Modelling adoption of natural resources management technologies: the case of fallow systems

Option valuation of Philippine forest plantation leases

Consumption pattern, trade, and greenhouse gas leakage in India

An empirical study on effective pollution enforcement in Korea

Governance, economic policy, and the environmental Kuznets curve for natural tropical forests

Land tenure and conflict resolution: a game theoretic approach in the Narok district in Kenya

Politics of institutional reforms in the water and drainage sector of Pakistan

This paper presents an adoption model of a resource management technology derived from a three-step decision process (information, adoption, and intensity of adoption).

From the theoretical results it is found that while the levels of technical parameters such as duration and regeneration rate of soil fertility by improved fallow are relevant for adoption, it is misleading to ignore economic and social factors as they are reflected in the discount rate, risk, information, and prices of inputs and outputs.

It is also shown that models that do not take account of the problems of self-selection due to the ability of the potential adopters to acquire and process the relevant information about a technology, lead to biased estimators.

Empirical estimations generally confirm the theoretical results. It is found that the acquisition of information about resources management technology is influenced by age of farmers and actions of official extension services; the adoption decision is influenced by prior utilization, the bundle of land property rights owned, and the level of financial liquidity; and the intensity of adoption is influenced by the percentage of the farm that is degraded.

The Philippine forest plantation lease is modelled as an option whose value arises from market uncertainty and the irreversibility inherent in sunk costs required to establish plantations. The value of this option could be a significant factor in the planting decisions of leaseholders. Real options theory could help explain why in spite of the prospects of adequate financial returns, Filipino leaseholders are slow to establish plantations. The opportunity cost of investing is demonstrated to be highly sensitive to uncertainty of the future value of the plantation. Real options analysis is also utilized to evaluate policies intended by the Philippine government to promote plantation development.

The policy discussions for sharing the global responsibility for abatement of greenhouse gas (GHG) emissions by individual countries take account neither of the pattern of their final consumption nor of the role of globalization through trade in the leakage of GHGs across national boundaries. This paper gives the methodology of estimating the total emissions of a GHG, which is imputable to the consumption pattern of a country and the effect of trade on the net leakage of such gas. The paper estimates the effect of trade on the net leakage of carbon dioxide and methane from India. It shows a significant net leakage of carbon dioxide from India for the observed consumption pattern in the 1990s. In spite of the difficulty of application of the method of estimating the leakage due to data constraints regarding regularly updated input–output tables for the different countries, the results point to the necessity of using some policy measure to influence globally the preference structure of the people in favour of eco-friendly consumption patterns.

It has been recognized that extra incentives for firms' compliance with pollution regulations would be created under state-dependent enforcement as Harrington (1988) has shown theoretically. However, the extent of the overall improvement in compliance is expected to be different according to the pollution control costs and industrial structures of any given country. This paper empirically examines, for the first time, the effectiveness of an imposition of higher fines for repeated violations and state-dependent enforcement in terms of the reduction of violation days, by simulating emitting behavior for 65 sub-industries in the Korean manufacturing industry over the period 1987–1989. State-dependent enforcement was found to be more effective than an imposition of higher non-compliance fines for repeated violations in regard to the number of sub-industries exhibiting persistent non-compliance. However, the number of fully complying sub-industries was found to be slightly higher under an imposition of higher non-compliance fines for repeated violations. In Korea, it would therefore be desirable to discriminate against certain industries with enforcement systems of different intensity based on their abatement cost structures rather than uniformly introducing a state-dependent approach.

This paper reports the results of an empirical analysis of the relationship between income and the rate of deforestation of tropical natural forests. The inverted U-shaped relationship known as the environmental Kuznets curve is confirmed. The study focuses on the role of institutions and macroeconomic policy in the deforestation process. Results indicate that the quality of governance is an important determinant of forest resource preservation, and that rural population pressure is not as important as suggested by other studies. Agricultural technology improvement and enhanced educational attainment also lead to reductions of deforestation rates.

Many conflicts in many parts of the developing world can be traced to disputes over land ownership, land use and land degradation. In this paper, we test the hypothesis that information asymmetries among various principals within these countries in land tenure and market systems have caused marginalization of some principals by the others. A sustained process of marginalization driven by these asymmetries has inevitably caused the disadvantaged to revolt resulting in many cases in violent clashes. In this paper, we develop a game theoretic model to test our hypothesis by analyzing the complex interdependencies existing among the various principals in the Narok District in Kenya. Violent clashes have been increasing in the district since the first outbreak in 1993. Preliminary results seem to confirm our hypothesis that asymmetrical information structures among the various principals over land and agricultural markets could have been the catalytic forces for these conflicts. In order to reduce these discrepancies, we recommend two institutional reforms. The first involves the adoption of a hybrid land tenure system whereby land ownership is based on individual titles while the use and sale of the land is governed by communal rules established by a community participatory proceeds. The second recommendation involves the formation of an information network comprising of all principals with the main objective of it being a forum for exchange of ideas and information pertaining to land use options and the opportunities offered by the market system.

This paper develops an approach to assess the political risk associated with implementation of institutional reforms in the water sector, while providing insights into the interrelationship of institutional arrangements, power structure, and policy outcome. The analytical approach consists of a two-tier process to assess the institutional feasibility of reform implementation. The first tier is a structured analysis of power distribution among the power groups interested in the outcome of the reform. The second tier is a Delphi process, reflecting the opinions of experts. The approach was applied to the case of the National Drainage Program Project (NDP) in Pakistan, currently in the early stages of implementation. Several hypotheses regarding likely progress were tested, using the feedback provided by a panel of experts in the Delphi process.