LAND SUBSIDENCE: AN ECONOMIC ANALYSIS1

ABSTRACT. Land subsidence due to groundwater overdraft has been assumed to be one of Arizona's major water related problems. This paper investigates the premise from an economic point of view and concludes that in the case of Arizona the physical fact of land subsidence has little or no economic significance.     

ROLE OF IRRIGATION WATER IN AGRICULTURAL PRODUCTION: SOME RESOURCE USE ISSUES1

ABSTRACT: A partial production function for corn that considers the time and amount of water applications is determined. Examples are worked out by using data on site specific parameters for nine soil sites in the Great Plains Region repesenting various combinations of water holding capacity, pan evaporation, and average rainfall. It is found that soils with a low water holding capacity are more water and energy intensive in crop production and thus more vulnerable to fluctuations in net returns due to declining water tables or energy shortages. Despite this, farmers of low water holding capacity soils are likely to opt for irrigation. This points to the existence of a necessary, but sufficient, condition for socially inefficient use of ground water resources. This calls to question the property right concept in water created through the appropriation doctrine and the “law of capture.” This paper indicates the type of analysis that must be undertaken in order to make appropriate changes in laws governing water use.     

STORM WATER MANAGEMENT: THE CONCEPT AND ITS APPLICATION1

ABSTRACT: Storm water management is a concept being applied in many urban areas to deal with the increasing problems of storm runoff control and flood damage prevention. This paper introduces the concept and describes the recently completed storm water management program in Columbus, Georgia. Columbus has spent five years and over $200,000 in the development of their problem which includes several basic elements: soils inventory and analysis, hydrologic data collection, sediment and erosion control ordinance, storm water management handbook, urban flood simulation model, interdepartment coordination study, drainage problem categorization study, and a pilot basin study. The results of the pilot basin study are presented including example output from the urban simulation model. The computer output illustrates both the hydrologic-hydraulic and economic capabilities of the model.     

MANY RESOURCES,MANY USES: A SYSTEM ANALYSIS APPROACH TO RENEWABLE RESOURCE DEVELOPMENT1

ABSTRACT: Decisionmaking associated with the Nation's 1.7 billion acres of forest and range land has become increasingly complicated because of the rise in competition for resource use and in the awareness of environmental and social effects. This system analysis approach uses four models to synthesize pertinent masses of information into measures of economic, environmental, and social impacts. The system results can be used to help evaluate alternative national programs. The models are:

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EFFICIENCY PROBLEMS FROM USER FEES IN MUNICIPAL WASTEWATER TREATMENT1

ABSTRACT: The Environmental Protection Agency administers a construction grant program to encourage abatement of wastewater pollution by sharing with municipalities the costs of wastewater treatment facilities. The enabling legislation (P.L. 92–500) specifies that EPA's cost share will be 75% of construction costs. It further requires municipalities to collect user fees from industrial users of the facilities to repay that part of the federal grant allocable to the treatment of industrial wastewater. The municipality must return half of the user fees collected to the U.S. Treasury; the municipality is allowed to retain the remaining half. Retention by municipalities of these user fees lowers their effective cost shares and results in the following consequences: (1) a bias for municipalities to select certain kinds of abatement techniques regardless of whether or not they are the least-cost techniques from the national perspective; (2) a bias for municipalities to select larger-than-optimal scales of abatement facilities; (3) a hidden federal subsidy to industry; and (4) grants that favor industrial communities. This article examines the legislative and regulatory requirements for user charges, derives the algebraic expressions for calculating the real federal, municipal, and industrial cost shares with user fees; computes municipal cost shares for selected values of the determinant factors; evaluates efficiency and other consequences of current user fee arrangements; and concludes that the efficiency distortions brought about by the impacts of user fees on cost sharing could be eliminated by requiring that all user fees collected from industry against the federal cost share be returned to the U.S. Treasury.     

FACTORS AFFECTING WATERWAY INVESTMENT DECISIONS1

ABSTRACT: There are many factors, other than economic efficiency, which must be considered in judging the merits of proposed investments in the inland navigation system. No satisfactory formula exists for deciding the net worth of public investments in water resources projects. Such a measure would not be accepted because these investments can serve conflicting goals. Political, rather than technical, judgments are required to resolve these goal conflicts.     

AN OPTIMIZATION MODEL FOR EFFICIENT MANAGEMENT OF URBAN WATER RESOURCES1

ABSTRACT: A mathematical programming model is proposed to determine economically efficient urban water resource allocation and pricing policy by maximizing the sum of the consumer and producer surplus. The optimization of this nonlinear problem is accomplished by the use of linear programming algorithm. The feasibility of using recycled water for municipal purposes is examined in a planning context. The impact of higher water quality discharge standards on pricing and allocation of water is analyzed and the attractiveness of water reuse option is demonstrated.     

Testing the Environmental Kuznets Curve Hypothesis with Bird Populations as Habitat-Specific Environmental Indicators: Evidence from Canada

Abstract:  The traditional environmental Kuznets curve (EKC) hypothesis postulates that environmental degradation follows an inverted U-shaped relationship with gross domestic product (GDP) per capita. We tested the EKC hypothesis with bird populations in 5 different habitats as environmental quality indicators. Because birds are considered environmental goods, for them the EKC hypothesis would instead be associated with a U-shaped relationship between bird populations and GDP per capita. In keeping with the literature, we included other variables in the analysis—namely, human population density and time index variables (the latter variable captured the impact of persistent and exogenous climate and/or policy changes on bird populations over time). Using data from 9 Canadian provinces gathered over 37 years, we used a generalized least-squares regression for each bird habitat type, which accounted for the panel structure of the data, the cross-sectional dependence across provinces in the residuals, heteroskedasticity, and fixed- or random-effect specifications of the models. We found evidence that supports the EKC hypothesis for 3 of the 5 bird population habitat types. In addition, the relationship between human population density and the different bird populations varied, which emphasizes the complex nature of the impact that human populations have on the environment. The relationship between the time-index variable and the different bird populations also varied, which indicates there are other persistent and significant influences on bird populations over time. Overall our EKC results were consistent with those found for threatened bird species, indicating that economic prosperity does indeed act to benefit some bird populations.     

Prospects for Reconciling the Conflict between Economic Growth and Biodiversity Conservation with Technological Progress

Abstract: The conflict between economic growth and biodiversity conservation is understood in portions of academia and sometimes acknowledged in political circles. Nevertheless, there is not a unified response. In political and policy circles, the environmental Kuznets curve (EKC) is posited to solve the conflict between economic growth and environmental protection. In academia, however, the EKC has been deemed fallacious in macroeconomic scenarios and largely irrelevant to biodiversity. A more compelling response to the conflict is that it may be resolved with technological progress. Herein I review the conflict between economic growth and biodiversity conservation in the absence of technological progress, explore the prospects for technological progress to reconcile that conflict, and provide linguistic suggestions for describing the relationships among economic growth, technological progress, and biodiversity conservation. The conflict between economic growth and biodiversity conservation is based on the first two laws of thermodynamics and principles of ecology such as trophic levels and competitive exclusion. In this biophysical context, the human economy grows at the competitive exclusion of nonhuman species in the aggregate. Reconciling the conflict via technological progress has not occurred and is infeasible because of the tight linkage between technological progress and economic growth at current levels of technology. Surplus production in existing economic sectors is required for conducting the research and development necessary for bringing new technologies to market. Technological regimes also reflect macroeconomic goals, and if the goal is economic growth, reconciliatory technologies are less likely to be developed. As the economy grows, the loss of biodiversity may be partly mitigated with end‐use innovation that increases technical efficiency, but this type of technological progress requires policies that are unlikely if the conflict between economic growth and biodiversity conservation (and other aspects of environmental protection) is not acknowledged.     

森林资源经济利用的政策模拟模型应用研究

林业政策在对森林资源的培育、保护和利用方面起相当大的作用.在市场机制作用的框架下林业政策的作用更多的是通过影响市场机制传递的产品和生产要素的价格信号,进而影响生产经营主体的收益成本预期及其决策行为,最终影响到对森林资源的培育、保护和利用的效果,因此分析和认清林业政策对林业发展的作用机制和影响效果有重要的意义.本文基于市场机制.以林业经济福利为目标,把森林资源培育的第一产业环节和以森林资源为原料的第二产业发展结合一起作为完整的产业链,构建一个林业的政策模拟模型.利用该模型,对木材价格、林业税费、信贷利率和采伐限额等林业经济政策的影响进行了定量分析,着重比较了林业产权制度改革前后政策变化所产生的效应,以及所具有的激励效果,从而认识林业政策的变动和调整如何影响政策目标,为政策的制定和对合理政策进行选择提供参考的依据.