AEDE 4310 Midterm 2 study guide

list command and control strategies for managing fisheries

-Vessel and gear restrictions -Time restrictions -Total allowable catch -Marine protections

what are some types of water trading?

-permanent right transfers -leasing an amount of water/time -water leaseback -water right priority exchanges -banking water

what are the three spheres of sustainability?

Environmental Economic Social

optimal rotation

Growth period required to derive maximum value from a stand of timber

how do externalities mean we recycle too little?

Disposal costs become an externality because prices go up as we have to extract more resources. This is why we charge fees to throw things away... to encourage reuse.

what are the 5 challenges to sustainability?

Over harvesting Habitat damage Pollution Population Invasive species

what are common property problems associated with water use?

Over-consumption of water causes price to rise rapidly. It can also cause problems for future users as there will be less supply, making the price higher.

ricardian rent

The value of the difference in productivity between a given piece of land and the poorest producing the same goods (crops) under the same conditions Conditions include: labor, technology, capital, etc

disposal fees

charges to dispose of waste (which may increase if the waste is recyclable

extraction cost

costs associated with taking a resource

what is an underlying driver?

fundamental forces which underlie the proximate drivers Aka: root causes or indirect causes - difficult to identify Operate over large areas and across time Example: social norms like homeownership in the US, population changes, economic subsidies from increased agriculture. -slide 13

preferential-use doctrine

gives certain uses the highest priority for allocation during shortage regardless of the marginal net benefit of that use.

royalty payments

grant payments to biologically rich countries for all products developed from species in that country

what is a suburb?

households begin to settle further away from the central city Week 8 slide 32.

what it called when only two spheres overlap

indicators of sustainability Environmental - Economic Environmental - Social Economic - Social

underlying

indirect driver fundamental forces which underlie the proximate drivers ("root" or "indirect"). Often difficult to identify. EX: Social norms - Homeownership in US, population change, economic subsidies - result in increase agriculture. Unlike proximate drivers, these operate over large areas and across time

location rent

is the price of accessibility to the market holding land quality constant when only transportation costs vary

maximum sustainable yield

max catch that can be harvested in every period

bioecomomics

merging of biology and economics

carrying capacity

natural ability of the environment to maintain a population

biophysical factor

natural capacity or pre existing environmental condition that influences land use change

do we want to catch fish at the level of maximum sustainable yield?

no! This is an example of overshoot and collapse or the tragedy of the commons from having an open access fishery. Maximum sustainable yield is the max catch that can be harvested in a single period. Meaning no regulations, just the however many fish can be caught.

non recharging

non-renewable resources

spiraling

population-environment interactions can cause feed back processes, producing extreme outcomes (crises or sustainable equilibrium)

water trading

process of buying and selling of water access entitlements

old scrap

recovered from used products

land use

refers to how land is used by humans

land cover

refers to the vegetation, structures or other features that cover the land

new scrap

residual material from production process

understand the implications of different block pricing on water users and fairness

· Uniform Rate Structure- The cost per unit consumption under uniform rate structure does not increase/decrease additional units of consumption · Declining Block Rate Structure-cost per unit decreases additional units consumption · Inverted Block Rate Structure- cost per unit consumption increases addition units consumption · Seasonal Rate Structure- cost per unit of consumption changes time periods. (peak=most expensive)

list market incentives used to manage fisheries

*Taxes Raises costs to fishermen but retains surplus Politically hard to do *Individual transferable quotas (ITQs) "permits" Quote entitling a hold to a certain share of the total catch of a species that can be traded Sum of the quotes should equal total allowable catch must be easy to trade/transfer

disposal cost

- disposal costs rise with rising wealth and with increasing population densities - as long as quality is not adversely affected, consumers will shift to materials made of recycled products if products made with virgin material are more expensive -some materials are easier to recycle like aluminum, some contaminated with impurities like plastic, and some contain hazardous materials like mercury which add complexities.

what are 5 reasons fisheries may collapse?

- greed - myopic behavior, behavior that only considers the present and not the future - Technology improvements - too many boats/population increase - open access, the lack of property rights

natural capital

- refers to the earth as a life support system. (talking about water, air, non-renewable fuel resources, etc.) -irreversible -uncertain

list 5 specific types of drivers we discussed in class and provide an example of each

-Biophysical factors -Economic factors -Demographic factors -institutional factors -Cultural factors

what are the institutional requirements needed for water trading?

-Buyers and sellers -Information! -Clear definition of water trading rights -Ownership and understanding of -allocated rights

name 3 objectives in water pricing

-Efficient use -Maintenance flows -Encourage innovation

what are some problems with associated with command and control strategies for managing fisheries

-Inefficient - the costs associated with restrictions and gear Time restrictions - people can buy more vessels and better gear. TAC - fish are depleted sooner Protected areas - more fishing in non protected areas.

what are 5 types of water trading schemes that one could consider to manage water use?

-Permanent transfer rights -Leasing an amount of water at a time -Transferable land rights -Water leasebacks -Banking water

explain why firms are more likely to be located in central cities than residents

-they need easy access to information -they interact with other firms and costs are lower if they are centrally located -they want to decrease travel cost of workers. Households are less dependent on immediate access to information and services, often prefer to have larger lot sizes and are willing to commute.

block pricing

-uniform rate structure -declining block rate structure -inverted block rate structure -seasonal rate structure

driver

Anything that causes change in land use either directly or indirectly

riparian rights

allocate the right to use water to the owner of the land adjacent to the water

homestead act

In 1862, 160 acres government gave to anyone willing to cultivate land for at least 5 years

ITQs?

Individual transferable quotas "permits" -Quote entitling a hold to a certain share of the total catch of a species that can be traded -Sum of the quotes should equal total allowable catch -must be easy to trade/transfer

why do you harvest trees faster in infinite-planning vs. a single rotation?

Infinite - planning model is different from the single-harvest model in that it recognizes the interdependencies between periods and it takes what will happen in the future into consideration. The reason why infinite-planning harvest rates are faster than a single harvest rotation rates is because with infinite planning we utilize optimal rotation which means we will harvest trees at the optimal rate that maximizes the value now. Optimal dynamic harvest = maximizes the net present values and NOT the total volume of wood.

what is required to efficiently allocate a renewable resource when there are competing uses?

The marginal net benefit should be equalized across all users.

left over principle

The more fertile land has lower production costs and therefore receives higher rents In equilibrium, rents are equal to profits Rents include whatever is "left over" because competition of land bids away any excess Competition among farmers for land bids away excess profits until they are zero and land owner gets all the surplus value

prior appropriation doctrine.

allows the transfer of water away from the stream for beneficial use (use it or loose it)

definitions of sustainability covered in class

There are no concrete definition or metric by which we measure something sustainable or not therefore it is up to individual interpretation however, we may be able to agree on overall ideas Encompasses environmental friendliness, human well-being, land use change or lack thereof. Underlying theme is that each generation should have access to at least the same resources based as the previous generation. Measured by: Physical quantity of natural resources Total economic value of resource stocks Unit value of resource/services - price Total value of resource/ service flows through time. World commission on environment and development 1987 = paths of human progress which meet the needs and aspirations of the present generation without compromising the ability of future generations to meet their needs. Costanza et all 1991 = a relationship between human economic systems and larger dynamic but normally slower-changing ecological systems in which Human life can continue indefinitely Humans flourish Human culture can develop and the ecological life support system is not destroyed.

desalination

This is when ocean water is transformed into fresh water by removing salts and other additives. -Reverse osmosis: pumping seawater at high pressure through permeable membranes. -significantly reduced price of desalinated water due to technological advances in reverse osmosis, - nanofiltration and ultrafiltration methods

bid rent curves

We can use bid-rent curves to describe the process by which land prices and and land use are determined. They represent the amount of money (bid) an individual or firm is willing to pay to be located in a specific location.

meta-analysis

When we combine many ex-post (approach that looks at land use change that has already occurred to identify a driver) studies with similar variables. Look at changes across multiple areas and attempt to identify drivers that are at work in each case. Case studies form the basis for meta-analysis

what is a monocentric city?

a city in which all economic activity occurs at a single CBD. Week 8 slide 28.

what is a polycentric city?

a city that become larger, increased commuting costs and congestion result in many new smaller CBDs forming. Week 8 slide 35.

surface water

a renewable resource that consists of rivers, lakes, and resevoirs.

groundwater

an important source of fresh water (represents over 90% of the worlds readily available fresh water). located in aquifers - underground layers of porous rock and soil. result of rain water seeping into the ground, eventually finding its way into aquifers. this underground water moves very slowly and may take a long time to recharge or refill.

mediation factor

are the intermediate or context variables which shape, modify, or intervene to connect underlying driving forces and proximate changes EX: gender, wealth, institutional arrangements

critical depensation

critical minimum population that must be maintained for survival

concession agreements

define the terms under which public forests can be harvested

proximate

direct driver Immediate action or activity that causes land use change. Example: wood extraction, plowing new fields, new residential construction

endogenous driver

something that arises as a result of land use change Example: a self-reinforcing effect

exogenous driver

something that is unaffected by land use change but nevertheless causes it.

what is a proximate driver?

the immediate action or activity which causes land use change. -related to human activities and involve a physical action which changes land use -Aka: direct drivers -Example: wood extractions, new residential construction, plowing of new fields - slide 12

what is a mediating driver?

the intermediate or context variables which shape modify or intervene to connect underlying driving forces and proximate changes - slide 14 Example : gender, wealth, institutional arrangements -- the existence of more males than females in the central american population increases the likelihood of deforestation.

explain key differences between von-thunen and ricardian model of land use, paying particular attention to the assumptions used in each model.

the von thunen model doesn't care about quality of land only about location

how do bid-rent curves relate to the von-thunen model

this is the money an individual is willing to pay to be located in a particular location. The price of land is determined by the highest bid-rent curve. Things like congestion and new highways shifts this curve. Since farmers have to decide where to grow which crops because of high transportation costs, these factors will shift the von Thunen model as well. Therefore, farmers will get the highest value crops on the land with the highest location rent.

refundable deposit system

typically designed to be an initial charge that reflects the cost of disposal and to provide a refund that encourages recycling and helps conserve virgin materials.