Water Markets in China: Challenges, Opportunities, and Constraints in the Development of Market-Based Mechanisms for Water Resource Allocation in the People's Republic of China

This discussion paper examines the development of water markets as a solution to water scarcity in China, with particular focus on Water Rights Trading (WRT). Water scarcity is an issue of growing concern for China, particularly in the north, where a combination of limited water sup- plies, economic growth, and population increases are increasingly straining water resources. The Chinese government has moved enthusiastically toward an embrace of market mechanisms to address water scarcity, with WRT being the preferred policy instrument in the agricultural sector, which accounts for the majority of water use in China. Proposed advantages of WRT include a more efficient allocation of scarce water resources and the ability to limit total water use in a given region by carefully limiting rights allocation. However, the implementation of WRT has encountered significant challenges in China, which include a lack of effective monitoring and enforcement of water use, conflicts of interest between various units of government, which prevent effective administration, and a lack of integration with other approaches to water scarcity, including supply augmentation. In light of these challenges, this analysis concludes that market-based mechanisms in general, and WRT in particular, have an important but only partial role to play in alleviating water scarcity in China. This discussion paper proposes several policy recommendations to improve the development of water markets in China, in particular by lowering the transaction costs to establishing markets and improving policy coordination

Is Unemployment Good for the Environment?

Environmental quality is a public good, potentially impacted by everybody. Individual level pro-environmental behavior affects environmental quality in the aggregate. Therefore, it is important to understand what causes individual’s pro-environmental behaviors to change. We quantify the causal effect of one determinant, unemployment, using an EU-27 population representative Eurobarometer survey. Drawing on results from the theory of the private provision of public goods, and recognizing that unemployment decreases income and the opportunity cost of time, we formulate testable predictions that unemployment will decrease the extent of pro-environmental behaviors that require monetary contributions and increase the extent of pro-environmental behaviors that mainly require time/effort. Instrumental variables regressions provide empirical evidence to support these hypotheses. Changes in the unemployment rate within a sub-national region provide the exogenous variation needed to identify the causal effect. Several supplemental questions on the survey provide evidence that environmental issues lose saliency and economic issues gain saliency when one becomes unemployed, suggesting that interested parties may wish to emphasize cost savings of pro-environmental behavior rather than environmental benefits during times of increased unemployment

New resonance approach to competitiveness interventions in lagging regions: the case of Ukraine before the armed conflict

Regional competitiveness is considered to be an alternative basis for the determination of regional interventions. However, the composite competitiveness indicator is quite sensitive to the weights of sub-indicators, no matter what methodology is being used. To avoid this uncertainty in the determination of regional interventions, we proposed a new non-compensatory resonance approach that is focused on the hierarchical coincidence between weaknesses of NUTS 1 and NUTS 2 regions measuring the extensive and intensive components of competitiveness. Such a coincidence, being perceived as a resonance effect, is supposed to increase the effectiveness of interventions triggering synergetic effects and stirring up local regional potentials. The components of competitiveness are obtained through synthesising DEA methodology and Hellwig's index, correspondingly focusing on the measurement of technical efficiency and resource level. In analysing Ukrainian regions, no correlation between resonance interventions and the composite competitiveness indicator or GDP per capita was found, pointing toward a completely different direction in resonance approach. In western Ukraine, the congestion of six NUTS 2 regions was defined as a homogeneous area of analogous resonance interventions focused on improving business efficiency.Web of Science171562

Renewable build-up pathways for the US: Generation costs are not system costs

The transition to a future electricity system based primarily on wind and solar PV is examined for all regions in the contiguous US. We present optimized pathways for the build-up of wind and solar power for least backup energy needs as well as for least cost obtained with a simplified, lightweight model based on long-term high resolution weather-determined generation data. In the absence of storage, the pathway which achieves the best match of generation and load, thus resulting in the least backup energy requirements, generally favors a combination of both technologies, with a wind/solar PV energy mix of about 80/20 in a fully renewable scenario. The least cost development is seen to start with 100% of the technology with the lowest average generation costs first, but with increasing renewable installations, economically unfavorable excess generation pushes it toward the minimal backup pathway. Surplus generation and the entailed costs can be reduced significantly by combining wind and solar power, and/or absorbing excess generation, for example with storage or transmission, or by coupling the electricity system to other energy sectors.Comment: 11 pages, 6 figure

Modelling habitat preference and estimating the spatial distribution of Australian Sea Lions (Neophoca cinerea); "A first exploration "

Managing the Australian sea lion (Neophoca cinerea) population and mitigating its interactions with commercial fisheries, requires an understanding of their spatial distribution and habitat preference at sea. Numerous wildlife telemetry devices have been attached to individual seals from different colonies, providing a detailed insight into there movement and activities. However, as data are only available from some individuals from 16 of 40 colonies in South Australia, these data represents only a small proportion of the population. Moreover, some colonies are poorly represented. To estimate the spatial distribution of the entire South Australian population, one can first investigate why individuals visit certain places and use this information to predict the spatial distribution for other regions lacking data. In this study we fit Generalized Additive Mixed Models (GAMMs) to wildlife telemetry data collected from adult female Australian sea lions to investigate the species’ habitat preference for the variables distance to the colony, depth and slope. The results show that in general they have a higher preference for shallow areas, places close to the colony and a steep slope, but they also display large individual variability. Preference for these variables does not seem to differ between individuals of different sizes. In some of the most western colonies, some individuals seem to spend more time further away from the colony, but apart from this, there is no apparent effect of the longitudinal capture position on preference. The predicted spatial distribution is largely driven by the distance from the departure colony and the actual distribution of individuals among the different colonies. Although depth and slope does seem to effect their distribution to some extent, the most important variables that explain fine-scale foraging activities at-sea are probably missing. Future studies using GPS transmitters attached to animals, that yield high resolution locations and more detailed environmental data, in combination with the analytical technique presented here, should provide more insight there foraging decisions. This should eventually also improve the spatial prediction of the population as a whole

Understanding Behavioral Sources of Process Variation Following Enterprise System Deployment

This paper extends the current understanding of the time-sensitivity of intent and usage following large-scale IT implementation. Our study focuses on perceived system misfit with organizational processes in tandem with the availability of system circumvention opportunities. Case study comparisons and controlled experiments are used to support the theoretical unpacking of organizational and technical contingencies and their relationship to shifts in user intentions and variation in work-processing tactics over time. Findings suggest that managers and users may retain strong intentions to circumvent systems in the presence of perceived task-technology misfit. The perceived ease with which this circumvention is attainable factors significantly into the timeframe within which it is attempted, and subsequently impacts the onset of deviation from prescribed practice and anticipated dynamics

A new and integrated hydro-economic accounting and analytical framework for water resources: A case study for North China

Water is a critical issue in China for a variety of reasons. China is poor of water resources with 2300 m3 of per capita availability, which is less than of the world average. This is exacerbated by regional differences; e.g. North China's water availability is only about 271 m3 of per capita value, which is only of the world's average. Furthermore, pollution contributes to water scarcity and is a major source for diseases, particularly for the poor. The Ministry of Hydrology [1997. China's Regional Water Bullets. Water Resource and Hydro-power Publishing House, Beijing, China] reports that about 65–80% of rivers in North China no longer support any economic activities. Previous studies have emphasized the amount of water withdrawn but rarely take water quality into consideration. The quality of the return flows usually changes; the water quality being lower than the water flows that entered the production process initially. It is especially important to measure the impacts of wastewater to the hydro-ecosystem. Thus, water consumption should not only account for the amount of water inputs but also the amount of water contaminated in the hydro-ecosystem by the discharged wastewater. In this paper we present a new accounting and analytical approach based on economic input–output modelling combined with a mass balanced hydrological model that links interactions in the economic system with interactions in the hydrological system. We thus follow the tradition of integrated economic–ecologic input–output modelling. Our hydro-economic accounting framework and analysis tool allows tracking water consumption on the input side, water pollution leaving the economic system and water flows passing through the hydrological system thus enabling us to deal with water resources of different qualities. Following this method, the results illustrate that North China requires 96% of its annual available water, including both water inputs for the economy and contaminated water that is ineligible for any uses

Development Towards Sustainability: How to judge past and proposed policies?

The scientific data about the state of our planet, presented at the 2012 (Rio+20) summit, documented that today's human family lives even less sustainably than it did in 1992. The data indicate furthermore that the environmental impacts from our current economic activities are so large, that we are approaching situations where potentially controllable regional problems can easily lead to uncontrollable global disasters. Assuming that (1) the majority of the human family, once adequately informed, wants to achieve a "sustainable way of life" and (2) that the "development towards sustainability" roadmap will be based on scientific principles, one must begin with unambiguous and quantifiable definitions of these goals. As will be demonstrated, the well known scientific method to define abstract and complex issues by their negation, satisfies these requirements. Following this new approach, it also becomes possible to decide if proposed and actual policies changes will make our way of life less unsustainable, and thus move us potentially into the direction of sustainability. Furthermore, if potentially dangerous tipping points are to be avoided, the transition roadmap must include some minimal speed requirements. Combining the negation method and the time evolution of that remaining natural capital in different domains, the transition speed for a "development towards sustainability" can be quantified at local, regional and global scales. The presented ideas allow us to measure the rate of natural capital depletion and the rate of restoration that will be required if humanity is to avoid reaching a sustainable future by a collapse transition.Comment: 13 pages, 2 figures, Paper presented at the 2013 World Resource Forum in Davos, Switzerland. Keywords: Natural Capital, IPAT equation, unsustainable living, development towards sustainabilit