Industrial symbiosis: the case for market coordination

Despite the fact that all successful, documented cases of industrial symbiosis to this day have been self-organizing, some authors and development officials have suggested that increased public planning might deliver better results in this respect than spontaneously evolved market coordination. This paper takes an historical approach to suggest that comprehensive planning is unlikely to live up to the expectations of its proponents.The essay is structured as follows. The first section provides short case studies of industrial symbiosis in highly different economic and institutional settings, the essentially free-market regime of Victorian England and communist Hungary (1948–1989). The available evidence suggests that market coordination proved much more favorable to the emergence of industrial symbiosis, despite the elaboration of a comprehensive policy to that effect in Hungary. Insights derived from the so-called “Austrian” critique of central planning are then used to explain this paradox. The analysis presented suggests that the Hungarian planners’ failure was not so much the result of the bad implementation of sound policies, but the logical outcome of a top-down approach’s shortcomings. Policy implications for the public planning of industrial symbiosis in a mixed economy are then derived and the case for self-organization is found more compelling. The creation of more innovative institutions that will force firms to “internalize their externalities” while leaving them the necessary freedom to innovate is viewed as an urgently needed and promising path towards increased, sustainable reuse of industrial by-products.     

The Kyoto Protocol and non-CO2 Greenhouse Gases and Carbon Sinks

Many trace constituents other than carbon dioxide affect the radiative budget of the atmosphere. The existing international agreement to limit greenhouse gases, the Kyoto Protocol, includes carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF₆) and credit for some carbon sinks. We investigate technological options for reducing emissions of these gases and the economic implications of including other greenhouse gases and sinks in the climate change control policy. We conduct an integreated assessment of costs using the MIT Emissions Prediction and Policy Analysis (EPPA) model combined with estimates of abatement costs for non-CO₂ greenhouse gases and sinks. We find that failure to take advantage of the other gas and sink flexibility would nearly double aggregate Annex B costs. Including all the GHGs and sinks is actually cheaper than if only CO₂ had been included in the Protocol and their inclusion achieves greater overall abatement. There remains considerable uncertainty in these estimates, the magnitude of the savings depends heavily on reference projections of emissions, for example, but these uncertainties do not change the overall conclusion that non-CO₂ GHGs are an important part of a climate control policy.     

Integrated Models of Fisheries Management and Policy

An overview of the structure and elements of integrated models aimed at studying fishery management policies using static and dynamic optimisation techniques is presented. Continuous and discrete time models are considered under both open-access and sole-owner settings. A variety of economic and biological processes that affect the fishery as a whole is examined. It turns out that overseeing important fish population characteristics such as metapopulation dynamics and multi-species interaction can lead to serious misrepresentation of the fishery and suboptimal controls. Adequate understanding of the economic conditions and considerations potentially affecting the fishermen is necessary to model their behaviour and address their concerns. Misrepresentation of these economic and biologic processes will have an impact on the success of management policies in attaining a sustainable fish population.     

A comparison of fixed-site and non-fixed-site approaches for species protection

The efficacy of simultaneously advancing two distinct conceptual designs (referred to here as fixed-site and non-fixed-site) for species conservation and protection is addressed. In the literature, numerous models can be found that typically stem from a particular design, but rarely are comparisons made between approaches. This paper presents a more integrated optimization framework that models landowner behavior and species viabilities at a landscape scale. Regional demand for resource extraction is used as the economic driver, a variant of simulated annealing is used to solve the model under different species protection approaches, and a detailed species population simulator is utilized to measure biological responses. When directly comparing the outcomes of different species protection strategies from a case study in Oregon (USA), it was found that neither approach was universally superior in terms of financial value or degree of protection for two late seral forest dependent species.     

Natural capital in ecology and economics: an overview

The Brundtland Commission report, Our Common Future, defined sustainable development as development that meets the needs of the present without compromising the ability of futuregenerations to meet their own needs. Although the idea of sustainable development has been widely accepted, it has proveddifficult to identify and implement policies and practices thatpromote sustainable economic growth. Some economists, environmental scientists and policy analysts believe that they can transform the consensus about sustainability into manageablepractices. They propose to accomplish this feat with a set of new ideas about the relationships between the economy and theenvironment offered under the banner of 'natural capital'. An ideal account of natural capital would be one or more standard measures or models that would allow the direct comparison of environmental goods, like forests, fresh water and clean air, with economic goods, like money, capital and productivity. By bringing economic science and environmental science to an objective common ground, a natural capital model has the potentialto provide a concrete means of comparing the economic and ecological costs and benefits of particular policies and programmes. This paper offers a survey and analysis of several new contributions to the formation of the natural capital concept from economists, ecologists, policy analysts, biometricians, foresters and a philosopher. The paper concludes that existingmicroeconomic theory may be 'ungreenable', if it is not reformulated. While macroeconomic approaches to natural capitalhave been more successful, they share the limitation that ecosystems and species are valued solely in monetary terms. These problems are taken to suggest that the development of a successful natural capital model may require economic theory tobe recast to include non-monetary social preferences and values.     

Between economics and ecology: some historical and philosophical considerations for modelers of natural capital

Natural capital models attempt to remediate the relationship between economics and ecology either by conjoining models and theories from each discipline or by finding a type of phenomena that can be meaningfully measured by both fields. The developmentof a widely accepted model which integrates economics and ecologyhas eluded researchers since the early 1970s. This paper offers an historical and philosophical perspective on some of the conceptual problems or obstacles that hinder the development ofnatural capital models. In particular, the disciplinary assumptions of economic science and ecological science are examined and it is argued that these assumptions are antithetical. Hence, the development of an effective and acceptednatural capital model will require that economics and ecology reconsider their self-conceptions as sciences. For the purposesof theoretical research and practical policy, the paper cautionsagainst confusing the issue of whether or not economic models accord with ecological models with the issue of whether or not economic activities accord with ecological realities.     

A new market instrument for sustainable economic and environmental development

The regenerative capacity of ecosystems provides a regulatory basis for sustainable economic growth and development. A natural valuation of an ecosystem's services will arise in a market for developmental rights in the ecosystem using a unit of tradable 'right': E-Scrip. The amount of e-scrip needed for a development may be set by Environmental Assessment. The capacity of the ecosystem to regenerate with developmental pressure may be represented by an independent trader or Factor Proxy for the Environment who provides e-scrip to the market.     

Transition Pathways to Sustainable Agricultural Water Management: A Review of Integrated Modeling Approaches

Agricultural water management (AWM) is an interdisciplinary concern, cutting across traditional domains such as agronomy, climatology, geology, economics, and sociology. Each of these disciplines has developed numerous process‐based and empirical models for AWM. However, models that simulate all major hydrologic, water quality, and crop growth processes in agricultural systems are still lacking. As computers become more powerful, more researchers are choosing to integrate existing models to account for these major processes rather than building new cross‐disciplinary models. Model integration carries the hope that, as in a real system, the sum of the model will be greater than the parts. However, models based upon simplified and unrealistic assumptions of physical or empirical processes can generate misleading results which are not useful for informing policy. In this article, we use literature and case studies from the High Plains Aquifer and Southeastern United States regions to elucidate the challenges and opportunities associated with integrated modeling for AWM and recommend conditions in which to use integrated models. Additionally, we examine the potential contributions of integrated modeling to AWM — the actual practice of conserving water while maximizing productivity. 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.     

Exploring Nontraditional Participation as an Approach to Make Water Quality Trading Markets More Effective

Water quality trading (WQT) has the potential to be a low‐cost means for achieving water quality goals. WQT allows regulated wastewater treatment plants (WWTPs) facing discharge limits the flexibility to either reduce their own discharge or purchase pollution control from other WWTPs or nonpoint sources (NPSs) such as agricultural producers. Under this limited scope, programs with NPSs have been largely unsuccessful at meeting water quality goals. The decision to participate in trading depends on many factors including the pollution control costs, uncertainty in pollution control, and discharge limits. Current research that focuses on making WQT work tends to identify how to increase participation by traditional traders such as WWTPs and agricultural producers. As an alternative, but complementary approach, we consider whether augmenting WQT markets with nontraditional participants would help increase the number of trades. Determining the economic incentives for these potential participants requires the development of novel benefit functions requiring not only economic considerations but also accounting for ecological and engineering processes. Existing literature on nontraditional participants in environmental markets tends to center on air quality and only increasing citizen participation as buyers. Here, we consider the issues for broadening participation (both buyers and sellers) in WQT and outline a multidisciplinary approach to begin evaluating feasibility.     

Cost‐Effectiveness of Alternative Conservation Strategies with Application to the Pacific Leatherback Turtle

Although holistic conservation addressing all sources of mortality for endangered species or stocks is the preferred conservation strategy, limited budgets require a criterion to prioritize conservation investments. We compared the cost‐effectiveness of nesting site and at‐sea conservation strategies for Pacific leatherback turtles (Dermochelys coriacea). We sought to determine which conservation strategy or mix of strategies would produce the largest increase in population growth rate per dollar. Alternative strategies included protection of nesters and their eggs at nesting beaches in Indonesia, gear changes, effort restrictions, and caps on turtle takes in the Hawaiian (U.S.A.) longline swordfish fishery, and temporal and area closures in the California (U.S.A.) drift gill net fishery. We used a population model with a biological metric to measure the effects of conservation alternatives. We normalized all effects by cost to prioritize those strategies with the greatest biological effect relative to its economic cost. We used Monte Carlo simulation to address uncertainty in the main variables and to calculate probability distributions for cost‐effectiveness measures. Nesting beach protection was the most cost‐effective means of achieving increases in leatherback populations. This result creates the possibility of noncompensatory bycatch mitigation, where high‐bycatch fisheries invest in protecting nesting beaches. An example of this practice is U.S. processors of longline tuna and California drift gill net fishers that tax themselves to finance low‐cost nesting site protection. Under certain conditions, fisheries interventions, such as technologies that reduce leatherback bycatch without substantially decreasing target species catch, can be cost‐effective. Reducing bycatch in coastal areas where bycatch is high, particularly adjacent to nesting beaches, may be cost‐effective, particularly, if fisheries in the area are small and of little commercial value. Rentabilidad de Estrategias de Conservación Alternativas Aplicadas a Tortugas Laúd del Pacífico