Stabilising cooperation through pragmatic tolerance: the case of the Parties to the Nauru Agreement (PNA) tuna fishery

Purse seine fishing of skipjack tuna in the Western and Central Pacific Ocean (WCPO) raises concern over increasing impacts on yellowfin and bigeye tuna by-catch. To address sustainability concerns, the Parties to the Nauru Agreement (PNA) adopted the vessel day scheme (VDS) for the management of purse seine fishing in the WCPO. The VDS has the potential to improve economic benefits for PNA members and to contribute to sustainability of the tuna stocks, and since 2012, has become an important mechanism to regulate fishing access rights in PNA waters. Despite this, monitoring and enforcement remains weak leading to violations of the agreement. Using a game theoretic framework, this paper examines the effectiveness of the VDS and its implications for fisheries regionalism. We examine the payoffs of member countries of the Nauru Agreement under full compliance and payoffs under the currently observed partial compliance. Our findings indicate that member states’ partial compliance with VDS rules plays a role in stabilising the agreement. Requiring full compliance, on the other hand, may encompass strong incentives for PNA members to deviate from the VDS since third parties offer attractive benefits in return for privileged access to fishing grounds. However, pragmatic tolerance of deviations from full VDS compliance seems to play a facilitative role in promoting cooperation and fisheries regionalism.

     

Indonesia’s forest conversion moratorium assessed with an agent-based model of Land-Use Change and Ecosystem Services (LUCES)

The Indonesian government recently confirmed its Intended Nationally Determined Contributions (INDCs) to mitigate global climate change. A forest moratorium policy that protects forest and peatland is a significant part of the INDCs; however, its effectiveness is unclear in the face of complex land-use and land-cover change. This study aims to assess the dynamics of land-use change and ecosystem service supply as a function of local decision-making. We developed an agent-based model, Land-Use Change and Ecosystem Services (LUCES), and used it to explore the possible effects of the forest moratorium policy on the land-use decisions of private companies and communities. Our simulations for two districts in Central Kalimantan show that the current implementation of the forest moratorium policy is not effective in reducing forest conversion and carbon emissions. This is because companies continue to invest in converting secondary forest on mineral soils and the moratorium does not affect community decision-making. A policy that combines a forest moratorium with livelihood support and increases farm-gate prices of forest and agroforestry products could increase the local communities’ benefits from conservation. Forest and agroforestry areas that are profitable and competitive are more likely to be conserved and reduce potential carbon emission by about 36 %. The results for the two districts, with different pressures on local resources, suggest that appropriate additional measures require local fine-tuning. The LUCES model could be an ex ante tool to facilitate such fine-tuning and help the Indonesian government achieve its INDC goals as part of a wider sustainable development policy.     

A theory of chemicals regulation and testing

Risk management of chemicals requires information about their adverse effects such as toxicity and persistence, for example. Testing of chemicals allows for improving the information base for regulatory decision‐making on chemicals' production and use. Testing a large number of chemicals with limited time and resources forces a prioritization of chemicals. This paper proposes a decision model that provides a ranking of chemicals according to “urgency to test”. The model adopts a value‐of‐information approach describing the expected welfare gains from regulatory actions that respond to test information. We determine the value‐of‐information of tests revealing chemicals' levels of toxicity and persistence. We compare our findings to the prioritization of chemicals in the new European Chemicals Regulation “REACH”, where several tens of thousands of chemicals are to be tested in order to fill existing information gaps and to implement more effective risk management. We find that the main lines of chemicals' prioritization under REACH receive backing from our decision model. However, prioritization for testing can be further improved by accounting for testing costs and the sensitivity of regulatory action with respect to the test information.     

Terrestrial metapopulation dynamics: a nonlinear bioeconomic model analysis

This paper presents a spatially explicit bioeconomic analysis of species conservation in agricultural areas. Wild species in fragmented agricultural landscapes are best approached as metapopulations consisting of a finite number of local populations. Economic analysis of species conservation in fragmented habitat needs to deal with metapopulation theory and its theoretical implications. This paper presents a spatially explicit bioeconomic model consisting of a straightforward economic land use model and an applied metapopulation model. This paper demonstrates that multiple equilibria and multiple local optima in metapopulations might lead to nonconvexities in the production possibilities set of agricultural profits and species conservation.     

A methodological note on ethics,economics, and the justification of action

Two disciplines claim to provide justification of action. Ethics gives you moral reasons to act upon, whereas economics exploits the concept of rationality. The paper discusses two theories of interdisciplinarity of ethics and economics in order to clarify the relationship. The traditional view of a hierarchical ordering of ethics and economics is rejected, and it is claimed that there are substantial economic contributions to ethical justification.