ECN 375 Exam #4 Practice Problems

What was the USDA's CRP program capped at?

Capped at 24 million acres in 2014, -- in 2017, about 23.4 high priority preservation acres were enrolled

Since 1987, how much has the USDA made in CRP payments to landowners?

$50 billion

Payments for voluntary adoption of best management practices now amounts to about ____ of net farm revenues

5%

What happened at the sit-in against Warren County, NC's PCB landfill in 1982?

African Americans organized a nonviolent sit-in protest against a polychlorinated biphenyl (PCB) landfill. This is widely understood to be the catalyst for the Environmental Justice movement in the U.S.

What is the Profafor program in Ecuador?

An Ecuadorean company created by the Forests Absorbing Carbon-dioxide Emissions (FACE) consortium financed by Dutch electricity companies to offset their carbon emissions. Since 1993, over 22,000 hectares of land under 152 contracts have been afforested or reforested, mostly in the highlands of coastal areas, resulting in approx. 2.23 million tons carbon sequestered.

Which of the following is a consequence of extracting energy resources?

Areas are often contaminated; property values of sites near extraction areas are typically lowered

Describe how mining is a global environmental justice issue.

Areas with households that have disproportionately lower incomes are generally areas that are subjected to mining. Large mining companies know that land is generally less expensive in these areas and can easily purchase or lease the land if the households do not have clearly-defined property rights. Households typically don't have the political power to stop these lease agreements or purchases.

What is the USDA Conservation Reserve Program (CRP)?

CRP is a land conservation program administered by the Farm Service Agency (FSA). In exchange for a yearly rental payment, farmers enrolled in the program agree to remove environmentally sensitive land from agricultural production and plant species that will improve environmental health and quality. It is a form of "land retirement program," and about 30 million acres is currently set aside.

Do the voluntary programs work?

Best management practices have been very effective at providing habitat. The CRP (USDA) and WRP (NRCS) are credited with providing significant improvements in habitat for a wide range of species including game birds, non-game birds, and other upland species. This generates significant value for recreation. The programs have reduced sentiment. Payments are not focused on the actual pollution, but instead are focused on infrastructure that can be contracted (waterways, manure lagoons, riparian zones, cover crops, conservation tillage)

What did CRP acreage drop to in June, 2018?

CRP acreage dropped to about 22.7 million acres by June, 2018

What are other examples of environmental commodity trading?

Carbon trading [appears that China will use it, U.S. unlikely for now, although California is using it, New Zealand + Australia have all taken steps in this direction, provinces in Canada have some elements of trading, if carbon policy moves forward, could allow offsets from land use sectors into the carbon market] Water quality trading [some possibility of allowing offsets generated by agricultural programs into markets to offset point source pollution]

Sulfur Dioxide (SO2) market in U.S.

Clean Air Act of 1990 created a SO2 trading market that started in 1995 -- Goal to reduce SO2 emissions by 50% by 2010 at lower cost -- We achieved large reductions in SO2 in 2000-2010 at a fraction of the costs anticipated

How long are CRP contracts?

Contracts are between 10 and 15 years in length and may or may not be renewed---dependent on the political situation at the time

Why does land grabbing occur?

Corruption; Households that have land grabbed from them typically don't have political power to stop it from happening; Land is often cheap to grab so companies can easily purchase it.

What is the Forestry Law 7575 in Costa Rica?

Establishes the protection, conservation and management of forest areas as a priority and central responsibility of the State. The government is in charge of regulating and supervising the use and exploitation of forest resources in a sustainable manner. The program is self funded by fuel taxes and provides payments for forest protection (allow some management).

What are examples of mining spots around the world?

Examples include iron or bauxite in Guinea, gold in Burkina Faso, as well as ores and building material in Latin America.

What are some economic pros of the Conservation Reserve Program?

Farmland owners collectively received about $50 billion in CRP payments since 1987. Farmers are encouraged to adopt best management practices, which are sometimes conditions to receiving the payments. The areas conserved benefit conservation and are often considered to be "high priority preservation areas."

What happened during the Memphis Sanitation Strike of 1968?

For two months 1,000 black sanitation workers went on strike and demanded not only improved wages and working conditions, but also civil rights and respect. It highlighted a concern for environmental conditions that disproportionately affect the health of workers in impoverished areas.

Where does land grabbing occur?

Happens where large tracts of land are fairly cheap and/or easy to access. It mainly affects developing countries such as Honduras, Colombia, Mexico, Indonesia, and Myanmar.

What are reasons why landfills and toxic dumps are located in places where they are?

In general, low-income communities lack the resources necessary to successfully lobby politicians to place landfills and toxic waste dumps elsewhere; Property values are generally lower in low-income communities, which makes it easier to purchase land to be used as a landfill or toxic waste dump; If a household chooses to sell their land to a toxic waste management company, they are not typically required to internalize all of the consequences, including harm to their neighbors that have to endure the landfill externalities.

Why does energy resource extraction happen?

In the United States, it is mainly an issue of negative externalities. The land on which resources are located is generally not high-value land so it can be purchased from households that are not required to "pay for" the damage these sites would do to the water supply for surrounding areas. For drilling in deserted locations and/or marine areas, the benefits of clean water or an untainted arctic to society are not accounted for in the land value. So the company is doing irreparable damage to the environment without paying for the damages.

How does land grabbing happen?

Industries can afford to purchase the land and/or bribe local/national governments to allow them to establish their industries on what was once land owned by local households

What is land grabbing?

Industries, such as the palm oil and bioethanol industries, "grab" land globally. Often this is done with little to no concern for local people.

What are Payments for Ecosystem Services (PES)?

Involve payments for maintaining forest cover, shifting land to forests, or improving habitat in some way

Describe the land use change that occurred after CRP was implemented?

Land use change occurred internationally; a 10% increase in food prices would increase global cropland by 0.6%, or 9 million hectares

Where do landfills and toxic waste dumps end up?

Landfills and toxic waste dumps in the United States are often located in low-income areas -- typically, these areas are largely comprised of racial minorities

Why does mining happen?

Low land values; Lack of property rights for low-income and underrepresented communities; Corruption; Companies see an opportunity to extract resources without abiding by the strict environmental regulations in developed countries.

What are three reasons why mining happens in lower-income countries?

Low land values; Lack of property rights for low-income and underrepresented communities; Corruption—local governments will illegally sell community land; Companies see an opportunity to extract resources without abiding by the strict environmental regulations in developed countries

When does most pollution flow?

Most pollution flows in fall and winter, when things are not growing

During the ______________, Dr. Martin Luther King Jr. advocated for better working conditions and pay for striking garbage workers.

Memphis Sanitation Strike

What are some negative externalities of energy extraction?

Methods are often associated with the contamination of fresh water supplies and disproportionately affect low-income areas.

What is REDD?

Millions to billions of dollars available for reducing carbon emissions from deforestation globally (LA, SE Asia, Africa)

What are the consequences of mining?

Mining can lead to local households being displaced; Many local households are powerless to stop companies from mining due to the lack of property rights over the land on which they reside; Can lead to violence, protests, arrests, and extraction of resources to unsustainable levels; Land is left when the resources have been exhausted, which often leaves the land unusable.

What are three consequences of mining?

Mining can lead to local households being displaced; Many local households lose rights over the land on which they reside; Can lead to violence, protests, arrests, and extraction of resources to unsustainable levels; Often with mining, land is left when the resources have been exhausted, which often leaves the land unusable.

What is mining?

Mining uses land, water, and highly-polluting chemicals and is disproportionately expanding in low-income areas.

What are some examples of "best management practices?"

Nutrient management planning; Implementing grass waterways; Implementing a riparian zone

Where does the extraction of energy resources happen?

Often, extraction locations, especially with fracking, are in low-income, rural areas with little political power or money to stop it from happening

What are some consequences of land grabbing?

Old-growth forest is destroyed; Water quality diminishes; Land is often not used sustainably; Land is taken away from some of the poorest and most vulnerable populations

What was the General Accounting Office Study of 1983?

Prompted by the Warren County sit-in, this study used 1980 Census data to provide empirical evidence for environmental racism. Found that 3 out of 4 hazardous waste landfills examined were located in communities where African Americans made up at least 26% of the population and whose family incomes were below the poverty level.

Why are landfills placed in certain areas?

Property values are generally lower in low-income communities, which makes it easier to purchase land to be used as a landfill or toxic waste dump Externalities are not accounted for if you choose to sell your land to a toxic waste management company. For example, if you sell your land to a toxic waste management company, you are not required to pay for the reduced air quality that harms your neighbors

Why are landfills and toxic waste sites located in lower-income areas?

Property values are generally lower in these areas

What are the top states enrolling in CRP?

Texas, Kansas, Iowa, Colorado, North Dakota---about 10 million CRP acres combined---which is about 43% of all CRP ground

What is the Noel Kempff Mercado National Park in Bolivia?

Set-asides: 600,000 hectares of land removed from timber concessions and converted into national park.; Concessionaires indemnified from using; local residents not allowed to enter and harvest or shift land use.

Describe the Conservation Reserve Program in the United States. What is the goal of the program?

The Conservation Reserve Program was created to encourage farmers to voluntarily take crops out of production by paying them an agreed-upon price for each acre they take out of production. The goal of the program is to help the environment by removing highly erodible and environmentally sensitive lands from agricultural production and installing resource-conserving practices

What was the 1987 study of toxic waste in the United States?

The United Church of Christ Commission on Racial Justice (UCC) looked at the statistical relationship between the location of a hazardous waste site an the racial/socioeconomic composition of the communities in which the waste site resides nationwide.

What is at least one externality of mining?

The air pollution and toxins emitted into the air from mining facilities chemicals leaking into the water supply that negatively affect surrounding communities; the damage done from political protests and violence; lower property values in areas around the extraction site

What are Voluntary Incentive Payments?

Typically used in developed countries -- developed countries use them when there is great uncertainty about what works, regulations cannot be established, and allows trials and testing of new options.

What is environmental justice?

The fair treatment and involvement of all people, regardless of race, color, national origin, or income, with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.

Why have industries resorted to extracting energy resources?

The fossil fuel and energy industries are facing supply constraints so they are more reliant on unconventional means and locations for extraction

What is the Pimampiro program in Ecuador?

The program was launched in 2002 as part of a larger community forest management plan. The PES scheme is based on a 20 per cent increase in water use charges in the town of Pimampiro and involves payments to upstream forest landowners located in the area of the municipality water intake pipe.

What is the cap and trade system?

Under the cap and trade system plants are allocated permits by the government (some are auctioned). Firms have to have as many permits as allocated. If emissions > allocation, then firm buys from the market, emissions < allocation, then the firm sells to the market.

What did the 1987 study of toxic waste in the United States show?

The study claimed that, while the socioeconomic status of residents played an important role in the location of toxic waste sites, race was the most significant factor among the variables analyzed.

What are the ways in which industries extract energy resource?

The unconventional means and locations include fracking, arctic drilling, oil sand drilling, and deep water petroleum sources

What are the political implications behind landfill placement?

There are many political and social pressures that lead to this happening including land values being low and these areas being targeted as "areas of least resistance." In general, low-income communities lack the resources necessary to successfully lobby politicians to place landfills and toxic waste dumps elsewhere.

What are some economic cons of the Conservation Reserve Program?

There is an asymmetric information problem since farmers know which acres are less productive while the government does not and will take the less-productive land out of production. The program is expensive and sometimes hard to manage. Depending on the location of the farmland, some farmers may not get paid as much as others.

What are some problems associated with payments of ecosystem services programs?

They create equity issues; They increase land scarcity; There is frequently a free-rider problem inherent in voluntary programs; Difficult to measure the benefits

Where are the voluntary programs not as effective?

They have been less effective at reducing water-borne pollutants like N and P

What are some negative externalities associated with placement of landfills or toxic waste dumps?

Toxic gasses emitting from landfills can disproportionately harm the air quality of vulnerable communities Toxic chemicals may leak into the water supply or contaminate the surrounding land Property values near the landfill or toxic waste site will likely fall, which increases inequality by further depressing asset values of housing in low-income communities

What do voluntary incentive payments allow for?

Trials and testings of new options

Can voluntary programs be used in developing countries?

Yes, but few developing countries have enough financial resources to carry out such a program. Payments for Ecosystem Services (PES) have been used widely, although they are mainly concentrated in Latin America.