Toward the Integration of Economics and Outdoor Recreation Management

The general theme of this bulletin is that improved management of public-sector recreational resources is a multidisciplinary task. To this end, we attempt to integrate elements of outdoor recreation management theory and economics. The bulletin is written for both resource managers and researchers. For the former, our intent is to emphasize the importance of being aware of economic implications-at least conceptually-of management actions that influence the character and availability of recreational opportunities. To researchers involved in developing recreation management theory, we draw attention to the parallel between recreation management theory and the traditional managerial economic model of the firm. To economists, particularly those involved in developing and applying nonmarket valuation techniques, we draw attention to the types of decisions faced by resource managers. We argue that the most important resource allocation issues are of the incremental variety, so nonmarket valuation should also yield incremental values. These values alone, however, are not sufficient economic input into rational public choice analysis. The missing link , or nexus, between outdoor recreation management theory and economic analysis is the integration of supply and demand, as called for by traditional managerial economics. Collaborative research to develop recreation supply response functions akin to agricultural production functions is an essential step that is missing from both literatures. Theoretical and applied work assume greater practical importance if they feed information into this broadened framework. It is our hope that this bulletin will bring the disciplines closer to that realization

Why should support schemes for renewable electricity complement the EU emissions trading scheme?

In virtually all EU Member States, the EU Emissions Trading Scheme (EU ETS) is complemented by support schemes for electricity generation from renewable energy sources (RES-E). This policy mix has been subject to strong criticism. It is mainly argued that RES-E schemes contribute nothing to emissions reduction and undermine the cost-effectiveness of the EU ETS. Consequently, many scholars suggest the abolition of RES-E schemes. However, this conclusion rests on quite narrow and unrealistic assumptions about the design and performance of markets and policies. This article provides a systematic and comprehensive review and discussion of possible rationales for combining the EU ETS with RES-E support schemes. The first and most important reason may be restrictions to technology development and adoption. These may be attributed to the failure of markets as well as policies, and more generally to the path dependency in socio-technical systems. Under these conditions, RES-E schemes are required to reach sufficient levels of technology development. In addition, it is highlighted that in contrast to the EU ETS RES-E support schemes may provide benefits beyond mitigating climate change. --EU Emissions Trading System,market failure,path dependency,policy failure,policy mix,renewable energies,subsidies

Consequences of Electricity Restructuring on the Environment: a Survey

The aim of this paper is to assess theoretical consequences of restructuring electricity markets on the environment. We examine changes in potential behaviours in consumption-side as well as in supply-side. We show that restructuring and following access to competition is not neutral from an environmental standpoint. Deregulation could induce some negative externalities due to requirements in cost-effciency. The principal result of this paper is the need of strong incentives in public policies to compensate the new short-term horizon in which energy sector's firms are evolving, particularly concerning R&D.ELECTRICITY RESTRUCTURING; ENVIRONMENT; GREENHOUSE GAS EMISSIONS; REGULATION; INNOVATION.

ENVIRONMENTAL EFFECTS OF AGRICULTURAL TRADE LIBERALIZATION AND DOMESTIC AGRICULTURAL POLICY REFORMS

The paper reviews existing studies on linkages between agricultural policies, trade liberalization and the environment. Since the price and production changes induced by the Uruguay Round Agreement on Agriculture seem likely to be quite modest for most countries, this partial trade liberalization may not cause major changes, positive or negative, in the environmental impacts of agricultural production. Instead, the environmental impacts of domestic agricultural policy reforms will probably be more significant than impacts induced by the Uruguay Round Agreement on Agriculture. This is largely due to the fact that agricultural trade liberalization, partial or complete, can alleviate some policy failures which have adverse environmental impacts, but does not correct environmental market failures. By contrast, domestic agricultural policy reforms, while alleviating policy failures, could also tackle environmental market failures through, for example, agroenvironmental programmes.

Minnesota Agricultural Economist 689

Livestock Production/Industries, Marketing,

MATHEMATICAL PROGRAMMING FOR RESOURCE POLICY APPRAISAL UNDER MULTIPLE OBJECTIVES

Mathematical programming is one technique that can be used for resource policy appraisal. Multiple objectives are usually involved in resource policy considerations. This paper discusses issues regarding the use of mathematical programming techniques for the multiobjective resource policy arena. Theoretical models are introduced with a separation called for between producer response models and policy maker models due to a disparity of objectives. The paper draws on the literature citing cases where producer level models have been utilized to simulate the policy outcome implications of alternative policies.Resource /Energy Economics and Policy,

Transport Energy Security. The Unseen Risk?

The decline in significance given to energy security in recent years can be associated with increasing trust in the self-balancing security of a global-trading economy. After the events of the first years of the 21st century, that framework now looks more problematic, at least for oil supplies. The underlying level of risk that characterised the oil market of the late 20th century has changed, exacerbated by the increasing inelasticity of demand for oil-based products in the transport sector of the world’s economies, which in its turn reflects the strategic dominance of transport within economies. The prudent course for the international community is to reduce the underlying causes of possible geopolitical constraints by making them more manageable through normal channels. One such constraint that is within every nation’s capability (and self-interest) to reduce is the upward drift in the price inelasticity of domestic oil consumption. This could involve increasing the ability to divert oil used within the domestic economy to transport. Yet for many industrial economies, this option has largely been exhausted and a more radical approach of opening up new energy vectors to supply the transport sector may be needed. Taking preventative action after a security event is generally more straightforward than taking precautionary action to ensure that it never happens. The latter course may only be successful through a coincidence with other interests. The current environment agenda is such a coincident interest with transport fuel security.Transport energy security, Risk

Discounting Dollars, Discounting Lives: Intergenerational Distributive Justice and Efficiency

The view that intergenerational distributive justice and efficiency should be treated separately is familiar, yet controversial. This article elaborates the often-implicit justifications for separate treatment and provides a more express statement of how and when such treatment is appropriate. Substantial attention is devoted to an approach that holds constant the intra- and intergenerational distribution of well-being, which proves to be a valuable analytical device even for intergenerational policies that are not distribution neutral. Also explored are possible interrelationships between intergenerational distributive justice and efficiency, the choice of interest rate for discounting dollars, and how the present approach relates to those that would employ direct social weights to dollars at different points in time.