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Article

Along with ceramics production, sedentism, and herding, agriculture is a major component of the Neolithic as it is defined in Europe. Therefore, the agricultural system of the first Neolithic societies and the dispersal of exogenous cultivated plants to Europe are the subject of many scientific studies. To work on these issues, archaeobotanists rely on residual plant remains—crop seeds, weeds, and wild plants—from archaeological structures like detritic pits, and, less often, storage contexts. To date, no plant with an economic value has been identified as domesticated in Western Europe except possibly opium poppy. The earliest seeds identified at archaeological sites dated to about 5500–5200 bc in the Mediterranean and Temperate Europe. The cultivated plants identified were cereals (wheat and barley), oleaginous plant (flax), and pulses (peas, lentils, and chickpeas). This crop package originated in the Fertile Crescent, where it was clearly established around 7500 bc (final Pre-Pottery Neolithic B), after a long, polycentric domestication process. From the middle of the 7th millennium bc, via the Balkan Peninsula, the pioneer Neolithic populations, with their specific economies, rapidly dispersed from east to west, following two main pathways. One was the maritime route over the northwestern basin of the Mediterranean (6200–5300 bc), and the other was the terrestrial and fluvial route in central and northwestern continental Europe (5500–4900 bc). On their trajectory, the agropastoral societies adapted the Neolithic founder crops from the Middle East to new environmental conditions encountered in Western Europe. The Neolithic pioneers settled in an area that had experienced a long tradition of hunting and gathering. The Neolithization of Europe followed a colonization model. The Mesolithic groups, although exploiting plant resources such as hazelnut more or less intensively, did not significantly change the landscape. The impact of their settlements and their activities are hardly noticeable through palynology, for example. The control of the mode of reproduction of plants has certainly increased the prevalence of Homo sapiens, involving, among others, a demographic increase and the ability to settle down in areas that were not well adapted to year-round occupation up to that point. The characterization of past agricultural systems, such as crop plants, technical processes, and the impact of anthropogenic activities on the landscape, is essential for understanding the interrelation of human societies and the plant environment. This interrelation has undoubtedly changed deeply with the Neolithic Revolution.

Article

Worldwide, governments subsidize agriculture at the rate of approximately 1 billion dollars per day. This figure rises to about twice that when export and biofuels production subsidies and state financing for dams and river basin engineering are included. These policies guide land use in numerous ways, including growers’ choices of crop and buyers’ demand for commodities. The three types of state subsidies that shape land use and the environment are land settlement programs, price and income supports, and energy and emissions initiatives. Together these subsidies have created perennial surpluses in global stores of cereal grains, cotton, and dairy, with production increases outstripping population growth. Subsidies to land settlement, to crop prices, and to processing and refining of cereals and fiber, therefore, can be shown to have independent and largely deleterious effect on soil fertility, fresh water supplies, biodiversity, and atmospheric carbon.

Article

Kevin J. Boyle and Christopher F. Parmeter

Benefit transfer is the projection of benefits from one place and time to another time at the same place or to a new place. Thus, benefit transfer includes the adaptation of an original study to a new policy application at the same location or the adaptation to a different location. The appeal of a benefit transfer is that it can be cost effective, both monetarily and in time. Using previous studies, analysts can select existing results to construct a transferred value for the desired amenity influenced by the policy change. Benefit transfer practices are not unique to valuing ecosystem service and are generally applicable to a variety of changes in ecosystem services. An ideal benefit transfer will scale value estimates to both the ecosystem services and the preferences of those who hold values. The article outlines the steps in a benefit transfer, types of transfers, accuracy of transferred values, and challenges when conducting ecosystem transfers and ends with recommendations for the implementation of benefit transfers to support decision-making.

Article

A number of challenges are faced by practitioners seeking to elicit values associated with water in a world of global change. These values are needed to assist in decision-making around the use of water as a country’s key asset. Five different pathways show the complexity of the relationship between global change and environmental valuation of water: a climate change pathway, ecosystem infrastructure pathway, population/demographics pathway, income pathway, and technological change/innovation pathway. The challenges are most acute for water when it is related to ecosystem services since values need to be elicited through the use of non-market survey-based valuation techniques. In addition, environmental valuation will be important to inform the determination of water quality standards associated with different uses of water (drinking, recreation, etc.) and the allocation of resources to provide these different services. Several case studies illustrate issues and solutions. The article concludes with an appreciation of future challenges and opportunities.

Article

Johanna Brühl, Leonard le Roux, Martine Visser, and Gunnar Köhlin

The water crisis that gripped Cape Town over the 2016–2018 period gained global attention. For a brief period of time in early 2018, it looked as if the legislative capital of South Africa would become the first major city in the world to run out of water. The case of Cape Town has broad implications for how we think about water management in a rapidly urbanizing world. Cities in the global South, especially, where often under-capacitated urban utilities need to cope with rapid demographic changes, climate change, and numerous competing demands on their tight budgets, can learn from Cape Town’s experience. The case of Cape Town draws attention to the types of decisions policymakers and water utilities face in times of crisis. It illustrates how these decisions, while being unavoidable in the short term, are often sub-optimal in the long run. The Cape Town drought highlights the importance of infrastructure diversification, better groundwater management, and communication and information transparency to build trust with the public. It also shows what governance and institutional changes need to be made to ensure long-term water security and efficient water management. The implementation of all of these policies needs to address the increased variability of water supplies due to increasingly erratic rainfall and rapidly growing urban populations in many countries. This necessitates a long-term planning horizon.

Article

Bartosz Bartkowski and Nele Lienhoop

While economic values of nonmarket ecosystem goods and services are in high demand to inform decision-making processes, economic valuation has also attracted significant criticism. Particularly, its implicit rationality assumptions and value monism gave rise to alternative approaches to economic nonmarket valuation. Deliberative monetary valuation (DMV) originated in the early 2000s and gained particular prominence after 2010, especially in the context of the United Kingdom National Ecosystem Assessment (UK NEA). It constitutes a major methodological development to overcome the limitations of conventional nonmarket valuation methods by incorporating deliberative group elements (information provision, discussion, time to reflect in a group setting) in the valuation process. DMV approaches range from those that focus on facilitating individual preference formation for complex and unfamiliar environmental changes and stay close to neoclassical economic theory to those that try to go beyond methodological individualism and monetary valuation to include a plurality of different values. The theoretical foundation of DMV comprises a mix of economic welfare theory, on the one hand, and various strands of deliberative democratic theory and discourse ethics, on the other. DMV formats are mostly inspired by deliberative institutions such as citizens’ juries and combine those with stated preference methods such as choice experiments. While the diversity of approaches within this field is large, it has been demonstrated that deliberation can lead to more well-informed and stable preferences as well as facilitate the inclusion of considerations going beyond self-interest. Future research challenges surrounding DMV include the exploration of intergroup power relations and group dynamics as well as the theoretical status and the validity of DMV results.

Article

The domestication of livestock animals has long been recognized as one of the most important and influential events in human prehistory and has been the subject of scholarly inquiry for centuries. Modern understandings of this important transition place it within the context of the origins of food production in the so-called Neolithic Revolution, where it is particularly well documented in southwest Asia. Here, a combination of archaeofaunal, isotopic, and DNA evidence suggests that sheep, goat, cattle, and pigs were first domesticated over a period of several millennia within sedentary communities practicing intensive cultivation beginning at the Pleistocene–Holocene transition. Resulting from more than a century of data collection, our understanding of the chronological and geographic features of the transition from hunting to herding indicate that the 9th millennium bce and the region of the northern Levant played crucial roles in livestock domestication. However, many questions remain concerning the nature of the earliest predomestic animal management strategies, the role of multiple regional traditions of animal management in the emergence of livestock, and the motivations behind the slow spread of integrated livestock husbandry systems, including all four domestic livestock species that become widespread throughout southwest Asia only at the end of the Neolithic period.

Article

Land degradation and desertification are composite processes that reflect how components of land capital have worsened over time, both quantitatively and qualitatively. Land degradation is intended as a truly socioeconomic issue because the idea and practice of use (and misuse) of land are socially constructed. In this perspective, soil productivity and land capacity, water consumption and landscape fragmentation, agriculture and sustainable development all reflect the vast ensemble of human-nature interactions. The intrinsic heterogeneity of land degradation processes at the global scale limits the development of mitigation actions. Comprehension of the socioeconomic processes underlying land degradation can benefit from a multidisciplinary approach that considers the intricate feedback between biophysical and economic dimensions. The mutual relationship between economic growth, social inequality, political action, and land degradation provides examples of the interplay among proximate causes and factors underlying desertification.

Article

Deforestation causes up to 10% of global anthropogenic carbon emissions. Reducing emissions from deforestation and degradation and enhancing forest carbon stocks can contribute to controlling greenhouse gas (GHG) emissions and limit global warming and climate change. However, global warming cannot be limited without decreasing the use of fossil fuel or emission-intensive energy sources. The forestry sector could contribute 7%–25% of global emissions reduction by 2020. Apart from emissions reduction and sink (mitigation), forests also provide cobenefits such as ecosystem services (providing food, timber, and medicinal herbs); biodiversity conservation; poverty reduction; and water quality, soil protection, and climate regulation. In 2005, the UNFCCC introduced a cost-effective mitigation strategy to reduce emissions from deforestation (RED) in developing countries. The UN’s initiative to reduce emissions from deforestation and forest degradation (REDD+) aims to transform forest management in developing countries, where the majority of tropical forests are located, using finances from developed countries. REDD+ seeks to reward actors for maintaining or restoring forests, acting as an economic instrument by putting a monetary value on every tonne of CO2 that is prevented from entering the atmosphere. Implementation of REDD+ requires economic and policy instruments that can help to control GHG emissions by enhancing carbon sinks, reducing deforestation and forest degradation, and managing sustainable forests. Payment for environmental services offers opportunities for either cofinancing or economic valuation in regard to REDD+ implementation. The challenge is to identify the most appropriate and cost-effective instrument. REDD+ fulfills the current needs for economic instruments and incentives that can be implemented with existing land use and forestry policies to control global GHG emissions. However, REDD+ requires forest governance, law enforcement, clarification of land and resource rights, and forest monitoring to work in the long term. REDD+ payments can be made for results-based actions, and the UNFCCC has identified potential ways to pay for them, but challenges remain, such as clarifying financing or funding sources, distribution of funding and sharing of benefits or incentives, carbon rights, and so on. Different aspects pf the implementation, effectiveness, and scale of REDD+ and their interactions with economic, social, and environmental benefits are important for successful REDD+ implementation.

Article

Stefanie Onder, James T. Erbaugh, and Georgia Christina Kosmidou-Bradley

The loss of Asian forests represents one of the most significant changes in contemporary land cover. Between 2000 and 2020 alone, an area twice the size of Malaysia has lost its tree cover as measured by Earth observation data. These trends have significant repercussions for greenhouse gas emissions, carbon storage, the conservation of biodiversity, and the wellbeing of Indigenous Peoples and local communities (IPLCs), making Asian deforestation a phenomenon of global concern. There are many immediate factors that drive deforestation across Asia, but the conversion to commodity agriculture is the leading cause. Most notably, the expansion of oil palm and rubber plantations by both multinational corporations and smallholders has led to dramatic conversion of forests. The production of timber as well as pulp and paper has further contributed to significant deforestation, with the evolution of each sector often driven by government policies, such as logging bans. However, it is the underlying drivers (i.e., distal and proximate causes) that determine where and when commodity production displaces forest cover. They are particularly challenging to tackle in a globalized world, where consumption patterns driven by local population and income growth lead to environmental and social change in distant producer countries, including in Asia. Certification programs and legality requirements have been put in place to address these externalities with varying success. Deforestation in Asia is also facilitated by weak governance and regulatory frameworks, where forest rights are often unclear, and financial, technological, and human resources for forest monitoring are limited. Several contemporary forest governance strategies seek to promote sustainable management of Asian forests. Financial mechanisms such as reducing emissions from deforestation and forest degradation (REDD+) and payments for ecosystem services (PES) schemes seek to provide economic incentives for forest conservation. Pledges and activities to remove deforestation from commodity supply chains seek to respond to consumer demand, promote corporate environmental and social responsibility, and reduce the extent to which commodity supply chains contribute to Asian deforestation. And multiple state-led initiatives across Asia to empower IPLCs aim to align forest management objectives between national governments, subnational administrations, and local people. Assessing the impact of interventions related to financial mechanisms, corporate responsibility, and local forest governance will be critical to shaping the future of Asian forest cover change.

Article

There are continuing developments in the analysis of hunger and famines, and the results of theoretical and empirical studies of hunger and food insecurity highlight cases where hunger intensifies sufficiently to be identified as famine. The varying ability of those affected to cope with the shocks and stresses imposed on them are central to the development of food insecurity and the emergence of famine conditions and to explaining the complex interrelationships between agriculture, famine, and economics. There are a number of approaches to understanding how famines develop. The Malthusian approach, which sees population growth as the primary source of hunger and famine, can be contrasted with the free market or Smithian approach, which regards freely operating markets as an essential prerequisite for ensuring that famine can be overcome. A major debate has centered on whether famines primarily emerge from a decline in the availability of food or are a result of failure by households to access sufficient food for consumption, seeking to distinguish between famine as a problem related to food production and availability and famine as a problem of declining income and food consumption among certain groups in the population. These declines arise from the interaction between food markets, labor markets and markets for livestock and other productive farm resources when poor people try to cope with reduced food consumption. Further revisions to famine analysis were introduced from the mid-1990s by authors who interpreted the emergence of famines not as a failure in markets and the economic system, but more as a failure in political accountability and humanitarian response. These approaches have the common characteristic that they seek to narrow the focus of investigation to one or a few key characteristics. Yet most of those involved in famine analysis or famine relief would stress the multi-faceted and broad-based nature of the perceived causes of famine and the mechanisms through which they emerge. In contrast to these approaches, the famine systems approach takes a broader view, exploring insights from systems theory to understand how famines develop and especially how this development might be halted, reversed, or prevented. Economists have contributed to and informed different perspectives on famine analysis while acknowledging key contributions from moral philosophy as well as from biological and physical sciences and from political and social sciences. Malthus, Smith, and John Stuart Mill contributed substantially to early thinking on famine causation and appropriate famine interventions. Increased emphasis on famine prevention and a focus on food production and productivity led to the unarguable success of the Green Revolution. An important shift in thinking in the 1980s was motivated by Amartya Sen’s work on food entitlements and on markets for food and agricultural resources. On the other hand, the famine systems approach considers famine as a process governed by complex relationships and seeks to integrate contributions from economists and other scientists while promoting a systems approach to famine analysis.

Article

Jinbo Song, Lulu Jin, Chen Qian, and Yan Sun

With the upgrading of living standards and rapid urbanization around the globe, waste treatment has become a ubiquitous environmental issue. Increased waste generation and narrowed prospects for landfill and composting have brought strong growth prospects for the waste-to-energy (WtE) industry. WtE is considered an effective method for waste treatment because it can significantly reduce the land use and environmental pollutants caused by other methods and can generate energy by means of electricity or heat from the treatment of waste. However, there have been supportive and opposing opinions about WtE from the economic, environmental, and social perspectives. Whether WtE plants are the best option depends not only on associated investment and operating costs but also on the environmental and social costs (termed as external cost) as compared to other waste treatment options. Economic costs are generally estimated by market price of materials, labor, and equipment. Social costs normally refer to health effects, transportation congestion, and environmental impacts, including the emission of gas and leachate. Qualitative and quantitative methods are proposed to assist in decision making on waste disposal alternatives. The qualitative method relies on the expert experience to rank waste treatment options, such as analytic hierarchy process and multicriteria decision model, while the quantitative method, such as life cycle assessment and social cost-benefit analysis, calculates the economic cost and monetizes the abstract external cost in the light of the historical data. The two methods offer different advantages and disadvantages, and thus cater to different conditions. In developed countries, along with the rapid development of WtE and the increase in available cost data, the estimation of the economic, environmental, and social costs is achievable, which promotes the popularization of quantitative method. In China and other developing countries, quantitative analysis is limited to the estimation of economic cost and the qualitative method is still dominated in the evaluation of environmental and social impacts due to the lack of cost data.

Article

Conflicts potentially arise whenever resources are limited relative to what is desired. Conflicts are costly because to engage in them requires resources and they may cause collateral damage. Therefore, humans and other species have developed various means to avoid, deflect, and minimize conflicts. In human society, these means involve (a) customs and traditions, (b) laws and their enforcement, (c) negotiations, and (d) exchange. While analytically separable, these items are clearly interrelated and, in practice, intermingled. Their common element is the delineation and acceptance of property rights. Property rights, if sufficiently enforced, channel conflicts into exchange of valuables, that is, negotiated settlements or trade. This, as is well established in economics, has the added benefit of promoting economic efficiency. Fisheries conflicts are manifestations of human conflicts in general. It follows that fisheries conflicts are amenable to the same basic analysis as other conflicts. Cases of fisheries conflicts abound in the world. It is probably safe to assert that anytime two or more agents pursue the same fishery conflicts arise. Some of these conflicts are comparatively minor, such as disputes between two fishers about the best fishing spots. Others are more dramatic, involving armed force such as the South Africa abalone conflict. Some involve national states and the application of navies such as the cod wars between Iceland and the United Kingdom and the lobster war between Brazil and France. Most terrestrial natural resources have long since become subject to property rights, thus reducing conflicts and increasing economic efficiency of their use. This process has been much slower for fish resources, probably due to their relative unobservability and migratory nature. Nevertheless, the past several centuries have seen a creeping expansion of property rights in ocean and aquatic resources. The most noticeable of these developments have been (a) the enlargement of exclusive national economic zones (EEZs) and (b) the establishment of individual harvesting rights, the so-called individual and individual transferable quotas (IQs and ITQs). The enlargement of national EEZs has been going on for centuries. The IQs/ITQs are a much more recent phenomenon emerging in the 1970s. However, since this time, their application has become quite common, with more than a quarter of the global ocean catch being taken under ITQ or ITQ-like systems. It should be noted that an extension of the national EEZ is often a prerequisite for the introduction of ITQs. Extended EEZs have greatly reduced international conflicts for fish resources. ITQs and similar property-rights based systems have similarly reduced fisheries conflicts between individuals and companies. No less importantly, these individual property rights have promoted cooperation in the joint use of aquatic resources and the gradual transfer of the fishing activity to the most efficient operators, thus greatly enhancing the net economic benefits generated by the fisheries. There are indications that property rights in fisheries are also conducive to a negotiated resolution of conflicts between fishing and other uses of aquatic resources such as mining, recreation, and ecosystem conservation.

Article

Hazardous waste management involves treatment, disposal, or recycling of a wide range of different waste streams from industry, households, and others. The diversity of wastes and management methods means that many choices affect its environmental harms, which result from possible contamination of groundwater, surface water, soil, and air. Efficient public policies that would fully reflect such varied external costs are unlikely to be feasible. In practice, governments principally apply three policy approaches to hazardous waste: taxes on hazardous waste, liability for environmental damages, and standards-based regulation of waste management facilities. Hazardous waste taxes may help internalize environmental costs but do not reflect all the variability in these costs. By contrast, liability for environmental damage can make waste generators and managers confront environmental costs that vary with their particular choices. However, environmental liability is often linked to programs for cleanup of contaminated sites and may not create efficient incentives for active waste management because this liability does not reflect the social costs of the contamination. Regulation usually takes the form of technology and performance standards applied to treatment, storage, and disposal facilities (TSDFs) and affects generation decisions only indirectly. Research finds that public policies that raise costs of hazardous waste management, such as taxes and regulation, encourage less waste generation, but may also provoke detrimental responses. First, facilities may substitute illegal waste dumping for legal management and thus exacerbate environmental damage. Second, generators may ship waste to jurisdictions with weaker environmental protections, especially developing countries, giving rise to a “waste haven” effect. This effect may create offsetting environmental damage, facilitate destructive policy competition among jurisdictions, and worsen inequities in exposure to environmental harm from hazardous waste.

Article

Mark Eiswerth, Chad Lawley, and Michael H. Taylor

Introductions of non-native invasive species can harm ecosystems, heighten the risk of native species extinctions and population reductions, and lead to substantial economic damages on a worldwide scale. Increasingly, economists have made contributions that help other researchers, policymakers, and society better understand the economic implications of invasive species as well as the most economically efficient approaches for managing them. The complexity of invasive species management problems has pushed economists to ask novel economic questions and to develop new analytical approaches in order to address specific policy questions. There are three areas, in particular, where the economic analysis of invasive species management has led to significant innovations. First, there are substantial challenges to quantifying economic damages from invasive species for application in benefit−cost analysis. The challenges relate to defining the counterfactual state of an invaded ecosystem with and without management/policy and to the fact that, in a given ecosystem, estimates of economic damages are available for only a subset of the species and for only a subset of damages for any one species. Recent economic research has proposed innovative approaches to systematically dealing with these two issues in the context of invasive species that have implications for applied benefit−cost analysis more broadly. Second, unique among natural resource management problems, invasive species have the feature that their current and future extents are directly tied to a country’s participation in international trade. This feature has led to innovative research into the design of efficient measures to prevent or delay invasive species introductions along national borders, and into the trade-offs between these measures and the use of border controls as protectionist tools. The issues of optimal inspection policy and the use of nontariff barriers as a form of covert protectionism both have implications beyond invasive species management. Third, researchers have developed bioeconomic models that integrate economic and biological factors in order to analyze strategies to more cost-effectively reduce the damages caused by invasive species. These modeling efforts have dealt with issues related to temporal and spatial dynamics of the biological invasions, imperfect information regarding the extent of the invasion and the effectiveness of management, linkages between management applied at different stages of an invasion, and complications arising from ecosystems’ crossing over ecological thresholds due to invasions. In the face of increasingly rapid ecosystem change due to global climate change, increases in extreme weather, urban encroachment into wild lands, and other factors, many of these features of invasive species management problems are likely to become features of ecosystem management more broadly in the near future if they are not so already.

Article

Dominic Moran and Jorie Knook

Climate change is already having a significant impact on agriculture through greater weather variability and the increasing frequency of extreme events. International policy is rightly focused on adapting and transforming agricultural and food production systems to reduce vulnerability. But agriculture also has a role in terms of climate change mitigation. The agricultural sector accounts for approximately a third of global anthropogenic greenhouse gas emissions, including related emissions from land-use change and deforestation. Farmers and land managers have a significant role to play because emissions reduction measures can be taken to increase soil carbon sequestration, manage fertilizer application, and improve ruminant nutrition and waste. There is also potential to improve overall productivity in some systems, thereby reducing emissions per unit of product. The global significance of such actions should not be underestimated. Existing research shows that some of these measures are low cost relative to the costs of reducing emissions in other sectors such as energy or heavy industry. Some measures are apparently cost-negative or win–win, in that they have the potential to reduce emissions and save production costs. However, the mitigation potential is also hindered by the biophysical complexity of agricultural systems and institutional and behavioral barriers limiting the adoption of these measures in developed and developing countries. This includes formal agreement on how agricultural mitigation should be treated in national obligations, commitments or targets, and the nature of policy incentives that can be deployed in different farming systems and along food chains beyond the farm gate. These challenges also overlap growing concern about global food security, which highlights additional stressors, including demographic change, natural resource scarcity, and economic convergence in consumption preferences, particularly for livestock products. The focus on reducing emissions through modified food consumption and reduced waste is a recent agenda that is proving more controversial than dealing with emissions related to production.

Article

Maria L. Loureiro and Maria Alló

Vessel oil spills are very serious natural hazards that have affected coasts worldwide for many decades. Although oil spills from tankers are highly publicized, very little is known about the role played by the incentives and regulatory instruments in place to prevent them. In order to shed some light on these issues, data were collected worldwide on large oil spills from multiple databases, starting in the 1970s, and merged with other socioeconomic records. A crucial concern is that that large oil spills have been undercompensated over time with respect to the damages caused. A meta-analysis was estimated in order to assess relevant factors affecting the damage claimed in oil spills and the compensations received by the affected parties. Meta-regression results show that the legislation applied (strict unlimited liability versus limited liability) played a crucial role in both the amount claimed and the final compensation received. Also, time-trend variables are shown as determining factors for both the damages and claims that are finally paid. To correct the large gap between damage claimed and compensation scenarios, it is recommended to strengthen compensation funds, while carrying out more comprehensive assessment studies which apply valuation methods comparable with those proposed by green capital initiatives for marine ecosystem services, and which could be used successfully during the litigation process.

Article

Reforestation is the natural or intentional restocking of existing forests and woodlands that have been harvested or depleted, and afforestation is the establishing of a forest in an area where there were no trees. For economic and practical purposes, reforestation and afforestation have similar goals and processes and thus can be treated as identical activities. Although reforestation and afforestation have a long history, large-scale reforestation and afforestation activities started with industrialization, which caused scarcity in timber and forest-based ecosystem services. In a unified economic model of reforestation and afforestation, factors influencing investments in reforestation and in afforestation on private and public lands include timber prices, unit reforestation cost, interest rate, the responsiveness of tree growth to silviculture, and the value of nontimber benefits, such as ecosystem services. Market and public policies may facilitate, enhance, or hinder reforestation and afforestation activities, and nontimber benefits are an increasingly important motive for reforestation and, especially, afforestation efforts around the world.

Article

The Genuine Progress Indicator (GPI) is an interesting alternative to Gross Domestic Product (GDP) as an indicator of society’s development. Historically, GDP has been used by policymakers, media analysts, and economists as the main indicator of development, even though economics textbooks often state that it is not a measure of social welfare. Strictly speaking, GDP is only an indicator of the production of economic goods and services, not an index of well-being or development. It does not include the environmental, social, or economic costs of producing goods and services. The theoretical basis of GDP is conventional macroeconomics, which adopts an isolated economic system as the object of analysis. In this approach, there is no flow of matter and energy to produce economic goods and services. The economy is considered a perpetual motion machine that does not need material and energy to produce and which consequently does not generate waste. However, the economy is a subsystem open to the flow of matter and energy, supported by a closed, natural subsystem—the global environmental system. In practice, the production of economic goods and services is dependent on the continuous flow of matter and energy from the environment, and inherently, the result of GDP is also the generation of waste. The GPI adopts this perspective. In the 1990s, Daly and Cobb created the Index of Sustainable Economic Welfare (ISEW), hereafter termed GPI. The objective was to incorporate environmental, social, and economic costs associated with GDP growth, and to generate an indicator that reflected a genuine development of society. The GPI has been estimated for several countries, including the United States, Australia, China, and Brazil. This indicator is neither perfect nor complete for assessing development or human well-being, but it is superior to GDP. Despite technological development, there has been an unequivocal increase in environmental degradation, contrary to the environmental Kuznets curve (EKC) hypothesis. The result of environmental degradation has been an increase in the environmental, social, and economic costs of GDP growth. However, these costs have been ignored by policymakers, companies, and society in their production and consumption decisions. Improving the GPI and its estimates can provide better information for decision making by economic and political agents.

Article

Rawshan Ara Begum and Sofia Ehsan

With rapid population growth and urbanization around the world, waste generation (solid, liquid, and gaseous) is increasing. Waste management is a critical factor in ensuring human health and environmental protection, which is a major concern of both developing and developed countries. Waste management systems and practices, including collection, transport, treatment, and disposal, vary between developed and developing countries or even urban and rural areas. In response, economic models have been developed to help decision-makers choose the most efficient mix of policy levers to regulate solid waste and recycling activities. The economic models employ different kinds of data to estimate the factors that contribute to solid waste generation and recycling, and to estimate the effectiveness of the policy options employed for waste management and disposal. Thus, economic analysis plays a crucial role in the proper and efficient management of solid waste, and leads to significant developments in the field of environmental economics to reflect the costs of pollution related to waste, measure the environmental benefits of waste management, find cost-efficient solutions, and shape policies for environmental protection and sustainable development. Economic assessment and cost-benefit analysis help to determine optimal policies for efficient use of resources and management of waste problems to achieve sustainable waste management, especially in developing and least developed countries. Crucial challenges include issues such as the limits of waste hierarchy, integration of sustainable waste management, public-private cooperation, and linear versus circular economy.