This study presents the first meta-analysis on the economic value of ecosystem services delivered by lakes. A worldwide data set of 699 observations drawn from 133 studies combines information ...reported in primary studies with geospatial data. The meta-analysis explores antagonisms and synergies between ecosystem services. This is the first meta-analysis to incorporate simultaneously external geospatial data and ecosystem service interactions. We first show that it is possible to reliably predict the value of ecosystem services provided by lakes based on their physical and geographic characteristics. Second, we demonstrate that interactions between ecosystem services appear to be significant for explaining lake ecosystem service values. Third, we provide an estimation of the average value of ecosystem services provided by lakes: between 106 and 140 USD$2010 per respondent per year for non-hedonic price studies and between 169 and 403 USD$2010 per property per year for hedonic price studies.
•We conduct the first meta-analysis on the value of ecosystem services provided by lakes.•We analyze results of 133 studies, offering a total of 699 values.•We show that antagonisms and synergies across ecosystem services are perceived and valued by people.
The relationship between biodiversity and each ecosystem service or bundle of ecosystem services (e.g. win−win, win−lose or win−neutral) is an active field of research that requires structured and ...consistent information. The application of that research for conservation and decision-making can be hampered by the ambiguity found in the definition of the nursery function under the ecosystem service perspective. In this paper, we review how the role of nursery habitats is included in the ecosystem services literature, covering conceptual, biophysical and economic reflections. The role of ecosystems as nurseries is mostly analyzed in coastal environments. The main observation is that there is no consensus on the consideration of the nursery function as a service (e.g. which species or habitats) or on how to assess it (e.g. which indicators or valuation methods). After that review, we analyze three different interpretations given to the nursery function, namely the ecological, conservationist and economic point of view; and we distinguish between different types of assessment that may consider the nursery function.
We conclude that the nursery function can be considered an ecosystem service on its own right when it is linked to a concrete human benefit and not when it is represented with indicators of general biodiversity or ecosystem condition. Thus, the analysis of the delivery of ecosystem services should be differentiated from the analysis of ecological integrity. Only with this distinction science may be able to quantify the link between biodiversity and ecosystem services and policy may be effective in halting biodiversity loss. Similar considerations could apply for other biodiversity constituents that may be treated as ecosystem services.
Water, food and energy are at the core of human needs and there is a boundless complex cycle among these three basic human needs. Ecosystems are in the center of this nexus, since they contribute to ...the provision of each component, making it imperative to understand the role of ecosystems in securing food, water and energy for human well-being. In this study we aimed to map and assess water provisioning services and associated benefits to support the ecosystem–water–food–energy nexus by taking into account environmental flow requirements for riverine ecosystems using the hydrological model Soil and Water Assessment Tool (SWAT). We developed a framework that includes indicators of renewable water (capacity of ecosystem to provide water) and water use (service flow) and we applied it in the Danube river basin over the period 1995–2004. Water scarcity indicators were used to map the possible water scarcity in the subbasins, and analyze the spatial match of water availability and water use. The results show that modelling is instrumental to perform the integrated analysis of the ecosystem–water–food–energy nexus; and that spatial mapping is a powerful tool to display environmental availability of water provisioning and regulatory services delivered by ecosystems, and can support the nexus analysis.
•Efficient water management requires spatial knowledge of water availability and use•We develop an approach for assessing and mapping water provisioning services•We implement the approach in the Danube river basin.•The approach can support assessments and policies related to the ecosystem–water–food–energy nexus
We elicit the risk preferences of a sample of French farmers in a field-experiment setting, considering both expected utility and cumulative prospect theory. Under the EU framework, our results show ...that farmers are characterised by a concave utility function for gain outcomes implying risk aversion. The CPT framework confirms this result, but also suggests that farmers are twice as sensitive to losses as to gains and tend to pay undue attention to unlikely extreme outcomes. Accounting for loss aversion and probability weighting can make a difference in the design of effective and efficient policies, contracts or insurance schemes. PUBLICATION ABSTRACT
We assess the impact of implementing the full cost recovery (FCR) principle for water services on European households. This assessment includes three dimensions. First, we measure how household water ...consumption reacts to the price change induced by implementing the FCR principle. Second, we provide a measure of the resulting household welfare losses. Third, we evaluate how household water affordability is impacted. This assessment which relies on a household water demand function approach has been conducted for 9 European countries (Austria, Bulgaria, Czech Republic, Estonia, France, Greece, Italy, Portugal and Spain). For most of these countries, we show that implementing the FCR principle does not lead to substantial water affordability issues. Bulgaria (and to a lesser extend Estonia and France) is one exception since poor households (i.e. households belonging to the first income decile) have to devote more than 3% of their income for paying their water and wastewater bill under a FCR regime. The fact that water affordability may become an issue under FCR for some countries gives some ground for public authorities to develop specific policies targeted to poor households.
We conducted an artefactual field experiment in Vietnam to investigate whether and how experiencing a natural disaster affects individual attitudes toward risks. Using experimental and real household ...data, we show that households in villages affected by a flood in recent years exhibit more risk aversion, compared with individuals living in similar but unaffected villages. Interestingly, this result holds for the loss domain, but not the gain domain. In line with Prospect Theory, Vietnamese households distort probabilities. The distortion is related to aid received and social networks participation, but is unrelated to flood experience.
This study investigates the impact of formal and informal regulations on environmental and economic performance of Brazilian manufacturing firms. We adopt a dual approach where production technology ...is represented by a cost function, approximated by a translog form. Pollution is considered as a negative by-product that can be modified trough using either formal regulation (inspections or sanctions) or informal regulation (community pressure). A simultaneous equation model is estimated by three-stage least squares on a sample of 404 industrial establishments located in the state of São Paulo, Brazil. We show that pollution abatement costs for the Brazilian manufacturing sector are different from zero which suggests that pollution emissions are affected by environmental regulation. We also demonstrate that environmental performance of firms is jointly affected by formal and informal regulation. Lastly, formal regulation is largely influenced by informal regulation and more specifically by community pressure.
We compare two different elicitation methods for measuring risk attitudes on a sample of French farmers. We consider the lottery tasks initially proposed by Holt and Laury (Econ Rev 92:1644–1655,
...2002
) and by Eckel and Grossman (Evol Hum Behav 23:281–295,
2002
; J Econ Behav Org 68:1–7,
2008
). The main empirical result from this within-subject study is that risk preference measures are affected by the type of mechanism used. We first show that this risk preference instability can be related to non-expected utility preferences of farmers. Using a risk-taking psychometric questionnaire, we then demonstrate that risk preferences of farmers are context-dependent. This may be another explanation of the observed risk preference instability.
The aim of this Special Issue is to gather evidence on the impact of price policies (PP) and non-price policies (NPP) in shaping residential water use in a context of increased water scarcity. ...Indeed, a large body of the empirical economic literature on residential water demand has been devoted to measuring the impact of PP (water price increases, use of block rate pricing or peak pricing, etc.). The consensus is that the residential water demand is inelastic with respect to water price, but not perfectly. Given the low water price elasticity, pricing schemes may not always be effective tools for modifying household water behaviors. This is puzzling since increasing the water price is still viewed by public authorities as the most direct economic tool for inducing water conservation behaviors. Additional evidence regarding the use of PP in shaping residential water use is then required. More recently, it has been argued that residential consumers may react to NPP, such as water conservation programs, education campaigns, or smart metering. NPP are based on the idea that residential water users can implement strategies that will result in water savings via changing their individual behaviors. Feedback information based on smart water metering is an example of approach used by some water utilities. There are still large gaps in the knowledge on the residential water demand, and in particular on the impact of PP and NPP on residential water use, household water affordability and water service performance. These topics are addressed in this Special Issue “Advances in the Economic Analysis of Residential Water Use”.
We develop a multiple forest use model to determine the optimal harvest date for a forest stand producing both timber and carbon benefits under a risk of fire. An empirical application is provided ...for a forest owner producing maritime pine in Southwest of France. Our results indicate that a higher risk of fire will decrease the optimal rotation period. On the contrary, higher carbon prices increase the optimal harvesting age. To investigate the contradictory effects of fire risk and carbon price on forest rotation, we identify the set of carbon prices and fire risks that lead to a given rotation age. We also show that forest owner's willingness to pay for a risk reduction can be substantial (37.33
euros by ha and by year to reduce the annual fire risk from 1.26% to 0.07%).
► We develop a multiple forest use model to determine the optimal harvest date under a risk of fire. ► A higher risk of fire will decrease the optimal rotation period. ► Higher carbon prices increase the optimal harvesting age. ► We identify the set of carbon prices and fire risks that lead to a given rotation age.
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