Embedding Preference Uncertainty for Environmental Amenities in Climate Change Economic Assessments: A “Random” Step Forward

While there is a considerable debate regarding the choice of proper discount rates for assessing climate change projects and policies, only a tiny body of literature emphasizes “what to discount”. Usually, climate change economic assessments rely on tools and methods that employ strong simplifications, assuming, among others, given and fixed preferences about the values of man-made and environmental goods. Aiming to fill a gap in the literature, this paper leaves aside the issue of discounting and focuses on the nature and impact of preference uncertainty on the economic estimates of future climate change damages on ecosystem non-market goods and services. To this end, a general random walk-based stochastic model is proposed, combining a number of parameters, e.g., the growth of income, depletion of environmental assets, the elasticity of income and demand, and the change in preferences towards the environment. The illustrative application of the model shows that the value of environmental losses is significantly affected by the change in preferences. By doing so, the model allows the analyst to visualize future paths of preference evolutions and to bring future values of damaged environmental assets realistically to the fore. If these elements are neglected when estimating climate change-related future damages to environmental goods and services, the results may be too narrow from a policy perspective

A systematic review of the use of environmental economics in the mining industry

Environmental economics is increasingly being used in project appraisals, environmental liability estimates and design of market-based instruments. Mining, an actor capable of causing adverse effects on the environment, human health and well-being, has already been affected by these developments, at a great extent. Up to date, several research studies have been carried out to monetise the externalities of mining projects. Nevertheless, a systematic review of these publications has not been carried out, yet. This paper aims to fill this gap in the literature by investigating (i) the main non-market valuation techniques used; (ii) the main external costs or benefits of mining projects monetised; and (iii) the monetary estimates of mining-related externalities. The analysis shows that practically all economic valuation techniques have been implemented towards assessing, in monetary terms, the mining impacts on the environment. However, the findings from the statistical analysis reveal a wide range of monetary estimates, which are attributed not only to the valuation methods and assumptions used but also to the specific characteristics of the mining projects in question. Also, the research draws directions for future work, as the analysis of the published studies indicates areas of limited availability of estimates or high heterogeneity between the available estimates

A systematic review of the use of environmental economics in the mining industry

Environmental economics is increasingly being used in project appraisals, environmental liability estimates and design of market-based instruments. Mining, an actor capable of causing adverse effects on the environment, human health and well-being, has already been affected by these developments, at a great extent. Up to date, several research studies have been carried out to monetise the externalities of mining projects. Nevertheless, a systematic review of these publications has not been carried out, yet. This paper aims to fill this gap in the literature by investigating (i) the main non-market valuation techniques used; (ii) the main external costs or benefits of mining projects monetised; and (iii) the monetary estimates of mining-related externalities. The analysis shows that practically all economic valuation techniques have been implemented towards assessing, in monetary terms, the mining impacts on the environment. However, the findings from the statistical analysis reveal a wide range of monetary estimates, which are attributed not only to the valuation methods and assumptions used but also to the specific characteristics of the mining projects in question. Also, the research draws directions for future work, as the analysis of the published studies indicates areas of limited availability of estimates or high heterogeneity between the available estimates

Assessing Behavior Similarity of Mineral Raw Material Prices through a Feature-Based Clustering Approach

Mineral raw materials prices have been shown to be affected by macroeconomic factors such as aggregate demand and commodity-specific factors (e.g., supply shocks). In addition, it has been shown that certain mineral raw material prices co-move, meaning that they behave similarly during expansion and contraction phases of the international business cycles. In order to assess the behavior similarity of the prices of different mineral raw materials, we propose a method that utilizes extracted features of time series price data and unsupervised learning techniques to create clusters of price movements having similar long-term behavior

Towards a Comprehensive Framework for Climate Change Multi-Risk Assessment in the Mining Industry

Changing climate conditions affect mining operations all over the world, but so far, the mining sector has focused primarily on mitigation actions. Nowadays, there exists increasing recognition of the need for planned adaptation actions. To this end, the development of a practical tool for the assessment of climate change-related risks to support the mining community is deemed necessary. In this study, a comprehensive framework is proposed for climate change multi-risk assessment at the local level customized for the needs of the mining industry. The framework estimates the climate change risks in economic terms by modeling the main activities that a mining company performs, in a probabilistic model, using Bayes’ theorem. The model permits incorporating inherent uncertainty via fuzzy logic and is implemented in two versatile ways: as a discrete Bayesian network or as a conditional linear Gaussian network. This innovative quantitative methodology produces probabilistic outcomes in monetary values estimated either as percentage of annual loss revenue or net loss/gains value. Finally, the proposed framework is the first multi-risk methodology in the mining context that considers all the relevant hazards caused by climate change extreme weather events, which offers a tool for selecting the most cost-effective action among various adaptation strategies

Identification of Patterns and Influential Factors on Civil Protection Personnel Opinions and Views on Different Aspects of Flood Risk Management: The Case of Greece

The views and perceptions of the civil protection community have a central position in any risk management process or initiative, and are crucial to its success. However, knowledge of the views and perceptions of officials, and what affects them remains limited in the current literature. This work uses questionnaires to explore the views of civil protection personnel in Greece on different elements of flood risk management and identify factors that influence them. Results provide a basic understanding of officials’ views, indicating certain shortcomings in various sectors and dissatisfaction in several aspects of everyday practice. Interestingly, responses of participants to perception- and knowledge-related questions show a pattern, relating to respondents’ attributes and characteristics, such as experience, age, qualifications, and others. On the contrary, their views on everyday practice issues of flood risk management are associated with the type of position they have in the civil protection community. The findings contribute to the overall effort to improve the understanding of the characteristics of civil protection organizations across Europe, as a means to enhance cooperation