ENVIRONMENTAL POLICY REFORM: A TAXONOMY OF ECONOMISTS' PERSPECTIVES

As the environmental policy recommendations of economists become more acceptable, differences in the professional understanding of, and support for, different policy forms are becoming more apparent. These different approaches to environmental policy and research are described around a taxonomy of four perspectives: "rational analysts," "cost analysts", "market managers," and "free market environmentalists." These perspectives are compared and contrasted. Recognition of these differences can result in a better appreciation of the different research agendas of economists and can improve clarity in teaching and policy advising.Economic incentives, Environmental policy, Regulation, Environmental Economics and Policy,

NONPOINT SOURCE AND CARBON SEQUESTRATION CREDIT TRADING: WHAT CAN THE TWO LEARN FROM EACH OTHER?

Emission trading programs have been discussed with respect to achieving water quality objectives and future caps on carbon emissions. A significant part of this literature explores the institutional and technical design issues associated with trades involving nonpoint effluent sources and carbon sequestration. This paper explores conceptual linkages between the nonpoint and carbon sequestration programs and identifies potential areas where cross fertilization can benefit research and policy design of trading programs for environmental protection.Environmental Economics and Policy, Resource /Energy Economics and Policy,

The Use and Opportunity of Cooperative Organizational Forms as an Innovative Regulatory Tool Under the Clean Water Act

Numerous reforms to introduce financial incentives and flexibility into the Clean Water Act have been proposed. Cooperative organizational forms that consolidate multiple regulated entities under a single organizational umbrella are an overlooked, but potentially useful avenue for reform. In concept, these new organizational forms would function much like a farmer cooperative using coordination and consolidation to lower input costs to its members. Illustrations of how cooperative organizational forms can be used to lower costs and enhance regulatory flexibility in both the water quality and wetland programs are provided.Environmental Economics and Policy,

The Contribution of Nonmarket Valuation to Policy: The Case of Nonfederal Hydropower Relicensing

The contribution of nonmarket valuation studies to decisions about the operation of nonfederal hydroelectric facilities is examined. Hydropower licensing reforms by the Federal Energy Regulatory Commission to better weigh market and nonmarket tradeoffs did not require or use nonmarket valuation. License negotiation processes are interpreted as a substitute for valuation.Resource /Energy Economics and Policy,

Environmental Services Programs for the Chesapeake Bay

Ecosystem Services, Payment for Ecosystem Services, Water Quality, Chesapeake Bay, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q25, Q28, Q53, Q57,

An Evaluation of Nutrient Trading Options in Virginia: A Role for Agriculture?

Water Quality Trading, offsets, nutrients, agriculture, BMPs, Environmental Economics and Policy,

Evaluation Framework for Water Quality Trading Programs in the Chesapeake Bay Watershed

Water quality trading programs are being proposed and implemented across the US in a variety of forms and with differing objectives. The programs being proposed and implemented in the Chesapeake Bay region are no exception. Against this background the Chesapeake Bay Program's Scientific and Technical Advisory Committee and the Mid-Atlantic Water Program requested a general framework to inform and guide the evaluation of the performance trading programs. This resulting report was developed by a workgroup comprised of ten individuals with extensive experience in the study, design, and evaluation of trading programs. While the impetus for this report was to improve evaluation of trading programs in the Chesapeake Bay region, the evaluation framework is broad enough to apply to trading programs in general

Economic Implications of Alternative Management Strategies for Virginia Oysters and Clams

The Virginia shellfish industry has historically been an important element of the state’s economy. After long-term downward trends in the harvest of wild stocks, clam and oyster production from shellfish aquaculture has been growing. This report provides an analysis of the possible ways to support and enhance this expansion through a variety of shellfish policy options. Three general classes of policy alternatives were considered: 1) state policy to increase private grounds available for shellfish production, 2) state research and development programs, and 3) various financial incentives to increase production. In general, the availability of suitable lease ground is not a large barrier for expansion to oyster aquaculture. Thus, reforms to the state’s current leasing policy are unlikely to stimulate significant new production. Existing clam producers, however, identified ground availability as one of the most significant barriers to increasing production. Unlike existing larger producers, smaller clam growers were more likely to see ground availability as a barrier, providing supporting evidence that clam production would expand if more grounds were made available. In general a slight majority of active shellfish producers surveyed supported opening some of the current (unproductive) Baylor grounds to leased shellfish production. Shellfish aquaculture producers in general identified seed availability and poor water quality as major challenges to the industry. Both oyster and clam producers indicated that state policies to facilitate seed production and improve water quality would do the most to assist their operations. Some conflicts between shellfish growers and surrounding landowners have been widely publicized in the local media, but such conflicts do not appear to be a systematic or widespread obstacle for the industry. Less than 10 percent of oyster growers identified conflicts with surrounding property owners as the most important barrier limiting expansion of their operations. Clam growers expressed even less concern with land owner conflicts. State sponsored shellfish research has the potential to significantly benefit the oyster industry. Over half of all oyster growers indicated that development of triploid oysters and field trials verifying and testing new genetic strands of oysters would be the most useful lines of research. A firm level simulation analysis of oyster aquaculture operations provides additional support for these conclusions. Simulation results suggest that even small increases in oyster growth rates or reductions in oyster mortality can produce relatively large increases in rates of return on investment. Financial (price) incentives can be provided or facilitated by the state in a number of ways including direct and indirect subsidy programs, state supported efforts to enhance market margins (value-added through branding or ecolabeling), or payments for the water quality services provided by oysters. Each activity can potentially increase the effective price growers receive for their product. Based on survey results and economic modeling analysis, if these types of programs could provide relatively small increases in oyster prices then production could increase substantially. For instance a 5 cent increase in price (per oyster) may increase production between 50 and 60 percent. Clam producers may face a more significant offsetting price effect (downward pressure on clam prices) if production were to increase substantially