This paper analyzes the effect of reducing pre-harvest burning of sugar cane on the population's respiratory health in Brazil. We collected data for the municipalities in the state of São Paulo for two different periods: 2000, before the state law requiring the gradual elimination of sugar cane area utilizing pre-burning, and 2007. We used panel models for inpatient visits due to respiratory diseases, outpatient visits for inhalation procedures and length of stay for inpatient visits due to respiratory diseases, controlling for the endogeneity between health and pollution. The results show that increasing the area of raw sugar cane harvested reduces the number of inpatient visits and does not affect the number of inhalation procedures or length of stay.

In this paper, we use a computable general equilibrium model to simulate the effects of drought and a decrease in agricultural productivity caused by climate change in Guatemala. A reduction in agricultural productivity would mean a considerable drop in crop and livestock production, and the resulting higher prices and lower household income would mean a significant reduction in the consumption of agricultural goods and food. The most negative effects of a drought would be concentrated in agriculture, given its intensive use of water. Because agricultural production is essential to ensuring food availability, these results suggest that Guatemala needs a proper water-distribution regulatory framework.

To protect the elephant, trade in ivory has been banned since 1990. In this paper, we demonstrate that this ban's effect on elephant populations is ambiguous. Depending on the discount rate, among other things, the trade ban can either increase or decrease optimal population size. If the decision-maker's discount rate exceeds a certain threshold, the optimum stock of elephants is greater with a trade ban. Since the threshold is in the range of possible social discount rates, the success of the trade ban in promoting elephant conservation will vary spatially and temporally, depending on the characteristics and level of development of countries with significant elephant populations.

This paper examines the response of herders to increased shortage and degradation of land in an arid and semi-arid land setting in Kenya, under changing property right regimes using both survey and secondary data. We argue that the responses adopted are livelihood strategies to improve herder's welfare. We explore the determinants of three different strategies: crop cultivation, investment in land improvements, and migration with livestock. We employ the probit regression framework to explain each strategy. The main findings of the study are that private property rights, educational attainment, and availability of water are major determinants of the three strategies. We recommend policies that favour privatization of existing common property resources, improve education levels, and increase supply of water in the district.

Water rights are currently receiving increased attention from scholars and policymakers due to the growing understanding that ill-defined water rights impair efficient use. In South Africa, smallholder irrigation faces problems of low water use efficiency and cost recovery of government investments. This study uses contingent ranking to analyse the willingness to pay (WTP) of smallholder irrigators for changes in the water rights system. The results indicate that smallholders are prepared to pay considerably higher water prices if these are connected to improvements in the water rights system. By segmenting the population it was also shown that the importance attached to water rights dimensions varies in each segment. While lower institutional trust and lower income levels lead to a lower WTP for transferability, experiencing water shortage increases this WTP. Such information is valuable in guiding policy makers in the future design of water rights.

We present the results of a framed field experiment with Ethiopian farmers that use the mountain rain forest as a common pool resource. Harvesting honey causes damage to the forest, and open access leads to over-harvesting. We test different mechanisms for mitigating excessive harvesting: a collective tax with low and high tax rates, and a tax/subsidy system. We find that the high-tax scheme works best in inducing the desired level of harvesting, while the tax-subsidy scheme may trigger tacit collusion. Via a panel data analysis we further investigate which variables influence the subjects' decisions during the treatments.

We consider new developments in coalition theory for the design of international environmental agreements (IEAs). Applying an empirical model on climate change that comprises benefit and cost estimates from abatement for 12 world regions, we analyze how the design of an agreement affects the success of self-enforcing IEAs. We analyze single versus multiple coalitions, open versus exclusive membership with majority and unanimity voting, and no transfers versus transfers with four different transfer schemes.

Development projects that are potentially eligible for Clean Development Mechanism (CDM) funding under the Kyoto Protocol, require final approval from the host countries where the projects are to be implemented. The approval requires an evaluation of the positive contribution of the CDM project to sustainable development in the host country. A prototype set of sustainable development criteria is introduced using an evaluation process conducted in South Africa. Weighting values that reflect societal priorities in South Africa are required for these criteria. The paper shows how judgements of industry decision makers and the expenditure trends of the national government (on environmental sub-criteria) can be used to generate a first approximation of such weighting values. The industry judgements are obtained from an Analytical Hierarch Process (AHP) survey. They reflect the perceptions of the automotive supply chain and process industry only, and not other parts of the South African society. A more comprehensive study is required to determine the political and social acceptability of the AHP approach, which should be initiated and managed by the Designated National Authority (DNA) of South Africa.

The expansion of private production erodes the quality of commonly owned assets, thereby forcing individuals to rely increasingly on private goods to satisfy their needs. In the face of this deterioration, households increase their work effort and accumulate more capital in order to buy more consumer goods both in the present and in the future. By so doing, each household contributes to an increase in production and thus has a detrimental—though negligible—impact on commonly owned assets. Hence, the economy converges to a long-run equilibrium level of production that is higher than the level associated with the Pareto-efficient path.

This paper explores economic development in the floodplain of large rivers, where both economic and ecological factors need to be considered for effective management. Floodplain management policies in Bangladesh emphasize structural changes to enhance agricultural production. However, these structural changes reduce fisheries production, an important natural resource sector and a source of subsistence for the rural poor. We develop a model where net returns to agriculture and fisheries are jointly maximized, taking into account the effect of flooding depth and timing on production, and value of catch in markets and for subsistence nutrition. Results for a region in Bangladesh show that optimal production in a natural floodplain yields higher net returns compared with a floodplain modified by flood control structures. This finding implies that neglecting the bio-economic relationship between fisheries and land use may significantly affect the long-run economic role of a river floodplain, particularly where subsistence consumption is important to social welfare.

Recently, there has been significant research interest in the empirical formulations of the environment-income relationship using both global and disaggregated data. Advances in methods and availability of better and more extensive data make the old topic of growth and environment a unique field for Environment and Development Economics, among other journals. Conventionally, the environmental Kuznets curve has been important in testing for emissions of many pollutants in many different countries. Now, policy and institutional data including transparency variables are available, making many social and economic factors interesting for policy analysts. In light of these advances, and the existing associated empirical problems in analyzing the income-environment relationship, the key findings of each paper in this special issue are discussed and connected to the related areas of research interest.

This study investigates the relationship between property rights, resource degradation, and productivity among herders in semi-arid regions of Kenya using survey data. Binary and conditional logit models are used to explain migration, while ordinary least squares and fixed effects models are used to explain productivity. The main findings of the study are that private property right regimes discourage migration with livestock, while private property right regimes and migration increase productivity. The study recommends that if privatization is not feasible, then the existing common rights system should be strengthened through promotion of collective action and limiting of group sizes.

Environmental conservation requires society to consider the trade-off between allocating resources to productive activities and pollution control activities. Therefore, it is informative to measure the effect of environmental regulations on firms' productivity. This paper attempts to estimate the impact of environmental regulations on Korean manufacturing industries. Despite being key inputs in the manufacturing process, raw materials have often been excluded from the cost function due to the lack of price data. A restricted cost function is used to improve the reliability of parameter estimates. Empirical results indicate that environmental regulations caused a 12 percent decline in the average annual rate of productivity growth over the period 1982–93.

Collective action can play a significant role in sustainable management of common grazing lands through restricting access and regulating use. However, it is not clear why there are often violations of grazing restrictions in equilibrium. This paper first presents a theoretical framework of collective action in community management of grazing lands that explicitly models individual violations behaviour. Then data from the highlands of Amhara region of Ethiopia are used to test the model predictions to examine the impact of policy-relevant factors on collective establishment of grazing restrictions and violations of grazing restrictions. Econometric results show that collective action in community grazing land management is likely to be more beneficial and effective in communities with better market access or higher populations. Collective action, on the other hand, is less likely to be successful in communities with greater social, economic, or cultural heterogeneity or more affluent members. Factors related to greater livestock profitability, such as rainfall, or fixed costs of negotiating agreements, such as total land area of the community, have ambiguous effects, as they are associated with establishment of grazing restrictions as well as violating the restrictions.

This paper investigates the effectiveness of different market-based instruments (MBIs), such as eco-certification premiums, carbon payments, Pigovian taxes and their combination, to address the conversion of agroforests to monoculture systems and subsequent effects on incomes of risk-averse farmers under income uncertainty in Indonesia. For these, the authors develop a farm-level dynamic mean-variance model combined with a real options approach. Findings show that the conservation of agroforest is responsive to the risk-aversion level of farmers: the greater the level of risk aversion, the greater is the conserved area of agroforest. However, for all risk-averse farmers, additional incentives in the form of MBIs are still needed to prevent conversion of agroforest over the years, and only the combination of MBIs can achieve this target. Implementing fixed MBIs also contributes to stabilizing farmers’ incomes and reducing income risks. Consequently, the combined MBIs increase incomes and reduce income inequality between hardly and extremely risk-averse farmers.

In this paper we compare two policy instruments that can be adopted to curb carbon emissions. The first is a conventional pollution tax, the second is an environmental campaign raising consumers’ awareness about the relative impact of their consumption choices. The comparison is carried out in two different scenarios, depending on whether consumers’ aprioristic preferences are such that they value the environmental attribute of a product (environmental quality) or its pure performance (hedonic quality) . In the case of environmental quality, the campaign is preferred under some specific conditions based on consumer heterogeneity, cost-effective analysis, and pollution level. On the contrary, the pollution tax is always preferred in the case of hedonic quality. Therefore, we show that the relative efficiency of the two policy instruments crucially depends on consumers’ initial concern for the environment, which may vary across countries due to socio-economic conditions.

We propose an ‘allocate-and-trade’ institution to manage the eastern Nile River Basin for Ethiopia, Sudan and Egypt as the basin faces a new reality of the Grand Ethiopian Renaissance Dam (GERD). We find that a social planner could increase the region's economic welfare by assigning water rights to the riparian states. An alternative intrabasin water rights arrangement and trade could achieve more than 95 per cent of the welfare created by the social planner. GERD will change both the economic benefits and hydrological positions of the riparian countries. Economic benefits from alternative water use would be sufficient to make riparian countries better off compared with the status quo. Furthermore, riparian countries could raise more than US$680 m annually for protecting and conserving the natural resources of the region.

Many Mediterranean-type climates around the world will face increased risks of wildfires as a consequence of climate change. In this study we consider the case of Portugal and estimate the impact of the increasing risk of forest fires on tourism. Using data for 278 municipalities for the 2000–2016 period, we find a considerable negative impact of burned areas on the number of tourist arrivals, both domestic and inbound. We go beyond the traditional impact analysis and provide predictions for 2030 and 2050. The estimated annual costs to the Portuguese economy due to the impact of burned areas in 2030 range between €17.03 and 24.18 million for domestic tourist arrivals and between €18.26 and 38.08 million for inbound ones. In 2050, those costs will increase at least fourfold. These findings underscore the importance of taking the forest fire risks into account when planning local investments.

This study examines, with a focus on regional environmental states in China, whether regional latecomers suffer the domestically created ‘pollution haven’ effect through the interjurisdictional competition for polluted industries within China, or enjoy the spillover effect of nationwide progress in environmental management and technology, using the analytical framework of the environmental Kuznets curve. The study found that the regional latecomer's advantage was verified in the case of wastewater, while its disadvantage was identified in waste gas and solid waste. We speculate that the contrasting result on regional latecomer's effects between wastewater, waste gas, and solid waste comes from the difference in policy performances: the well-designed water pollution control may have regional latecomer's enjoy the spillover effect of nationwide progress, while the ineffective control of air and solid waste pollution may cause a ‘pollution haven’ effect through the interjurisdictional competition for polluted industries on regional latecomers.

Presented in this paper are the results of two contingent valuation analyses, one undertaken in Ecuador and the other in Guatemala, of potential payments for environmental services (PES) directed toward rural households. We find that minimum compensation demanded by these households is far from uniform, depending in particular on individual strategies for raising incomes and dealing with risks. Our findings strengthen the case for allowing conservation payments to vary among recipients, which would be a departure from the current norm for PES initiatives in Latin America.