Equity over efficiency: a problem of credibility in scaling resource-based compensation?:

Journal of Environmental Economics and Policy

Volumn 2, Issue 1, 2013, Pages 93-117

  Cole, Scott G ^a  

^a SWEDISH UNIVERSITY OF AGRICULTURAL SCIENCES   (Sweden)

Author keywords

cost benefit analysis (CBA); efficiency; equity; equivalency analysis (EA); interim loss; ; social profitability

Indexed keywords

EID: 84878269710     PISSN: 21606544     EISSN: 21606552     Source Type: Journal    
DOI: 10.1080/21606544.2013.764616     Document Type: Article

References (64)

1. Allen, P. D., Raucher, R., Strange, E., Mills, D., and Beltman, D., 2004. “ The Habitat-Based Replacement Cost Method: Building on Habitat Equivalency Analysis to Inform Regulatory or Permit Decisions Under the Clean Water Act. ”. In Economics and Ecological Risk Assessment: Applications to Watershed Management, Edited by: Bruins, R. J. F., and Heberling, M. T., 404–421. Boca Raton, Florida, USA: CRC Press.
2. AP (Associated Press). 2012. BP Reaches Settlement With Gulf Oil Spill Victims, National Public Radio. March 3
3. Atkinson, Giles, and Mourato, Susana. 2008. Environmental Cost–Benefit Analysis. Annual Review of Environment and Resources, 33: 317–344. doi: 10.1146/annurev.environ.33.020107.112927
4. Blackorby, D., and Donaldson, C., 1990. A Review Article: The case Against Using the Sum of Compensating Variations in Cost–Benefit Analysis. Canadian Journal of Economics, 23: 471–494. doi: 10.2307/135643
5. Bockstael, N. E., Freeman, M. A., Kopp, R. J., Portney, P. R., and Smith, V. K., 2000. On Measuring Economic Values for Nature. Environmental Science and Technology, 34: 1384–1389. doi: 10.1021/es990673l
6. Boyd, James, and Wainger, Lisa. 2003. Measuring Ecosystem Service Benefits: The Use of Landscape Analysis to Evaluate Environmental Trades and Compensation RFF Discussion Paper (02–63). April http://www.rff.org/Publications/Pages/PublicationDetails.aspx?PublicationID=17308
7. Brans, Edward. 2008. Deliverable No. 5: Legal analysis. Produced by the REMEDE Team (http:\\www.envliability.eu) for the European Commission
8. Brännlund, Runar, and Lundgren, Tommy. 2009. Environmental Policy Without Costs? A Review of the Porter Hypothesis. International Review of Environmental and Resource Economics, 3 (2)
9. Breffle, W. S., and Rowe, R. D., 2002. Comparing Choice Question Formats for Evaluating Natural Resource Tradeoffs. Land Economics, 78 (2): 298 doi: 10.2307/3147275
10. Carson, R. T., Mitchell, R. C., Hanemann, M., Kopp, R. J., Presser, S., and Ruud, P. A., 2003. Contingent Valuation and Lost Passive Use: Damages from the Exxon Valdez Oil Spill. Environmental and Resource Economics, 25 (3): 257–286. doi: 10.1023/A:1024486702104
11. Coase, R. H., 1960. The Problem of Social Cost. Journal of Law and Economics, 3: 1–44. doi: 10.1086/466560
12. Cole, S. G., Restoration Ecology, 19147–153. doi: 10.1111/j.1526-100X.2010.00771.x
13. Cole, S. G., and Kriström, B., Annex 5: Discounting in Lipton et al. 2008
14. Dasgupta, P., Marglin, S., and Sen, A., 1972. Guidelines for Project Evaluation, Vienna: UNIDO.
15. Dunford, R. W., Ginn, T. C., and Desvousges, W. H., 2004. The use of habitat equivalency analysis in natural resource damage assessments. Ecological Economics, 48 (1): 49–70. doi: 10.1016/j.ecolecon.2003.07.011
16. Daly, Herman. 1992. Allocation, Distribution, and Scale: Towards an Economics that is Efficient, Just, and Sustainable. Ecological Economics, 6: 185–193. doi: 10.1016/0921-8009(92)90024-M
17. EC (European Commission). 2000. White Paper on Environmental Liability Brussels: COM (2000) 66 Final. doi: 2 September 2000 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2000:0066:FIN:EN:PDF
18. EC (European Commission). 2011. Our Life Insurance, Our Natural Capital: An EU Biodiversity Strategy to 2020 Communication from the Commission Number 244. 5 May. Accessed Dec 13, 2012. http://ec.europa.eu/environment/nature/biodiversity/comm2006/pdf/2020/1_EN_ACT_part1_v7[1].pdf
19. EU Directive. Environmental Liability Directive (ELD) 2004/35/EC
20. EVOSTC (Exxon Valdez Oil Spill Trustee Council). 2012. Website address: http://www.evostc.state.ak.us/ (maintained by State of Alaska)
21. Ferraro, P. J., and Kiss, A., 2002. Direct Payments to Conserve Biodiversity. Science, 298 (5599): 1718–1719. http://www.sciencemag.org/content/298/5599/1718.short Accessed August 4 2011
22. Ferraro, P. J., and Taylor, L. O., 2005. Do Economists Recognize an Opportunity Cost When They See One? A Dismal Performance from the Dismal Science. Contributions to Economic Analysis and Policy, 4 (1) Article 7.
23. Flores, N. E., and Thacher, J., 2002. Money, Who Needs It?. Contemporary Economic Policy, 20 (2): 171–178. doi: 10.1093/cep/20.2.171
24. Freeman, A. Myrick. 2003. The Measurement of Environmental and Resource Values: Theory and Methods, 2nd ed. Resources for the Future
25. Hampton, Steve, and Zafonte, Matthew. 2002. “ Calculating Compensatory Restoration in Natural Resource Damage Assessments: Recent Experience in California ”. In Proceedings of the California World Oceans Conference 833–844. Santa Barbara, CA doi: http://dx.doi.org/10.1061/40761(175)75
26. Hanley, N., Shogren, J. F., and White, B., 2007. Environmental Economics In Theory and Practice, 2nd, New York, NY: Palgrave Macmillan.
27. Horas, R. M., Espelta, J. M., Riera, P., and Borrego, D. A., 2008. Bages - Bergueda (BABE) Case Study Report Using a Value Equivalency Approach in Lipton et al. 2008 Accessed Jan 22, 2013. http://www.envliability.eu/docs/D12CaseStudies/D12_REMEDE_BABE_Oct%2008.pdf
28. Huguenin, Michael T., Donlan, Michael C., Alexandra van, Geel, and Paterson, Robert W., “ Assessment and Valuation of Damage to the Environment ”. In Gulf War Reparations and the UN Compensation Commission Environmental Liability Edited by: Payne, Cymie, and Sand, Peter. Chap. 3 ISBN13: 9780199732203
29. Johansson, P. -O., 1991. An Introduction to Modern Welfare Economics, Cambridge: Cambridge University Press. ISBN 0521356954
30. Johansson, P. -O., 1998. Cost-Benefit Analysis of Environmental Change, Cambridge: Cambridge University Press.
31. Johansson, P. -O., and Kriström, Bengt. 2010. A Note on How to Undertake a Cost–Benefit Analysis in Monetary and Environmental Units, Centre for Environmental and Resource Economics Working Paper. http:\\www.cere.se
32. Jones, C., and Pease, K., 1997. Restoration-Based Compensation Measures in Natural Resource Liability Statutes. Contemporary Economic Policy, 15 (4): 111–122. doi: 10.1111/j.1465-7287.1997.tb00494.x
33. Kanninen, B., and Kriström, B., 1992. Welfare Benefit Estimation and the Income Distribution, Stockholm: Beijer Institute of Ecological Economics. Working Paper #21
34. Lipton, J., LeJeune, D. K., Calewaert, J. B., and Ozdemirolgu, E., 2008. Toolkit for Performing Resource Equivalency Analysis to Assess and Scale Environmental Damage in the European Union Funded by the 6th Framework Programme of the European Commission. Accessed Jan 1, 2013. http://envliability.eu/docs/D13MainToolkit_and_Annexes/REMEDE_D13_Toolkit_310708.pdf
35. Lipton, J., LeJeune, K., Calewaert, J. -B., and Ozedemiroglu, E., 2008. REMEDE Toolkit for Performing Resource Equivalency Analysis to Assess and Scale Environmental Damage in the European Union, REMEDE Team for the European Commission. Produced by the http:\\www.envliability.eu
36. Mazzotta, M. J., Opaluch, J. J., and Grigalunas, T. A., 1994. Natural Resource Damage Assessment: The Role of Resource Restoration. Natural Resources Journal, 34: 153–177.
37. Milne, S., and Niesten, E., 2009. Direct Payments for Biodiversity Conservation in Developing Countries: Practical Insights for Design and Implementation. Oryx, 43 (4): 530 doi: 10.1017/S0030605309990330
38. Moilanen, A., van Teeffelen, A., Ben-Haim, Y., and Ferrier, S., 2009. Restoration Ecology, 17: 470–478. doi: 10.1111/j.1526-100X.2008.00382.x
39. (NOAA) National Oceanic and Atmospheric Administration. 1995. “Habitat Equivalency Analysis: An Overview Originally published March 1995; updated 2001 and 2006. Accessed June 23, 2010. http://www.darrp.noaa.gov/library/pdf/heagenl.pdf
40. NOAA (National Oceanic and Atmospheric Administration. 1997. Natural Resource Damage Assessment Guidance Document: Scaling Compensatory Restoration Actions (Oil Pollution Act of 1990), Silver Spring, MD: Damage Assessment and Restoration Program, National Oceanic and Atmospheric Administration.
41. NOAA (National Oceanic and Atmospheric Administration). 1999. Discounting and The Treatment of Uncertainty in Natural Resource Damage Assessment. NOAA Technical Paper 99-1. Accessed Jan 1, 2013. http://www.darrp.noaa.gov/library/pdf/discpdf2.pdf
42. Norton-Griffiths, M., and Southey, C., 1995. The Opportunity Costs of Biodiversity Conservation in Kenya. Ecological Economics, 12 (2): 125–139. doi: 10.1016/0921-8009(94)00041-S
43. NRC (National Research Council). 2011. Approaches for Ecosystem Services Valuation for the Gulf of Mexico After the Deepwater Horizon Oil Spill: Interim Report https://download.nap.edu/catalog.php?record_id=13141
44. Ohio v. United States Department of the Interior 880 F.2d 432, 457 (D.C. Cir. 1989)
45. Ozdemiroglu, E., Kriström, B., Cole, S., Riera, P., and Borrego, D. A., 2009. “ Environmental Liability Directive and the use of economics in compensation, offsets and habitat banking ”. In Proceedings of UK Network for Environmental Economists London, England http://academic.research.microsoft.com/Paper/11288213
46. Parsons, George R., and Kang, Ami K., 2010. Compensatory Restoration In A Random Utility Model Of Recreation Demand. Contemporary Economic Policy, 28 (4): 453–463. doi: 10.1111/j.1465-7287.2010.00219.x
47. Payne, C., 2011. Gulf War Reparations and the UN Compensation Commission: Environmental Liability, New York, NY, USA: Oxford University Press. ISBN 13: 9780199732203
48. Persky, Joseph. 2001. Cost–Benefit Analysis and the Classical Creed. Journal of Economic Perspectives, 15 (4): 199–208. doi: 10.1257/jep.15.4.199
49. Porter, M. E., 1991. America's Green Strategy. Scientific American, 264: 168 doi: 10.1038/scientificamerican0491-168
50. Quetier, F., and Lavorel, S., 2011. Biological Conservation, 144: 2991–2999. doi: 10.1016/j.biocon.2011.09.002
51. Riera, P., 2008. Does the Equivalency Analysis of the European Environmental Liability Directive Pass a Social Cost–Benefit Analysis Test?. Journal of Forest Economics, 14 (4): 225–226. doi: 10.1016/j.jfe.2008.09.001
52. Roach, B., and Wade, W. W., 2006. Policy Evaluation of Natural Resource Injuries Using Habitat Equivalency Analysis. Ecological Economics, 58 (2): 421–433. doi: 10.1016/j.ecolecon.2005.07.019
53. Rockström, J., Steffen, W., Noone, K., Persson, A., Chapin, F. S., III, Lambin, E., Lenton, T. M., Scheffer, M., Folke, C., Schellnhuber, H., Nykvist, B., De Wit, C. A., Hughes, T., van der Leeuw, S., Rodhe, H., Sörlin, S., Snyder, P. K., Costanza, R., Svedin, U., Falkenmark, M., Karlberg, L., Corell, R. W., Fabry, V. J., Hansen, J., Walker, B., Liverman, D., Richardson, K., Crutzen, P., and Foley, J., 2009. Ecology and Society, 14 (2): 32
54. 2 Allowance Trading. Journal of Economic Perspectives, 12 (3): 69–88. doi: 10.1257/jep.12.3.69
55. Thompson, D., 2002. Valuing the Environment: Courts’ Struggles with Natural Resource Damages. Environmental Law, 32: 57–89.
56. Thur, S., and Barry, K., 2006. “ The Public's Habitat Preferences: An Analysis ”. In Final summary report of the cross-habitat study focus groups, NOAA Damage Assessment Center. http:\\www.darrp.noaa.gov/economics/pdf/Cross%20Habitat%20Report%2001-24-06_final.pdf
57. Turner, R., 2007. Limits to CBA in UK and European Environmental Policy: Retrospects and Future Prospects. Environmental and Resource Economics, 37 (1): 253–269. doi: 10.1007/s10640-007-9119-2
58. UK (United Kingdom HM Treasury. 2003. The Green Book: Appraisal and Evaluation in Central Government, London: HM Treasury.
59. Unsworth, R. E., and Bishop, R. C., 1994. Assessing Natural Resource Damages Using Environmental Annuities. Ecological Economics, 11 (1): 35–41. doi: 10.1016/0921-8009(94)90048-5
60. USCG (United Stated Coast Guard). 2006. Oil Spill Liability Trust Fund (OSLTF) Funding for Oil Spills NPFCPUB 16465.2. January 2006 http://www.uscg.mil/npfc/docs/PDFs/OSLTF_Funding_for_Oil_Spills.pdf
61. USEPA (US Environmental Protection Agency). 2008. Guidelines for Preparing Economic Analyses (updated 2008), Washington: EPA.
62. USEPA. 2009. Valuing the Protection of Ecological Systems and Services, Environmental Protection Agency's Science Advisory Board. EPA-SAB-09-012 http://yosemite.epa.gov/sab/sabproduct.nsf/F3DB1F5C6EF90EE1852575C500589157/$File/EPA-SAB-09-012-unsigned.pdf
63. Viscusi, W. Kip, and Zeckhauser, Richard. 2011. “ Deterring and Compensating Oil Spill Catastrophes: The Need for Strict and Two-Tier Liablility ”. In HKS Faculty Research Working Paper Series RWP11-025, John F. Kennedy School of Government, Harvard University. http://dash.harvard.edu/handle/1/5027954
64. Zafonte, M., and Hampton, S., 2007. Exploring Welfare Implications of Resource Equivalency Analysis in Natural Resource Damage Assessments. Ecological Economics, 61 (1): 134–145. doi: 10.1016/j.ecolecon.2006.02.009