There is growing evidence to suggest that there is an increase in species extinction occurring globally. In this article, we briefly review the literature on the economics of species extinction, examining what is meant by extinction before explaining how economics has conceptualised this. The initial economics literature on species extinction focuses largely on renewable resources, in particular fisheries, but has subsequently evolved to cover many aspects of biodiversity across all physical scales, employing an increasing array of methodological tools. We also consider aspects of cultural and societal extinctions (e.g. local languages, local knowledge) and how this is positively correlated with loss of biodiversity, as well as an economist’s outlook on the potential to re-capture value post-extinction.

This paper reviews recent work on the implications of endogenous policy for the effects of trade on the environment and the sustainability of renewable resource stocks. A recognition that pollution policy is endogenous has had a major impact on the trade and environment literature and has reversed some of the previously established empirical findings. Work on pollution has proceeded faster than work on renewable resources. I suggest some directions for future work in this area.

The Rio Grande has headwaters in Colorado, flows through New Mexico, and serves as the United States-Mexico border in Texas, emptying into the Gulf of Mexico. Snow melt in Colorado and northern New Mexico constitutes the water river supply for New Mexico and the El Paso region, whereas summer monsoonal flow from the Rio Conchos in Mexico and tributaries, including the Pecos River, provides the Rio Grande flow for southern Texas. The region is mostly semiarid with frequent long-term drought periods but is also characterized by a substantial irrigated agriculture sector and a rapidly growing population. International treaties and interstate compacts provide the rules for allocation of Rio Grande waters between the United States and Mexico and among Colorado, New Mexico, and Texas. Water rights in Texas have been adjudicated, but the adjudication process was based on a wet period; hence, contemporary Rio Grande water rights are overallocated. Issues related to the waters of the Rio Grande include frequent drought, increased municipal demand caused by a rapidly increasing population, supply variability, underdeliveries from Mexico, increasing salinity, inefficient delivery systems, health issues of the population, no economic/financial incentives for farmers to conserve, and water is not typically priced for efficiency. Stakeholders are interested in identifying solutions to limited water supplies while there is increasing demand. There are several activities in place addressing Rio Grande-related water needs, including enhancing delivery distribution efficiency of raw water, conversion of rights from agriculture to urban, improving both agricultural irrigation field distribution and urban use efficiency, developments in desalination, and litigation. None of the solutions are easy or inexpensive, but there are encouraging cooperative attitudes between stakeholders.

This article analyzes an economy where both nonrenewable resources and a costly energy resource are essential inputs in production. The extraction of the nonrenewable resources leads to emissions that increase the probability of a catastrophe. We find that, in contrast to the constant-probability case, the endogenous probability of a catastrophe implies that some nonrenewable resources might optimally be left in the ground. The larger the effect of the fossil energy use on the probability of a catastrophe, the fewer nonrenewable resources should be extracted and the earlier should be the switch to the renewable substitute. The richer a country, the earlier it should shift to the energy substitute. In the trade-off between higher consumption and a higher probability of catastrophe, even small probability changes are likely to be more important for the planner than higher consumption.

Dans le cadre d'un modèle à générations imbriquées, nous supposons que la gestion d'une ressource renouvelable correspond à l'émission de quotas d'exploitation transferables. Chaque agent a la possibilité d'utiliser les quotas dans la production ou de les vendre à la génération suivante. Nous montrons qu'une telle politique de gestion d'une ressource naturelle renouvelable est possible seulement pour certain niveaux de ressource au moment de l'introduction des quotas. Nous montrons alors que les quotas conduisent à l'existence d'un unique équilibre stable de long terme fonction du niveau d'exploitation défini par le planificateur.

In Europe, the perennial stinging nettle was cultivated during the 19th century until the Second World War and has a long history as a fiber plant. Clone varieties dating back to the early 20th century are still maintained at European research institutions. The fiber content of clones ranges from 1.2 to 16% dry matter, and fiber yields range from 0.14 to 1.28 Mg ha−1. Varietal purity of fiber nettle can only be achieved by planting cuttings. The harvesting of fiber starts in the second year of growth and the crop may produce well for several years. Several agronomic practices influence fiber quality, but causal relations are not yet well understood. Various parts of the fiber nettle plant can be used as food, fodder and as raw material for different purposes in cosmetics, medicine, industry and biodynamic agriculture. Organically produced fibers are in demand by the green textile industry and show potential that is economically promising.

Fiber nettle (Urtica dioica L.) has potential as a fiber crop in the natural textiles industry, an industry requiring production by organic methods. No recent data on yield potentials and quality of this crop using these methods are available to farmers. Five fiber nettle clones were cultivated between 1997 and 1999 in a randomized block design with four replications per clone on an organic farm in Lower Austria. The harvests from the second and third cultivation year were used for further analysis. The dry matter yield (stalks) of the five nettle clones in the second cultivation year (1998) ranged from 2.3 to 4.7 Mg ha−1. The dry matter yield of the third cultivation year (5.6 to 9.7 Mg ha−1) was more than double that of the second year. The large increase in the yield of the third year was a result of an increase in the height (20 to 40 cm higher) and a doubling of the number of stalks per plot compared with those from the second cultivation year. Undersowing with clover had a positive effect on fiber nettle growth. The fiber content after chemical processing ranged between 8 and 16% of the dry matter in both the second and third cultivation years. The fiber yields ranged from 335 to 411 kg ha−1 in the second year and from 743 to 1016 kg ha−1 in the third year. Clones with a high dry matter yield had a low fiber content and vice versa. There was no significant difference in the fiber quality (fiber strength, elongation, fiber fineness, length of fiber) of the five nettle clones. Due to the different consistency in the upper and lower part of the stalk and to fiber processing methods, the fiber material is generally very heterogeneous. This work shows that the cultivation of fiber nettle by organic methods in Austria is possible and that it produced well in the third year. Organically grown fibers of nettle are suitable for textile use; however, further development of an economic and functional high-yielding method for fiber processing, and efficient marketing are essential for the success of nettle fiber in the textile market.