research implications of these findings are examined.KEY WORDS: Rural; Environmental policy; Economic composition     

A human ecological assessment of air quality management: A convergence in economic and ecological thinking?

Traditional air pollution management practices are examined using the human ecological framework adopted by Boyden and others (1981) in their study of Hong Kong—the biohistorical or biosocial approach. The subsequent analysis of current air quality management practices assesses their effectiveness in protecting the overall health of both humans and the natural environment. The uncertainties inherent in air pollution management practices which emerge highlight the need to reduce emissions rather than rely on scientific knowledge to define clean air. The assessment also clearly defines roles for research in various areas such as atmospheric models, health effects, and environmental damage. The final recommendations emphasize the need for the introduction of such incentives to reduce emissions as economic instruments and warn against using health information to define clean air. Health and environmental damage information can, however, be used in risk assessment strategies together with atmospheric dispersion models.     

Cumulative environmental change: Conceptual frameworks,evaluation approaches,and institutional perspectives

Cumulative environmental change or cumulative effects may result from the additive effect of individual actions of the same nature or the interactive effect of multiple actions of a different nature. This article reviews conceptual frameworks of cumulative environmental change and describes analytical and institutional approaches to cumulative effects assessment (CEA). A causal model is a common theoretical construct, although the frameworks vary in their emphasis on different components of the model. Two broad approaches to CEA are distinguished: one scientific and the other planning oriented. These approaches should not be interpreted as competing paradigms but rather different interpretations of the scope of CEA. Each approach can provide a distinct but complementary contribution to the analysis, assessment, and management of cumulative effects. A comparison of the institutional and legislative response to CEA in Canada and the United States shows that Canada is following the American example of incorporating the analysis and assessment of cumulative effects into regulatory actions and administrative procedures that also govern environmental impact assessment.     

Water and economic development: The role of variability and a framework for resilience

The article advances the hypothesis that the seasonal and inter‐annual variability of rainfall is a significant and measurable factor in the economic development of nations. An analysis of global datasets reveals a statistically significant relationship between greater rainfall variability and lower per capita GDP. Having established this correlation, we construct a water resources development index that highlights areas that have the greatest need for storage infrastructure to mitigate the impacts of rainfall variability on water availability for food and basic livelihood. The countries with the most critical infrastructure needs according to this metric are among the poorest in the world, and the majority of them are located in Africa. The importance of securing water availability in these nations increases every day in light of current population growth, economic development, and climate change projections.     

Regional economic disparities in Belgium and regional,national and supra‐national policies: an analysis of collective failure

Two kinds of regional disparities can be distinguished in Belgium. First there is the internationally well‐known dispute between Flanders and Wallonia. Secondly, there are large disparities within the regions. Three policy levels deal with these disparities: the (Flemish) regional level, the national government level and the EEC level. The purpose of this paper is to sketch the regional problems in Belgium, to analyse the policies that deal with them, to consider the co‐ordination problems between them and to shed some light on the public choice aspects of government interventions. It is concluded that regional policy in Belgium is a highly politicised affair. Furthermore public attention paid to regional policies has outgrown the importance of our regional disparities. Even other forms of micro‐economic policy are jeopardised by regional disparities and the resulting pressure.     

An economic modelling approach to the design and delivery of sustainable waste minimisation clubs: Prospects in the new policy framework

Since the early 1990s, waste minimisation clubs have been important sources of information for industry in the UK on clean technology and sustainable waste management practice. Despite this contribution, concern has grown about the declining number of clubs, their performance and the likelihood that they will continue to play a key role in national policy.This paper examines the evidence available and provides estimates of how the numbers varied in England since the first clubs were formed. The results presented indicate that, after initial expansion, numbers went into decline. The paper then explores, using economic theory, why this pattern should have developed and suggests it to be a function of how clubs were designed and managed. The results of the analysis are used to propose alterations in how future clubs could be designed so that they continue to contribute effectively to the development of sustainable waste management in UK industry. These lessons are of value to policy in both the UK and other countries considering the development of this important tool of waste strategy. The paper concludes with a number of suggestions for future research.     

Particulates pollution management and economic analysis of small rural enterprises in mountain areas: A case study of Wenquan town in China

At present, many rural enterprises in China's mountainous areas are developing rapidly, and due to poor planning and improper management, in an uncontrolled manner. These small enterprises are making atmospheric pollution far more serious and more difficult to control than before. Thus, as is the case with most developing countries, China is facing the challenge of managing the increased environmental pollution that is accompanying its economic development. This paper examines the case of cement dust pollution in the town of Wenquan in Sichuan province in order to determine how to adjust the relationship between development of rural enterprises and atmospheric environmental pollution in mountainous areas. Using the single objective linear programming method, and based on the principle of overall optimization, an optimal control plan for different pollution sources was worked out and an economic assessment on reclamation of cement dust was completed. According to our analysis, after implementation of this plan for four years, two months, the concentrations of suspended particles in Wenquan will achieve the requirement of the national third-order ambient air quality standard; the current serious dust pollution will be completely controlled; and the reclamation of cement dust will totally compensate for the cost of dust control and will result in 92,000 yuan of pure profit per year. At that time, the economy and environment will be in harmony.     

Air pollution control by economic incentives in the U.S.: Policy,problems, and progress

This paper deals with cost-effectiveness of the economic incentive policies of the bubble concept and offset credits relative to the policy of direct regulations of air emissions. The second section discusses single- and multi-plant bubbles, their adoption across regions and industries, the methods used to control emissions and the extent of savings in costs. We conclude that despite the delay resulting from duplication of review of state implementation plans by both the state and the Environmental Protection Agency, the required technological commands, the requirement to model air quality and the restrictions to permit bubbling only in the attainment areas, the policy is progressing successfully and should be encouraged by eliminating the restrictions. The third section analyzes the policy of emission offset credit, trading, and banking which can permit economic growth in nonattainment areas. It reviews the available literature, which deals only with aggregation of offsets across cities instead of individual offset trades. Progress by individual offset trades is analyzed in terms of the number of offsets, their acceptance across regions, the extent of reductions in emissions, and the classification of the offsets into internal and external trades. Comparison of estimated capital costs and prices of individual offsets with direct regulation costs reveals that the former are economical. We conclude that despite the problems of high tradeoff ratios, the short and uncertain life of the emission offset credits and the technological commands, the policy is progressing successfully and should be encouraged further by relaxing restrictions.This paper represents the author's personal views. Neither the Commission nor any member of its staff is in any way responsible for these views.     

CO2 capture and storage from a bioethanol plant: Carbon and energy footprint and economic assessment

Biomass energy and carbon capture and storage (BECCS) can lead to a net removal of atmospheric CO₂. This paper investigates environmental and economic performances of CCS retrofit applied to two mid-sized refineries producing ethanol from sugar beets. Located in the Region Centre France, each refinery has two major CO₂ sources: fermentation and cogeneration units. “carbon and energy footprint” (CEF) and “discounted cash flow” (DCF) analyses show that such a project could be a good opportunity for CCS early deployment. CCS retrofit on fermentation only with natural gas fired cogeneration improves CEF of ethanol production and consumption by 60% without increasing much the non renewable energy consumption. CCS retrofit on fermentation and natural gas fired cogeneration is even more appealing by decreasing of 115% CO₂ emissions, while increasing non renewable energy consumption by 40%. DCF shows that significant project rates of return can be achieved for such small sources if both a stringent carbon policy and direct subsidies corresponding to 25% of necessary investment are assumed. We also underlined that transport and storage cost dilution can be realistically achieved by clustering emissions from various plants located in the same area. On a single plant basis, increasing ethanol production can also produce strong economies of scale.     

Simulating Direct and Indirect Damages to Commercial Fisheries from Marine Sand Mining: A Case Study in Korea

Rapid growth in marine sand mining for construction and other uses poses environmental challenges to coastal nations virtually worldwide. Yet the development of management policies, such as a system of fees imposed on operators for damage caused by mining, has been frustrated by a lack of studies to support such measures. Adapting a Beverton-Holt bioeconomic model, this paper attempts to contribute to the estimation of external costs to commercial fisheries due to marine mining. Using the major mining area of Ongjin in Korea as a case study, we estimate economic losses in use value of commercial fisheries through the time to recovery of the injured resource stocks. Present value of lost catch over a 1-year period from mining to resource recovery is estimated at $38,851 for a single “prototype” mining site. Estimated cumulative damages due to recurring mining for 5 and 10 years are $1.5 million and $2.2 million, respectively, at 20 mining sites. Sensitivity analyses are used to examine the effects of alternative assumptions to assess the many sources of uncertainty. Using a form of meta-analysis, dose-response information is used to assess the excess mortality the mining sediment plume has on eggs and larvae and, ultimately, on the value of lost catch ($841). Also addressed is the importance of specifying the appropriate “premining” conditions against which to assess environmental losses at the mining site. Damages estimated with premining fish populations are $23,066 higher than is the case using postmining conditions. Overall, the illustrative results suggest the variety of complex conditions which influence damage to fisheries from mining and which can benefit from further study to improve management guidelines. An erratum to this article can be found at