The market and shadow value of informal fish catch: a framework and application to Panama

Fisheries catches are known to be widely underreported, and much of their value flows in informal markets. Goods and services that are not directly sold in a market also have a corresponding economic value, here termed ‘shadow value’, which can apply to discarded fish—or those that are consumed but not sold (e.g., subsistence catches). Here, we estimate the monetary value of fisheries catches in Panama that are landed but not reported, or that are discarded at sea; this includes catches from artisanal and industrial fleets, as well as recreational and subsistence fisheries. Based on available data, we estimate that the market and shadow value of unreported catches in Panama in 2010 was around US$92 million, equal to approximately 43% of the total reported landed value. In the case of discarded fish, the shadow value represents the potential but entirely unrealized economic benefit of landing such fish; in the case of unreported landings, unreported market value represents only the first link in the potentially sophisticated informal seafood economy. One must be careful in considering these results for policy. It is possible that, rather than seeking to capture these ‘lost’ benefits, fish that are discarded or unreported should not have been caught at all, for example, if they are juveniles or of threatened species; conversely, unreported subsistence catches are crucial for food security throughout the world. These results help contextualize the scale of unreported fisheries in economic terms, and can inform subsequent policies and strategies to ensure social, ecological, and economic sustainability.     

Water Transactions for Streamflow Restoration,Water Supply Reliability,and Rural Economic Vitality in the Western United States

Across the western United States, environmental water transaction programs (EWTPs) restore environmental flows by acquiring water rights and incentivizing changes in water management. These programs have evolved over several decades, expanding from relatively simple two‐party transactions to multiobjective deals that simultaneously benefit the environment and multiple water‐using sectors. Such programs now represent an important water management tool and provide an impetus for collaboration among stakeholders; yet, most evaluations of their effectiveness focus exclusively on environmental outcomes, without adequate attention to impacts on other water users or local economies. To understand how these programs affect stakeholders, a systematic, multiobjective evaluation framework is needed. To meet this need, we developed a suite of environmental and socioeconomic indicators that can guide the design and track the implementation of water transaction portfolios, and we applied them to existing EWTPs in Oregon and Nevada. Application of the indicators quantifies impacts and helps practitioners design water transaction portfolios that avoid unintended consequences and generate mutually beneficial outcomes among environmental, agricultural, and municipal interests.     

Prymnesium parvum: The Texas Experience1

Southard, Gregory M., Loraine T. Fries, and Aaron Barkoh, 2010. Prymnesium parvum: The Texas Experience. Journal of the American Water Resources Association (JAWRA) 46(1):14-23. DOI: 10.1111/j.1752-1688.2009.00387.x Abstract: Golden alga Prymnesium parvum was first identified in Texas during a fish kill investigation on the Pecos River in 1985. Since then golden alga kills occurred sporadically in a variety of waters in the western part of the state until 2001 when the alga became endemic in the Brazos, Canadian, Colorado, Red, and Rio Grande river systems, including the water supplies of two public fish hatcheries, the Possum Kingdom and Dundee state fish hatcheries. The increasing area adversely affected by the alga and frequent massive fish kills heightened public and political awareness and concerns regarding the ecological and economic impacts of P. parvum blooms. The Texas Parks and Wildlife Department (TPWD), the wildlife conservation agency of the state, responded to these concerns with a program to assess the ecological and economic impacts and to develop management options. To date 33 water bodies have been affected and losses are conservatively estimated at 34 million fish valued at US$13 million. Several sport fisheries, including smallmouth bass Micropterus dolomieu, striped bass Morone saxatilis, channel catfish Ictalurus punctatus, and blue catfish Ictalurus furcatus, have been severely affected. Additionally, 26 imperiled fish species occur in the affected water basins and some have been adversely affected. Economic losses associated with reduced fishing and other water-based recreational activities appear considerable. The combined economic losses to three counties (Palo Pinto, Stephens, and Young) surrounding Possum Kingdom reservoir for 2001 and 2003 were estimated at US$2.8 million and US$1.1 million, respectively. This paper describes how the TPWD responded to public and political concerns relative to the emergence of golden alga, its harmful effects to fisheries, and its historic and current statewide distribution.     

Concurrency: a system design approach to environmental management and sustainability

The lessons of history indicate that mismanagement of natural resources and the environment often leads to potentially adverse consequences.The increasing interest in economic development,particularly in the developing countries of the world coupled with increasing population pressures and the globalization of economic activity is placing noticeable stresses on the ultimate sustainability of both human and environmental systems.Sustainable development is not a new concept.It has been an area of concern for different elements of society for some time.Yet efforts to understand the implications of sustainable development have not,until recently,been formalized.We have focused singularly on economic development and environmental quality as if they were mutually exclusive.This paper focuses on the concept of concurrency as both a conceptual framework and practicable method of understanding and implementing the ecology and economy of sustainability.     

经济增长质量与能源效率是一致的吗?

论文从全社会节能的角度提出全社会能源效率的概念,构建了经济增长质量指标体系,并基于1997—2007 年中国30 个省份的面板数据,采用Malmquist DEA方法测算了广义技术进步指数并进行分解,然后运用面板方法分析了经济增长质量与能源效率的作用机制,研究结果表明经济增长质量与能源效率是不完全一致的,具体表现为:改善环境质量与提高能源效率是一致的,技术进步与产业结构升级能够促进能源效率,但出口比重的增加和生活水平的提高会抑制能源效率的改进。技术进步、技术效率、纯技术效率和规模效率对全社会能源效率有正向影响,技术效率的作用大于技术进步,纯技术效率和规模效率的下降削弱了技术进步的正向作用。     

Economic and Ecological Rules for Water Quality Trading1

Horan, Richard D. and James S. Shortle, 2011. Economic and Ecological Rules for Water Quality Trading. Journal of the American Water Resources Association (JAWRA) 47(1):59‐69. DOI: 10.1111/j.1752‐1688.2010.00463.x Abstract: Emissions trading in textbook form uses markets to achieve pollution targets cost‐efficiently. This result is accomplished in markets that regulators can implement without knowing pollution abatement costs. The theoretical promise of emissions trading, along with real‐world success stories from air emissions trading, has led to initiatives to use trading for water pollution control. Yet, trading, particularly when it involves nonpoint sources of pollution, requires significant departures from the textbook concept. This paper explores how features of water quality problems affect the design of markets for water pollution control relative to textbook emissions markets. Three fundamental design tasks that regulators must address for pollution trading to achieve an environmental goal at low cost are examined: (1) defining the point and nonpoint commodities to be traded, (2) defining rules governing commodity exchange, and (3) setting caps on the commodity supplies so as to achieve an environmental target. We show that the way in which these tasks are optimally addressed for water quality markets differs significantly from the textbook model and its real‐world analogs. We also show that the fundamental appeal of emissions trading is lost in the case of realistic water quality markets, as market designs that reduce the costs of achieving water quality goals may no longer be implementable without the regulatory authority having information on abatement costs.     

Multi-stand Forest Management under a Climatic Risk: Do Time and Risk Preferences Matter?

We propose a stochastic dynamic programming framework to model the management of a multi-stand forest under climate risk (strong wind occurrence). The preferences of the forest-owner are specified by a non-expected utility in order to separately analyze intertemporal substitution and risk aversion effects. A numerical method is developed to characterize the optimal forest management policies and the optimal consumption-saving strategy. The stochastic dynamic programming framework is applied to a non-industrial private forest-owner located in North-East of France. We show that the optimal decisions both depend upon risk and time preferences. The authors would like to thank participants at the international conference on Economics of Sustainable Forest Management in Toronto, at the PARIS 1 seminar on Environmental and Natural Resource Economics, at the 2004 Applied Microeconomics Conference in Lille and at the 13th annual conference of the European Association of Environmental and Resource Economists at Budapest.     

The value of the environment – Is it a matter of approach?

This paper discusses why estimates of the benefits of reduced air pollution differ in accordance with the approach used. Estimates based on bottom-up studies of the damage costs related to air pollution usually turn out much lower than estimates based on assessments of the utility of reduced air pollution, obtained for instance by willingness to pay assessments. This is usually explained by the fact that the willingness to pay approach includes the utility aspect of non-market values, and for this reason, it is often preferred to the damage cost approach. This is, however, not the whole story. The paper shows why alternative approaches should not be considered as being in conflict, but rather as means to get supplementary information necessary to put a value on environmental quality. Information from bottom-up assessments of damage costs and from studies of the willingness to pay is used in a macroeconomic model to carry out an evaluation of the social costs of energy saving measures in Hungary.     

EVALUATING INTERDEPENDENT WATERSHED CONSERVATION AND GROUND WATER MANAGEMENT REFORMS1

Abstract: Conserving the watershed can help to preserve ground water recharge. Preventing overuse of available water through pricing reforms can also substantially increase the value of an aquifer. Inasmuch as users are accustomed to low prices, efficiency pricing may be politically infeasible, and watershed conservation may be considered as an alternative. We estimate and compare welfare gains from pricing reform and watershed conservation for a water management district in Oahu that obtains its water supply from the Pearl Harbor aquifer. We find that pricing reform is welfare superior to watershed conservation unless the latter is able to prevent very large recharge losses. Watershed conservation that yields net gains in combination with pricing reform may cause net losses without the pricing reform. If adoption of watershed conservation delays the implementation of pricing reform, the benefits of the latter are significantly reduced.