General equilibrium theory thinks of the economy as a collection of interconnected markets, each of which, in isolation and in combination, is driven toward some sort of equilibrium. Computable general equilibrium (CGE) models add to this abstract point of view by calibrating models of the economy using actual economic data. The aim is to empirically solve for equilibrium demand, supply, and price levels across the markets in the economy. Many areas of economic analysis, reform, and policymaking have benefitted from scrutiny in a CGE context. This is particularly true of issues to do with tax and tariff reform, where CGE models first gained prominence. More recently, the areas of environmental economics and regulation has attracted the attention of CGE modelers. Considerations of environment and environmental regulation, inevitably involve a consideration of issues to do with water. Such issues range from aquaculture through pricing of water to virtual water—and many points in between. In the analysis of each of these issues—and the role water plays in the overall economy, CGE models have made an important contribution to understanding and informed policymaking.
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Article
Water and Economy-Wide Modeling: An Overview
William D. A. Bryant
Article
Use of Experimental Economics in Policy Design and Evaluation: An Application to Water Resources and Other Environmental Domains
Simanti Banerjee
Economics conceptualizes harmful effects to the environment as negative externalities that can be internalized through implementation of policies involving regulatory and market-based mechanisms, and behavioral economic interventions. However, effective policy will require knowledge and understanding of intended and unintended stakeholder behaviors and consequences and the context in which the policy will be implemented. This mandate is nontrivial since policies once implemented can be hard to reverse and often have irreversible consequences in the short and/or long run, leading to high social costs. Experimental economics (often in combination with other empirical evaluation methods) can help by testing policies and their impacts prior to modification of current policies, and design and implementation of new ones. Such experimental evaluation can include lab and field experiments, and choice experiments. Additionally, experimental policy evaluation should pay attention to scaling up problems and the ethical ramifications of the treatment. This would ensure that the experimental findings will remain relevant when rolled out to bigger populations (hence retaining policy makers’ interest in the method and evidence generated by it), and the treatment to internalize the externality will not create or exacerbate societal disparities and ethical challenges.
Article
Ecotourism
Giles Jackson
Ecotourism is responsible travel to natural areas that educates and inspires through interpretation—increasingly paired with practical action—that helps conserve the environment and sustain the well-being of local people. Ecotourism is the fastest-growing segment of the travel and tourism industry, and its economic value is projected to exceed USD$100 billion by 2027. Ecotourism emerged in the 1960s as a response to the destructive effects of mass tourism and has been embraced by an increasing number of governments, especially in the developing world, as a vehicle for achieving the UN Sustainable Development Goals. As an emerging, interdisciplinary field of study, ecotourism has reached a critical inflection point, as scholars reflect on the achievements and shortcomings of several decades of research and set out the research agenda for decades to come. The field has yet to achieve consensus on the most basic questions, such as how ecotourism is, or should be, defined; what makes it different from nature-based and related forms of tourism; and what factors ultimately determine the success or failure of ecotourism as a vehicle for sustainable development. This lack of consensus stems in part from the different perspectives and agendas within and between the academic, policy, and industry communities. Because it is based on measured and observed phenomena, empirical research has a critical role to play in advancing the theory and practice of ecotourism. However, scholars also recognize that to fulfill this role, methodologies must evolve to become more longitudinal, scalable, inclusive, integrative, and actionable.
Article
Radiation and the Environment
E. Jerry Jessee
The “Atomic Age” has long been recognized as a signal moment in modern history. In popular memory, images of mushroom clouds from atmospheric nuclear weapons tests recall a period when militaries and highly secretive atomic energy agencies poisoned the global environment and threatened human health. Historical scholarship has painted a more complicated picture of this era by showing how nuclear technologies and radioactive releases transformed the environment sciences and helped set the stage for the scientific construction of the very idea of the “global environment.”
Radioactivity presented scientists with a double-edged sword almost as soon as scientists explained how certain unstable chemical elements emit energic particles and rays in the process of radioactive decay at the turn of the 20th century. Throughout the 1920s and 1930s, scientists hailed radioactivity as a transformative discovery that promised to transform atomic theory and biomedicine by using radioisotopes—radioactive versions of stable chemical elements—which were used to tag and trace physiological processes in living systems. At the same time, the perils of overexposure to radioactivity were becoming more apparent as researchers and industrial workers laboring in new radium-laced luminescent paint industries began suffering from radiation-induced illnesses.
The advent of a second “Atomic Age” in wake of the bombing of Japan was characterized by increased access to radiotracer technologies for science and widespread anxiety about the health effects of radioactive fallout in the environment. Powerful new atomic agencies and military institutions created new research opportunities for scientists to study the atmospheric, oceanic, and ecological pathways through which bomb test radiation could make their way to human bodies. Although these studies were driven by concerns about health effects, the presence of energy-emitting radioactivity in the environment also meant that researchers could utilize it as a tracer to visualize basic environmental processes. Throughout the 1950s and early 1960s, as a result, ecologists pioneered the use of radiotracers to investigate energy flows and the metabolism of ecosystem units. Oceanographers similarly used bomb blast radiation to trace the physical processes in oceans and the uptake of radioactivity in aquatic food chains. Meteorologists meanwhile tracked bomb debris as high as the stratosphere to predict fallout patterns and trace large-scale atmospheric phenomenon. By the early 1960s, these studies documented how radioactive fallout produced by distant nuclear tests spread across the globe and infiltrated the entire planet’s air, water, biosphere, and human bodies.
In 1963, the major nuclear powers agreed to end above-ground nuclear testing with the Limited Test Ban Treaty, the first international treaty to recognize a global environmental hazard of planetary proportions. Throughout the 1960s and into the 1980s, research on the global effects of nuclear weapons continued to shape global environmental thinking and concern as debates about nuclear winter directed professional and public attention toward humanity’s ability to alter the climate.
Article
The Problem of Water Markets
Michael Hanemann
Water marketing and property right reform are intertwined. Water markets are advocated as a solution for water scarcity, but changes in water rights are often required if the scope of water marketing is to expand. This is true in many countries, including (but not limited to) the United States and Australia. The focus here is on the United States. So far, water marketing in the Western United States is not producing long-run reallocation on the scale expected. The chief impediment is the complexities in existing water rights. An important distinction is between a property right to extract water and put it to use versus a contractual right to receive water from a supply organization. In the United States, the property right to water is a unique form of property. Unlike land, it is a right of use, not ownership; the quantity afforded by the right is incompletely specified; and the ability to transfer it is constrained by the obligation to avoid harm through the externality of return flows and also by unreliable historical records of rights. These constraints are often relaxed for short-term transfers (leases) of a property right lasting only a year or two. Also, these constraints generally do not apply to a contract right to receive water. Thus, most of the surface water transferred in the United States is either contract water moving within supply system boundaries or short-term leases of appropriative rights. These transfers tend to provide short-run flexibility for water users rather than long-run reallocation. For more significant long-run reallocation of water, some modification of the property right to water is essential. Devising a politically acceptable way to make the needed changes is the ultimate constraint on water marketing.
Article
Climate Adaptation and Public Health
Sarah E. Scales, Julia Massi, and Jennifer A. Horney
Climate change is affecting every region of the world and is accelerating at an alarming rate. International efforts for mitigating climate change, like the Paris Agreement, through reductions in greenhouse gases are vital for slowing the global increase in temperatures. However, these mitigation measures will not have immediate impact, so urgent action is needed to address negative impacts currently posed by climate change. Adaptation measures are central to this response now, and will continue to be critical for protecting human health as temperatures rise and climate-related disasters increase in both frequency and severity. To maximize the effectiveness of adaptation measures, the health impacts of disasters should be well-characterized at the global, regional, national, and local levels. Surveillance and early warning systems are vital tools for early identification and warning of hazards and their potential impacts. Increasing global capacity to identify causes of morbidity and mortality directly and indirectly attributable to disasters are in line with the objectives of the Sustainable Development Goals and Bangkok Principles of the Sendai Framework for Disaster Risk Reduction. Both improving data collected in disaster settings and more effectively using that information in real time are central to reducing the human-health impacts of disasters. The human-health impacts of climate change and associated disasters are interrelated. Climate change and commensurate changes in environmental suitability, vector viability, and human migration strongly influence the prevalence and seasonality of infectious and communicable diseases. Both drought and flood contribute to food and water insecurity, leading to a higher prevalence of undernourishment and malnourishment, especially in children. Compromised nutritional status, in conjunction with resulting human migration, leave individuals immunocompromised and populations at a high risk for spread of infectious disease. Extreme heat exposure likewise compromises individuals’ ability to regulate their physiological response to external stressors. Disasters of all classifications can result in exposure to environmental hazards, decrease air quality, and negatively affect mental health. Accordingly, health adaptation measures to climate change must be equally interrelated, addressing needs across disciplines, at both individual and community levels, and incorporating the many facets of the health needs of affected populations.
Article
Ecology in American Literature
Hubert Zapf and Timo Müller
The ecological dimension of literature has found proper attention only in the late 20th century, with the rise of ecocriticism as a new direction of literary studies. Ecocriticism emerged from a revalorization of nature writing in the United States and initially understood itself as a countermovement to the linguistic turn in literary and cultural studies. Since the early 21st century, the scope of ecocritical studies has widened to include literary texts and genres across different periods and cultures. Against the background of the global environmental crisis, it has made a strong case for the contribution of literature, art, and the aesthetic to the critique of anthropocentric master narratives as well as to the imaginative exploration of sustainable alternatives to the historically deranged human–nature relationship. Ecocritical scholars have examined the ecological potential of texts in various periods and literary cultures that make up American literature. They have given particular attention to the Indigenous poetic and storytelling modes of Native Americans, the Romantic and transcendentalist movements of the mid-19th century, the aesthetic practices of modernism and postmodernism, the ethnic diversification of American literature since the late 20th century, and, most obviously, contemporary writing that explicitly defines itself as a critical and creative response to the Anthropocene.
Thus, an ecological awareness in American literature emerged in different forms and stages that correspond to major periods, styles, and cultures of literary writing. While it is impossible to do justice to all relevant developments, the rich archive of ecological thought and perception in American literature can be productively brought into the transdisciplinary dialogue of the environmental sciences and humanities. The value of literary texts in relation to other forms of environmental knowledge lies not just in the topics they address but in distinctive aesthetic features, such as embodied multiperspectivity, empathetic imagination, reconnection of cultural to natural ecosystems, polysemic openness, and participatory inclusion of the reader in the transformative experience offered by the texts.
Article
The Economics of Institutional Changes in the Water Sector: Methods, Evidence, and a Call for Systems Thinking
Marc Jeuland, Travis Dauwalter, and Omar Hopkins
As water stress increases globally with population, economic growth, and climate change, investments in institutional or management improvements and infrastructure are becoming more and more essential. Water institutions, especially in lower- and middle-income countries (LMIC), typically struggle with performance, because of inadequate capacity, misaligned incentives, or bad policies, but institutional reforms have traditionally received less focus than technical and engineering inputs. Working from a typology of six different institutional changes, the article reviews existing evidence on the impacts of such reforms, focusing on lower- and middle-income country (LMIC) contexts where institutional problems are especially acute. Most evidence pertains to changing consumer incentives in an attempt to improve cost recovery, especially via tariff reform, as well as changing ownership of utilities through privatization. Results vary widely across contexts and over time, and the details of implementation of reforms are often important, but much of the empirical evidence based on statistical or case study evidence is speculative.
A systems dynamic modeling (SDM) approach can be helpful for thinking about this heterogeneity and the complexity of LMIC utility challenges. Water utility systems are a good application for SDMs because they feature complex boundaries, nonlinearities and thresholds, delayed effects, a tendency toward self-organization even if in a low-performance equilibrium, and a high degree of interconnection between a number of performance variables. Indeed, the SDM framework is useful precisely because it requires careful consideration and advances awareness by various stakeholders of the complex social feedback that may exist in water use systems, while conceding that the problems that impede effective water delivery are dynamic and interconnected, and that general optimal solutions to water service provision challenges may be elusive. In the latter portion of the article, the role that SDM can play in clarifying inconsistencies in the literature is explored through a simple illustrative example modelled on a real-world intervention with the Lusaka Water and Sewerage Company in Zambia. This utility suffers from all of the common problems of LMIC utilities, including high nonrevenue water losses, low bill collection, tariffs, poor cost recovery, inadequate maintenance and low investment and therefore poor quality service delivery, and a high dependence on a persistent flow of subsidies to both rehabilitate and extend the water supply and sewer network. The SDM analysis reveals the interdependencies between these variables, and sheds light on the long-term reverberations of external interventions in the system. Nonetheless, the illustrative SDM is relatively simple, and various improvements could be made to add realism on both the utility operations side, and on the water consumer side. Moreover, data limitations preclude a calibration to existing conditions, and there would be additional value in testing the basic framework using richer data and a more engaged stakeholder process.
Article
Institutional Fit in the Water Sector
Cathy Rubiños and Maria Bernedo Del Carpio
Adequate water governance is necessary for the world’s sustainability. Because of its importance, a growing literature has studied ways to improve water governance, beginning in the early 2000s. Institutions, which refer to the set of shared rules, codes, and prescriptions that regulate human actions, are a particularly important element of sustainable water governance. Evidence shows that to design institutions that will generate sustainable economic, ecological, and cultural development, it is necessary to consider ecosystems and socioeconomic-cultural systems as social-ecological systems (SESs). In the past, practitioners and international agencies tried to find the government-led panaceas, but this search has been largely unsuccessful. Current views support efforts to move towards addressing complexity (e.g., Integrated Water Resources Management), and search for the fit between the institutional arrangements and SESs’ attributes.
The literature on institutional fit in SESs encourages planners to design institutions by carefully considering the defining features of the problems they are meant to address and the SES context in which they are found. This literature has been developing since the 1990s and has identified different types of misfits. A comprehensive fitness typology that includes all the different types of fitness (ecological, social, SES, and intra-institutional fit) helps organize existing and future work on institutional fit and provides a checklist for governments to be used in the problem-solving process for increasing fitness. The water governance and institutional fitness literature provide examples of management practices and mechanisms for increasing institutional fit for each fitness type. Future research should focus on improving the methodologies to measure different types of fit and testing the effect of introducing fit on SES outcomes.
Article
Rethinking Water Markets
Rupert Quentin Grafton, James Horne, and Sarah A. Wheeler
Global water extractions from streams, rivers, lakes, and aquifers are continuously increasing, yet some four billion people already face severe water scarcity for at least one month per year. Deteriorating water security will, in the absence in how water is governed, get worse with climate change, as modeling projections indicate that much of the world’s arid and semiarid locations will receive less rainfall into the future. Concomitant with climate change is a growing world population, expected to be about 10 billion by 2050, that will greatly increase the global food demand, but this demand cannot be met without increased food production that depends on an adequate supply of water for agriculture. This poses a global challenge: How to ensure immediate and priority needs (such as safe drinking water) are satisfied without compromising future water security and the long-term sustainability of freshwater ecosystems? An effective and sustainable response must resolve the “who gets what water and when” water allocation problem and promote water justice. Many decision makers, however, act as if gross inequities in water access can be managed by “business as usual” and upgrades in water infrastructure alone. But much more is needed if the world is to achieve its Sustainable Development Goal of “water and sanitation for all” by 2030. Transformational change is required such that the price paid for water by users includes the economic costs of supply and use and the multiple values of water. Water markets in relation to physical volumes of water offer one approach, among others, that can potentially deliver transformational change by: (a) providing economic incentives to promote water conservation and (b) allowing water to be voluntarily transferred among competing users and uses (including non-uses for the environment and uses that support cultural values) to increase the total economic value from water. Realizing the full potential of water markets, however, is a challenge, and formal water markets require adequate regulatory oversight. Such oversight, at a minimum, must ensure: (a) the metering, monitoring, and compliance of water users and catchment-scale water auditing; (b) active compliance to protect both buyers and sellers from market manipulations; and (c) a judiciary system that supports the regulatory rules and punishes noncompliance. In many countries, the institutional and water governance framework is not yet sufficiently developed for water markets. In some countries, such as Australia, China, Spain, and the United States, the conditions do exist for successful water markets, but ongoing improvements are still needed as circumstances change in relation to water users and uses, institutions, and the environment. Importantly, into the future, water markets must be designed and redesigned to promote both water security and water justice. Without a paradigm shift in how water is governed, and that includes rethinking water markets to support efficiency and equitable access, billions of people will face increasing risks to their livelihoods and lives and many fresh-water environments will face the risk of catastrophic decline.
