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While carbon offsets in agriculture can play a role in addressing climate change, they are not a perfect substitute for direct emission reductions. As shown in this paper through various arguments and case studies, climate policies in Canada have avoided the use of offsets to be sold in carbon markets, preferring instead to incentivize adoption of best management practices (BMPs) that provide environmental benefits along with climate mitigation benefits. We argue that this is a preferred policy option due to the perils and pitfalls inherent in the measurement and monitoring required to identify offset credits. While an appropriate approach might be to penalize Canadian farmers for any emissions their activities cause, this may do more harm than good. Canadian agricultural production is highly efficient and technologically advanced; therefore, reductions in Canada's contribution to the global food supply will result in less‐efficient production occurring elsewhere (i.e., leakage) that increases global greenhouse gas emissions. [ABSTRACT FROM AUTHOR]

Sequestering carbon in forest ecosystems is important for mitigating climate change. A major policy concern is whether forests should be left unharvested to avoid carbon dioxide (CO2) emissions and store carbon, or harvested to take advantage of potential carbon storage in post‐harvest wood product sinks and removal of CO2 from the atmosphere by new growth. The issue is addressed in this paper by examining carbon rotation ages that consider commercial timber as well as carbon values. A discrete‐time optimal rotation age model is developed that employs data on carbon fluxes stored in both living and dead biomass as opposed to carbon as a function of timber growth. Carbon is allocated to several ecosystem and post‐harvest product pools that decay over time at different rates. In addition, the timing of carbon fluxes is taken into account by weighting future carbon fluxes as less important than current ones. Using simple formulae for determining optimal rotation ages, we find that: (1) Reducing the price of timber while increasing the price of carbon will increase rotation age, perhaps to infinity (stand remains unharvested). (2) An increase in the rate used to discount physical carbon generally reduces the rotation age, but not in all cases. (3) As a corollary, an increase in the price of carbon increases or reduces rotation age depending on the weight chosen to discount future carbon fluxes. (4) Site characteristics and the mix of species on the site affect conclusions (2) and (3). (5) A large variety of carbon offset credits from forestry activities could be justified, which makes it difficult to accept any. [ABSTRACT FROM AUTHOR]

Purpose: The authors investigate whether an index-based weather insurance (WII) product can complement or replace existing traditional crop yield insurance for mitigating farmers' financial risks, with an application to blueberry growers in British Columbia (BC). Design/methodology/approach: A hybrid model combining expected utility (EU) and prospect values is developed to analyse farmers' demand for WII. Findings: While weather data are used to investigate supply elements, a hybrid model combining EU theory and prospect theory (PT) is developed to analyse farmers' demand for WII. On the supply side, a quality index is constructed and the relationship between the quality index and key weather parameters is quantified using a partial least squares structural model. The authors then model weather parameters via time-series analysis and statistical distributions to provide reasonable estimates for calculating actuarially sound insurance premiums for a rainfall indexed, insurance product. This model indicates that decreases in the proportion of a blueberry grower's total revenue and revenue volatility will decrease the possibility that they participate in WII. At the same time, an increase in the value loss aversion coefficient and WII's basis risk further leads to less demand for WII. In short, a grower may decide not to participate in WII at an actuarially fair premium due to the combined effects of the above factors. Overall, while the supply analysis enables us to demonstrate that WII can potentially help in mitigating farmers' financial risks, it turns out that, on the demand side, blueberry growers are unwilling to pay for such a product without large government subsidies. Originality/value: The authors argue that the demand for insurance may be affected by the level and the volatility of a berry grower's total revenue. Hence, the authors propose a hybrid expression that assumes a farmer seeks to maximize the total utility function to capture the rational and intuitive parts of a farmer's decision-making process. The EU represents rationality and the prospect value represents the intuitive component. Meanwhile, the authors investigate the possibility of using key weather parameters to construct a berry quality index – one that could be applied to other agricultural areas for studying the relationship between weather conditions and product quality. [ABSTRACT FROM AUTHOR]

Intermittent forms of renewable energy destabilize electricity grids unless adequate reliable generating capacity and storage are available, while instability of hybrid electricity grids and cost fluctuations in fossil fuel prices pose further challenges for policymakers. We examine the interaction between renewable and traditional fossil-fuel energy sources in the context of the Alberta electricity grid, where policymakers seek to eliminate coal and reduce reliance on natural gas. We develop a policy model of the Alberta grid and, unlike earlier models, calibrate the cost functions of thermal generation using positive mathematical programming. Rather than employing constant average and marginal costs, calibration determines upward sloping supply (marginal cost) functions. The calibrated model is then used to determine an optimal generation mix under different assumptions regarding carbon prices and policies to eliminate coal-fired capacity. Results indicate that significant wind capacity can enter the Alberta grid if carbon prices are high, but that it remains difficult to eliminate reliable baseload capacity. Adequate baseload coal and/or natural gas capacity is required, which is the case even if battery storage is allowed into the system. Further, significant peak-load gas capacity will also be required to backstop intermittent renewables. [ABSTRACT FROM AUTHOR]

Following Carter and Mérel (2016), we explore the export benefits of reforming supply management (SM) in Canada's dairy sector. A trade model with ten regions and five dairy product categories is developed and used to examine the potential benefits of opening international markets to Canadian dairy products. In addition to a baseline, three scenarios are compared—one with SM in place but with Canada able to export freely. Two other scenarios assume SM is eliminated and there is complete free trade, but with high‐ and low‐cost structures. Findings indicate that, in the high‐cost scenario, domestic consumers gain from lower prices as the domestic supply and exports fall compared to the status quo, but producers are less well off. However, under a low domestic cost structure, Canada becomes a major exporter of milk, with both producers and consumers gaining from free trade. This scenario assumes that domestic producers take advantage of economies of scale, enabling them to compete in international markets. Appropriate policies will be required to reform the quota regime, while minimizing the harm done to dairy farmers. [ABSTRACT FROM AUTHOR]

Countries are investing in renewable energy such as wind or solar to meet electricity demand and minimize CO 2 emissions. Due to the intermittent nature of these energy sources, back-up generating assets or adequate storage is needed to meet peak demand. In this study, we evaluate the extent to which an electricity grid can rely on intermittent renewable energy (wind and solar) if a 'black box' battery is used for storage. We examine the potential for 100% generation from wind and solar, as well as scenarios that are consistent with a policy to eliminate coal generation. A constrained optimization model is used that minimizes thermal generating capacity and battery size subject to load and battery constraints. Our application is to the fossil-fuel dependent Alberta electricity system. Our results suggest that it might be difficult and costly to supply the grid with 100% renewable energy. Replacing coal with renewable energy and using natural gas and a battery as back-up would be feasible, but would require a very large battery and result in high costs. Other storage methods should be considered to facilitate increased generation from renewable sources. • We examine the feasibility of integrating renewable energy into the grid using a battery for storage. • We evaluate renewable energy policy goals in Alberta, Canada. • The constrained optimization model minimizes thermal capacity and battery, subject to constraints. • It will be very expensive and require a big battery to rely on 100% renewables. • Replacing two thirds of coal capacity or generation with renewables is feasible but costly. [ABSTRACT FROM AUTHOR]

In this study, the price of carbon is used to incentivize a reduction in the release of CO 2 emissions and an increase in sequestration of CO 2 through forestry activities. Forest managers essentially have two options for increasing carbon sequestration (i.e., creating carbon offset credits): (1) avoid or delay harvest of mature timber; or (2) harvest timber and allow natural or artificial regeneration (with ‘regular’ or ‘seed-selected’ growing stock). A forest management model representative of the southern interior of British Columbia is described and used to examine forest conservation that prevents emissions of CO 2 , and even-flow and commercial harvesting where timber is processed into long-lived wood products that store carbon and residuals for energy. The objective of the model is to maximize net discounted returns to commercial timber operations plus the benefits of managing carbon fluxes. The model tracks carbon in living trees, organic matter, and post-harvest carbon pools. It also includes various parameters related to the weighting of future carbon flows, anticipated price of carbon, whether and to what extent use of biomass reduces fossil fuel emissions from generating electricity or production of non-wood construction materials, et cetera. The results demonstrate that the decision about which forestry activities generate carbon offset credits and how many is essentially a political and not a scientific one. [ABSTRACT FROM AUTHOR]

This paper explores the viability of relying on wind power to replace upwards of 60% of electricity generation in Alberta that would be lost if coal-fired generation is phased out. Using hourly wind data from 17 locations across Alberta, we are able to simulate the potential wind power output available to the Alberta grid when modern, 3.5 MW-capacity wind turbines are spread across the province. Using wind regimes for the years 2006 through 2015, we find that available wind power is less than 60% of installed capacity 98% of the time, and below 30% of capacity 74% of the time. There is only a small amount of correlation between wind speeds at different locations, but yet it remains necessary to rely on fossil fuel generation. Then, based on the results from a grid allocation model, we find that CO2 emissions can be reduced by about 30%, but only through a combination of investment in wind energy and reliance on purchases of hydropower from British Columbia. Only if nuclear energy is permitted into the generation mix would Alberta be able to meet its CO2-emissions reduction target in the electricity sector. With nuclear power, emissions can be reduced by upwards of 85%. [ABSTRACT FROM AUTHOR]

This study reexamines and updates an original bioeconomic model of optimal duck harvest and wetland retention by (1974, Waterfowl and Wetlands: Toward Bioeconomic Analysis. Washington, DC: Resources for the Future). It then extends the model to include the nonmarket (in situ) value of waterfowl and the ecosystem service and other amenity values of wetlands in addition to the value of ducks to hunters. The focus is the prairie pothole region of Western Canada. Results indicate that wetlands and duck harvests need to be increased relative to historical levels, confirming Hammack and Brown's original conclusions. Including amenity values leads to a significant increase in the quantity of wetlands and hunters' harvests of ducks relative to models that focus only on hunting values. Dans le présent article, nous avons revu et actualisé le modèle bioéconomique original sur le prélèvement optimal de canards et la conservation des zones humides. Nous avons ensuite étendu le modèle afin d'inclure la valeur non marchande (in situ) de la sauvagine et des services écosystémiques, la valeur d'agrément des zones humides et la valeur des canards pour les chasseurs. Nous nous sommes concentrés sur la Région des cuvettes des Prairies dans l'Ouest canadien. Nos résultats autorisent à penser qu'il est nécessaire d'augmenter les zones humides et les prélèvements de canards par rapport aux niveaux historiques, ce qui confirme les conclusions formulées dans l'étude de Hammack et Brown. Le fait d'inclure la valeur d'agrément entraîne une augmentation significative du nombre de zones humides et de prélèvements de canards par les chasseurs comparativement aux modèles qui se concentrent uniquement sur la valeur pour la chasse. [ABSTRACT FROM AUTHOR]

Tigers are a threatened species that might soon disappear in the wild. Not only are tigers threatened by deteriorating and declining habitat, but poachers continue to kill tigers for traditional medicine, decoration pieces and so on. Although international trade in tiger products has been banned since 1987 and domestic trade within China since 1993, tigers continue to be poached and Chinese entrepreneurs have established tiger farms in anticipation of their demise. While China desires to permit sale of tiger products from captive-bred tigers, this is opposed on the grounds that it likely encourages illegal killing. Instead, wildlife conservationists lobby for more spending on anti-poaching and trade-ban enforcement. In this study, a mathematical bioeconomic model is used to investigate the issue. Simulation results indicate that, unless range states are characterized by institutions (rule of law and low corruption) similar to those found in the richest countries, reliance on enforcement alone is insufficient to guarantee survival of wild tigers. Likewise, even though conservation payments could protect wild tigers, the inability to enforce contracts militates against this. Our model indicates that wild tigers can be protected by permitting sale of products from tiger farms, although this likely requires the granting of an exclusive license to sellers. Finally, it is possible to tradeoff enforcement effort and sale of products from captive-bred animals, but such tradeoffs are worsened by deteriorating tiger habitat. [Copyright &y& Elsevier]

Warmer temperatures and a decrease in precipitation in the 21st century could severely deplete wetlands in the prairie pothole region of western Canada. In this study, we employ linear regression analysis to determine the casual effect of climate change on wetlands in this region, with temperature, precipitation and the standardized precipitation index (SPI) used to predict the effect of potential climate change on wetlands. We then use a waterfowl–wetlands bioeconomic model to solve for socially optimal levels of duck harvests and wetlands retention under current climate conditions and various climate change scenarios. The model maximizes benefits to hunters plus the amenity values of ducks to non hunters and the non-market ecosystem benefits of wetlands. Results indicate that climate change could decrease wetlands by between 7 and 47%, and that the optimal number of wetlands to retain could decrease by as much as 38% from the baseline climate. [Copyright &y& Elsevier]

The relationship between bio-energy feedstock production and water quality has received little attention from economists. Here, an optimal control model is used to determine the optimal amount of land to convert to the production of energy feedstocks, specifically ethanol corn, taking into account potential impacts on water quality. Based on comparative static analyses of an optimal control model, and a numerical application, we find that the optimal proportion of land to shift into bio-energy production from a baseline use, such as the Conservation Reserve Program, depends on key model parameters, specifically the rate of degradation of the pollutant and the link between the intensity of bio-energy feedstock production and the rate of change in the pollutant stock. Yet, there is a limit to how much land should optimally be converted as society must trade-off its desire to mitigate climate change against its willingness to accept a decline in water quality. Le lien entre la production de matières premières bioénergétiques et la qualité de l'eau a attiré peu d'attention de la part des économistes. Nous avons utilisé un modèle de contrôle optimal pour déterminer les superficies optimales à convertir à la production de matières premières énergétiques, en particulier le maïs destinéà la production d'éthanol, en tenant compte des répercussions potentielles sur la qualité de l'eau. D'après une simulation numérique et des analyses de statique comparative obtenues à l'aide d'un modèle de contrôle optimal, nous en sommes venus à la conclusion que les superficies optimales à convertir à la production de matières premières bioénergétiques à partir d'un instrument de référence, tel que le Conservation Reserve Program (Programme de réserve des terres sous conservation), dépend des paramètres clés du modèle, particulièrement du taux de biodégradation des polluants et du lien entre l'intensité de la production de matières premières bioénergétiques et le taux de variation du stock de polluants. Il existe tout de même une limite quant aux superficies à convertir étant donné que la société doit faire un choix entre son désir d'atténuer le changement climatique et son acceptation d'une diminution de la qualité de l'eau. [ABSTRACT FROM AUTHOR]

The main focus of efforts to mitigate climate change is on the avoidance of fossil fuel emissions. However, the Kyoto Protocol rules permit the use of forestry activities that create carbon offset credits. These could obviate the need for lifestyle-changing reductions in fossil fuel use. Therefore, it is necessary for policy purpose to determine the cost effectiveness of creating forest sink carbon credits. In this study, meta-regression analyses with 1047 observations from 68 studies are used to determine factors that affect carbon sequestration costs. Results indicate that forest plantations and use of harvested biomass for energy make forestry activities more attractive. It also turns out that forestry activities are competitive with emissions reduction in tropical regions and, perhaps, boreal regions but certainly not in Europe. Finally, the regression estimates are used to project the potential costs of carbon uptake for various forest management scenarios — costs range from 0 to over 200 US$/t CO2. [ABSTRACT FROM AUTHOR]

The inclusion of a minimum viable population in bioeconomic modeling creates at least two complications that are not resolved by using a modified logistic growth function. The first complication can be dealt with by choosing a different depensational growth function. The second complication relates to the inclusion of the in situ benefits of wildlife into the analysis. Knowledge about the magnitude of the in situ benefits provides no guide for policy about conservation management. Simply knowing that people are willing to pay a large amount each year to protect a species says nothing about whether one should manage habitat to protect or enhance the species'' numbers, unless the species is in imminent danger of extinction. If willingness to pay is to be a guide, it needs to be better tied to population numbers, especially the minimum viable population. [Copyright &y& Elsevier]

We examine the impact of policy choices, including a carbon tax, on the optimal allocation of power across different generation sources and on future investments in generating facilities. The main focus is on the Alberta power grid, as it is heavily dependent on fossil fuels and has only limited ties to other power grids, although the model could be extended to larger (and even multiple) grids. The results indicate that, as wind penetrates the extant generating mix characterizing the grid, cost savings and emission reductions do not decline linearly but at a decreasing rate. However, if flexibility is allowed, then, as the carbon tax increases to C$40/tCO2 or above, existing coal plants start to be replaced by newly constructed wind farms and natural gas plants. If coal can be completely eliminated from the energy mix and replaced by natural gas and wind, substantial savings of 31.03 Mt CO2 (58% of total emissions) can result. However, this only occurs for carbon taxes of over C$170/tCO2. The associated high capital costs of new generating facilities may thus not be an ideal use of funds for addressing climate change. [ABSTRACT FROM AUTHOR]

This study examines the relation between corporate environmental performance and corporate financial (economic) performance in North America’s forest products industry to determine whether there is a firm-level environmental Kuznets curve (EKC). An unbalanced panel of firm-level observations is constructed using data from PricewaterhouseCoopers, the US Environmental Protection Agency, and Environment Canada. The analysis focuses on methanol and formaldehyde emissions because these are the only pollutants for which consistent firm-level data are available in forestry. We find strong evidence of a firm-level EKC. The evidence is considerably weaker if endogeneity related to the effect of past pollution on current pollution or endogeneity resulting from a possible circular relationship between rate of return and pollution is taken into account, although the available time horizon is too short to conclude that endogeneity is a problem. Even so, there remains evidence of a negative relationship between financial performance and environmental performance for formaldehyde. [ABSTRACT FROM AUTHOR]

A dynamic bioeconomic model of ivory trade is used to investigate the efficacy of conservation payments, tourism benefits, quota regimes and a trade ban on the protection of the African elephant (Laxadonta africana). The model consists of four ivory exporting regions and one demand region. Results indicate that a trade ban might not be successful in maintaining elephants, even if it increases the costs of marketing ivory and leads to a stigma effect that reduces demand. Indeed, trade in elephant products may offer some hope for the elephant, but only if there exist effective institutions that translate in situ protection into economic values. [Copyright &y& Elsevier]

The article discusses carbon dioxide (CO2) sequestration as a mitigating strategy for climate change. It is believed that the option of removing CO2 from the atmosphere through biological sequestration can be achieved through proper land use and forestry projects. However the author presents his own perspective that focusing on carbon uptake activities are costly. It recommends solutions including providing predetermined schedule of carbon storage for sequestration activities. Analyses on emission reduction from different countries are also presented.

Nonnative invasive species result in sizeable economic damages and control costs. Because dynamic optimization models break down if controls depend in complex ways on past controls, nonuniform or scale-dependent spatial attributes, etc., decision-support systems that allow learning may be preferred. We compare two models of an invasive weed in California's grazing lands: (i) a stochastic dynamic programming model and (ii) a reinforcement-based, experience-weighted attraction (EWA) learning model. We extend the EWA approach by including stochastic forage growth and penalties for repeated application of environmentally harmful controls. Results indicate that EWA learning models offer some promise for managing invasive species. Les espèces non indigènes envahissantes entraînent des dommages économiques et des coûts de lutte considérables. Compte tenu que les modèles d'optimisation dynamique échouent lorsque les moyens de lutte dépendent, de façon complexe, de moyens de lutte antérieurs, d'attributs spatiaux influencés par l'échelle ou non uniformes, etc., l'utilisation de systèmes d'aide à la décision permettant l'apprentissage pourrait être préférable. Nous avons comparé deux modèles dans le cas d'une plante adventice envahissant les pâturages de la Californie: 1. un modèle de programmation dynamique stochastique; 2. un modèle d'apprentissage experience-weighted attraction (EWA), fondé sur le renforcement. Nous avons élargi le modèle EWA en y incluant la croissance stochastique des fourrages et des pénalités imposées pour l'utilisation répétée de moyens de lutte dommageables pour l'environnement. Selon les résultats obtenus, les modèles d'apprentissage EWA semblent prometteurs pour la gestion des espèces envahissantes. [ABSTRACT FROM AUTHOR]

We examined potential human determinants of observed declines in greater sage grouse (Centrocercus urophasianus) populations in Elko County, Nevada. Although monitoring of sage grouse has occurred for decades, monitoring levels have not been consistent. This article contributes to the literature by normalizing grouse counts by the annual effort to count them, performing regression analyses to explain the resulting normalized data, and correcting for sample selectivity bias that arises from years when counts were not taken. Our findings provide some evidence that cattle-grazing contributes to a reduction in sage grouse populations, but this result should be interpreted with caution because our data do not include indications about the timing and precise nature of grazing practices. Annual variations in weather appear to be a major determinant after statistically controlling for human interactions with the landscape, suggesting that climate change is a key potential long-run threat to this species. [ABSTRACT FROM AUTHOR]

Abstract: Increasing tension in the Nevada ranch community may have had a negative impact on social capital. Social capital is important because it facilitates cooperation in resolving social dilemmas related to public range management. In this paper, we use a survey of public grazing permit holders in Nevada to investigate factors that affect ranchers'' relationships with the U.S. Forest Service and Bureau of Land Management. Results indicate that, contrary to expectations, economic factors such as income and ranch size have little or no effect on relationships in the Nevada ranch community — on ranchers'' disagreements with public land managers and the deterioration in rancher-land agency relations. Rather, these relationships appear to be affected to a greater extent by our measures of social capital, personal characteristics and experience with wildfire. Indeed, disagreements with the public agencies were mainly affected by gender (males tended to have more disagreements), lack of trust, and disputes concerning responses to wildfire (which increased the chance of disagreement). Not surprisingly, disagreement resulted in a deterioration of relationships that could be offset by higher levels of social capital, particularly trust and positive attitudes towards the future of ranching and the community (as measured by responses to a variety of attitudinal questions). We conclude that, while there remain opportunities to build on existing social capital in the community (horizontal relations), ranchers and the public agencies need to work on building vertical relations, thereby increasing trust. This could potentially help in the resolution of social dilemmas related to range management. [Copyright &y& Elsevier]

In this paper, creation of carbon offset and emission reduction credits are examined from the perspective of the Little Red River Cree Nation (LRRCN), a forest tenure holder in northern Alberta. Carbon credits are produced under three scenarios: (1) carbon uptake in forest ecosystems, with postharvest waste left on site; (2) carbon uptake in forests and products; and (3) carbon uptake in forests with harvested fiber used for energy production. A mathematical programming model is used to solve for the minimum prices that cause the LRRCN to include production of carbon credits in its forest management and post-harvest processing strategies. If LRRCN is paid according to its costs of creating carbon credits, it will opt to use fiber for forest products as this provides the greatest earning potential. If LRRCN faces a fixed price for carbon credits, it will produce fiber for generating electricity in lieu of coal as this strategy has the lowest average cost. However, when costs of feedstock transportation and construction of a power plant are taken into account, carbon uptake in biomass and forest products turn out to be more competitive. [ABSTRACT FROM AUTHOR]

Abstract: In this paper, we use compromise programming to solve a multiple-objective land use and forest management planning model. Long- and short- (‘fast’) term carbon uptake, maintenance of structural diversity, and economic (net returns to forestry and agriculture) objectives are simultaneously achieved by minimizing the distance between current objective values and the ideal ones. Two distance metrics are used, representing a risk neutral and highly risk-averse decision maker. An application of the model to public forestland and adjacent private agricultural lands in the (boreal) Peace River region of northeastern British Columbia indicates that both short- and long-term carbon uptake, and maintenance of structural diversity, can be achieved only at the high financial costs. Contrary to earlier studies, we also find conflict between both short- and long-term carbon uptakes and maintenance of landscape structural diversity. Targeting short-term carbon uptake results in the greatest deviation from desired structural diversity, although the deviation is somewhat smaller with respect to the long-term carbon uptake goal. Further, risk neutral and risk-averse decision makers will employ significantly different land use and forest management strategies. Finally, the ‘balanced’ strategy (which underachieves attainment of the ‘ideal’ by the same degree for all objectives) attains diversity targets quite closely, but significantly underachieves economic and carbon objectives. Maximization of the weighted sum of objective deviations results in an ‘average’ strategy that performs much better in attaining carbon objectives, but diversity is sacrificed. [Copyright &y& Elsevier]

We present estimates of the demand for hunting licenses by residents and nonresidents in British Columbia for the period 1971-2000. We obtain estimates of both short-run and long-run price elasticities and discuss their revenue implications for future fee increases. We find the demand by nonresidents to be strongly correlated with U.S. income variation over the business cycle, but find no such role for cyclical income variation for resident hunters. The ability of the government to increase revenues from resident hunters turns out to be limited, particularly in the long run, while greater opportunities exist for raising revenues from US. hunters as short- and long-run price elasticities of demand are quite inelastic. We argue that conservation surcharges on foreign hunters are one way of capturing more of the resource rent. [ABSTRACT FROM AUTHOR]

The Kyoto Protocol is considered a necessary first step toward an effective future climate accord. As argued in this paper, however, the protocol will likely fail because it has too many loopholes, inadequate governance structures, and insufficient compliance provisions. This view is supported by case studies of Canada, Japan, and the Netherlands. These countries are unlikely to achieve their self-imposed targets, or, if they do, the costs of compliance will be unacceptably high. Consequently, the difficulty of achieving agreement to reduce global emissions by half (as required to mitigate climate change) is greatly increased. [ABSTRACT FROM AUTHOR]

Abstract: Illegal exploitation threatens the survival of many species, and anti-poaching legislation (“protection on paper”) does not protect species. State enforcement is needed to support and supplement the formal status of endangered species, but state enforcement can be a source of instability leading to the demise of species if ad hoc rules are followed blindly. We demonstrate this with a model of poaching, wildlife, and government wildlife enforcement, but our findings apply more generally. Crucial assumptions of the dynamic model are that both poaching and enforcement effort increase or decrease whenever poaching effort and enforcement are relatively profitable or unprofitable activities, respectively. We found that multiple steady states may characterize the system's equilibrium. Depending on initial populations, the initial extent of state involvement, and random events, animal populations may be severely depleted or unexpectedly built up during transition phases. Our findings highlight the importance of history and luck in protecting endangered species. [ABSTRACT FROM AUTHOR]

Focuses on the climate change policy in Canada. Strategies to reduce carbon dioxide emissions; Mitigation of climate change through terrestrial carbon projects; Requirement of tree-planting subsidies.

Examines the assignment of functions over natural resources and environment between the federal and provincial governments using the Breton-Scott (1978) approach. Effect of oil, environmental and agricultural policies on western Canada; Political considerations as the driving force behind natural resources policies; Social costs and benefits.

ABSTRACT Specification uncertainty arises in spatial hedonic pricing models because economic theory provides no guide in choosing the spatial weighting matrix and explanatory variables. Our objective in this paper is to investigate whether we can resolve uncertainty in the application of a spatial hedonic pricing model. We employ Bayesian Model Averaging in combination with Markov Chain, Monte Carlo Model Composition. The proposed methodology provides inclusion probabilities for explanatory variables and weighting matrices. These probabilities provide a clear indication of which explanatory variables and weighting matrices are most relevant, but they are case specific. [ABSTRACT FROM AUTHOR]

: Public perceptions of invasive species may influence policies and programs initiated by public and private stakeholders. We investigate the determinants of the public''s awareness and knowledge of invasive species as few studies have examined this relationship. We focus on aquatic invasive species (AIS) and employ survey data from property owners in a lake district. A major contribution is that we estimate a mixed trivariate binary-ordered probit regression model that accommodates correlations among unobserved characteristics, produces statistically more efficient estimates, and allows a more proper investigation of the probability of knowledge conditional on awareness. Our results provide insights for invasive species education and management programs. We find that individuals are more likely to be aware of AIS if they participate in water-based recreation, visit lakes outside their area, have a boat, belong to a lake association, or are college educated. This has a policy implication: Given high levels of AIS awareness by those most involved in activities around lakes and those with a higher education, it may be beneficial to target informational campaigns at those who do not display these characteristics, so that they can better make informed decisions about whether to support and expend money on invasive species management programs. [Copyright &y& Elsevier]

The article discusses various reports published within the issue, including stochastic dynamic programming (SDP) and agent-based modeling (ABM) approaches in agricultural economics.

A number of near-term timber supply shocks are projected to impact global forest product markets, particularly mountain pine beetle induced timber reductions, a Russian log export tax, and timber supply increases from plantation forests in the Southern Hemisphere and Sweden. We examined their effect on a number of global jurisdictions using a dynamic global forest products trade model that separates British Columbia (BC) into coastal and interior forest sectors. The results suggest that global increases in plantation timber would have negligible effects on BC log and lumber markets, that the Russian tax would have minor effects on this market, and that the beetle-induced timber supply drop would moderately increase BC prices (primarily log prices). In the United States South, lumber and log prices could rise as a result of the mountain pine beetle, while other shocks will have a negligible impact on prices. Yet, lumber production will fall because log prices will increase substantially more than lumber prices. Japan could be impacted much more than other regions by the Russian tax on log exports. In the absence of export taxes, a beetle-induced timber shortage would cause lumber production in Japan to rise (as Japan can access nearby Russian logs), while the export tax would reduce lumber production because log prices rise disproportionately more than in other regions. [ABSTRACT FROM AUTHOR]

Abstract: A load balance model is used to quantify the economic and environmental effects of integrating wind power into three typical generation mixtures. System operating costs over a specified period are minimized by controlling the operating schedule of the existing power generating facilities for a range of wind penetrations. Unlike other studies, variable generator efficiencies, and thus variable fuel costs, are taken into account, as are the ramping constraints on thermal generators. Results indicate that the system operating cost will increase by 83%–280% (pending generation mixture) at a wind penetration of 100% of peak demand. System emissions also decrease by 13%–32% (depending on the generation mixture) at a wind penetration of 100%. This leads to emission abatement costs in the range of $1300/tonne-CO2e for hydro dominated mixtures, $240/tonne-CO2e for coal dominated mixtures, and $215/tonne-CO2e for natural gas dominated mixtures. [Copyright &y& Elsevier]

We revisited the debate about whether the 1999 one-off sale of ivory promoted elephant (Loxodonta africana) poaching in Africa. Complementing earlier work based on ivory seizure data, we considered data on elephant mortality in Zimbabwe and Kenya. Our findings present a mixed picture. At the local level there was some evidence that the one-off sale resulted in extra elephant killing, but this effect was relatively small (and probably short-lived). Although the data were too scanty to draw strong conclusions, decision-making about elephant management and the ivory trade has to continue and will necessarily be based on imperfect information for a long time to come. Our findings suggest that further experimenting with one-off sales may be beneficial from a conservation and development perspective. [ABSTRACT FROM AUTHOR]

This research examines the effects of various factors on farmer participation in agricultural tree plantations for economic, environmental, social, and carbon-uptake purposes, and potential costs of sequestering carbon through afforestation in western Canada. Using data from a survey of landowners, a discrete choice random utility model is used to determine the probability of landowners' participation in and corresponding mean willingness to accept (WTA) compensation for a tree-planting program. WTA includes positive and negative benefits to landowners from planting trees, benefits not captured by foregone returns from agricultural activities on marginal land. Estimates of WTA are less than foregone returns, but even so average costs of creating carbon credits still exceed their projected value under a CO2-emissions trading scheme. La présente étude a examiné les effets de divers facteurs sur la participation des producteurs agricoles à la plantation d'arbres à des fins économiques, environnementales, sociales et d'absorption du gaz carbonique, ainsi que les coûts potentiels de la séquestration du carbone au moyen du boisement dans l'Ouest canadien. À l'aide des données d'un sondage effectué auprès de propriétaires fonciers, nous avons utilisé un modèle d'utilité aléatoire à choix discrets pour déterminer la probabilité de participation des propriétaires fonciers à un programme de boisement et leur consentement à recevoir (CAR) une compensation financière pour leur participation. Le CAR inclut les avantages favorables et défavorables que le boisement procure aux propriétaires fonciers, des avantages non saisis par les revenus sacrifiés des activités agricoles sur des terres marginales. Les estimations du CAR sont inférieures aux revenus sacrifiés, mais malgré tout, les coûts moyens de la mise en uvre de programme de crédits pour le carbone demeurent supérieurs à leur valeur prévue dans un scénario d'échange de droits d'émission de CO2. [ABSTRACT FROM AUTHOR]

Focuses on a study which examined how Canadian firms perceive the costs and benefits of actions to reduce carbon dioxide emissions and their assessment of the contribution they could potentially make to the Kyoto Protocol target. Information on the Kyoto Protocol; Information on the Voluntary Challenge and Registry program; Conclusions and policy implications of the study.

Background: There are high estimates of the potential climate change mitigation opportunity of using wood products. A significant part of those estimates depends on long-lived wood products in the construction sector replacing concrete, steel, and other non-renewable goods. Often the climate change mitigation benefits of this substitution are presented and quantified in the form of displacement factors. A displacement factor is numerically quantified as the reduction in emissions achieved per unit of wood used, representing the efficiency of biomass in decreasing greenhouse gas emissions. The substitution benefit for a given wood use scenario is then represented as the estimated change in emissions from baseline in a study's modelling framework. The purpose of this review is to identify and assess the central economic and technical assumptions underlying forest carbon accounting and life cycle assessments that use displacement factors or similar simple methods. Main text: Four assumptions in the way displacement factors are employed are analyzed: (1) changes in harvest or production rates will lead to a corresponding change in consumption of wood products, (2) wood building products are substitutable for concrete and steel, (3) the same mix of products could be produced from increased harvest rates, and (4) there are no market responses to increased wood use. Conclusions: After outlining these assumptions, we conclude suggesting that many studies assessing forest management or products for climate change mitigation depend on a suite of assumptions that the literature either does not support or only partially supports. Therefore, we encourage the research community to develop a more sophisticated model of the building sectors and their products. In the meantime, recognizing these assumptions has allowed us to identify some structural, production, and policy-based changes to the construction industry that could help realize the climate change mitigation potential of wood products. [ABSTRACT FROM AUTHOR]

The article discusses the implementation of a consistent policy across journals on what constitutes prior publication and the criteria used by the "Journal of Agricultural Economics" (CJAE) for determining prior publication of papers circulated electronically or otherwise.

Explores articles and topics related to the contribution of agriculture and forestry sectors to greenhouse gas management in Canada, featured in a 2005 issue of "Canadian Journal of Agricultural Economics."

The Agricultural Land Reserve (ALR) in British Columbia (BC), Canada, is a provincial zoning scheme designed to protect agricultural land from development. Since 1973, landowners have not been permitted to use ALR land for nonagricultural purposes, prompting some to seek recovery of development option value by applying for exclusion from the ALR. Using Geographic Information System (GIS) technology and a binary choice (logit) model, this study examines factors that impact the acceptance of ALR exclusion applications. With data from two regions in southwestern BC, we find that applications are more likely to be approved when the land is closer to the major highway, has a smaller parcel size, consists of a smaller portion of the total parcel area, or has poorer quality soils. Therefore, as intended by public policy, agricultural capability is a key determinant in exclusion decisions, retaining properties of greater agricultural value in the ALR. Even though public opinion has suggested otherwise, the political party in power at the time of the decision was only a weak factor, mostly moderated by the number of applications in a given year. A spatial-effects model found no evidence of spatial autocorrelation, supporting the conclusions drawn from the nonspatial model estimations. La réserve de terres agricoles de la Colombie-Britannique (ALR), au Canada, est un plan de zonage provincial destinéà protéger les terres agricoles contre le développement urbain. Depuis 1973, les propriétaires fonciers ne peuvent utiliser les terres de la réserve à des fins non agricoles, ce qui incite certains à tenter de récupérer une certaine valeur d'option en faisant une demande d'exclusion. À l'aide de la technologie des systèmes d'information géographique (SIG) et d'un modèle de choix binaire (type logit), nous avons examiné les facteurs qui influencent l'acceptation des demandes d'exclusion. À l'aide de données sur deux régions du sud-ouest de la Colombie-Britannique, nous avons observé que les demandes d'exclusion sont plus susceptibles d'être acceptées lorsque les terres sont situées en bordure d'une route importante, sont de petite taille, ne représentent qu'une portion d'une superficie plus grande ou présentent des sols de mauvaise qualité. En conséquence, comme le prévoit la politique du gouvernement, la capacité agricole est un facteur clé dans les décisions d'exclusion qui permet de conserver les propriétés de grande valeur agricole dans la réserve. Bien que l'opinion publique indique le contraire, le parti politique au pouvoir au moment de la décision ne constituait qu'un faible facteur, principalement réduit par le nombre de demandes au cours d'une année donnée. Un modèle d'effets spatiaux n'a pas réussi à montrer l'existence d'une autocorrélation spatiale appuyant les conclusions tirées des estimations du modèle non spatial. [ABSTRACT FROM AUTHOR]

This paper has three main objectives: (i) to investigate whether the four-quadrant approach introduced by J.S. Maini reveals a useful typology for grouping countries by gross domestic product (GDP) and forest cover per capita, (ii) to determine if the framework can enhance our understanding of the relationship between forest cover and GDP per capita, and (iii) to investigate why countries in the four-quadrant world occupy different quadrants and to determine the principal factors affecting country movement across and within the individual quadrants. The examination reveals that countries can be classified into four broad categories and that GDP and forest cover per capita have a low but consistent level of negative association. After regressing economic, institutional, social capital, and other variables on a country’s occupancy and movement in the four-quadrant world, the results suggest that countries in each quadrant share different characteristics and that factors underlying country movement vary according to the quadrant being observed. Overall, countries with less corruption and higher education are likely to experience increases in both forest cover and GDP per capita, while countries exporting a significant proportion of forest products have a reduced probability of increasing both variables. [ABSTRACT FROM AUTHOR]

Carbon sequestration and methane flux in wetlands in Nova Scotia are measured. The social benefits associated with carbon storage are estimated using the net sequestration rate and estimates of the social cost of carbon from the Dynamic Integrated model of Climate and the Economy (DICE model). The net benefits of restoring wetlands in agricultural cropland are estimated based on these values and costs of restoration from the literature. The aim is to put a value on wetlands in Nova Scotia using original data rather than benefit transfers from other regions, thereby informing policy aimed at wetlands management in the region. Based on the results of this study, wetlands in Nova Scotia sequester 6.45 tCO 2 eha−1 yr−1 on average, and release 1.46 tCO 2 e ha−1 yr−1 as methane. The total benefits of carbon sequestration in wetlands in Nova Scotia are roughly $124–$373 ha−1 yr−1, and range from $5105 to $39,795 ha−1 in total. The social benefit of wetlands in terms of carbon sequestration is as high as $9.66 billion in Nova Scotia. Results indicate that protection of existing wetlands can be warranted on economic grounds. On average, it is not optimal to create wetlands for carbon sequestration, although it may be economically viable to target wetlands that are particularly productive in terms of storing CO 2. It may also be viable to restore wetlands if ecosystem services are considered along with carbon sequestration. • This study measures carbon sequestration and methane flux in wetlands in Nova Scotia • The net sequestration rate for wetlands is 4.99 tonnes ha-1 yr-1 of CO 2 on average • The value of wetlands is roughly $124-$373 ha-1 yr-1, and ranges from $5,105 to $39,795 ha-1 • Carbon sequestration may provide benefits to Nova Scotia on the order of C$10 billion • It is not optimal to create wetlands for carbon sequestration due to high restoration costs • Opportunities may exist to target wetland restoration under certain assumptions [ABSTRACT FROM AUTHOR]