Kenneth J. Arrow, Partha Dasgupta, Lawrence H. Goulder, Kevin J. Mumford, Kirsten L.L. Oleson
AbstractWe develop and apply a consistent and comprehensive theoretical framework for assessing whether economic growth is compatible with sustaining wellbeing over time. Our approach differs from earlier approaches by concentrating on wealth rather than income. Sustainability is demonstrated by showing that a properly defined comprehensive measure of wealth is maintained through time. Our wealth measure is unusually comprehensive, capturing not only reproducible and human capital but also natural capital, health improvements and technological change. We apply the framework to five countries: the United States, China, Brazil, India and Venezuela. We show that the often-neglected contributors to wealth – technological change, natural capital and health capital – fundamentally affect the conclusions one draws about whether given nations are achieving sustainability. Indeed, even countries that display sustainability differ considerably in the kinds of capital that contribute to it.
ABSTRACTBased on observations from all three tropical continents, there is good reason to believe that poor service providers can broadly gain access to payment for environmental services (PES) schemes, and generally become better off from that participation, in both income and non-income terms. However, poverty effects need to be analysed in a conceptual framework looking not only at poor service providers, but also at poor service users and non-participants. Effects on service users are positive if environmental goals are achieved, while those on non-participants can be positive or negative. The various participation filters of a PES scheme contain both pro-poor and anti-poor selection biases. Quantitative welfare effects are bound to remain small-scale, compared to national poverty-alleviation goals. Some pro-poor interventions are possible, but increasing regulations excessively could curb PES efficiency and implementation scale, which could eventually harm the poor. Prime focus of PES should thus remain on the environment, not on poverty.
Erwin Bulte, Leslie Lipper, Randy Stringer, David Zilberman
Paying for the provision of environmental services is a recent policy innovation attracting much attention in both developed and developing countries. This innovation, referred to as ‘payments for ecosystem services’ (when the emphasis is on enhancing ‘nature’ services) or ‘payments for environmental services’ (when amenities provided by the built environment are also included) is referred to here as PES. PES programs aim to harness market forces to obtain more efficient environmental outcomes. Since so many opportunities for PES programs could involve farmers in poor regions, international aid agencies and private donors, looking for a double dividend, increasingly consider using PES programs as a potential way of meeting both social and environmental objectives.
This paper reports the results of an empirical analysis of the relationship between income and the rate of deforestation of tropical natural forests. The inverted U-shaped relationship known as the environmental Kuznets curve is confirmed. The study focuses on the role of institutions and macroeconomic policy in the deforestation process. Results indicate that the quality of governance is an important determinant of forest resource preservation, and that rural population pressure is not as important as suggested by other studies. Agricultural technology improvement and enhanced educational attainment also lead to reductions of deforestation rates.
This study examines the trend in pesticide use in Brazil in the 1990s in the context of agroindustrialization and globalization (trade liberalization). It also seeks to document the environmental costs and human health hazard associated with pesticide use in Brazil. Results from time series data indicate that agricultural trade liberalization has led to increased pesticide use in Brazil, particularly in export crops. Results from cross-section municipality-level data point to higher incidence of pesticide use in municipalities with high income, higher levels of education, large-size farms, predominance of export crops, and with high prevalence of sharecropping. Finally, the study finds that Brazil's agricultural growth in the era of trade liberalization has been clouded by serious human health problems and environmental damage caused by pesticide use.
As China advances its overall program of economic development, many Chinese cities consistently suffer from unhealthy levels of air pollution. One of the groups most affected is children. This paper provides some quantification regarding the extent of various morbidity costs upon children in portions of urban China. Using China-based health-effects and valuation studies, the authors project, and value in dollar figures, the number of averted cases of childhood colds, bronchitis, asthma, and respiratory-related hospital visits resulting from a lowering of air pollution levels. The results indicate that these child morbidity benefits may be substantial, with a mid-range value of nearly $3.5 billion over the period 2002–2011.
This paper develops a bio-economic model to explore the effect on illegal hunting, wildlife conservation, and human welfare of the most common instruments of two different designs of Integrated Conservation and Development Projects (ICDPs) currently in existence. First, it is demonstrated that the distribution of game meat and money transfers to the local people fails if not explicitly linked to the conservation objective. Second, the analysis shows that ICDPs relying on such a link, implemented as a risk of being excluded from the project if caught in illegal hunting, may reach their goal of improved wildlife conservation and human welfare. The theoretical model is illustrated by numerical calculations using data from the Serengeti in Tanzania.
AbstractThis study assesses a new generation of smallholder biogas, an applied sustainable energy technology currently being rolled out on a massive scale in rural China. In the past, the implementation of biogas programs has been largely disappointing, in China (and elsewhere). User satisfaction with the new program is high, based on purposively collected data from 2,700 households in five provinces, and the available evidence suggests tangible environmental and economic benefits. There are strong indications of fuel switching away from fuelwood and crop residues. Less time is spent on fuelwood collection and cooking, which benefits women especially. Adopters save on fertilizers by using biogas residues. Finally, problems with suspension and interrupted supply appear lower than in earlier studies. Overall, these initial findings are grounds for optimism about the potential for scaled-up smallholder biogas to deliver safe and clean rural energy, in China and beyond, provided critical conditions are met.
AbstractWe examine the impact of economic development and the role of political alignment on the fatalities and damages due to floods using state-level panel data for 19 Indian states over the period 1980–2011. The empirical results confirm that economic development leads to a decline in flood fatalities and damages due to floods across Indian states. This study also examines the role of politics in the prevention of flood fatalities. We find that both state election years and political alignment influence the extent of flood fatalities. The results suggest that not only economic development but also healthy political coordination between the central government and the states is essential to mitigate the impact of floods.
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Vietnam Journal of Science, Technology and Engineering