Environmental Economics

Psst, I'll trade you a ton of carbon for a case of beer

Sitting here listening to The Kinks on satellite radio (Destroyer) and dreaming of a day when personal carbon credits become a reality.  Looks like some in Britain's Labour Party think the dream might not be that far away. 

Britain may require individuals to limit the carbon dioxide they produce to combat global warming -- and permit energy-savers to profit by selling their carbon allowances, the environment secretary said Wednesday.

The Value of Ecosystem Services

A big issue in environmental economics these days is the valuation of ecosystem services.  Questions remain pertaining to defining, measuring and managing them.  This morning's NYT has an article on the growing threats to NYC's water supply and what it might cost to restore water quality for New Yorkers - New York’s Water Supply May Need Filtering.

Enjoy

Stiglitz's energy tariff

Nobel Prize winning economist Joseph Stiglitz in an The Economists' Voice piece offers energy tariffs as a solution to countries that free ride on climate change. Usually we say that trade policy is a terrible (i.e., inefficient) way of pursuing other economic goals (e.g., environmental policy, income distribution policy). But, in certain situations, trade policy is the only approach that might work. I vote yes.

Here is the excerpt:

Beryl update

Jim Cantore wasted The Weather Channel's money. Tropical Storm Beryl stirred up the waves but, otherwise, had no effect on NC. I heard "The StormTracker" had a nice meal at Nags Head pier.

In other news, don't take 7, 5, 4 and 2 year olds to Ocracoke, NC on a hot day. You can make it through lunch but walking around ain't happenin'. We didn't even make it to the lighthouse before we were back on the ferry.

Although free of charge and therefore overcrowded, we waited 45 minutes and that isn't considered a long wait, the NC ferry rides are highly recommended.

Piping plovers and John

I think John mistakingly assumes our diverse readership is as familiar with North Carolina wildlife as he is.  To understand John's post (below), here are a couple of helpful pictures.  Consider it an insightful interpretation of Johnisms. 

First, this is a piping plover:

Second, below the fold is a picture of John 'tracking Tropical Storm Beryl**':

Beryl

Showing dedication to my craft, I'm in the field at Buxton, NC (Cape Hatteras), tracking Tropical Storm Beryl. I'll be bringing "hourly" updates of the effects of Beryl on surf and fishing conditions. Wish me luck as, today, we take the "hurricane hunter" ferry to Ocracoke for shopping, history and lunch.

Here's the first fishing update. Apparently, the anglers down here like their piping plovers fried (as seen on the bumper stickers of the SUVs driving on the beach, or not, as plover nesting conditions warrant).

Stavins on discounting

Rob Stavins explains the rationale for discounting the future in benefit-cost analysis in his Nov/Dec 2005 "An Economic Perspective" piece for The Environmental Forum. Here is the intro to Does Econ Analysis Shortchange the Future:

Decisions made today usually have impacts both now and in the future. In the environmental realm, many of the future impacts are benefits, and such future benefits — as well as costs — are typically discounted by economists in their analyses. Why do economists do this, and does it give insufficient weight to future benefits and thus to the wellbeing of future generations?

Where can I go to breath?

With two of my three kids diagnosed with asthma--the only one not is the gymnast who spends most of her exercise time indoors--I started wondering where I could go to breath clean air.  Here's Money Magazine's list of the top 25 cities ranked by percentage of 'good' air quality days.  The lowest on the list of top 25 has good air days 95.3% of the time.  We here in the greater Columbus, OH area have good air 33.7% of the time.  Damned coal power.

The “Four E’s” Of Environmental Improvement

I recently attended a conference on common property resources where the majority of participants were skeptical, if not downright antagonistic, to free market principles. During one lengthy exchange in which I challenged the presenters to provide clear evidence that common property ownership led to superior environmental and social outcomes than private ownership, the moderator turned to me and asked what recommendations I, as an economist, had for improving the environment. It was an interesting moment because the participants had by now realized that I was somewhat of an anomaly at the conference (since I do believe in free market principles) and they were genuinely curious as to what I considered solutions to environmental problems.

Another offshore drilling in NC update

It sounds like that as long as NC-ians get a piece of the action, then we're heading down the road of offshore drilling (Minds open to offshore drilling):

Along North Carolina's coastline, a new tone is creeping into conversations about offshore drilling.

Where once there was nearly universal opposition to platforms in the ocean, some speak of them in a new way -- as a possibility, an inevitability, even a financial benefit to a region long fearful of the damage drilling could do to tourism and ecology.

That's because Congress is moving closer than ever toward permitting natural gas -- and oil, too, if it's found -- to be pulled from the Outer Continental Shelf. A bill passed the House a week ago; another is in the Senate.

The House measure would give some control to states and includes financial returns to states that allow drilling within 100 miles of shore. That incentive, for some, changes the argument.

... But as energy prices rise and talk of energy independence heats up, North Carolina's rock-solid opposition to drilling is beginning to show cracks.