Producer-level benefits of sustainability certification

Initiatives certifying that producers of goods and services adhere to defined environmental and social-welfare production standards are increasingly popular. According to proponents, these initiatives create financial incentives for producers to improve their environmental, social, and economic performance. We reviewed the evidence on whether these initiatives have such benefits. We identified peer-reviewed, ex post, producer-level studies in economic sectors in which certification is particularly prevalent (bananas, coffee, fish products, forest products, and tourism operations), classified these studies on the basis of whether their design and methods likely generated credible results, summarized findings from the studies with credible results, and considered how these findings might guide future research. We found 46 relevant studies, most of which focused on coffee and forest products and examined fair-trade and Forest Stewardship Council certification. The methods used in 11 studies likely generated credible results. Of these 11 studies, nine examined the economic effects and two the environmental effects of certification. The results of four of the 11 studies, all of which examined economic effects, showed that certification has producer-level benefits. Hence, the evidence to support the hypothesis that certification benefits the environment or producers is limited. More evidence could be generated by incorporating rigorous, independent evaluation into the design and implementation of projects promoting certification.     

Social cost‐benefit analysis of intensive versus traditional shrimp farming: A case study from India

This paper attempts a social cost‐benefit analysis of intensive versus traditional shrimp farming in West Bengal, India. Using primary data, the paper shows that although intensive shrimp farming yields high returns as compared to traditional shrimp farming, when the opportunity costs and environmental costs of shrimp farming, including disease risk, are accounted for, intensive shrimp farming loses its advantage. Sensitivity analysis shows that if the expected benefits were to fall short by 15% and costs rise by a similar proportion, intensive shrimp farmers would report higher losses than traditional shrimp farmers. Large traditional shrimp farmers continue to report positive net returns. These results are also most pronounced for small and marginal intensive shrimp farmers. Further, if the probability of disease risk is also accounted for, intensive shrimp farming reports significant losses whereas traditional shrimp farming in most cases shows positive net returns. In light of the high social costs and risks, this paper questions the rationale behind promoting intensive shrimp farming, especially among small and marginal holdings, as an income‐generating activity or poverty alleviation measure in the absence of an enabling environment. It suggests that policymakers need to factor in sustainability concerns and the local context when formulating policies to promote intensive shrimp farming.     

How to “walk the talk”: The perspectives of sector staff on implementation of the rural water supply programme in Uganda

Many countries in sub‐Saharan Africa have adopted similar approaches to tackle the challenges of rural water supply, including community‐based management, community participation and the demand‐responsive approach. These are often combined with nationwide programmes of capacity‐building and decentralization. This paper first shows how Uganda has adopted these approaches in its rural water supply programme. Based on Government documents, we construct an organizational framework that illustrates the overall programme and outlines the roles and responsibilities which actors are expected to fulfil. Second, based on interviews with sector staff and a review of Government documents, the paper examines challenges to successfully “walk the talk”; that is, it provides insight into challenges affecting programme implementation. Among numerous difficulties, two key issues are highlighted: local political interference and the weak capacity of local governments. Concerning local political interference, local planning processes need to be reformed so that local politicians commit more strongly to improving water supply. Regarding local government capacity, the Government department responsible for the programme has established eight regional units that provide support to local governments. This promising strategy, combined with more appropriate engagement and the commitment of local politicians, should help to improve the implementation of the rural water supply programme in Uganda.     

Marine gold and atoll livelihoods: The rise and fall of the bêche‐de‐mer trade on Ontong Java,Solomon Islands

The rise and fall of the bêche‐de‐mer trade in Solomon Islands is an example of how small, remote island communities are influenced by drivers of change on both the national and international scales. This susceptibility leads to local economic collapses and changed livelihoods. This article focuses on small‐island livelihoods, socio‐economic responses to fluctuating markets and the instability caused by internal and external forces of change. Quantitative surveys, qualitative interviews and participant observation have been used to explore the development trajectories of Ontong Java, a Polynesian outlier in Solomon Islands, in the context of the bêche‐de‐mer trade over the past forty years. The main findings can be captured in four distinct periods that demonstrate the transformation of this atoll community from subsistence‐oriented strategies to specialization in marine resource extraction to economic collapse and return to subsistence. It is concluded that this atoll population has shown a remarkable ability to adjust and cope with processes of globalization.     

Safeguarding livelihoods or exacerbating poverty? Artisanal mining and formalization in West Africa

In recent years, policy mechanisms to support a formalized artisanal and small‐scale mining (ASM) sector in sub‐Saharan Africa have gained increasing currency. Proponents of formalization argue that most social and environmental problems associated with the sector stem from the fact that ASM is predominantly unregulated and operates outside the legal sphere. This paper critically examines recent efforts to formalize artisanal and small‐scale mining in West Africa, drawing upon recent fieldwork carried out in Sierra Leone, Ghana and Mali. In exploring the sector's livelihood dimensions, the analysis suggests that bringing unregulated, informal mining activities into the legal domain remains a considerable challenge. The paper concludes by confirming the urgent need to refocus formalization strategies on the main livelihood challenges and constraints of small‐scale miners themselves, if poverty is to be alleviated and more benefits are to accrue to depressed communities in mineral‐rich regions.     

Wind‐Powered Desalination: An Estimate of Saline Groundwater in the United States1

James Androwski, Abraham Springer, Thomas Acker, and Mark Manone, 2011. Wind‐Powered Desalination: An Estimate of Saline Groundwater in the United States. Journal of the American Water Resources Association (JAWRA) 47(1):93‐102. DOI: 10.1111/j.1752‐1688.2010.00493.x Abstract: Increasing scarcity of freshwater resources in many regions of the world is leading water resource managers to consider desalination as a potential alternative to traditional freshwater supplies. Desalination technologies are energy intensive and expensive to implement making desalination using renewable energy resources a potentially attractive option. Unfortunately, saline groundwater resources are not well characterized for many regions hindering consideration of such technologies. In this assessment, we estimate the saline groundwater resources of the principal aquifers of the United States using a geographic information system and correlate these resources to wind resources potentially sufficient to supply the energy demand of desalination equipment. We estimate that 3.1 × 10¹⁴ m³ saline groundwater, total volume, are contained in 28 of the country’s principal aquifers known to contain saline groundwater. Of this volume, 1.4 × 10¹⁴ m³ saline groundwater are co‐located with wind resources sufficient for electrical generation to desalinate groundwater.     

The Role of Headwater Wetlands in Altering Streamflow and Chemistry in a Maine,USA Catchment1

Morley, Terry R., Andrew S. Reeve, and Aram J.K. Calhoun, 2011. The Role of Headwater Wetlands in Altering Streamflow and Chemistry in a Maine, USA Catchment. Journal of the American Water Resources Association (JAWRA) 1‐13. DOI: 10.1111/j.1752‐1688.2011.00519.x Abstract: Headwater wetlands, including hillside seeps, may contribute to downstream systems disproportionately to their relatively small size. We quantified the hydrology and chemistry of headwater wetlands in a central Maine, USA, catchment from 2003 to 2005 to determine their role in maintaining headwater streamflow and in affecting stream chemistry. A few of these headwater wetlands, commonly referred to as “seeps,” were characterized by relatively high groundwater discharge. During summer base flow, seeps were the primary source of surface water to the stream, contributing between 40 and 80% of stream water. Comparisons of groundwater and surface water dominant ion chemistry revealed only slight differences at the bedrock interface; however, significant changes occurred at the shallow groundwater‐surface water interface where we found decreases in total and individual cation concentrations with decreasing depth. Seep outflows significantly increased total cation and calcium concentrations in streams. Outflows at two seeps produced relatively high nitrate concentrations (88 ± 15 and 93 ± 15 μg/l respectively), yet did not correspond to higher nitrate in stream water below seep outflows (2 ± 1 μg/l). We demonstrate that small wetlands (< 1,335 m²) can contribute to headwater stream processes by linking groundwater and surface‐water systems, increasing the duration and magnitude of stream discharge, and by affecting stream chemistry, particularly during periods of base flow.     

Comparison of Aquifer Sustainability Under Groundwater Administrations in Oklahoma and Texas1

Mittelstet, Aaron R., Michael D. Smolen, Garey A. Fox, and Damian C. Adams, 2011. Comparison of Aquifer Sustainability Under Groundwater Administrations in Oklahoma and Texas. Journal of the American Water Resources Association (JAWRA) 1‐8. DOI: 10.1111/j.1752‐1688.2011.00524.x Abstract: We compared two approaches to administration of groundwater law on a hydrologic model of the North Canadian River, an alluvial aquifer in northwestern Oklahoma. Oklahoma limits pumping rates to retain 50% aquifer saturated thickness after 20 years of groundwater use. The Texas Panhandle Groundwater Conservation District’s (GCD) rules limit pumping to a rate that consumes no more than 50% of saturated thickness in 50 years, with reevaluation and readjustment of permits every 5 years. Using a hydrologic model (MODFLOW), we simulated river‐groundwater interaction and aquifer dynamics under increasing levels of “development” (i.e., increasing groundwater withdrawals). Oklahoma’s approach initially would limit groundwater extraction more than the GCD approach, but the GCD approach would be more protective in the long run. Under Oklahoma rules more than half of aquifer storage would be depleted when development reaches 65%. Reevaluation of permits under the Texas Panhandle GCD approach would severely limit pumping as the 50% level is approached. Both Oklahoma and Texas Panhandle GCD approaches would deplete alluvial base flow at approximately 10% development. Results suggest periodic review of permits could protect aquifer storage and river base flow. Modeling total aquifer storage is more sensitive to recharge rate and aquifer hydraulic conductivity than to specific yield, while river leakage is most sensitive to aquifer hydraulic conductivity followed by specific yield.     

Thinking,feeling and deciding: The influence of emotions on the decision making and performance of traders

We report on a qualitative investigation of the influence of emotions on the decision making of traders in four City of London investment banks, a setting where work has been predominantly theorized as dominated by rational analysis. We conclude that emotions and their regulation play a central role in traders' decision making. We find differences between high and low performing traders in how they engage with their intuitions, and that different strategies for emotion regulation have material consequences for trader behavior and performance. Traders deploying antecedent‐focused emotional regulation strategies achieve a performance advantage over those employing primarily response‐focused strategies. We argue that, in particular, response‐focused approaches incur a performance penalty, in part because of the reduced opportunity to combine analysis with the use of affective cues in making intuitive judgments. We discuss the implications for our understanding of emotion and decision making, and for traders' practice. Copyright © 2010 John Wiley & Sons, Ltd.     

Remodelling reparation: changes in the compensation of victims of natural catastrophes in Belgium and the Netherlands

The paper presents a comparative analysis of the development and present state of compensation for victims of catastrophes in Belgium and the Netherlands. These two neighbouring countries have both seen legislative changes in this field in recent years, albeit with different outcomes. The paper thus analyses to what extent the two compensation scheme structures allow for conclusions as to the comparative benefits of a comprehensive insurance scheme for natural disasters. From the perspective of law and economics, the evolution of private insurance and public intervention through compensation funds, the preference for private or public solutions and the actual financing of these are examined. Drawing on practical experience, such as the case of flood risks, the solutions are tested in view of incentive-based financing. The paper concludes that the private insurance market is more developed in Belgium than it is in the Netherlands, where the reform process has not yet ended.