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.
Ann E. Ferris, Richard Garbaccio, Alex Marten, and Ann Wolverton
Concern regarding the economic impacts of environmental regulations has been part of the public dialogue since the beginning of the U.S. EPA. Even as large improvements in environmental quality occurred, government and academia began to examine the potential consequences of regulation for economic growth and productivity. In general, early studies found measurable but not severe effects on the overall national economy. Although price increases due to regulatory requirements outweighed the stimulative effect of investments in pollution abatement, they nearly offset one another. However, these studies also highlighted potentially substantial effects on local labor markets due to the regional and industry concentration of plant closures.
More recently, a substantial body of work examined industry-specific effects of environmental regulation on the productivity of pollution-intensive firms most likely to face pollution control costs, as well as on plant location and employment decisions within firms. Most econometric-based studies found relatively small or no effect on sector-specific productivity and employment, though firms were less likely to open plants in locations subject to more stringent regulation compared to other U.S. locations. In contrast, studies that used economy-wide models to explicitly account for sectoral linkages and intertemporal effects found substantial sector-specific effects due to environmental regulation, including in sectors that were not directly regulated.
It is also possible to think about the overall impacts of environmental regulation on the economy through the lens of benefit-cost analysis. While this type of approach does not speak to how the costs of regulation are distributed across sectors, it has the advantage of explicitly weighing the benefits of environmental improvements against their costs. If benefits are greater than costs, then overall social welfare is improved. When conducting such exercises, it is important to anticipate the ways in which improvements in environmental quality may either directly improve the productivity of economic factors—such as through the increased productivity of outdoor workers—or change the composition of the economy as firms and households change their behavior. If individuals are healthier, for example, they may choose to reallocate their time between work and leisure. Although introducing a role for pollution in production and household behavior can be challenging, studies that have partially accounted for this interconnection have found substantial impacts of improvements in environmental quality on the overall economy.
James B. London
Coastal zone management (CZM) has evolved since the enactment of the U.S. Coastal Zone Management Act of 1972, which was the first comprehensive program of its type. The newer iteration of Integrated Coastal Zone Management (ICZM), as applied to the European Union (2000, 2002), establishes priorities and a comprehensive strategy framework. While coastal management was established in large part to address issues of both development and resource protection in the coastal zone, conditions have changed. Accelerated rates of sea level rise (SLR) as well as continued rapid development along the coasts have increased vulnerability. The article examines changing conditions over time and the role of CZM and ICZM in addressing increased climate related vulnerabilities along the coast.
The article argues that effective adaptation strategies will require a sound information base and an institutional framework that appropriately addresses the risk of development in the coastal zone. The information base has improved through recent advances in technology and geospatial data quality. Critical for decision-makers will be sound information to identify vulnerabilities, formulate options, and assess the viability of a set of adaptation alternatives. The institutional framework must include the political will to act decisively and send the right signals to encourage responsible development patterns. At the same time, as communities are likely to bear higher costs for adaptation, it is important that they are given appropriate tools to effectively weigh alternatives, including the cost avoidance associated with corrective action. Adaptation strategies must be pro-active and anticipatory. Failure to act strategically will be fiscally irresponsible.
The Mirage of Supply-side Development: The Hydraulic Mission and the Politics of Agriculture and Water in the Nile Basin
In an era of calamitous climate change, entrenched malnutrition, and the chronic exclusion of hundreds of millions of people from access to affordable energy, food, and water, evaluating the policy options of African states to address these challenges matters more than ever. In the Nile Basin especially, a region notorious for its poverty, violent instability and lack of industrialisation, states have invested their scarce resources and political capital in a “hydraulic mission” in the belief that they can engineer their way out of international marginalization. Incumbents have bet on large-scale hydro-infrastructure and capital-intensive agriculture to boost food production, strengthen energy security, and deal with water scarcity, despite the woeful track-record of such a supply-side approach to development.
While ruling elites in the Nile Basin have portrayed the hydraulic mission as the natural way of developing the region’s resources—supposedly validated by the historical achievements of Pharaonic civilization and its mastery over its tough environment—this is a modern fiction, spun to justify politically expedient projects and the exclusion of broad layers of the population. In the last two hundred years, the hydraulic mission has made three major political contributions that underline its strategic usefulness to centralizing elites: it has enabled the building of modern states and a growing bureaucratic apparatus around a riverain political economy; it has generated new national narratives that have allowed unpopular regimes to rebrand themselves as protectors of the nation; and it has facilitated the forging of external alliances, linking the resources and elites of Egypt, Ethiopia, and Sudan to global markets and centers of influence. Mega-dams, huge canals and irrigation for export are fundamentally about power and the powerful—and the privileging of some interests and social formations over others. The one-sided focus on increasing supply—based on the false premise that this will allow ordinary people to access more food and water—transfers control over livelihoods from one (broad) group of people to (a much narrower) other one by legitimizing top-down interventionism and dislocation. What presents itself as a strategy of water resources and agricultural development is really about (re)constructing hierarchies between people. The mirage of supply-side development continues to seduce elites at the helm of the state because it keeps them in power and others out of it.