Policy context as a factor of bias in the valuation of environmental goods – a dual-process theories perspective

When ecosystem services value estimates are applied in the economic assessment of environmental policies, high accuracy of these estimates is required. One of the directions in the scientific discussion on biases in stated preference (SP) valuation surveys builds on dual-process theories of judgment. The paper contributes to this literature by presenting an experiment where two types of judgment were induced via separate versus joint valuation of environmental goods. The results demonstrated that policy relevance of environmental issues, e.g. the need for conservation measures increases emotional response, causing a larger bias in the separate design as it involves ‘valuation by feeling.’ This finding suggests that the context of a specific policy, which is often the reason for conducting SP surveys, influences the answers, thereby making the results less reliable for use in cost–benefit analysis.     

The Effects of Irrigation and Climate on the High Plains Aquifer: A County‐Level Econometric Analysis

The High Plains Aquifer (HPA) underlies parts of eight states and 208 counties in the central area of the United States (U.S.). This region produces more than 9% of U.S. crops sales and relies on the aquifer for irrigation. However, these withdrawals have diminished the stock of water in the aquifer. In this paper, we investigate the aggregate county‐level effect on the HPA of groundwater withdrawal for irrigation, of climate variables, and of energy price changes. We merge economic theory and hydrological characteristics to jointly estimate equations describing irrigation behavior and a generalized water balance equation for the HPA. Our simple water balance model predicts, at average values for irrigation and precipitation, an HPA‐wide average decrease in the groundwater table of 0.47 feet per year, compared to 0.48 feet per year observed on average across the HPA during this 1985–2005 period. The observed distribution and predicted change across counties is in the (?3.22, 1.59) and (?2.24, 0.60) feet per year range, respectively. The estimated impact of irrigation is to decrease the water table by an average of 1.24 feet per year, whereas rainfall recharges the level by an average of 0.76 feet per year. Relative to the past several decades, if groundwater use is unconstrained, groundwater depletion would increase 50% in a scenario where precipitation falls by 25% and the number of degree days above 36°C doubles. Editor’s note : This paper is part of the featured series on Optimizing Ogallala Aquifer Water Use to Sustain Food Systems. See the February 2019 issue for the introduction and background to the series.     

Maximizing Returns from Payments for Water‐Based Ecosystem Services: Incorporating Externality Effects of Land Management

Given the expansion of payments for water‐based ecosystem services (PWES) worldwide, two relevant issues are as follows: (1) determination of efficient allocations of payments among land managers, and (2) how this might change when paying one manager to implement a best management practice (BMP) to enhance an ecosystem service impacts the cost‐effectiveness of BMPs considered by other land managers not currently involved in PWES. Such externalities may be negative if diminishing returns dominate, or positive if mechanisms such as “social diffusion” dominate. We analyze how a planner should optimally allocate payments, depending on whether the expected externalities are negligible, negative, or positive. We employ (1) an optimal control model to gain insights on the problem’s dynamics, and (2) stochastic dynamic programming to determine optimal funding strategies using a specific application. The study contributes to the literature by identifying dynamically optimal PWES payment patterns, and illustrates how they should change when one accounts for externalities induced by the program. Because such impacts have not been addressed previously in a rigorous way, this treatment provides useful value added for PWES design and implementation.     

Investing in fertilizer–mining companies in times of food scarcity

The primary goal of the paper is to show the validity of investing capital in fertilizer–mining companies, both from a market return perspective for individual or institutional investors, or from a hedging standpoint for insurance companies and other economic actors exposed to inflation risk and high agricultural commodity prices. After providing some elements on the fertilizer market and describing the joint dynamics of corn, wheat and fertilizer prices over the last decade, we analyze an exhaustive sample of listed fertilizer producing companies over the years January 2004–December 2012. We show that their shares generated quite good returns over the whole period and extremely high ones during the years January 2004–December 2007, both in absolute terms and compared to their betas. We also exhibit that these returns display higher sensitivities to major agricultural indexes than to the World Bank Fertilizer Index, making the hedging argument quite compelling.     

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.     

浅谈吉林市农业环境保护事业发展战略

根据近几年来工作经验 ,总结提出了今后吉林市农业环保工作想法 ,以进一步推动农业环保事业发展 ,促进农业生态环境根本好转。     

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。