Timothy J. Considine, Nicholas B. Considine, Robert Watson
{"title":"Economic and Environmental Impacts of Fracking: A Case Study of the Marcellus Shale","authors":"Timothy J. Considine, Nicholas B. Considine, Robert Watson","doi":"10.1561/101.00000075","DOIUrl":"https://doi.org/10.1561/101.00000075","url":null,"abstract":"While many studies examine the individual costs and benefits from fracking, there are no studies that provide a unified comparison of costs and benefits. This study attempts to fill this void by conducting a cost–benefit analysis of developing natural gas from the Marcellus shale formation in Pennsylvania. Using more than seven thousand well records, this study estimates production decline curves for vintages of Marcellus wells and their productivity growth over time. The value added created from constructing and operating a recent average Marcellus well is estimated. Environmental impacts are estimated based upon several thousand records of environmental violations impacting air, land, and water resources. Air emissions are estimated during the life cycle of the well from drilling, hydraulic fracturing, production, transportation, and consumption. Using estimates of environmental damage costs, the economic value of these environmental impacts is estimated. The economic benefits, including the environmental benefits from displacing coal, range from $14 to over $30 million with an expected value of $23 million per well. These estimates are likely a lower bound because they do not include the benefits that arise from lower natural gas due to shale energy development. Environmental impact costs range from $162 to $755 thousand per well with the largest impacts arising from diesel use by water pumps and trucks, forest disruption from pipeline construction, and methane lost during flow back and downstream methane leakage. These environmental costs were estimated using relatively high estimates for environmental impacts and damage costs. Unknown impacts may remain, however, from unreported environmental violations and from possible long-term health impacts. Nevertheless, this study finds that the economic benefits from fracking substantially exceed the costs of known environmental impacts.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2016-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1561/101.00000075","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67073667","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Devil in the Detail: A Practical Guide on Designing Payments for Environmental Services","authors":"S. Engel","doi":"10.1561/101.00000076","DOIUrl":"https://doi.org/10.1561/101.00000076","url":null,"abstract":"Payments for environmental services (PES) have become a popular approach to address environmental degradation. However, evidence on its effectiveness is scarce and rather mixed. PES is not a panacea, but there are many cases where PES can be a promising tool. Yet, poor PES design translates into poor performance of the instrument. PES design is a complex task; the devil is in the detail of a number of PES design features. The purpose of this paper is to provide guidance in dealing with this complexity through a comprehensive review of PES design that is accessible to both academics and practitioners. Practitioner guidelines on deciding whether PES is the best approach and for selecting among alternative design features are presented. PES design has to start from a careful understanding of the specific ecological and socio-economic context. We now know a lot about which design features are best suited to which context. It is time to put these insights into practice.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2016-07-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1561/101.00000076","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67073728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Intrinsic motivation, norms and environmental behaviour : The dynamics of overarching goals","authors":"L. Steg, S. Lindenberg, K. Keizer","doi":"10.1561/101.00000077","DOIUrl":"https://doi.org/10.1561/101.00000077","url":null,"abstract":"The understanding, prediction, and encouragement of pro-environmental behaviour (i.e., behaviour that impacts the environment as little as possible) depend to a large extent on understanding the motivational dynamics of pro-environmental behaviour. In this review paper, we discuss the state of the art with regard to these dynamics. We explain the importance of three types of goals underlying behaviour: the hedonic goal to feel good, the gain goal to enhance one's resources, and the normative goal to act appropriately. The strength of these goals differs across situation, which affects which aspects in the situation people attend to, how they evaluate these aspects, and which choices they make. We describe factors affecting the strength of goals, and how the normative goal to act appropriately can be strengthened so as to encourage sustained pro-environmental actions. More specifically, we propose that values affect the chronic strength of goals. Besides, various situational factors can affect the strength of goals in a particular situation. These situational factors explain why people do not have stable preferences and why they do not always act upon the values they prioritise. Finally, we discuss strategies that can be employed to encourage pro-environmental actions. These strategies are either aimed at reducing the conflict between different goals by aligning the hedonic and/or gain goal with the normative goal, or at strengthening the normative goal so that people will act pro-environmentally even though this may reduce the realisation of their hedonic or gain goals.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2016-07-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1561/101.00000077","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67073742","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Environmental and Natural Resource Economics Decisions Under Risk and Uncertainty: A Survey","authors":"W. Shaw","doi":"10.1561/101.00000074","DOIUrl":"https://doi.org/10.1561/101.00000074","url":null,"abstract":"This survey paper presents the reader with the economics of risk and uncertainty, narrowly focusing on environmental and natural resources problems. Risk involves known, but uncertainty or ambiguity involves unknown, probabilities, or at least a lack of precision about them. Some theoretical review is provided for decision making under both risk and uncertainty, but emphasis is on critically reviewing the newest relevant empirical work. Topics covered include elicitation of risks or subjective probabilities, nonmarket valuation, value of a statistical life, but also optimal extraction of resources. The paper concludes by offering suggestions for future directions of research.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2016-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1561/101.00000074","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67073654","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Understanding the Economics of Waste: Drivers, Policies, and External Costs","authors":"Thomas C. Kinnaman","doi":"10.1561/101.00000071","DOIUrl":"https://doi.org/10.1561/101.00000071","url":null,"abstract":"This survey reviews the economics literature on solid waste published since 2000. This survey also summarizes the results of the lifecycle literature estimating the magnitudes of the external marginal cost of waste disposal and the external marginal benefit associated with recycling. The external marginal cost of landfill disposal is found to be rather small. The external marginal benefit of recycling certain materials is found to be comparatively large. If these estimates are true, then conditions at solid waste landfills and incinerators may no longer be the driving source of market failure in the industry. Instead the sizable external benefits associated with recycling some materials may explain the need for policy.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2016-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1561/101.00000071","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67073601","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Economics of Conservation and Finance: A Review of the Literature","authors":"Amy W. Ando, Payal Shah","doi":"10.1561/101.00000072","DOIUrl":"https://doi.org/10.1561/101.00000072","url":null,"abstract":"This article summarizes key insights into conservation that come from the intersections of economics and finance: public finance, conservation finance, and financial theory applied to problems of conservation. We discuss some of what has been learned from the study of conservation and finance that helps us to understand when, where, and even whether conservation activities should occur; portfolio theory has been harnessed to help guide conservation planning under uncertainty, and real options theory helps us understand whether to commit to conservation or to wait. We distill some of the extant research on how resources can be gathered to support conservation through local referenda, payment for environmental service programs, private donations, user fees, and value capture through property taxes. The article concludes with suggestions for promising future directions in this area of work.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2016-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1561/101.00000072","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67073638","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Land-Use Patterns and Spatially Dependent Ecosystem Services: Some Microeconomic Foundations","authors":"D. Lewis, JunJie Wu","doi":"10.1561/101.00000069","DOIUrl":"https://doi.org/10.1561/101.00000069","url":null,"abstract":"This paper develops and reviews some microeconomic foundations for the provision of spatially-dependent ecosystem services from land. We focus on ecosystem services described by a production function with spatial dependencies in the primary input — the amount and pattern of land in particular uses and management. Many ecosystem service production functions are affected by spatial dependences, particularly those involving fish, wildlife, and water quality. We illustrate the various sources of demand for ecosystem services and then provide a novel development of the effects of alternative spatial dependencies on the shape of the supply curve for ecosystem services. Our analysis emphasizes that the optimal supply curve requires a mechanism to coordinate landowners' decisions and internalize the input externalities that arise from production functions being spatially dependent. Finally, we use our framework to illustrate and review some key implications for linking demand and supply for policy design.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2015-07-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1561/101.00000069","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67073589","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"What Impedes Household Investment in Energy Efficiency and Renewable Energy","authors":"Nadia Ameli, N. Brandt","doi":"10.1787/5JS1J15G2F8N-EN","DOIUrl":"https://doi.org/10.1787/5JS1J15G2F8N-EN","url":null,"abstract":"Energy efficiency and renewable energy technologies provide important opportunities to reduce greenhouse gas emissions. However, households fail to take up many clean energy investments that are cost-effective. This paper reviews different explanations for apparent underinvestment in energy efficiency that have been put forward in the literature. While investments in renewable energy technologies are typically not (yet) profitable, many of its drivers are similar to those that determine energy efficiency investments, and the two types of investment are therefore assessed jointly. The paper also provides new evidence regarding barriers to investment in energy efficiency based on the OECD Survey on Household Environmental Behaviour and Attitudes. Finally, policy solutions that would help overcome some of these barriers are also presented.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2015-05-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67574503","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Economy, The Biosphere and Planetary Boundaries: Towards Biosphere Economics","authors":"A. Crépin, C. Folke","doi":"10.1561/101.00000066","DOIUrl":"https://doi.org/10.1561/101.00000066","url":null,"abstract":"Nine planetary boundaries have been proposed, capturing essential biophysical processes that sustain the Earth System and its biosphere in an accommodating state for humanity. Drawing on economics literature, we propose conditions under which remaining within these boundaries is in line with economic policy. We assert that pervasive uncertainties combined with impacts of trespassing planetary boundaries clearly legitimate using safe minimum standards or precautionary approaches. Moreover, information about the risk structure of these processes, including potential large-scale regime shifts, could help refine policies for how to relate to the zones of uncertainty of the boundaries. Planetary boundaries may be interpreted as \"growth within limits\" especially in relation to the biophysical expansion of the human dimension. Here, we picture them as warning signs creating incentives for shifting development into new directions, new pathways, where growth in human well-being is the focus rather than growth in GDP. In this sense, we reiterate the framework of ecological economics of sustainable scale (i.e., developing within planetary boundaries), efficient allocation, and fair distribution, and emphasize the need for \"biosphere economics\" to help navigate globalization within the capacity of the biosphere as the complex adaptive system it truly is.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2015-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1561/101.00000066","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67073986","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Environment, Well-Being, and Experienced Preference","authors":"H. Welsch, Susana Ferreira","doi":"10.1561/101.00000061","DOIUrl":"https://doi.org/10.1561/101.00000061","url":null,"abstract":"Recent years have seen a sharp increase in the use of subjective well-being data in environmental economics. This article discusses the conceptual underpinnings of using such data as a tool for preference elicitation and non-market valuation. Given the connection of those data to the notion of experienced utility, we refer to this approach as the experienced preference method and discuss recent methodological advances and applications of the approach to subject areas not previously reviewed. In addition, we discuss insights concerning environmental behavior that can be gained with the help of subjective well-being data.","PeriodicalId":45355,"journal":{"name":"International Review of Environmental and Resource Economics","volume":null,"pages":null},"PeriodicalIF":1.8,"publicationDate":"2014-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1561/101.00000061","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67073821","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}