The economic and ecological effects of water management choices in the upper Niger river: Development of decision support methods

One million people in the Inner Niger Delta make a living from arable farming, fisheries and livestock. Upstream dams (one built for electricity generation and one for irrigation) affect this downstream multifunctional use of water. Additionally, the Inner Niger Delta, which is one of the largest Ramsar sites in the world, is a hotspot of biodiversity and accommodates two of the largest known breeding colonies of large wading birds in Africa and in addition, is a vital part of the eco-regional network, supporting up to 3 to 4 million staging waterbirds, residents and migrants from all over Europe and western Asia. The hydrological and related ecological conditions in the Inner Delta largely determine the population size of these waterbird species. The major aim of the three-year study was to develop a decision-support system for river management in the Upper Niger, in which ecological and socio-economical impacts and benefits of dams and irrigation systems can be analysed in relation to different water management scenarios. The study involves various components: hydrology, arable farming, livestock, fisheries, ecology and socio-economics. An economic analysis has been conducted to determine the role of dams in the economy of the Inner Niger Delta and the Upper Niger region. By innovatively combining the above information on hydrology, ecology, fisheries, and agriculture, the study shows that building new dams is not an efficient way to increase economic growth and reduce poverty in the region. In fact, such efforts are counter-effective. Instead, development efforts should be aimed at improving the efficiency of the existing infrastructure, as well as of current economic activities in the Inner Niger Delta itself. This approach will also provide greater certainty for the essential eco-regional network functioning of the Inner Delta. © 2006 Taylor & Francis

Potential impact of invasive alien species on ecosystem services provided by a tropical forested ecosystem: a case study from Montserrat

Local stakeholders at the important but vulnerable Centre Hills on Montserrat consider that the continued presence of feral livestock (particularly goats and pigs) may lead to widespread replacement of the reserve’s native vegetation by invasive alien trees (Java plum and guava), and consequent negative impacts on native animal species. Since 2009, a hunting programme to control the feral livestock has been in operation. However long-term funding is not assured. Here, we estimate the effect of feral livestock control on ecosystem services provided by the forest to evaluate whether the biodiversity conservation rationale for continuation of the control programme is supported by an economic case. A new practical tool (Toolkit for Ecosystem Service Site-based Assessment) was employed to measure and compare ecosystem service provision between two states of the reserve (i.e. presence and absence of feral livestock control) to estimate the net consequences of the hunting programme on ecosystem services provided by the forest. Based on this we estimate that cessation of feral livestock management would substantially reduce the net benefits provided by the site, including a 46 % reduction in nature-based tourism (from $419,000 to$228,000) and 36 % reduction in harvested wild meat (from $205,000 to$132,000). The overall net benefit generated from annual ecosystem service flows associated with livestock control in thereserve, minus the management cost, was $214,000 per year. We conclude that continued feral livestock control is important for maintaining the current level of ecosystem services provided by the reserve

"A convenient truth": air travel passengers' willingness to pay to offset their CO2 emissions

Several economic reviews demonstrate the substantial costs related to climate change and consequently call for early action. These reviews, however, have been limited to measuring ‘objective’ risks and expected material damage related to climate change. The ‘subjective’ perceived risk of climate change and society’s willingness to pay (WTP) to avoid these risks are expected to provide an important additional motivation for direct action. We investigate whether and why air travel passengers—an increasingly important source of greenhouse gas emissions—are supportive of measures that increase the cost of their travel based on the polluter pays principle and compensate the damage caused by their flight. Compared to the results of the few previous studies that have elicited WTP estimates for climate policy more generally, our results appear to be at the lower end of the scale, while a comparison to estimates of the social cost of carbon shows that the average WTP estimate in this study is close to the estimated marginal damage cost. Although significant differences are found between travellers from Europe, North America, Asia and the rest of the world, we show that there exists a substantial demand for climate change mitigation action. The positive risk premium over and above the expected property damage cost assessments should be accounted for more explicitly in economic reviews as it will add to the burden of proof of direct action. Measurements of passenger WTP will help policy makers to design effective financial instruments aimed at discouraging climate-unfriendly travel activities as well as to generate funds for the measures directed at climate change mitigation and adaptation. Based on stated WTP by travellers to offset their greenhouse gas emissions, funds in the order of magnitude of €23 billion could be generated annually to finance climate change mitigation activities

A Kuznets curve for recycling

The paper aims at extending the debate on Environmental Kuznets Curves to the case of non-renewable resources and to discuss the driving forces that might give rise to EKC's in this case. The paper at hand deviates from the standard EKC analysis in two ways: First, mostly EKC's are analyzed for flow variables. In this paper we argue that EKC's may very well arise for certain stock variables like minerals or waste. Second, most papers that provide a theoretical foundation for EKC's focus on assumptions like technological anomalies (e.g. increasing returns) or technological switches. We offer an alternative explanation by showing that EKC's might arise simply due to the combination of recycling and the rising scarcity of materials. It is shown that an EKC for non-renewables might emerge during the transition to the long-run balanced growth path. Whether or not an EKC arises depends e.g. on initial conditions, but also on preferences and technology. The assumptions made about the ability of recycling firms to internalize the interrelation between recycling decisions today and the future availability of recyclable waste matter with respect to the prerequisites for an EKC and the speed of convergence. Internalization furthermore implies that an economy can be caught in a poverty trap, i.e. it might not be able to converge to the long-run growth equilibrium if the initial endowment with resources and capital is too low