The design of water markets when instream flows have value

The main objective of this paper is to design and test a decentralized exchange mechanism that generates the location-specific pricing necessary to achieve efficient allocations in the presence of instream flow values. Although a market-oriented approach has the potential to improve upon traditional command and control regulations, questions remain about how these rights-based institutions can be implemented such that the potential gains from liberalized trade can be realized. This article uses laboratory experiments to test three different water market institutions designed to incorporate instream flow values into the allocation mechanism through active participation of an environmental trader. The smart, computer-coordinated market described herein offers the potential to significantly reduce coordination problems and transaction costs associated with finding mutually beneficial trades that satisfy environmental constraints. We find that direct environmental participation in the market can achieve highly efficient and stable outcomes, although the potential does exist for the environmental agent to influence outcomes.     

Forestry-based carbon sequestration projects in Africa: Potential benefits and challenges

Carbon sequestration through forestry and agroforestry can help mitigate global warming. For Africa, carbon sequestration also represents an opportunity to fund sustainable development through financial inflows. However, with a low share of global carbon trade, there are strong concerns that African countries are losing out on this valuable opportunity. Through a comprehensive review of 23 carbon sequestration projects across 14 countries, this paper discusses ways to overcome critical challenges to scale up carbon investments in Africa. These projects are expected to sequester 26.85 million tCO₂ beyond the baseline situation. Within the continent, East Africa is the preferred destination for carbon investors. Most projects are non‐Kyoto compliant and represent voluntary emission reductions. While project benefits such as increased local incomes and improved natural resources are promising, there are concerns that conversion of grasslands into tree plantations can harm local ecosystems. Insecure land tenure constrains new investments and increases the risk that local communities will lose access to forests. Another challenge is that projects with smallholders have high transaction costs. These costs can be overcome by building strong community institutions and simplifying project guidelines. To attract more projects, African governments will need to build their capacity to identify relevant opportunities.     

Managing Drought Through Water Markets: Farmer Preferences in the Rio Grande Basin1

Abstract: Managing drought in agriculture has taken on growing importance as population growth and environmental concerns place increasing pressures on agricultural water use. One alternative for agricultural water resource management in areas of recurrent drought is allocation through market mechanisms. While past research has aimed to explain why farmers are reluctant to participate in already established water markets, this research seeks to identify the appropriate market mechanism given farmers’ preexisting attitudes toward water markets. Statistical analysis of survey data from 166 farmer interviews in the Rio Grande Basin indicate that farmers are significantly more likely to participate in short‐term water mechanisms, such as spot water markets and water banks than in permanent transfer mechanisms, particularly those that fully separate water rights from land. In sharp contrast to expectations, the choice of market mechanism did not differ significantly between farmers based on their a priori intention to buy, sell or both buy and sell in these markets. Choice of market mechanism also did not differ among farmer types although small, lifestyle or hobby farmers clearly preferred spot water markets to other types of short‐term mechanisms. Evaluating these attitudes a priori may help to design more suitable water market mechanisms for the basin.     

Water,Adaptation, and Property Rights on the Snake and Klamath Rivers1

Abstract: Water demand in a viable economy tends to be dynamic: it changes over time in response to growth, drought, and social policy. Institutional capacity to re‐allocate water between users and uses under stress from multiple sources is a key concern. Climate change threatens to add to those stresses in snowmelt systems by changing the timing of runoff and possibly increasing the severity and duration of drought. This article examines Snake and Klamath River institutions for their ability to resolve conflict induced by demand growth, drought, and environmental constraints on water use. The study finds that private ownership of water rights has been a major positive factor in successful adaptation, by providing the basis for water marketing and by promoting the use of negotiation and markets rather than politics to resolve water conflict.     

Economic Modelling in Sustainability Science: Issues,Methodology, and Implications

Sustainability science is a new branch of human knowledge. It is necessary to model sustainability science based on a framework consisting of the interactions of society, ecology, the environment and the economy. This paper develops such a model, the SEEOSG model, containing the essential structural relationships that incorporate the environmental and economic conditions required for sustainability. The model is solved as a dynamic optimisation problem. This optimal growth model of ecology and economic growth enables us also to analyse the issues which are specific to sustainability science such as the ecologically sustainability and inter-generational equity implications of economic activities and policies. In the model results growth maximisation goals appear to be fraught with difficulties such as infeasibility and non-sustainability. The results also suggest also that an equilibrium ecological and economic system does not sustain over a very long period of time unless appropriate actions are taken. Readers should send thier comments on this paper to: BhaskarNath@aol.com within 3 months of publication of this issue.     

Evaluation of a Market in Wetland Credits: Entrepreneurial Wetland Banking in Chicago

Abstract: With the rise of market‐led approaches to environmental policy, compensation for permitted discharge of dredge or fill material into wetlands under Section 404 of the U.S. Clean Water Act has been purchased increasingly from entrepreneurial third‐party providers. The growth of this practice (i.e., entrepreneurial wetland banking) has resolved many challenges associated with wetland compensation. But it has also produced (1) quantifiable temporal loss of wetland ecological functions, (2) spatial redistribution of wetland area, and (3) a degree of regulatory instability that may pose a threat to entrepreneurial compensation as a sustainable component of wetland‐compensation policy. We used achieved compensation ratios, lapse between bank credit sale and the attainment of performance standards, distance between impact and bank site, and changes in bank market area to examine these 3 factors. We analyzed data from a census of all such transactions in the Chicago District of the U.S. Army Corps of Engineers, compiled from site visits, Corps databases, and contacts with consultants and Section 404 permittees. Entrepreneurial banking provided compensation at a lower overall ratio than nonbank forms of compensation. Approximately 60% of bank credits were sold after site‐protection standards were met but before ecological performance standards were met at the bank site. The average distance between bank and impact site was approximately 26 km. The area of markets within which established banks can sell wetland credits has fluctuated considerably over the study period. Comparing these data with similar data for other compensation mechanisms will assist in evaluating banking as an element of conservation policy. Data characterizing the performance of entrepreneurial wetland banks in actual regulatory environments are scarce, even though it is the most established of similar markets that have become instrumental to federal policy in administering several major environmental protection laws.     

Composting,anaerobic digestion and biochar production in Ghana. Environmental–economic assessment in the context of voluntary carbon markets

In some areas of Sub-Saharan Africa appropriate organic waste management technology could address development issues such as soil degradation, unemployment and energy scarcity, while at the same time reducing emissions of greenhouse gases. This paper investigates the role that carbon markets could have in facilitating the implementation of composting, anaerobic digestion and biochar production, in the city of Tamale, in the North of Ghana. Through a life cycle assessment of implementation scenarios for low-tech, small scale variants of the above mentioned three technologies, the potential contribution they could give to climate change mitigation was assessed. Furthermore an economic assessment was carried out to study their viability and the impact thereon of accessing carbon markets. It was found that substantial climate benefits can be achieved by avoiding landfilling of organic waste, producing electricity and substituting the use of chemical fertilizer. Biochar production could result in a net carbon sequestration. These technologies were however found not to be economically viable without external subsidies, and access to carbon markets at the considered carbon price of 7 EUR/ton of carbon would not change the situation significantly. Carbon markets could help the realization of the considered composting and anaerobic digestion systems only if the carbon price will rise above 75–84 EUR/t of carbon (respectively for anaerobic digestion and composting). Biochar production could achieve large climate benefits and, if approved as a land based climate mitigation mechanism in carbon markets, it would become economically viable at the lower carbon price of 30 EUR/t of carbon.     

新型污染物卤代咔唑的环境行为及生态毒理效应

卤代咔唑(PHCs)是一类与多氯二苯并呋喃结构相类似的新型环境有机污染物.单种卤素取代的PHCs具有135个同系物.绝大多数PHCs不是人类合成化学品或工业品.虽然20世纪80年代即首次在环境中发现PHCs,但直到本世纪这类化合物才逐渐引起人们的关注.近年来,20余种PHCs在河流湖泊沉积物和土壤中被陆续检出.另外,PHCs具有类二噁英毒性、持久性和生物累积性.作为一类新型污染物,PHCs的环境行为研究目前相对较少.因此,了解PHCs的环境分布、来源和生态毒理效应对正确认识这类化合物的环境风险具有重要意义.本文综述了PHCs的环境分布、来源、分析方法和生态毒理效应,并对其未来的研究发展方向作了展望.     

九龙江下游水源水中新发病原微生物和抗生素抗性基因的定量PCR检测

新发水传病原微生物和抗生素抗性基因对于饮用水的生物安全性有重要意义.以7种典型的水传病原微生物和4种抗生素抗性基因作为检测指标,对闽西南地区的重要水源九龙江下游水源水进行了检测.从九龙江下游4个采样点和附近某水厂进出水采集水样,用0.22μm的滤膜过滤后,进行DNA提取及荧光定量PCR检测.结果表明,九龙江下游水源水中Salmonella enterica(Salmonella spp.)、Legionella pneumophila(L.pneumophila)和Pseudomonas aeruginosa(P.aeruginosa)等个别指标可达到103、104、105copies.mL-1的水平.有机物浓度可能对病原微生物和抗生素抗性基因的水平有较大影响.水厂常规工艺对于大多数病原微生物和抗生素抗性基因可以实现有效去除,但对Salmonella spp.的去除效果不理想.因此为保证饮用水安全,需要在清理污染源、提高处理工艺水平以及末端控制方面加强管理.     

Has the Clean Development Mechanism assisted sustainable development?

One of the dual objectives of the Clean Development Mechanism (CDM) of the Kyoto Protocol is to assist host countries in achieving sustainable development. With various CDM indicators for 58 CDM host countries over the period 2005‐2010, this paper empirically assesses whether CDM project development fulfils its sustainable development objective. Using a unique dynamic panel data method based on the long‐differenced model, this research provides convincing evidence that CDM projects contribute to sustainable development in host countries. It sheds light on the role of the CDM in the process of global sustainability with clear policy implications for developing countries and those embracing market instruments.