Showing posts with label Cost-Benefit Analysis. Show all posts
Showing posts with label Cost-Benefit Analysis. Show all posts

Sunday, January 22, 2012

Benefit-cost analysis of spruce budworm (Choristoneura fumiferana Clem.) control: Incorporating market and non-market values

http://www.sciencedirect.com/science/article/pii/S0301479711003215
Abstract: This study employs a benefit-cost analysis framework to estimate market and non-market benefits and costs of controlling future spruce budworm (Choristoneura fumiferana) outbreaks on Crown forest lands in New Brunswick, Canada. We used: (i) an advanced timber supply model to project potential timber volume saved, timber value benefits, and costs of pest control efforts; and (ii) a recent contingent valuation method analysis that evaluated non-market benefits (i.e., changes in recreation opportunities and existence values) of controlling future spruce budworm outbreaks in the Province. A total of six alternative scenarios were evaluated, including two uncontrolled future budworm outbreak severities (moderate vs. severe) and, for each severity, three control program levels (protecting 10%, 20%, or 40% of the susceptible Crown land forest area). The economic criteria used to evaluate each scenario included benefit-cost ratios and net present values. Under severe outbreak conditions, results indicated that the highest benefit-cost ratio (4.04) occurred when protecting 10% (284,000 ha) of the susceptible area, and the highest net present value ($111 M) occurred when protecting 20% (568,000 ha) of the susceptible area. Under moderate outbreak conditions, the highest benefit-cost ratio (3.24) and net present value ($58.7 M) occurred when protecting 10% (284,000 ha) of the susceptible area. Inclusion of non-market values generally increased the benefit-cost ratios and net present values of the control programs, and in some cases, led to higher levels of control being supported. Results of this study highlight the importance of including non-market values into the decision making process of forest pest management.

Highlights
► We assess the benefits and costs of controlling spruce budworm outbreaks.
► A contingent valuation method and a wood supply model are used in the analysis.
► A number of outbreak severities and control program scenarios are considered.
► Net present values are highest when protecting 10–20% of the affected land base.
► Including non-market values can help justify larger control programs.

by Wei-Yew Chang, Van A. Lantz, Chris R. Hennigar, David A. MacLean; all of Faculty of Forestry and Environmental Management, University of New Brunswick, P.O. Box 4400, Fredericton, NB, Canada E3B 5A3; Tel.: +1 506 458 7775; fax: +1 506 453 3538.
Journal of Environmental Management via Elsevier Science Direct www.ScienceDirect.com;
Volume 93, Issue 1; January, 2012; Pages 104–112

Keywords: Contingent valuation; Timber supply model; Natural disturbances; Forest pest management; Forest protection; Benefit-cost ratio; Net present value; New Brunswick

Saturday, January 21, 2012

Taxpayer and Environmental Groups: Corps of Engineers Uses New Recipe to Cook the Books – Again – To Push Wasteful Delaware River Deepening Project - Report Released on Updated Economic Analysis

http://taxpayer.net/resources.php?category=&type=Project&proj_id=5058
Responding to renewed economic claims for Deepening the Delaware River, a coalition of taxpayer, community, and environmental organizations issued a new independent analysis they say proves once again that the deepening project is an economic loser. The groups issued the analysis and an accompanying report titled “Army Corps Cooks the Books Again,” in response to a May 2011 analysis issued by the Army Corps of Engineers.

“The Army Corps once again tried to mislead Congress and the public about the deepening project – a renewed analysis by Dr. Bob Stearns clearly demonstrates how the Army Corps manipulated their calculations so as to present a false picture for the project,” said Maya van Rossum, the Delaware Riverkeeper. “The inappropriate calculation was not hard to find. The Corps’ own report provides the analysis and numbers. Without deepening, shippers will use the feeder port approach which is far cheaper than trucking, and when all matters are considered, is also cheaper than deepening. The Corps’ assessment pretends that without deepening, shippers would use the far more expensive trucking option to get goods to the Philadelphia area markets. But the Corps’ own practices and procedures make clear that the shipping alternative is the best alternative and the one that would be selected, thereby supporting and encouraging port jobs without the need for a nearly $300 million, environmentally devastating deepening project.”

According to the new Cooked the Books report, correction of the shipping vs trucking error alone reduces the benefit-cost ratio for the project to, at best 1.1 (or to below 1 to 1, depending on a shipping diversion assumption) -- far below the 1.64 claimed by the Army Corps’ May 2011 report. Supplemental information in the report provided by the coalition of organizations identifies a number of additional errors they say, when included in the calculation, revive the GAO finding that deepening would provide less than a dollar of benefit for every $1 of cost paid for by the taxpayers.

“The Corps’ economic analysis deserves to be on a Chinese menu under twice-cooked pork. The errors were too obvious and too basic to be a mistake” says Steve Ellis, vice president of Taxpayers for Common Sense. “But more importantly, the new report is being used to justify renewed funding for a project that doesn’t meet the Federal Government’s basic criteria for ensuring tax dollars are invested only in those projects that will generate clear economic value for the country.”

“This new economic analysis makes it clear that the Delaware River Deepening project is an economic looser, which poses substantial environmental risks. The Army Corps needs to take a hard look at its project review practices if projects like this, that don’t meet the Corps’ own basic economic standards, are getting the green light,” asserts George Sorvalis, Coordinator with the Water Protection Network.

In a report issued in April, 2010, the Government Accountability Office (GAO) issued its third challenge to the reliability and accuracy of the Army Corps economic claims for deepening (the first GAO report being issued in 2002, the second challenge in the form of Congressional testimony given in 2006).

The Army Corps 2011 report was issued in apparent response to the less than glowing, GAO 2010 report. The May 2011 Army Corps analysis was its 8th economic analysis of the deepening. “But no one ever learned of this report or got an opportunity to review it until we secured the report through a Freedom of Information Act request,” says van Rossum. “As soon as we received a copy we pursued an independent review of its claims. We think our findings clearly demonstrate why the Army Corps felt the need to keep this newest analysis an apparent secret – because it’s clear that once again they cooked the books, a practice far too common with the Army Corps and one that demeans the entire federal government.”

Friday, January 20, 2012

Simultaneously Mitigating Near-Term Climate Change and Improving Human Health and Food Security

http://www.sciencedaily.com/releases/2012/01/120112193442.htm
A new study led by [Drew Shindell of NASA's Goddard Institute for Space Studies (GISS) in New York City], highlights 14 key air pollution control measures that, if implemented, could slow the pace of global warming, improve health and boost agricultural production.

The research ... finds that focusing on these measures could slow mean global warming 0.9 ºF (0.5ºC) by 2050, increase global crop yields by up to 135 million metric tons per season and prevent hundreds of thousands of premature deaths each year. While all regions of the world would benefit, countries in Asia and the Middle East would see the biggest health and agricultural gains from emissions reductions.
...
Shindell and an international team considered about 400 control measures based on technologies evaluated by the International Institute for Applied Systems Analysis in Laxenburg, Austria. The new study focused on 14 measures with the greatest climate benefit. All 14 would curb the release of either black carbon or methane, pollutants that exacerbate climate change and damage human or plant health either directly or by leading to ozone formation.


Shindell and his team concluded that these control measures would provide the greatest protection against global warming to Russia, Tajikistan and Kyrgyzstan, countries with large areas of snow or ice cover. Iran, Pakistan and Jordan would experience the most improvement in agricultural production. Southern Asia and the Sahel region of Africa would see the most beneficial changes to precipitation patterns.

The south Asian countries of India, Bangladesh and Nepal would see the biggest reductions in premature deaths. The study estimates that globally between 700,000 and 4.7 million premature deaths could be prevented each year.

Black carbon and methane have many sources. Reducing emissions would require that societies make multiple infrastructure upgrades. For methane, the key strategies the scientists considered were capturing gas escaping from coal mines and oil and natural gas facilities, as well as reducing leakage from long-distance pipelines, preventing emissions from city landfills, updating wastewater treatment plants, aerating rice paddies more, and limiting emissions from manure on farms.

For black carbon, the strategies analyzed include installing filters in diesel vehicles, keeping high-emitting vehicles off the road, upgrading cooking stoves and boilers to cleaner burning types, installing more efficient kilns for brick production, upgrading coke ovens and banning agricultural burning.

The scientists used computer models developed at GISS and the Max Planck Institute for Meteorology in Hamburg, Germany, to model the impact of emissions reductions. The models showed widespread benefits from the methane reduction because it is evenly distributed throughout the atmosphere. Black carbon falls out of the atmosphere after a few days so the benefits are stronger in certain regions, especially ones with large amounts of snow and ice.

... The new study builds on a United Nations Environment Program/World Meteorological Organization report, also led by Shindell, published last year.
...
Abstract: Tropospheric ozone and black carbon (BC) contribute to both degraded air quality and global warming. We considered ~400 emission control measures to reduce these pollutants by using current technology and experience. We identified 14 measures targeting methane and BC emissions that reduce projected global mean warming ~0.5°C by 2050. This strategy avoids 0.7 to 4.7 million annual premature deaths from outdoor air pollution and increases annual crop yields by 30 to 135 million metric tons due to ozone reductions in 2030 and beyond. Benefits of methane emissions reductions are valued at $700 to $5,000 per metric ton, which is well above typical marginal abatement costs (less than $250). The selected controls target different sources and influence climate on shorter time scales than those of carbon dioxide–reduction measures. Implementing both substantially reduces the risks of crossing the 2°C threshold.
...
A 2007 Stanford University study calculated that carbon dioxide was the No. 1 cause of man-made global warming, accounting for 48 percent of the problem. Soot was second with 16 percent of the warming and methane was right behind at 14 percent.  But over a 20-year period, a molecule of methane or soot causes substantially more warming then a carbon dioxide molecule.

The new research won wide praise from outside scientists, including a conservative researcher who held a top post in the George W. Bush administration.

"So rather than focusing only on carbon dioxide emissions, where we have to make a tradeoff with energy prices, this strategy focuses on 'win-win-win' pathways that have benefits to human health, agriculture and stabilizing the Earth's climate," said University of Minnesota ecology professor Jonathan Foley, who wasn't part of the study. "That's brilliant."

John D. Graham, who oversaw regulations at the Office of Management and Budget in the Bush administration and is now dean of public and environmental affairs at Indiana University, said: "This is an important study that deserves serious consideration by policy makers as well as scientists."

The study even does a cost-benefit analysis to see if these pollution control methods are too expensive to be anything but fantasy. They actually pay off with benefits that are as much as ten times the value of the costs, Shindell said. The paper calculates that as of 2030, the pollution reduction methods would bring about $6.5 trillion in annual benefits from fewer people dying from air pollution, less global warming and increased crop production.

In the United States, Shindell calculates the measures would prevent about 14,000 air pollution deaths in people older than 30 by the year 2030. About 0.8 degrees Fahrenheit of projected warming in the U.S. would be prevented by 2050.

But health benefits would be far bigger in China and India where soot is more of a problem.

The study comes a day after the U.S. Environmental Protection Agency released the most detailed data yet on American greenhouse gas emissions. Of the emissions reported to the government, nearly three-quarters came from power plants. But with methane, it's different. Nineteen of the top 20 methane emitters were landfills.

Stanford University climate scientist Chris Field, who is a leader in the Intergovernmental Panel on Climate Change but wasn't part of this study, praised the study but said he worried that officials would delay cutting back on the more prevalent carbon dioxide. Focusing solely on methane and soot and ignoring carbon dioxide "tends to exacerbate climate change," he said.

Also see:
http://www.nasa.gov/topics/earth/features/interactive-charts.html
http://www.giss.nasa.gov/staff/dshindell/
http://www.nasa.gov/topics/earth/features/cleanair-warming.html
http://abcnews.go.com/Technology/wireStory/scientists-cut-soot-methane-curb-warming-15348267#

by Drew Shindell 1,*, Johan C. I. Kuylenstierna 2, Elisabetta Vignati 3, Rita van Dingenen 3, Markus Amann 4, Zbigniew Klimont 4, Susan C. Anenberg 5, Nicholas Muller 6, Greet Janssens-Maenhout 3,  Frank Raes 3, Joel Schwartz 7, Greg Faluvegi 1, Luca Pozzoli 3,†, Kaarle Kupiainen 4, Lena Höglund-Isaksson 4, Lisa Emberson 2, David Streets 8, V. Ramanathan 9, Kevin Hicks 2, N. T. Kim Oanh 10, George Milly 1, Martin Williams 11, Volodymyr Demkine 12 and David Fowler 13
1. NASA Goddard Institute for Space Studies and Columbia Earth Institute, Columbia University, New York, NY 10025, USA.
2. Stockholm Environment Institute, Environment Department, University of York, York YO10 5DD, UK.
3. Joint Research Centre of the European Commission, Ispra 21027, Italy.
4. International Institute for Applied Systems Analysis, Laxenburg A-2361, Austria.
5. U.S. Environmental Protection Agency, Washington, DC 20460, USA.
6. Department of Economics, Middlebury College, Middlebury, VT 05753, USA.
7. Department of Environmental Health, Harvard School of Public Health, Boston, MA 02215, USA.
8. Argonne National Laboratory, Argonne, IL 60439, USA.
9. Scripps Institute of Oceanography, University of California, San Diego, San Diego, CA 92093, USA.
10. Asian Institute of Technology, Bangkok 10400, Thailand.
11. Environmental Research Group, King’s College London, London SE1 9NH, UK.
12. United Nations Environment Programme (UNEP), Nairobi 00100, Kenya.
13. Center for Ecology and Hydrology, Midlothian EH26 0QB, UK.
† Present address: Eurasia Institute of Earth Sciences, Istanbul Technical University, Istanbul 34469, Turkey.
* To whom correspondence should be addressed. E-mail: drew.t.shindell@nasa.gov
...
Science www.sciencemag.org
Volume 335, Number 6065; January 13, 2012: pages 183-189