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P.S. Goh, A.F. Ismail, and N. Hilal
Water scarcity as an outcome of global population expansion, climate change, and industrialization calls for new and innovative technologies to provide sustainable solutions to address this alarming issue. Seawater and brackish water are abundantly available on earth for drinking water and industrial use, and desalination is a promising approach to resolving this global challenge. Recently, the considerable reduction in the cost of desalination has contributed to the growing capacity for global desalination. The desalination technologies that have been deployed worldwide for clean water production can be categorized into two main types: membrane-based and thermal-based. Technological advancement in this field has focused on the reduction of capital and operating cost, particularly the energy consumption of the systems. Seawater and brackish desalination technologies are promising solutions for water shortages.
Throughout the 1900s, the warmth of the current interglaciation was viewed as completely natural in origin (prior to greenhouse-gas emissions during the industrial era). In the view of physical scientists, orbital variations had ended the previous glaciation and caused a warmer climate but had not yet brought it to an end. Most historians focused on urban and elite societies, with much less attention to how farmers were altering the land. Historical studies were also constrained by the fact that written records extended back a few hundred to at most 3,500 years.
The first years of the new millennium saw a major challenge to the ruling paradigm. Evidence from deep ice drilling in Antarctica showed that the early stages of the three interglaciations prior to the current one were marked by decreases in concentrations of carbon dioxide (CO2) and methane (CH4) that must have been natural in origin. During the earliest part of the current (Holocene) interglaciation, gas concentrations initially showed similar decreases, but then rose during the last 7,000–5,000 years. These anomalous (“wrong-way”) trends are interpreted by many scientists as anthropogenic, with support from scattered evidence of deforestation (which increases atmospheric CO2) by the first farmers and early, irrigated rice agriculture (which emits CH4).
During a subsequent interval of scientific give-and-take, several papers have criticized this new hypothesis. The most common objection has been that there were too few people living millennia ago to have had large effects on greenhouse gases and climate. Several land-use simulations estimate that CO2 emissions from pre-industrial forest clearance amounted to just a few parts per million (ppm), far less than the 40 ppm estimate in the early anthropogenic hypothesis. Other critics have suggested that, during the best orbital analog to the current interglaciation, about 400,000 years ago, interglacial warmth persisted for 26,000 years, compared to the 10,000-year duration of the current interglaciation (implying more warmth yet to come). A geochemical index of the isotopic composition of CO2 molecules indicates that terrestrial emissions of 12C-rich CO2 were very small prior to the industrial era.
Subsequently, new evidence has once again favored the early anthropogenic hypothesis, albeit with some modifications. Examination of cores reaching deeper into Antarctic ice reconfirm that the upward gas trends in this interglaciation differ from the average downward trends in seven previous ones. Historical data from Europe and China show that early farmers used more land per capita and emitted much more carbon than suggested by the first land-use simulations. Examination of pollen trends in hundreds of European lakes and peat bogs has shown that most forests had been cut well before the industrial era. Mapping of the spread of irrigated rice by archaeobotanists indicates that emissions from rice paddies can explain much of the anomalous CH4 rise in pre-industrial time. The early anthropogenic hypothesis is now broadly supported by converging evidence from a range of disciplines.
Benjamin S. Arbuckle
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
Regimes of environmental stress are exceedingly complex. Particular stressors exist within continua of intensity of environmental factors. Those factors interact with each other, and their detrimental effects on organisms are manifest only at relatively high or low strengths of exposure—in fact, many of them are beneficial at intermediate levels of intensity. Although a diversity of environmental factors is manifest at any time and place, only one or a few of them tend to be dominant as stressors. It is useful to distinguish between stressors that occur as severe events (disturbances) and those that are chronic in their exposure, and to aggregate the kinds of stressors into categories (while noting some degree of overlap among them).
Climatic stressors are associated with extremes of temperature, solar radiation, wind, moisture, and combinations of these factors. They act as stressors if their condition is either insufficient or excessive, in comparison with the needs and comfort zones of organisms or ecosystem processes. Chemical stressors involve environments in which the availability of certain substances is too low to satisfy biological needs, or high enough to cause toxicity or another physiological detriment to organisms or to higher-level attributes of ecosystems. Wildfire is a disturbance that involves the combustion of much of the biomass of an ecosystem, affecting organisms by heat, physical damage, and toxic substances. Physical stress is a disturbance in which an exposure to kinetic energy is intense enough to damage organisms and ecosystems (such as a volcanic blast, seismic sea wave, ice scouring, or anthropogenic explosion or trampling).
Biological stressors are associated with interactions occurring among organisms. They may be directly caused by such trophic interactions as herbivory, predation, and parasitism. They may also indirectly affect the intensity of physical or chemical stressors, as when competition affects the availability of nutrients, moisture, or space.
Extreme environments are characterized by severe regimes of stressors, which result in relatively impoverished ecosystem development. This may be a consequence of either natural or anthropogenic stressors. If a regime of environmental stress intensifies, the resulting responses include a degradation of the structure and function of affected ecosystems and of ecological integrity more generally. In contrast, a relaxation of environmental stress allows some degree of ecosystem recovery.
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.
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.
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.
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.
Brent M. Haddad
Watersheds are physical regions from which all arriving water flows to a single exit point. The shared hydrology means that other biophysical systems are linked, typically with upper-gradient regions influencing lower-gradient ones. This situation frames the challenge of managing economic and other uses of watersheds both in terms of individual activities and their influence on other connected processes and activities. Economics provides concepts and methods that help managers with decision making in the complex physical, biological, and institutional environment of a watershed. Among the important concepts and methods that help characterize watershed processes are externalities, impacts of economic activity that fall upon individuals not party to the activity, and third parties, individuals impacted without consent. Public goods and common pool resources describe categories of things or processes that by their nature are not amenable to regular market transactions. Their regulation requires special consideration and alternative approaches to markets. Benefit-cost analysis and valuation are related methods that provide a means to compare alternative uses of the same system. Each is based on the normative argument that the best use provides the greatest net benefits to society. And intergenerational equity is a value orientation that argues for preservation of watershed processes for the benefit of future generations. The need for effective watershed management methods pushed 20th-century economists to adapt their discipline to the complexity of watersheds, from which emerged subdisciplines of natural resource economics, environmental economics, and ecological economics. The field is still evolving with a growing interest in data gathering through land-based low-cost data collection systems and remote sensing, and in emerging data analysis techniques to improve management decisions.
Boreal countries are rich in forest resources, and for their area, they produce a disproportionally large share of the lumber, pulp, and paper bound for the global market. These countries have long-standing strong traditions in forestry education and institutions, as well as in timber-oriented forest management. However, global change, together with evolving societal values and demands, are challenging traditional forest management approaches. In particular, plantation-type management, where wood is harvested with short cutting cycles relative to the natural time span of stand development, has been criticized. Such management practices create landscapes composed of mosaics of young, even-aged, and structurally homogeneous stands, with scarcity of old trees and deadwood. In contrast, natural forest landscapes are characterized by the presence of old large trees, uneven-aged stand structures, abundant deadwood, and high overall structural diversity. The differences between managed and unmanaged forests result from the fundamental differences in the disturbance regimes of managed versus unmanaged forests. Declines in managed forest biodiversity and structural complexity, combined with rapidly changing climatic conditions, pose a risk to forest health, and hence, to the long-term maintenance of biodiversity and provisioning of important ecosystem goods and services. The application of ecosystem management in boreal forestry calls for a transition from plantation-type forestry toward more diversified management inspired by natural forest structure and dynamics.
Leon C. Braat
The concept of ecosystem services considers the usefulness of nature for human society. The economic importance of nature was described and analyzed in the 18th century, but the term ecosystem services was introduced only in 1981. Since then it has spurred an increasing number of academic publications, international research projects, and policy studies. Now a subject of intense debate in the global scientific community, from the natural to social science domains, it is also used, developed, and customized in policy arenas and considered, if in a still somewhat skeptical and apprehensive way, in the “practice” domain—by nature management agencies, farmers, foresters, and corporate business. This process of bridging evident gaps between ecology and economics, and between nature conservation and economic development, has also been felt in the political arena, including in the United Nations and the European Union (which have placed it at the center of their nature conservation and sustainable use strategies).
The concept involves the utilitarian framing of those functions of nature that are used by humans and considered beneficial to society as economic and social services. In this light, for example, the disappearance of biodiversity directly affects ecosystem functions that underpin critical services for human well-being. More generally, the concept can be defined in this manner: Ecosystem services are the direct and indirect contributions of ecosystems, in interaction with contributions from human society, to human well-being.
The concept underpins four major discussions: (1) Academic: the ecological versus the economic dimensions of the goods and services that flow from ecosystems to the human economy; the challenge of integrating concepts and models across this paradigmatic divide; (2) Social: the risks versus benefits of bringing the utilitarian argument into political debates about nature conservation (Are ecosystem services good or bad for biodiversity and vice versa?); (3) Policy and planning: how to value the benefits from natural capital and ecosystem services (Will this improve decision-making on topics ranging from poverty alleviation via subsidies to farmers to planning of grey with green infrastructure to combining economic growth with nature conservation?); and (4) Practice: Can revenue come from smart management and sustainable use of ecosystems? Are there markets to be discovered and can businesses be created? How do taxes figure in an ecosystem-based economy? The outcomes of these discussions will both help to shape policy and planning of economies at global, national, and regional scales and contribute to the long-term survival and well-being of humanity.
Elisabet Lindgren and Thomas Elmqvist
Ecosystem services refer to benefits for human societies and well-being obtained from ecosystems. Research on health effects of ecosystem services have until recently mostly focused on beneficial effects on physical and mental health from spending time in nature or having access to urban green space. However, nearly all of the different ecosystem services may have impacts on health, either directly or indirectly. Ecosystem services can be divided into provisioning services that provide food and water; regulating services that provide, for example, clean air, moderate extreme events, and regulate the local climate; supporting services that help maintain biodiversity and infectious disease control; and cultural services.
With a rapidly growing global population, the demand for food and water will increase. Knowledge about ecosystems will provide opportunities for sustainable agriculture production in both terrestrial and marine environments. Diarrheal diseases and associated childhood deaths are strongly linked to poor water quality, sanitation, and hygiene. Even though improvements are being made, nearly 750 million people still lack access to reliable water sources. Ecosystems such as forests, wetlands, and lakes capture, filter, and store water used for drinking, irrigation, and other human purposes. Wetlands also store and treat solid waste and wastewater, and such ecosystem services could become of increasing use for sustainable development.
Ecosystems contribute to local climate regulation and are of importance for climate change mitigation and adaptation. Coastal ecosystems, such as mangrove and coral reefs, act as natural barriers against storm surges and flooding. Flooding is associated with increased risk of deaths, epidemic outbreaks, and negative health impacts from destroyed infrastructure. Vegetation reduces the risk of flooding, also in cities, by increasing permeability and reducing surface runoff following precipitation events.
The urban heat island effect will increase city-center temperatures during heatwaves. The elderly, people with chronic cardiovascular and respiratory diseases, and outdoor workers in cities where temperatures soar during heatwaves are in particular vulnerable to heat. Vegetation and especially trees help in different ways to reduce temperatures by shading and evapotranspiration. Air pollution increases the mortality and morbidity risks during heatwaves. Vegetation has been shown also to contribute to improved air quality by, depending on plant species, filtering out gases and airborne particulates. Greenery also has a noise-reducing effect, thereby decreasing noise-related illnesses and annoyances. Biological control uses the knowledge of ecosystems and biodiversity to help control human and animal diseases.
Natural surroundings and urban parks and gardens have direct beneficial effects on people’s physical and mental health and well-being. Increased physical activities have well-known health benefits. Spending time in natural environments has also been linked to aesthetic benefits, life enrichments, social cohesion, and spiritual experience. Even living close to or with a view of nature has been shown to reduce stress and increase a sense of well-being.
Giles Jackson and Megan Epler Wood
This is an advance summary of a forthcoming article in the Oxford Research Encyclopedia of Environmental Science. Please check back later for the full article.
Ecotourism is an evolving field that originated in the 1980s, when leading conservationists explored and wrote seminal papers on how tourism could contribute to the conservation of natural areas. Hector Ceballos Lascurain coined the first definition, and the International Union for Conservation of Nature, the World Wildlife Fund, Conservation International, and The Nature Conservancy all undertook research and documentation of the benefits and potential risks of ecotourism in the 1990s. The International Ecotourism Society, founded in 1990, brought together conservation organizations and businesses to create the first definition that was globally accepted in short form: Responsible travel to natural areas that conserves the environment and sustains the well-being of local people.
Small group tour operators flourished during the 1990s, bringing travelers to a growing number of natural areas worldwide, together with top guiding, high-caliber interpretation, and strong ethical contributions to local wellbeing. Many important micro, small, and medium sized enterprises were founded in high biodiversity regions of Latin America, Asia, Africa, Antarctica, Australia, and throughout the Pacific Islands and the Caribbean, offering life-changing experiences while helping build conservation economies and inspiring positive action.
In 2015, nature-based tourism was estimated to have an economic value worldwide of hundreds of billions of dollars annually in protected areas alone, driven by the growing need of a rapidly urbanizing world to experience and reconnect with wild nature. However, this growth has not resulted in growing budgets to safeguard and manage natural areas, which are increasingly under threat. Scientific concerns that poor business practices under the guise of ecotourism might irreversibly damage fragile natural areas have led the conservation community to de-emphasize ecotourism as a conservation tool in favor of business certification. But these efforts have reached only a small percentage of the corporate sector of the eight trillion dollar global tourism industry.
Although the net economic, social, and environmental contributions of ecotourism have not been fully accounted for, the research to date has confirmed the conservation value of ecotourism—among the first examples of social enterprise. One well-documented case is Wilderness Safaris, an $89 million company operating in 58 destinations in Southern Africa in 2015, which reinvests at least 5% of its gross profit (before taxation and depreciation) to help protect the natural assets and support local communities on which the business depends. This example suggests that ecotourism can yield benefits for the conservation of biodiversity and can benefit local communities on a large scale. To increase ecotourism’s role in sustainable development, more businesses will need to scale up, and government management of tourism will require improved impact measurements, updated regulatory strategies, and effective policy mechanisms to garner a greater portion of tourism revenue.
Soil erosion by water is a natural process that cannot be avoided. Soil erosion depends on many factors, and a distinction should be made between humanly unchangeable (e.g., rainfall) and modifiable (e.g., length of the field) soil erosion factors. Soil erosion has both on-site and off-site effects. Soil conservation tries to combine modifiable factors so as to maintain erosion in an area of interest to an acceptable level. Strategies to control soil erosion have to be adapted to the desired land use. Knowledge of soil loss tolerance, T, i.e., the maximum admissible erosion from a given field, allows technicians or farmers to establish whether soil conservation practices need to be applied to a certain area or not. Accurate evaluation of the tolerable soil erosion level for an area of interest is crucial for choosing effective practices to mitigate this phenomenon. Excessively stringent standards for T would imply over expenditure of natural, financial, and labor resources. Excessively high T values may lead to excessive soil erosion and hence decline of soil fertility and productivity and to soil degradation. In this last case, less money is probably spent for soil conservation, but ineffectively. Basic principles to control erosion for different land uses include maintaining vegetative and ground cover, incorporating biomass into the soil, minimizing soil disturbance, increasing infiltration, and avoiding long field lengths. Preference is generally given to agronomic measures as compared with mechanical measures since the former ones reduce raindrop impact, increase infiltration, and reduce runoff volumes and water velocities. Agronomic measures for soil erosion control include choice of crops and crop rotation, applied tillage practices, and use of fertilizers and amendments. Mechanical measures include contour, ridging, and terracing. These measures cannot prevent detachment of soil particles, but they counter sediment transport downhill and can be unavoidable in certain circumstances, at least to supplement agronomic measures. Simple methods can be applied to approximately predict the effect of a given soil conservation measure on soil loss for an area of interest. In particular, the simplest way to quantitatively predict mitigation of soil erosion due to a particular conservation method makes use of the Universal Soil Loss Equation (USLE). Despite its empirical nature, this model still appears to represent the best compromise between reliability of the predictions and simplicity in terms of input data, which are generally very difficult to obtain for other soil erosion prediction models. Soil erosion must be controlled soon after burning.
The emergence of environment as a security imperative is something that could have been avoided. Early indications showed that if governments did not pay attention to critical environmental issues, these would move up the security agenda. As far back as the Club of Rome 1972 report, Limits to Growth, variables highlighted for policy makers included world population, industrialization, pollution, food production, and resource depletion, all of which impact how we live on this planet.
The term environmental security didn’t come into general use until the 2000s. It had its first substantive framing in 1977, with the Lester Brown Worldwatch Paper 14, “Redefining Security.” Brown argued that the traditional view of national security was based on the “assumption that the principal threat to security comes from other nations.” He went on to argue that future security “may now arise less from the relationship of nation to nation and more from the relationship between man to nature.”
Of the major documents to come out of the Earth Summit in 1992, the Rio Declaration on Environment and Development is probably the first time governments have tried to frame environmental security. Principle 2 says: “States have, in accordance with the Charter of the United Nations and the principles of international law, the sovereign right to exploit their own resources pursuant to their own environmental and developmental policies, and the responsibility to ensure that activities within their jurisdiction or control do not cause damage to the environment of other States or of areas beyond the limits of national.”
In 1994, the UN Development Program defined Human Security into distinct categories, including:
• Economic security (assured and adequate basic incomes).
• Food security (physical and affordable access to food).
• Health security.
• Environmental security (access to safe water, clean air and non-degraded land).
By the time of the World Summit on Sustainable Development, in 2002, water had begun to be identified as a security issue, first at the Rio+5 conference, and as a food security issue at the 1996 FAO Summit. In 2003, UN Secretary General Kofi Annan set up a High-Level Panel on “Threats, Challenges, and Change,” to help the UN prevent and remove threats to peace. It started to lay down new concepts on collective security, identifying six clusters for member states to consider. These included economic and social threats, such as poverty, infectious disease, and environmental degradation.
By 2007, health was being recognized as a part of the environmental security discourse, with World Health Day celebrating “International Health Security (IHS).” In particular, it looked at emerging diseases, economic stability, international crises, humanitarian emergencies, and chemical, radioactive, and biological terror threats. Environmental and climate changes have a growing impact on health. The 2007 Fourth Assessment Report (AR4) of the UN Intergovernmental Panel on Climate Change (IPCC) identified climate security as a key challenge for the 21st century. This was followed up in 2009 by the UCL-Lancet Commission on Managing the Health Effects of Climate Change—linking health and climate change.
In the run-up to Rio+20 and the launch of the Sustainable Development Goals, the issue of the climate-food-water-energy nexus, or rather, inter-linkages, between these issues was highlighted. The dialogue on environmental security has moved from a fringe discussion to being central to our political discourse—this is because of the lack of implementation of previous international agreements.
Jean Louis Weber
Environmental accounting is an attempt to broaden the scope of the accounting frameworks used to assess economic performance, to take stock of elements that are not recorded in public or private accounting books. These gaps occur because the various costs of using nature are not captured, being considered, in many cases, as externalities that can be forwarded to others or postponed. Positive externalities—the natural resource—are depleted with no recording in National Accounts (while companies do record them as depreciation elements). Depletion of renewable resource results in degradation of the environment, which adds to negative externalities resulting from pollution and fragmentation of cyclic and living systems. Degradation, or its financial counterpart in depreciation, is not recorded at all. Therefore, the indicators of production, income, consumption, saving, investment, and debts on which many economic decisions are taken are flawed, or at least incomplete and sometimes misleading, when immediate benefits are in fact losses in the long run, when we consume the reproductive functions of our capital. Although national accounting has been an important driving force in change, environmental accounting encompasses all accounting frameworks including national accounts, financial accounting standards, and accounts established to assess the costs and benefits of plans and projects.
There are several approaches to economic environmental accounting at the national level. Of these approaches, one purpose is the calculation of genuine economic welfare by taking into account losses from environmental damage caused by economic activity and gains from unrecorded services provided by Nature. Here, particular attention is given to the calculation of a “Green GDP” or “Adjusted National Income” and/or “Genuine Savings” as well as natural assets value and depletion. A different view considers the damages caused to renewable natural capital and the resulting maintenance and restoration costs. Besides approaches based on benefits and costs, more descriptive accounts in physical units are produced with the purpose of assessing resource use efficiency. With regard to natural assets, the focus can be on assets directly used by the economy, or more broadly, on ecosystem capacity to deliver services, ecosystem resilience, and its possible degradation. These different approaches are not necessarily contradictory, although controversies can be noted in the literature.
The discussion focuses on issues such as the legitimacy of combining values obtained with shadow prices (needed to value the elements that are not priced by the market) with the transaction values recorded in the national accounts, the relative importance of accounts in monetary vs. physical units, and ultimately, the goals for environmental accounting. These goals include assessing the sustainability of the economy in terms of conservation (or increase) of the net income flow and total economic wealth (the weak sustainability paradigm), in relation to the sustainability of the ecosystem, which supports livelihoods and well-being in the broader sense (strong sustainability).
In 2012, the UN Statistical Commission adopted an international statistical standard called, the “System of Environmental-Economic Accounting Central Framework” (SEEA CF). The SEEA CF covers only items for which enough experience exists to be proposed for implementation by national statistical offices. A second volume on SEEA-Experimental Ecosystem Accounting (SEEA-EEA) was added in 2013 to supplement the SEEA CF with a research agenda and the development of tests. Experiments of the SEEA-EEA are developing at the initiative of the World Bank (WAVES), UN Environment Programme (VANTAGE, ProEcoServ), or the UN Convention on Biological Diversity (CBD) (SEEA-Ecosystem Natural Capital Accounts-Quick Start Package [ENCA-QSP]).
Beside the SEEA and in relation to it, other environmental accounting frameworks have been developed for specific purposes, including material flow accounting (MFA), which is now a regular framework at the Organisation for Economic Co-operation and Development (OECD) to report on the Green Growth strategy, the Intergovernmental Panel on Climate Change (IPCC) guidelines for the UN Framework Convention on Climate Change (UNFCCC), reporting greenhouse gas emissions and carbon sequestration. Can be considered as well the Ecological Footprint accounts, which aim at raising awareness that our resource use is above what the planet can deliver, or the Millennium Ecosystem Assessment of 2005, which presents tables and an overall assessment in an accounting style. Environmental accounting is also a subject of interest for business, both as a way to assess impacts—costs and benefits of projects—and to define new accounting standards to assess their long term performance and risks.
Leonor Rodriguez Sinobas
Center-pivot irrigation systems started in the United States in the mid-20th century as an irrigation method which surpassed the traditional surface irrigation methods. At that time, they had the potential to bring about higher irrigation efficiencies with less water consumption although their requirements in energy were higher too. Among their benefits, it is highlighted the feasibility to control water management as well as the application of agro-chemicals dissolved in the irrigation water and thus, center-pivot irrigation systems have spread worldwide. Nevertheless, since the last decade of the 20th century, they are facing actual concerns regarding ecosystem sustainability and water and energy efficiencies. Likewise, the 21st century has brought about the cutting edge issue “precision irrigation” which has made feasible the application of water, fertilizers, and chemicals as the plant demands taking into account variables such as: sprinkler´s pressure, terrain topography, soil variability, and climatic conditions. Likewise, it could be adopted to deal with the current key issues regarding the sustainability and efficiency of the center-pivot irrigation to maintain the agro-ecosystems but still, other issues such as the organic matter incorporation are far to be understood and they will need further studies.
Global environmental change amplifies and creates pressures that shape human migration. In the 21st century, there has been increasing focus on the complexities of migration and environmental change, including forecasts of the potential scale and pace of so-called environmental migration, identification of geographic sites of vulnerability, policy implications, and the intersections of environmental change with other drivers of human migration. Migration is increasingly viewed as an adaptive response to climatic and environmental change, particularly in terms of livelihood vulnerability and risk diversification. Yet the adaptive potential of migration will be defined in part by health outcomes for migrating populations. There has been limited examination, however, of the health consequences of migration related to environmental change.
Migration related to environmental change includes diverse types of mobility, including internal migration to urban areas, cross-border migration, forced displacement following environmental disaster, and planned relocation—migration into sites of environmental vulnerability; much-debated links between environmental change, conflict, and migration; immobile or “trapped” populations; and displacement due to climate change mitigation and decarbonization action. Although health benefits of migration may accrue, such as increased access to health services or migration away from sites of physical risk, migration—particularly irregular (undocumented) migration and forced displacement—can amplify vulnerabilities and present risks to health and well-being. For diverse migratory pathways, there is the need to anticipate, respond to, and ameliorate population health burdens among migrants.
Marisol Rivera-Planter, Carlos Muñoz-Piña, and Mariza Montes de Oca
This is an advance summary of a forthcoming article in the Oxford Research Encyclopedia of Environmental Science. Please check back later for the full article.
While most attention on the use of economic instruments for environmental protection has centered on their applications in industrialized countries, middle-income countries have made important inroads as well. Among them, Mexico stands out for its application to the agenda of a wide array of green and brown issues. Starting in 2001, with the introduction of fees to access natural protected areas, followed in 2003, with the establishment of the Payment for Ecosystems Services program for forests, and then in 2014, the introduction of the environmental tax on pesticides, the use of complementary price signals through the fiscal system has sought to influence, in a decentralized manner, the decisions of both consumers and resource owners towards protecting key elements of Mexico’s natural capital. As the central promise from economic instruments is to reduce compliance costs of reaching a certain goal by providing flexibility on how to meet individual obligations, the use of market-based mechanisms in regulations has also been explored with some success in Mexico. Partial incorporation of such a mechanism was applied to the design of its national Federal Fuel Efficiency standards for automobiles, by redefining compliance as meeting a corporate average standard starting from 2006 onwards. More recently, full use of market mechanisms was introduced, in 2016, into the strategy to reach Mexico’s Clean Energy requirement goals. The demonstration by utilities of compliance with the milestone of the national 2024 goal of 35% share of clean energy in power generation can be done either by holding or purchasing Clean Energy Certificates in their secondary market. This allows utilities to separate the decision to purchase energy at the lowest cost, and to meet environmental requirements, also at their lowest cost.
Both tax and market mechanisms are converging with Mexico’s Climate Change policy. The Fiscal Reform of 2014 introduced Mexico’s first explicit carbon tax in the form of an excise tax applied to fossil fuels, just as its G20 commitments to phase-out negative carbon pricing (i.e., fossil fuel subsidies) were being fulfilled. With price signals pushing towards more energy efficiency and a lower carbon footprint for the economy, Mexico is on the right track for carbon pricing and is showing leadership at a global scale. It will be interesting to observe how this will mix with a proposed cap-and-trade carbon mechanism, obviously touted as a complementary instrument. The establishment of such a mechanism to meet the emission reduction goals of Mexico’s Climate Change legislation and international commitments is the subject of intense debate and analysis. It represents an interesting decision point for a middle-income country such as Mexico, where all costs are local in nature, the emissions per capita are at the world’s average, and indirect benefits of the energy transition are only partial. In the political economy debate, the linkage to international markets, such as California and Quebec, is not only an option but a central motivation to launch the market, as gains from trade are the driving force.
V. Kerry Smith
Geologists’ reframing of the global changes arising from human impacts can be used to consider how the insights from environmental economics inform policy under this new perspective. They ask a rhetorical question. How would a future generation looking back at the records in the sediments and ice cores from today’s activities judge mankind’s impact? They conclude that the globe has entered a new epoch, the Anthropocene. Now mankind is the driving force altering the Earth’s natural systems. This conclusion, linking a physical record to a temporal one, represents an assessment of the extent of current human impact on global systems in a way that provides a warning that all policy design and evaluation must acknowledge that the impacts of human activity are taking place on a planetary scale. As a result, it is argued that national and international environmental policies need to be reconsidered. Environmental economics considers the interaction between people and natural systems. So it comes squarely into conflict with conventional practices in both economics and ecology. Each discipline marginalizes the role of the other in the outcomes it describes. Market and natural systems are not separate. This conclusion is important to the evaluation of how (a) economic analysis avoided recognition of natural systems, (b) the separation of these systems affects past assessments of natural resource adequacy, and (c) policy needs to be redesigned in ways that help direct technological innovation that is responsive to the importance of nonmarket environmental services to the global economy and to sustaining the Earth’s living systems.