Spatial economics and ecosystems: the interaction between economics and the natural environment

This collection of original research and review articles and has been designed with the joint aims of inspiring future work and of reminding environmental economists and researchers from other disciplines that looking for similarities and common features in their studies is more important than magnifying their differences. It is also suitable for use as a postgraduate text. The volume reflects the endeavour of mainstream economic thought to include, amongst its chief concerns, the study of all complex interactions between economies and natural space. It also documents efforts made by economists and other scientists to study the complex phenomenon of individual and collective decision making when faced with problems linking economic activity with the environment. Presenting a pluralistic view of approaches and methodologies, rather than an exhaustive list of topics of interest to environmental scientists, the editors have brought together innovative contributions that can be read as self-contained pieces of work.

Essays on Industrial Organization and Environmental Economics

This dissertation studies environmental regulation issues in the hog production industry as well as forces behind the reorganization of the industry during the past two decades. Federal and State-level environmental regulations imposed on U.S. hog production during the year 2003 are examined in Chapter 1. Based on the number of regulations passed by the Federal government and states, the 2003 regulatory index is constructed. The regulatory stringency index suggests that state-level regulations vary across states and have increased over the years. In addition, state-level regulations are more stringent than federal regulations. Chapter 2 develops an empirically implementable theoretical model which allows us to investigate the long-run effects of environmental regulations on the U.S. hog industry. Hog feeding operations (HFOs) are divided into large feeding operations (LHFOs) and small feeding operations (SHFOs). The impact of the presence of a large number of LHFOs on the entry and exit of CHFOs is also examined. Results of this study suggest that: Increased state-level regulation stringency significantly lowers the output of SHFOs; increased state-level regulation stringency significantly lowers the output of LHFOs; increased state-level regulation stringency significantly lowers the number of SHFOs; SHFO output rises significantly in states that have a greater number of LHFOs; LHFO output rises significantly in states that have a greater number of LHFOs; the number of SHFOs significantly increases in states that have a greater numbers of LHFOs; regulation increases the average SHFO size; and regulation decreases the average LHFO size. Chapter 3 examines the importance of input availability, market attractiveness, agglomeration economies and environmental regulations on the reorganization of U.S. hog production for a panel of 22 U.S. hog producing states which include, Northern states, Southern states and Midwest states for the period 1994-2006. Results from this study suggest that: Hog production in a state is positively affected by hog production in a nearby state, confirming the presence of agglomeration economies; Environmental regulations and high corn price have negative effects on state-level U.S. hog production; High hog prices, and favorable labor cost, and land values attract hog production; and transportation cost has no effect on hog production. Advisors: Azzeddine Azzam and Karina Schoengold

Tiered Pricing and Cost Functions: Are Equity, Cost Recovery and Economic Efficiency Compatible Goals?

Suppliers of water and energy are frequently natural monopolies, with their pricing regulated by governmental agencies. Pricing schemes are evaluated by the efficiency of the resource allocation they lead to, the capacity of the utilities to capture their costs and the distributional effects of the policies, in particular, impacts on the poor. One pricing approach has been average cost pricing, which guarantees cost recovery and allows utilities to provide their product at relatively low prices. However, average cost pricing leads to economically inefficient consumption levels, when sources of water and energy are limited and increasing the supply is costly. An alternative approach is increasing block rates (hereafter, IBR or tiered pricing), where individuals pay a low rate for an initial consumption block and a higher rate as they increase use beyond that block. An example of IBR is shown in Figure 1 (on next page), which shows a rate structure for residential water use. With the rates in Figure 1, a household would be charged $0.46 and $0.71 per hundred gallons for consumption below and above 21,000 gallons per month, respectively.

The Domestic Natural Gas Shortage in China

This thesis analyzes the domestic shortage in the Chinese natural gas market. Both the domestic supply and demand of natural gas are growing fast in China. However, the supply cannot catch up with the demand. Under the present pricing mechanism, the Chinese natural gas market cannot get the equilibrium by itself. Expensive imports are inadequate to fill the increasing gap between the domestic demand and supply. Therefore, the shortage problem occurs. Since the energy gap can result in the arrested development of economics, the shortage problem need to be solved. This thesis gives three suggestions to solve the problem: the use of Unconventional Gas, Natural Gas Storage and Pricing Reform.

Amadir: Livelihood and Resource Management in an Eritrean Highland Community: A development baseline

This publication presents the results of a study conducted in 2003 in Amadir, a village in the Central Highlands of Eritrea. It gives an overview of the natural resource base, livelihoods, farm management, and institutions that are important to the local community. The report concludes with a chapter on options for development as discussed with the village community and local administration. This report supports Eritrea's efforts to promote rural development. It contains an extensive summary in Tigrinya, as well as a large-scale satellite image and a large-scale land use map of the study area. The appendix presents a summary of the methods used in the study.

Forest connectivity restoration through reforestation: an integrated methodology for prioritizing agricultural lands and selecting reforestation species

Forest connectivity restoration is a major goal in natural resource planning. Given the high amount of abandoned cultivated lands, setting efficient methods for the reforestation of agricultural lands offers a good opportunity to face this issue. However, reforestations must be carefully planned, which poses two main challenges. In first place, to determine those agricultural lands that, once reforested, would meet more effectively the planning goals. As a further step, in order to grant the success of the activity, it is fairly advisable to select those tree species that are more adapted to each particular environment. Here we intend to give response to both requirements by proposing a sequential and integrated methodology that has been implemented in two Spanish forest districts, which are formed by several landscape types that were previously defined and characterized. Using the software Conefor Sensinode, a powerful tool for quantifying habitat availability that is based on graph theory concepts, we determined the landscapes where forest planning should have connectivity as a major concern and, afterwards, we detected the agricultural patches that would contribute most to enhance connectivity if they were reforested. The subsequent reforestation species assessment was performed within these priority patches. Using penalized logistic regressions we fitted ecological niche models for the Spanish native tree species. The models were trained with species distribution data from the Spanish Forest Map and used climatic and lithological variables as predictors. Model predictions were used to build ordered lists of suitable species for each priority patch. The lists include dominant and non dominant tree species and allow adding biodiversity goals to the reforestation planning. The result of this combined methodology is a map of agricultural patches that would contribute most to uphold forest connectivity if they were reforested and a list of suitable tree species for each patch ordered by occurrence probability. Therefore the proposed methodology may be useful for suitable and efficient forest planning and landscape designing.

Regional patterns of agricultural land use and deforestation in Colombia

An expanding human population and associated demands for goods and services continues to exert an increasing pressure on ecological systems. Although the rate of expansion of agricultural lands has slowed since 1960, rapid deforestation still occurs in many tropical countries, including Colombia. However, the location and extent of deforestation and associated ecological impacts within tropical countries is often not well known. The primary aim of this study was to obtain an understanding of the spatial patterns of forest conversion for agricultural land uses in Colombia. We modeled native forest conversion in Colombia at regional and national-levels using logistic regression and classification trees. We investigated the impact of ignoring the regional variability of model parameters, and identified biophysical and socioeconomic factors that best explain the current spatial pattern and inter-regional variation in forest cover. We validated our predictions for the Amazon region using MODIS satellite imagery. The regional-level classification tree that accounted for regional heterogeneity had the greatest discrimination ability. Factors related to accessibility (distance to roads and towns) were related to the presence of forest cover, although this relationship varied regionally. In order to identify areas with a high risk of deforestation, we used predictions from the best model, refined by areas with rural population growth rates of > 2%. We ranked forest ecosystem types in terms of levels of threat of conversion. Our results provide useful inputs to planning for biodiversity conservation in Colombia, by identifying areas and ecosystem types that are vulnerable to deforestation. Several of the predicted deforestation hotspots coincide with areas that are outstanding in terms of biodiversity value.

Small-scale Fisheries and the Global Economy: Understanding Common-pool Resource Governance in the Context of Market Pressures, Neoliberal Policies, and Transnational Institutions

The purpose of this dissertation is to contribute to a better understanding of how global seafood trade interacts with the governance of small-scale fisheries (SSFs). As global seafood trade expands, SSFs have the potential to experience significant economic, social, and political benefits from participation in export markets. At the same time, market connections that place increasing pressures on resources pose risks to both the ecological and social integrity of SSFs. This dissertation seeks to explore the factors that mediate between the potential benefits and risks of global seafood markets for SSFs, with the goal of developing hypotheses regarding these relationships.

The empirical investigation consists of a series of case studies from the Yucatan Peninsula, Mexico. This is a particularly rich context in which to study global market connections with SSFs because the SSFs in this region engage in a variety of market-oriented harvests, most notably for octopus, groupers and snappers, lobster, and sea cucumber. Variation in market forms and the institutional diversity of local-level governance arrangements allows the dissertation to explore a number of examples.

The analysis is guided primarily by common-pool resource (CPR) theory because of the insights it provides regarding the conditions that facilitate collective action and the factors that promote long-lasting resource governance arrangements. Theory from institutional economics and political ecology contribute to the elaboration of a multi-faceted conceptualization of markets for CPR theory, with the aim of facilitating the identification of mechanisms through which markets and CPR governance actually interact. This dissertation conceptualizes markets as sets of institutions that structure the exchange of property rights over fisheries resources, affect the material incentives to harvest resources, and transmit ideas and values about fisheries resources and governance.

The case studies explore four different mechanisms through which markets potentially influence resource governance: 1) Markets can contribute to costly resource governance activities by offsetting costs through profits, 2) markets can undermine resource governance by generating incentives for noncompliance and lead to overharvesting resources, 3) markets can increase the costs of resource governance, for example by augmenting monitoring and enforcement burdens, and 4) markets can alter values and norms underpinning resource governance by transmitting ideas between local resource users and a variety of market actors.

Data collected using participant observation, survey, informal and structured interviews contributed to the elaboration of the following hypotheses relevant to interactions between global seafood trade and SSFs governance. 1) Roll-back neoliberalization of fisheries policies has undermined cooperatives’ ability to achieve financial success through engagement with markets and thus their potential role as key actors in resource governance (chapter two). 2) Different relations of production influence whether local governance institutions will erode or strengthen when faced with market pressures. In particular, relations of production in which fishers own their own means of production and share the collective costs of governance are more likely to strengthen resource governance while relations of production in which a single entrepreneur controls capital and access to the fishery are more likely to contribute to the erosion of resource governance institutions in the face of market pressures (chapter three). 3) By serving as a new discursive framework within which to conceive of and talk about fisheries resources, markets can influence norms and values that shape and constitute governance arrangements.

In sum, the dissertation demonstrates that global seafood trade manifests in a diversity of local forms and effects. Whether SSFs moderate risks and take advantage of benefits depends on a variety of factors, and resource users themselves have the potential to influence the outcomes of seafood market connections through local forms of collective action.

Resident perceptions of natural resources between cities and across scales in the Pacific Northwest

As the global population becomes increasingly urban, research is needed to explore how local culture, land use, and policy will influence urban natural resource management. We used a broad-scale comparative approach and survey of residents within the Portland (Oregon)-Vancouver (Washington) metropolitan areas, USA, two states with similar geographical and ecological characteristics, but different approaches to land-use planning, to explore resident perceptions about natural resources at three scales of analysis: property level (“at or near my house̶1;), neighborhood (“within a 20-minute walk from my house̶1;), and metro level (“across the metro area̶1;). At the metro-level scale, nonmetric multidimensional scaling revealed that the two cities were quite similar. However, affinity for particular landscape characteristics existed within each city with the greatest difference generally at the property-level scale. Portland respondents expressed affinity for large mature trees, tree-lined streets, public transportation, and proximity to stores and services. Vancouver respondents expressed affinity for plentiful accessible parking. We suggest three explanations that likely are not mutually exclusive. First, respondents are segmented based on preferences for particular amenities, such as convenience versus commuter needs. Second, historical land-use and tax policy legacies may influence individual decisions. Third, more environmentally attuned worldviews may influence an individualR17;s desire to produce environmentally friendly outcomes. Our findings highlight the importance of acknowledging variations in residentsR17; affinities for landscape characteristics across different scales and locations because these differences may influence future land-use policies about urban natural resources.

Urban water sustainability: framework and application

Urban areas such as megacities (those with populations greater than 10 million) are hotspots of global water use and thus face intense water management challenges. Urban areas are influenced by local interactions between human and natural systems and interact with distant systems through flows of water, food, energy, people, information, and capital. However, analyses of water sustainability and the management of water flows in urban areas are often fragmented. There is a strong need to apply integrated frameworks to systematically analyze urban water dynamics and factors that influence these dynamics. We apply the framework of telecoupling (socioeconomic and environmental interactions over distances) to analyze urban water issues, using Beijing as a demonstration megacity. Beijing exemplifies the global water sustainability challenge for urban settings. Like many other cities, Beijing has experienced drastic reductions in quantity and quality of both surface water and groundwater over the past several decades; it relies on the import of real and virtual water from sending systems to meet its demand for clean water, and releases polluted water to other systems (spillover systems). The integrative framework we present demonstrates the importance of considering socioeconomic and environmental interactions across telecoupled human and natural systems, which include not only Beijing (the water-receiving system) but also water-sending systems and spillover systems. This framework helps integrate important components of local and distant humanR11;nature interactions and incorporates a wide range of local couplings and telecouplings that affect water dynamics, which in turn generate significant socioeconomic and environmental consequences, including feedback effects. The application of the framework to Beijing reveals many research gaps and management needs. We also provide a foundation to apply the telecoupling framework to better understand and manage water sustainability in other cities around the world.

Federal Crop Insurance Program Expands in 2016 and 2017 to Cover More Organic Crops

Organic agriculture represents one of the fastest growing segments of U.S. agriculture (USDA-RMA). With this in mind, the USDA’s Risk Management Agency (RMA) continues to expand crop insurance options for organic growers. In 2016 and 2017, organic producers in Maryland will see additional crops with organic crop insurance options. Increasing crop insurance options will allow this segment of producers new opportunities to manage their risks.

Crop Insurance For Maryland Field Crops And Livestock

Multi-peril crop insurance is a valuable risk management tool which allows you to insure against losses on your farm due to adverse weather conditions, price fluctuations, and unavoidable pests and diseases. It shifts unavoidable production risks to an insurance company for the payment of a fixed amount of premium per acre. This publication assists readers in understanding the basics of the federal crop insurance program.