Economic sustainability and the preservation of environmental assets

The core requirement of sustainability is that current economic activities should not result in an excessive burden on future generations. This criterion is general enough to imply different decision rules for the preservation of environmental assets. Neoclassical economics does not have a sustainability criterion for environmental assets independent of the intertemporal efficiency criterion, which allocates environmental and man-made capital based on projected monetary benefits and costs. This criterion is examined in terms of the feasibility of valuing the benefits of environmental assets, the substitution possibilities between natural and man-made capital, and the ethical grounds for using efficiency as the sole determinant of the allocation of environmental assets. An alternative ecological sustainability criterion is the preservation of safe minimum levels of environmental assets in physical terms rather than the dollar value of a composite of natural and man-made capital. Safe minimum standards for environmental assets constrain the efficiency criterion in order to ensure the sustainability of economic systems. It is argued that the ecological approach to sustainability should limit the economic approach for decisions involving the allocation of environmental assets.     

The gloomy greenhouse: Should the world phase out fossil fuels?

In 1988 the Toronto World Conference on the Changing Atmosphere called for a reduction of CO₂ emissions of the industrialized countries by approximately 20% by the year 2005 as compared with 1988. A stabilization of CO₂ concentrations would require an eventual emissions reduction of more than 50% of present levels. Model runs were performed with the Dutch Integrated Model for the Assessment of the Greenhouse Effect (IMAGE) to put these figures into perspective. It was found that the suggested emissions reduction levels could indeed be adequate to prevent global temperature change from moving beyond past climate experience. However, this would only be the case when these reduced levels of emissions were achieved at a global scale and maximum emission control for the other greenhouse gases was implemented. A delayed response analysis shows that the policies of the coming decades are crucial for the eventual control of the greenhouse effect.     

Local authority technology policies

This paper is concerned with the failure of published research to provide a framework within which local technology policy could be analysed and evaluated. It firstly describes a simple model of the technological development process. Then, using this model as a base, develops a framework for analysing the main aspects of technological policies. The paper considers the main results of a recent survey of local authority technology development policies and initiatives before providing some overall conclusions relating to the nature, direction and likely effectiveness of such policies.     

ECONOMIC POLICIES FOR REGULATING AGRICULTURAL DRAINAGE WATER1

ABSTRACT: Agricultural drainage water is a major source of environmental pollution in many areas. This paper reviews the literature on the economics of nonpoint-source pollution and applies it to the regulation of agricultural drainage water. Four types of regulatory policies are considered. The empirical analysis is carried out for cotton production in the San Joaquin Valley of California. Variable inputs are the quantity of water applied and the type of irrigation system. All four policies can achieve economic efficiency under the conditions assumed here, but the policies differ in terms of the distributional impacts and administrative requirements.     

ITERATIVE EVALUATION OF A LAKE WATER QUALITY MANAGEMENT PROGRAM1

ABSTRACT: Local governments often face environmental problems that cross political boundaries. The onus for solution usually falls on the moat severely affected jurisdiction, others do nothing until impacted. Resolution of these problems requires cooperation across political boundaries which means that local governments must be persuaded first that there is a problem, and second that action is required to solve it. This paper presents a method to supply low cost, credible information that can be used to achieve consensus on problem solution. A case study of a lake water quality management problem is described. Formative evaluation techniques was adapted to provide a minimum of evidence which was then used to persuade less impacted local jurisdictions to cooperate in the problem solution.     

The development of private sheltered housing in Scotland: a changing market

The provision of sheltered housing for sale in Scotland has experienced rapid growth since the opening of the first scheme in 1982. Development has been geographically concentrated in a small number of inner city and rural (coastal) areas. The expectation of continued rapid expansion is unlikely if recent trends of slower growth continue. This paper uses evidence from interviews with developers and owners of sheltered and mainstream housing, to examine the possible future contribution of the private market. On the basis of such evidence it raises questions about the relevance of some existing planning policies.     

ESTIMATING THE WATER QUALITY BENEFITS FROM SOIL EROSION CONTROL1

ABSTRACT: A framework for estimating the water quality benefits from soil erosion was developed. The framework is based on the linkages between soil erosion and offsite damages. The linkages are: erosion on the field, movement of eroded materials to waterways, impact of discharged material on water quality parameters, impact of water quality changes on ability of water to provide economic services, and the economic value of the changes in water use. These linkages need to be modeled in order to estimate the water quality benefits from reductions in soil erosion. Methods for modeling each link on a geographic level, which enables the analyses of national soil conservation, were examined. Areas where data or models were found to be lacking include transport of sediment and nutrients to water systems, impact of discharged materials on water quality parameters, and impact of water quality on ability of water to provide economic services. An economic evaluation of 1983 soil conservation programs was presented as an example of how the framework could be used. A number of simplifying assumptions were made to represent links that could not be modeled with available data.     

Comparative analysis of air pollution emissions by electric utilities: Public policy implications

One of the objectives of US environmental regulations was to reduce industrial air pollution emissions, especially from the electric utility industry, the major industrial air polluter. In this study, a comparative analysis of air pollution emissions from fossil-fuel-burning electric utility plants is conducted. The analysis focuses on a 12-yr period from 1975 to 1987 for three air pollutants: particulates, surfur dioxide, and nitrogen oxides. The results indicate that particulate emissions have been significantly reduced but that sulfur dioxide and nitrogen oxides are still major problems for a number of plants. Furthermore, the disparity in the performance by plants indicates that by using current technology, the industry as a whole could greatly reduce these emissions. These results have policy implication for future environmental legislation.