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Over the past thirty years, the concept of science-based, ecosystem-level restoration has gained favor among scientists and policymakers as the most promising approach for returning degraded landscapes and watersheds to health and vitality.

Large-Scale Ecosystem Restoration presents case studies of five of the most noteworthy large-scale restoration projects in the United States: Chesapeake Bay, the Everglades, California Bay Delta, the Platte River Basin, and the Upper Mississippi River System. These projects embody current efforts to address ecosystem restoration in an integrative and dynamic manner, at large spatial scale, involving whole (or even multiple) watersheds, and with complex stakeholder and public roles.

Representing a variety of geographic regions and project structures, the cases shed light on the central controversies that have marked each project, outlining
* the history of the project
* the environmental challenges that generated it
* the difficulties of approaching the project on an ecosystem-wide basis
* organizational structures
* techniques for conflict resolution and consensus building
* the on-going role of science in decisionmaking
* the means of dealing with uncertainties

A concluding chapter offers a guide to assessing the progress of any large-scale restoration project, considering how to judge key factors including funding, setting and meeting goals, the quality of science and its integration in decisionmaking, managing and resolving conflict, and building and maintaining public awareness.

Large-Scale Ecosystem Restoration examines some of the most difficult and important issues involved in restoring and protecting natural systems, and makes a unique and valuable contribution to the field of ecological restoration. It is a landmark publication for scientists, policymakers, and anyone working to protect or restore landscapes or watersheds.

Table Of Contents:

Introduction: The Watershed-Wide, Science-Based Approach to Ecosystem Restoration, Mary Doyle

PART I. The Everglades
1. The Challenges of Restoring the Everglades Ecosystem, Terrence “Rock” Salt, Stuart Langton, and Mary Doyle
2. Everglades Ecology: The Impacts of Altered Hydrology, Thomas L. Crisman
3. Rivers of Plans for the River of Grass: The Political Economy of Everglades Restoration, Stephen Polasky

PART II. The Platte River
4. Negotiating for Endangered and Threatened Species Habitat in the Platte River Basin, David M. Freeman
5. Platte River Basin Ecology: A Three-Dimensional Approach to Adaptive Management, Thomas L. Crisman
6. Navigating the Shoals: Costs and Benefits of Platte River Ecosystem Management, Stephen Polasky

PART III. The California Bay-Delta
7. California’s Delta: The Challenges of Collaboration, David Nawi and Alf W. Brandt
8. The Ecology of Bay-Delta Restoration: An Impossible Dream? Thomas L. Crisman
9. Water Fights: The Economics of Allocating Scarce Water and Bay-Delta Restoration, Stephen Polasky

PART IV. The Chesapeake Bay 171
10. The Culture of Collaboration in the Chesapeake Bay Program, Mary Doyle and Fernando Miralles-Wilhelm
11. An Ecological Perspective on Management of the Chesapeake Bay, Thomas L. Crisman
12. Murky Waters and Murky Policies: Costs and Benefits of Restoring Chesapeake Bay, Stephen Polasky

PART V. The Upper Mississippi River
13. The Upper Mississippi River and the Army Corps of Engineers’ New Role: Will Congress Fund Ecosystem Restoration? Cynthia A. Drew
14. Upper Mississippi Restoration Ecology: Putting Theory into Practice, Thomas L. Crisman
15. Comparing Apples and Oranges? Costs and Benefits of Upper Mississippi River System Restoration, Stephen Polasky

Conclusion: Assessing Ecosystem Restoration Projects, Mary Doyle

by Mary Doyle 1 and Cynthia A. Drew 2`
1. Professor and Co-Director of the Leonard and Jayne Abess Center for Ecosystem Science and Policy at the University of Miami.
2. Associate Professor of Law at the University of Miami School of Law.

Publisher: Island Press www.Islandpress.org
Published July 7, 2008; 344 pages; Paperback: $35.00 also available hardcover
ISBN: 9781597260268
http://www.islandpress.org/bookstore/details.php?isbn=9781597260268

On May 23, 2008 The Pew Center on Global Climate Change today released a new study that provides critical insights regarding economic analyses of the Lieberman-Warner Climate Security Act (S. 2191). The study analyzes six major economic modeling exercises conducted to assess costs of this legislation. The Pew Center’s analysis puts the modeling results in context to provide a clear understanding of what models can - and cannot - reveal about the costs of climate policy.

The Pew Center examines the following economic modeling analyses of the Lieberman-Warner bill to derive insights about the drivers of key results and to inform effective policies.
* Energy Information Administration
* Clean Air Task Force
* American Council for Capital Formation/National Association of Manufacturers
* Massachusetts Institute of Technology
* Environmental Protection Agency
* CRA International

Key insights drawn from these modeling analyses and outlined in the Pew Center brief include the following:

* Availability of advanced, low-carbon technology is crucial to minimizing the costs of achieving greenhouse gas reductions;
* Flexibility in the timing of greenhouse gas reductions and allowing banking and borrowing of emission allowances lowers costs;
* The more offsets available, the lower the costs;
* Energy efficiency provisions reduce costs; and
* Robust economic growth is still achieved with climate policies in place.

“Stepping back from the details, all of these modeling efforts show the importance of policies that provide flexibility - like banking and offsets - and promote advanced low-carbon technologies and efficiency,” said Pew Center President Eileen Claussen. “This study delivers critical insights and demonstrates that cost-effective approaches to address climate change can be achieved with sensible policies.”

While the models offer valuable insights, they do not tell the complete story. They reveal long-term assumptions are at best only approximations. For example, accurately predicting the availability and cost of technologies 50 years in the future is nearly impossible. The models do not fully represent the Lieberman-Warner bill, often omitting potential cost-savings provisions including certain energy efficiency inducements and the Carbon Market Efficiency Board’s role in regulating allowances. The models also fail to consider the costs of inaction, and any credible analysis finds that unabated climate change will cost far more than reasonable climate policy.

As a companion to this study, a recent Pew Center paper describes the advantages and limitations of economic models for evaluating policy options. Insights Not Numbers: The Appropriate Use of Economic Models explains that economic modeling cannot predict future events or produce precise projections of the consequences of specific policies. Instead, model results are more appropriately used to provide insights into key economic relationships, to explore the impact of alternative policy designs, and to produce ranges of results based on plausible assumptions and reliable data.

The Pew Center on Climate Change www.pewclimate.org
The Pew Center was established in May 1998 as a non-profit, non-partisan, and independent organization dedicated to providing credible information, straight answers, and innovative solutions in the effort to address global climate change. The Pew Center is led by Eileen Claussen, the former U.S. Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs.
Press Release dated May 21, 2008
http://www.pewclimate.org/docUploads/L-W-Modeling.pdf

The World Bank is moving ahead with plans to use the weather derivative market as part of a comprehensive strategy to reduce the impact of drought in developing countries. Under a proposal approved recently by its Board of Directors, the World Bank will now offer financial intermediation services to low-income client countries of the International Development Association (IDA), and will add to the range of risk-management tools available to middle-income client countries of the International Bank for Reconstruction and Development (IBRD). Malawi is expected to be the first country to take advantage of this new financial product offering from the World Bank.

The Bank will intermediate the risk of weather-based catastrophe by entering into mirroring transactions with the client country and a financial market counterpart. In the event of a severe weather event, client countries, such as Malawi, would receive a payout from the Bank, the total value of which would be based on an index used as an estimate of the financial impact. This would be funded with the payout that the Bank would receive from the mirroring transaction.

"This new product offering expands upon the World Bank’s ongoing work in the use of market-based tools to manage risk,” said Gloria Grandolini, Director of Banking and Debt Management Department. “It is part of an accelerated World Bank effort to develop financial solutions to reduce countries’ reliance on ex post donor funds and plan efficient responses to catastrophic events. These products are most effective as part of a broader risk management strategy.”

Grandolini added: “Index-based derivatives can provide a hedge to protect governments against financial disruption in the aftermath of adverse weather events. They allow for immediate disbursement of funds as, unlike most insurance schemes, they do not require an assessment of the actual loss incurred."

In Malawi, the World Bank will act as an intermediary between the country and reinsurance companies or investment banks that offer weather risk management products. An independent third-party will monitor the weather data which will be then entered into a crop-rainfall model that determines whether Malawi receives a payout.

The weather derivative for Malawi requires an upfront premium and is designed to manage the risk of low probability but high severity events, like severe droughts, rather than the risk of events that occur more frequently, like minor or normal droughts.

The first weather derivatives transaction for Malawi will test the market with a small contract that is expected to pay out a maximum of approximately US$3 million if severe drought occurs. Donors are supporting the initiative, the World Bank will act as intermediary, and the premium is being paid by the UK Department for International Development (DFID).

The use of the weather market and index-based insurance products in agriculture in developing countries is new. The 10-year-old weather derivatives market has been growing rapidly but is mainly used by private companies to manage risks.

“What’s novel in this case is that you’ve got one of the world’s ten poorest countries that also has substantial weather risks getting access to those same tools … and that’s the exciting thing,” said Timothy Gilbo, World Bank Country Manager in Malawi. “It’s all about trying to find a new way to deal with risk. We know from poverty assessments that, by the time an emergency is officially declared, followed by an appeal and then seeing governments start to put in money, many poor have sold what little assets they had, like a cow or a goat.”

The World Bank hopes the new weather derivatives product, along with a growing number of catastrophe risk financing products it has developed, will help close a “serious market gap between the banks, insurance companies and commodity trading companies that offer hedging products and the developing countries that need them,” said Julie Dana, Technical Specialist in the World Bank’s Agriculture and Rural Development Department.

“The development of this proposal,” said Dana, “reflects heightened interest within the World Bank Group and among donor partners in helping countries develop ex ante approaches to managing the risk of external shocks since traditional ex post responses can be costly, inefficient, and difficult to manage when a country is already in crisis.”

In 2005, Malawi was hard hit by drought that brought widespread hunger to many countries in Southern Africa. The country's maize crop withered in the fields and the government was forced to seek help. Malawi spent US$200 million responding to the crisis, and the World Bank and donors contributed a similar amount. Even though the government carefully planned its humanitarian response, the actual cost of the interventions was much higher, resulting in a larger fiscal deficit.

World Bank www.WorldBank.org
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21816597~menuPK:34464~pagePK:34370~piPK:34424~theSitePK:4607,00.html
Press Release No: 2008/401/SDN; June 24, 2008

Abstract: Catherine M. Chambers, Paul E. Chambers and John C. Whitehead conduct several analyses to examine the link between threatened and endangered species listings and macroeconomic activity. Preliminary tests using ordinary least squares are run on both time series data on the national level and cross sectional data at the state level. The analysis is then extended using vector autoregressive (VAR) techniques. VAR results, impulse response functions and variance decompositions are reported to shed more light on the causal relationships between threatened and endangered species, GDP and population. Our results indicate that there is little or no empirical evidence that GDP growth rates lead to changes in the number of threatened and endangered species listings.

Keywords: Economic growth, endangered and threatened species, vector autoregression

by Catherine M. Chambers 1, Paul E. Chambers 1 and John C. Whitehead 2
1. University of Central Missouri, Department of Economics and Finance; Warrensburg, MO 64093-5074; (660) 543-8605 and (660) 543-8610
2. Appalachian State University, Department of Economics; Boone, North Carolina 28608-2051
(828) 262-6121

Appalachian State Department of Economics Working Papers via REPEC http://econ.appstate.edu/RePEc
http://econ.appstate.edu/RePEc/pdf/wp0804.pdf
May 6, 2008

Environmental Defense Fund (EDF) and Kohlberg Kravis Roberts & Co. L.P. (KKR) today announced a “Green Portfolio” partnership to measure and improve the environmental performance of companies within KKR’s U.S. portfolio. Building on their successful collaboration in the 2007 acquisition of TXU Corporation, the partnership is the first of its kind between a private equity firm and an environmental organization.

KKR has committed to work with EDF to develop a set of analytic tools by which companies can assess and track improvements on a series of environmental metrics. These tools will enable managers to cost-effectively improve efficiency, reduce waste and address environmental impacts, such as greenhouse gas emissions, the use of toxic substances, waste generation or water consumption.

KKR and EDF expect that these actions will offer companies financial benefits, as well as improved environmental performance.

To prove this concept, over the next three to six months, EDF and KKR will conduct pilot projects within the KKR portfolio to develop analytic tools that can then be applied across a broader range of KKR portfolio companies over the next year. Results will be made public at the end of both phases. Once developed, EDF and KKR will make the processes, tools and results of their joint effort publicly available, with the mutual goal of having these tools implemented by other companies around the world.

Concurrently, KKR has committed to improving the energy efficiency of its own office operations, including by participating in EDF’s Climate Corps Program. As part of this commitment, KKR will undergo an energy audit of its offices, analyze the financial and environmental benefits of available energy efficiency improvements and implement those that are most cost-effective.

“The private equity industry is known for its focus on improving business performance and for the rigorous process it uses to set goals and track improvement in portfolio companies,” said Gwen Ruta, Vice President of Corporate Partnerships for EDF. “This groundbreaking new partnership between KKR and EDF will use the transformational power of private equity to achieve environmental goals. In addition, KKR’s commitment to EDF’s Climate Corps program indicates their willingness to ‘walk the talk’ when it comes to their own environmental footprint.”

“Today’s announcement is a direct result of our work with EDF and other environmental leaders during the TXU acquisition last year. That historic transaction was a significant step forward in incorporating environmental considerations into investment decisions as it set a new standard for conservation and efficiency in the energy industry. Building on that success, we and EDF agreed to pursue an innovative, cost-effective approach to using the private equity model to bring about improvements in environmental performance for a variety of companies, including our own internal operations. We believe this initiative will ultimately help our portfolio companies build upon their own environmental efforts while providing a workable example that may encourage other companies to make similar progress,” said Marc Lipschultz, Member of KKR.

About Environmental Defense Fund
A leading national nonprofit organization, Environmental Defense Fund represents more than 500,000 members. Since 1967, Environmental Defense Fund has linked science, economics, law and innovative private-sector partnerships to create breakthrough solutions to the most serious environmental problems. Environmental Defense Fund has a 20 year track record of success in partnering with business.To maintain its independence and credibility, EDF accepts no money from corporate partners; generous individuals and foundations fund its work. For more information, visit www.edf.org.

About Kohlberg Kravis Roberts & Co
Established in 1976, KKR is a leading global alternative asset manager. The core of the Firm’s franchise is sponsoring and managing funds that make private equity investments in North America, Europe, and Asia. Throughout its history, KKR has brought a long-term investment approach to portfolio companies, focusing on working in partnership with management teams and investing for future competitiveness and growth. Additional funds that KKR sponsors include KKR Private Equity Investors, L.P. (Euronext Amsterdam: KPE), a permanent capital fund that invests in KKR-identified investments; and two credit strategy funds, KKR Financial (NYSE: KFN) and the KKR Strategic Capital Funds, which make investments in debt transactions. KKR has offices in New York, Menlo Park, San Francisco, London, Paris, Hong Kong, Beijing, and Tokyo. For more information, visit www.kkr.com.

Environmental Defense Fund www.EDF.org
Press Release dated May 1, 2008
http://www.edf.org/pressrelease.cfm?contentID=7870

The World Bank’s Development Marketplace (DM) today announced the selection of 100 innovative ideas to promote sustainable agriculture to compete for grant funding at the Marketplace to be held September 24-25 at the World Bank headquarters in Washington, D.C. Since 1998, the Development Marketplace has awarded more than $46 million in grants to over 1,000 initiatives.

This year’s global competition, organized in coordination with the Agricultural and Rural Development (ARD) department of the World Bank and supported by the Global Environment Facility (GEF) and other partners, focuses on sustainable agriculture. It has drawn 1,768 proposals from around the world addressing three issues: linking small-scale farmers to markets, improving land access and tenure for the poor, and addressing the challenges of climate change and biodiversity.

Katherine Sierra, World Bank Vice President for Sustainable Development, said innovation in agriculture is one of the keys to addressing the crisis sparked by the increase in food prices. "Given today's pressing global food concerns, as evidenced at the recent World Food Security Summit in Rome, it is important that the agriculture and rural development sector forms a partnership with public and private institutions, as well as with community-based organizations, to identify and build upon innovations to meet new challenges. This year's DM global competition is an opportunity to learn from each other while we focus on inventive and timely investments in rural areas."

At the marketplace event, the finalists will be given the opportunity to present and explain their proposals to a top level jury. About one third of the contestants will receive grants of up to $200,000 to further develop their innovative ideas.

The projects originated with a range of innovators, including civil society groups, social entrepreneurs, academia and businesses all over the world. The greatest majority of the entries come from sub-Saharan Africa (41 percent), followed by Latin America and the Caribbean (21 percent), East Asia and the Pacific (19 percent), South Asia (14 percent), Eastern Europe and Central Asia (3 percent) and the Middle East and North Africa (2 percent).

The Development Marketplace is a grant program that that identifies and funds innovative, early-stage projects with high potential for development impact at the local level. Using DM funding as a launching pad, projects often go on to scale up or replicate elsewhere, winning prestigious awards within the sphere of social entrepreneurship.

For more information, including the list of finalists, please visit
www.developmentmarketplace.org

The World Bank www.WorldBank.org
Press Release No: 2008/SDN/294; June 23, 2008
http://go.worldbank.org/OYD2GAWZ10

Florida’s proposed purchase of nearly 300 square miles of land for Everglades restoration moved forward this week when water managers who would oversee the property endorsed the state’s $1.75 billion offer.

But even as most environmentalists here continue to cheer about the acquisition, skeptics have identified complications that they fear will keep the Everglades from being saved. The state, say some hydrologists, federal officials and environmentalists, has bet a huge sum on oft-fertilized farmland that could take at least a decade and billions of dollars to rehabilitate

In short, a rescue plan with more land faces more of the same limitations that have undermined Everglades restoration efforts since the ’80s: too much human impact and too little money.

“We’ve had a lot of projects for a lot of years, and they never get done,” said Terry L. Rice, a hydrologist who advises the Miccosukee Tribe, some of whose members live in the Everglades.

By Damien Cave
The New York Times www.NYTimes.com
Published: July 2, 2008
http://www.nytimes.com/2008/07/02/us/02everglades.html?th&emc=th

Any successful program of action on climate change must support two objectives—stabilizing atmospheric greenhouse gases (GHGs) and maintaining economic growth. Reconciling these two objectives means that “carbon productivity,” the amount of GDP produced per ton of carbon and other greenhouse gas emissions must increase by ten times over the coming decades.

This is a central finding of The carbon productivity challenge: Curbing climate change and sustaining economic growth, a new report by the McKinsey Global Institute and McKinsey’s Climate Change Special Initiative. The report was presented and discussed at the GLOBE International G8+5 Climate Change Dialogue, as well as the GLOBE International CEO Dialogue, both in Tokyo, Japan, June 27-29. GLOBE International is an organization of legislators from around the world who are working on climate issues.

To meet commonly discussed abatement paths, carbon productivity must increase from approximately $740 GDP per ton of CO2e (carbon dioxide equivalents, a common measure of greenhouse gases) today to $7,300 GDP per ton of CO2e by 2050—a tenfold increase, the report finds. This is comparable in magnitude to the labour productivity increases of the Industrial Revolution.

However, the “carbon revolution” must be achieved in one-third of the time that economic transformation took in the Industrial Revolution if we are to maintain current levels of economic growth while keeping CO2e levels below 500 parts per million by volume (ppmv) and stabilizing long-term at 450 pppmv, a level that many experts believe is the maximum that can be allowed without significant irreversible risks to the climate.

The macroeconomic costs of this carbon revolution are likely to be manageable, being in the order of 0.6–1.4 percent of global GDP by 2030. To put this figure in perspective, if one were to view this spending as a form of insurance against potential damage due to climate change; it might be relevant to compare it to global spending on insurance, which was 3.3 percent of GDP in 2005. Borrowing could potentially finance many of the costs, thereby effectively limiting the impact on near-term GDP growth. In fact, depending on how new low-carbon infrastructure is financed; the transition to a low-carbon economy may increase annual GDP growth in many countries.

If there is no increase our carbon productivity, the consequences will be stark, the report suggests. Meeting commonly discussed abatement target would require a per-person carbon budget of 6 kilograms of CO2e per day. If one had to live on such a carbon budget with today’s low levels of carbon productivity, one would be forced to choose between a 40 kilometre car ride, a day of air conditioning, buying two new T-shirts (without driving to the shop), or eating two meals. So without a major boost in carbon productivity, stabilizing greenhouse-gas emissions would require a major drop in lifestyle for developed countries and would hinder economic development in low income countries.

The microeconomic changes needed to increase carbon productivity at the levels required will not occur without the active leadership and collaboration of governments and businesses globally. The report underscores the need for new policies, regulatory frameworks, and institutions focused on four areas: creating market-based incentives to innovate and raise carbon productivity; addressing market failures that prevent abatement opportunities from being captured profitably; resolving issues of allocation and fairness, in particular between the developed and developing worlds and between industry sectors; and accelerating progress to avoid missing critical emissions targets.

It will be essential to identify and capture the lowest-cost abatement opportunities in the economy. Analysis of McKinsey’s global cost curve, a map of the world’s abatement opportunities ranked from lowest-cost to highest-cost options, identifies five areas for action to drive the necessary microeconomic changes: 1.) capturing available opportunities to increase energy efficiency in a cost-effective way; 2.) de-carbonizing energy sources; 3.) accelerating the development and deployment of new low-carbon technologies; 4.) changing the behaviours of businesses and consumers; and 5.) preserving and expanding the world’s carbon sinks, most notably its forests.

The carbon productivity challenge: Curbing climate change and sustaining economic growth, can be downloaded free of charge at: www.mckinsey.com/mgi

The World Bank www.WorldBank.org
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21822676~menuPK:34463~pagePK:34370~piPK:34424~theSitePK:4607,00.html

Abstract: Due to economic and population growth farmland and to a lesser extend other undeveloped areas are under pressure in the urban-rural fringe in British Columbia, Canada. The objectives of this paper are to determine if residential property values near Victoria, BC include open-space premiums for farmland, parks or golf courses, and to determine if using assessed values instead of market prices of the property result in the same findings. Geerte Cotteleer, Tracy Stobbe and G. Cornelis van Kooten estimate a Seemingly Unrelated Regression (SUR) model with two hedonic pricing equations, one with actual market values as the dependent variable and one with assessed property values, and compare the resulting estimates of shadow prices for open space amenities. Furthermore, the authors take account of spatial autocorrelation and combine Method of Moment estimates of the spatial parameters in both equations.

Keywords: Hedonic pricing models, spatial dependence, assessed property values and open space.

by Geerte Cotteleer 1, Tracy Stobbe 2 and G. Cornelis van Kooten 3
1. Agricultural Economics and Rural Policy Group, Department of Social Sciences, Wageningen University and Research Centre
2. School of Business, Trinity Western University
3. Department of Economics, University of Victoria

University of Victoria; Department of Economics; REPA Resource Economics & Policy Analysis Research Group; PO Box 1700 STN CSC Victoria, BC V8W 2Y2 CANADA; Telephone: 250.472.4415, Fax: 250.721.6214; www.vkooten.net/repa
Working Paper 2008-06
http://web.uvic.ca/~kooten/REPA/WorkingPaper2008-06.pdf

Federal policymakers’ reluctance to enact a comprehensive climate change policy during the past decade has coincided with increased awareness of the inevitability and severity of the problems from global climate change. Thus, it is no surprise that piecemeal, sub-federal policies have garnered considerable support. Bolstered by the political science literature on the promise of incrementalism and democratic experimentalism, many proponents of climate change action favor incremental steps in the hope that they will improve the environment or at least serve as a basis for more comprehensive policies. Against this hopeful view, we explain why ad hoc responses to climate change may well be no better than, and possibly will be worse than, no action at all. Incremental climate change policies can give rise to predictable and nontrivial problems, such as non-effect, leakage, climate side effects, other side effects, lock-in, and lulling. Such problems not only can undermine the interim policies themselves but also may delay the adoption of a more comprehensive climate change policy. We present an upstream cap-and-trade policy as one such comprehensive alternative, showing how it would prove less susceptible to the kinds of policy failures that afflict incremental policies. Only by resisting the pressures to act immediately, and investing the necessary time and resources to craft a comprehensive solution, will environmental policymakers be able to guard against the perils that afflict ad hoc policymaking.

by Cary Coglianese and Jocelyn D'Ambrosio
The AEI Center for Regulatory and Market Studies, The "Reg-Markets Center" www.reg-markets.org
The Center was founded by Bob Hahn in 2008 as the successor to the AEI-Brookings Joint Center. A primary aim of the Reg-Markets Center is to gain a deeper understanding of how markets, laws and regulation contribute to economic well-being. The Center will be an independent voice in policy debates.
Working Paper 08-17; June, 2008
http://www.reg-markets.org/admin/authorpdfs/page.php?id=1468

Abstract: Conventional economic load dispatch problem uses deterministic models, which are however not able to reflect some real situations in practical applications since certain inaccurate and uncertain factors are normally involved in system operations. Stochastic models are more suited to be used for investigating some of the power dispatch problems. In this paper, both deterministic and stochastic models are first formulated, and then an improved particle swarm optimization (PSO) method is developed to deal with the economic load dispatch while simultaneously considering the environmental impact. Comparative studies are carried out to examine the effectiveness of the proposed approach. First, a comparison is made between the proposed PSO approach and other approaches including weighted aggregation and evolutionary optimization. Then, based on the proposed PSO, the impacts of different problem formulations including stochastic and deterministic models on power dispatch results are investigated and analyzed.

Keywords: Stochastic economic emission load dispatch; Multi-objective optimization; Particle swarm optimization; Stochastic search and optimization

by Lingfeng Wang and Chanan Singh; both of Department of Electrical and Computer Engineering, Texas A&M University, College Station, TX 77843, United States

Electric Power Systems Research via Elsevier Science Direct www.ScienceDirect.com
Volume 78, Issue 8; August, 2008; Pages 1466-1476
http://dx.doi.org/10.1016/j.epsr.2008.01.012

A major settlement involving federal and state regulators and the City of Shelton, Conn. will lead to improvements in the operation and maintenance of the City’s wastewater collection system and treatment plant, preventing discharge of untreated sewage to the Housatonic River.

The agreement is between the U.S. Environmental Protection Agency, the U.S. Department of Justice, the Connecticut Department of Environmental Protection, the Connecticut Attorney General’s Office, and the City of Shelton, Connecticut.

Under terms of the settlement, the City eliminated its “wastewater treatment plant bypass” and agreed to implement a comprehensive, system-wide plan to ensure that overflows of raw sewage associated with insufficient wastewater collection system capacity are eliminated by July 30, 2010. Discharges of untreated sanitary sewage to waters of the United States violate the federal Clean Water Act and state environmental laws. The City will also pay a fine of $142,000. The fine will be split equally between the United States and the State of Connecticut.

"EPA is committed to taking action to bring aging sewer systems into compliance with the Clean Water Act," said Robert W. Varney, regional administrator for EPA’s New England office. "This settlement will significantly improve water quality in the lower Housatonic River, helping to protect public health and the environment from the risks posed by sewer overflows."

Historically, the City’s collection system was combined, handling both sanitary sewage and storm water during periods of wet weather. During the 1980's, the City separated much of the collection system and eliminated designated combined sewer overflow outfalls. However, the City maintained a wastewater treatment bypass to the Housatonic River from a manhole immediately prior to the headworks of the City’s wastewater treatment plant. The City’s National Pollutant Discharge Elimination System (NPDES) permit does not authorize discharges from any location other than the wastewater treatment plant’s outfall, which discharges treated wastewater to the Housatonic River.

Connecticut Attorney General Richard Blumenthal said, "Shelton's agreement is a victory for clean water and public health, halting sewage spills that have polluted the Housatonic River. This agreement means cleaner water, more fish and other wildlife and more people enjoying this scenic waterway."

Connecticut Dept. of Environmental Protection Commissioner Gina McCarthy said, "This case focuses our attention on the need for all levels of government to work together to protect water bodies and the public health. People expect that in this day and age, we will not have overflows of untreated raw sewage into one of this state's waterways. It is the responsibility of public officials at all levels of government to prevent this from occurring by seeking proper solutions to the management of storm water and sanitary sewer discharges."

Reports provided by the City indicated that millions of gallons of untreated sewage were discharged to the Housatonic River since 2000 – especially during wet-weather periods. Shelton recently completed the expansion of its undersized wastewater treatment plant, pursuant to an administrative order from the CT DEP in 2002, and as of July 2007, the City certified to EPA that it had sealed the bypass outfall.

Properly designed, operated and maintained sanitary sewer systems collect and convey sewage to a wastewater treatment facility prior to discharge. However, discharges of raw sewage from municipal sanitary sewers can occur.

These types of discharges, called sanitary sewer overflows (SSOs), have a variety of causes, including insufficient conveyance and treatment capacity that occurs, in part, due to clean water that infiltrates into collection systems through defects in the system or clean water that is improperly discharged directly to wastewater collection systems through cross connections with storm sewers and by individual homeowners through sump pumps, roof leaders or down spouts, yard and foundation drains.

SSOs also occur due to the improper discharge of fats, oils and grease to the collection system, debris deposits and root intrusion associated with improper system operation and maintenance, electrical and mechanical failures and vandalism. The untreated sewage from these overflows can contaminate our waters, causing serious water quality problems. Raw sewage discharges can carry bacteria, viruses, and other organisms that can cause life threatening ailments such as cholera, dysentery, infections, hepatitis, and severe gastroenteritis.

Because Connecticut law allows for “penalties” to be used to fund environmental projects, the State’s half of the penalty ($71,000) will be paid into a fund to be used to pay for environmentally beneficial projects.

More information:
- The Settlement Agreement (usdoj.gov/enrd/Consent_Decrees.html )
- EPA's enforcement of the Clean Water Act in New England (epa.gov/region1/enforcement/water)
- EPA’s storm water program in New England (epa.gov/region1/npdes/stormwater)

U.S. Environmental Protection Agency (EPA) www.EPA.gov
http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/577455f3f73c8eeb8525746d005fbb57!OpenDocument
Press Release dated June 19, 2008

Abstract:
Solid oxide fuel cell (SOFC) has an electrolyte that is solid and works at a temperature range of View the MathML source; it can use a wide range of fuels and the relatively high operating temperature makes it possible for internal reforming with high-quality heat by-product for cogeneration.

In this paper, Ettore Bompard, Roberto Napoli, Bo Wan and Gianmichele Orsello address quantitatively the problem with reference to a 5 kW SOFC power system for residential use. The goal of the paper is to provide an analysis of possible scenarios that will make SOFC applications feasible from an economic point of view. In this respect the authors provide a sensitivity analysis of some common financial metrics to key input parameters, the improvements in electrical efficiency, changes in regulatory policy and changes in the market energy prices. The economic feasibility of different scenarios is evaluated and compared resorting to the usual metrics in financial analysis.

Keywords: Fuel cell economics; SOFC; NPV; IRR

by Ettore Bompard 1, Roberto Napoli 1, Bo Wan 1 and Gianmichele Orsello 2
1. Politecnico di Torino, C.s Duca degli Abruzzi 24, I-10129 Torino, Italy
2. TurboCare SpA, C.s Romania 661, Torino, Italy

International Journal of Hydrogen Energy via Elsevier Science Direct www.ScienceDirect.com
Volume 33, Issue 12; June, 2008; Pages 3243-3247
Special Issue: 2nd World Congress of Young Scientists on Hydrogen Energy Systems
http://dx.doi.org/10.1016/j.ijhydene.2008.04.017

Abstract: This analysis of the fishers' compliance with regulations in Lake Victoria, Tanzania, gives support to the traditional economics-of-crime model and shows that the extension of the basic deterrence model can lead to a richer model with substantially higher explanatory power. It focused on mesh-size regulation to explore potential reasons for following the rules (or not), such as being moral and doing the right thing; obeying the rules due to peer pressure from other fishers; perceiving the regulation as legitimate; and perceiving that they (the fishers) have been involved in the regulation process.

by Razack B Lokina
Resources For the Future (RFF) www.RFF.org
RFF Discussion Paper EfD 08-14; June, 2008
http://www.rff.org/Publications/Pages/PublicationDetails.aspx?PublicationID=20396

Wind power could provide 20% of U.S. electricity needs by 2030, according to a new DOE report. The report, titled "20% Wind Energy by 2030: Increasing Wind Energy's Contribution to U.S. Electricity Supply," identifies the steps that need to be addressed to reach the 20% goal, including reducing the cost of wind technologies, building new transmission infrastructure, and enhancing domestic manufacturing capability. Released on May 12, the report was produced by DOE and its National Renewable Energy Laboratory, Lawrence Berkeley National Laboratory, and Sandia National Laboratories with the assistance of the American Wind Energy Association (AWEA), engineering consultants from Black and Veatch Corporation, and more than 50 energy organizations and corporations.

According to the report, reaching the 20% goal will require boosting wind power from its current generating capacity of 16.8 gigawatts (GW) to 304 GW in 2030, an 18-fold increase. Despite the magnitude of that challenge, most of the report's key findings are encouraging. Notably, the report concludes that 20% wind power can be reliably integrated into the grid at an additional cost of less than 0.5 cents per kilowatt-hour. This compares favorably to 8.9 cents per kilowatt-hour, which is today's average retail price of electricity in the United States. In addition, the demand for copper, fiberglass, and other raw materials needed to build the wind power facilities will not be prohibitive to reaching the 20% goal. However, the report also identifies several challenges that need to be overcome. Achieving 20% wind power by 2030 will require that the annual installations of wind power increase threefold, from today's 2,000 annual turbine installations to almost 7,000 per year by 2017. Also, new transmission lines will need to be installed to reach the most productive wind resource sites.

But between now and the time the goal is reached, wind power will have avoided the emission of 7.6 gigatons of carbon dioxide, helping to forestall the growth in greenhouse gas emissions from U.S. power plants. The 304 GW of wind power will also continue avoiding 825 million metric tons of carbon dioxide emissions each year thereafter. For comparison, the United States currently emits about 6 billion metric tons of carbon dioxide per year. While helping to address greenhouse gas emissions, the accelerated wind power effort would support roughly 500,000 U.S. jobs and add more than $1.5 billion in annual revenues to the coffers of local communities.

For more information, see the the 20% Wind Energy by 2030 Web site http://www.20percentwind.org, DOE's Wind and Hydropower Technologies Program Web site http://www1.eere.energy.gov/windandhydro, and the full text of the report at http://www1.eere.energy.gov/windandhydro/pdfs/41869.pdf

U.S. Department of Energy (DOE) www.doe.gov
http://www1.eere.energy.gov/windandhydro/news_detail.html?news_id=11761
May 12, 2008

Previously, “Healthy Waters, Strong Economy: The Benefits of Restoring the Great Lakes Ecosystem", provided a benefit-cost analysis of a major infrastructure program to improve water quality in and around the Great Lakes: the federal-state Great Lakes Regional Collaboration (GLRC) Restoration Strategy. Benefits were estimated in two ways, giving roughly equivalent answers.

Under the first approach, John C. Austin, Soren Anderson, Paul N. Courant, and Robert E. Litan summed the best available estimates of the various individual benefits the GLRC Restoration Strategy could be expected to generate—additional tourism, fishing and recreation, benefits to property owners from cleaning up “areas of concern,” reduced water operations costs for municipalities, benefits from new technology developed because of the cleanup program, and other unquantifiable benefits—and concluded that the benefits could reach as high as $50 billion.

Their second approach was to value the benefits on an aggregated basis by estimating the increase in values of residential property that would be affected by the cleanup. As the authors noted in our earlier report, “[I]n principle, the aggregate estimate of the increase in expected property values should equal or at least approximate the sum of the estimated values of each of the specific environmental and health benefits associated with living near bodies of water” that have benefited from eco-system restoration.

In this supplement, they use this second “aggregate” methodology to provide ranges of the approximate economic benefits of the GLRC Restoration Strategy for each of the eight major metropolitan areas bordering on the Great Lakes.

by John C. Austin 1, Soren Anderson 2, Paul N. Courant 3, and Robert E. Litan 4
1. Nonresident Senior Fellow, Metropolitan Policy Program of the Brookings Institution
2. Doctoral Candidate of Econimics at the University of Michigan
3. The Arthure Thurnau Professor of Economics and Information Dean of Libraries at the University of Michigan
4. Senior Fellow, Economic Studies, The Brookings Institution

The Brookings Institution www.brookings.edu
http://www.brookings.edu/reports/2008/0324_greatlakes_supplement_austin.aspx
March 24, 2008

Abstract:
The U. S. ethanol industry has grown dramatically over the last ten years to be a major supplier of liquid fuels and an even larger user of corn. However, a tariff and subsidy give the domestic ethanol industry a substantial advantage over its major competitor, Brazil.

This thesis analyzes the effect of eliminating the tariff on imports of Brazilian ethanol and the subsequent economic and environmental effects. First, the paper provides a substantial review of the current state of ethanol production and a review of the literature to motivate and provide the necessary information for the analysis. This leads to a numerical assessment of the effect of eliminating the tariff on several key markets, including the U. S. ethanol market, the corn market, the Brazilian ethanol market, and the U. S. gasoline market. To provide intuition, the numerical analysis includes graphs to help demonstrate the changes in each market. The findings are that removing the tariff would increase U. S. welfare by $14 million, decrease greenhouse gases at a value of $36 million, and increase Brazilian welfare by $361 million, leading to a global welfare increase of $411 million. While the overall effect is positive but small, the redistributive effect of eliminating the tariff is large, with low-income groups gaining most. Despite the overall positive effect of eliminating the tariff, an analysis of the political economy indicates that the removal of the tariff is unlikely.

by Alexander Slaski
AEI Center for Regulatory and Market Studies (The "Reg-Markets Center") www.reg-markets.org
founded by Bob Hahn in 2008 as the successor to the AEI-Brookings Joint Center. A primary aim of the Reg-Markets Center is to gain a deeper understanding of how markets, laws and regulation contribute to economic well-being.
http://www.reg-markets.org/admin/authorpdfs/page.php?id=1467
June, 2008

Northern and Central New York are well-positioned to become a "global leader" in four important sectors of environmentally friendly, or "green," technology.

In a report prepared for the Metropolitan Development Association of Syracuse and Central New York, the Battelle Memorial Institute concluded that what it called the "central upstate" region can become the Silicon Valley of indoor environmental quality, renewable energy, green buildings and sustainable designs, and water quality/water resources.

One official noted that foresight a decade ago created this situation.

"Ten years ago, several firms and institutions from across Central New York came together, envisioned new markets for environmental and energy systems, and committed themselves to collaborations to develop new products," said Edward Bogucz, executive director of the Syracuse Center of Excellence in Energy and Environmental Systems. "Today, results of the Battelle study show that the global markets have developed as we had envisioned, and that we have successfully developed world-class capabilities to compete in specific green technology areas. We look forward to using this report to refine our plans, and improve the position of our region's firms and institutions in the global marketplace."

Battelle found strengths in several products and sectors — air filtration, ventilation, conditioning and treatment; air sensors; air analysis; monitoring instrumentation; biomass; fuel cells; and materials, research and education.

The report said the massive effort to clean Onondaga Lake of industrial pollution has spurred area growth in water filtration, purification, desalination, water sensors and analysis, water monitoring, water engineering and watershed resource management. The Battalle study also found growth potential in wind and solar power, green structural and exterior finish materials, green interior systems and surface and finish materials.

Battelle researchers compared Syracuse and the "central upstate" region (which includes Jefferson, Lewis and St. Lawrence counties) with five other areas considered to be leaders in green technology: Eugene, Ore.; Ft. Collins, Colo.; Grand Rapids, Mich.; Pittsburgh; and Sacramento, Calif.

Battelle identified 330 companies around the world, from air filtration companies to watershed management firms, that economic developers should target with pitches to invest in Central New York. "When we can't bring them here, we'll go find them," said Rob Simpson, president-elect of the Metropolitan Development Association, one of 12 organizations that chipped in to pay for the $171,000 study. (2).

With 419 companies and 10,290 jobs in green technology sectors, "central upstate" has more green technology jobs per capita than any of the comparative regions and "compares favorably" with them in terms of numbers of existing companies. There is also "significant potential for further growth" due to "significant, world-class research" taking place in the region's colleges and universities, including Clarkson University, the study said.

Growth in private-sector green jobs represents 15 percent of all regional job growth over the last five years, salaries averaging $54,698 a year, 57 percent more than the region's average wage. (2).

Among the study's suggestions:

■ Build on regional strengths in indoor environmental quality, continue to develop a research and development base and support growth of innovative, emerging firms.

■ Leverage regional expertise in sensors, monitoring and other technologies developed to address both indoor environmental quality and water quality.

■ Pursue opportunities in renewable energy with a focus on biomass and fuel cells while also encouraging growth in wind and solar power.

■ Market the area's asset base to attract companies and entrepreneurs.

■ Support creation and growth of emerging companies within the region.

The report also identified more than 300 emerging and leading green technology companies — around the country and around the world — to target for relocation to the area.

"As the Battelle report shows, we must continue to build upon the resources we have in the Indoor Environmental Quality market, renewable energy sector, green building materials market, and water quality and resources area," said Assemblyman William B. Magnarelli, D-Syracuse. "We can't lose this opportunity to be an international leader in these areas."

For a copy of the full report go to: http://www.mda-cny.com/pdf/119.pdf

By Tom Wanamaker 1 and Tim Knauss 2 .
1. Watertown Daily News, http://www.watertowndailytimes.com/
Full article at http://www.watertowndailytimes.com/article/20080630/NEWS01/255913118
June 26, 2008
2. Syracuse.com , http://www.syracuse.com/
Additional information excerpted from article "Central New York primed to grow green" at http://www.syracuse.com/business/index.ssf?/base/business-13/1214470578291550.xml&coll=1&thispage=1">industryhttp://www.syracuse.com/business/index.ssf?/base/business-13/1214470578291550.xml&coll=1&thispage=1
June 30, 2008

Abstract:
Nowadays forestry faces a complex management situation; the understanding of sustainable forest management (SFM) has gone far beyond the original meaning of sustainable yield of timber. SFM strategies should fulfil ecological, economic and social functions without causing damage to other ecosystems. In this understanding, forest management actions cannot be seen as isolated or mono-causal.

In this case study, indicators for SFM are arranged in a Pressure-State-Response (PSR) framework at forest management unit level. This framework links pressures on the environment caused by human activities with changes of environmental state (condition) parameters. Forest management also responds to these changes by instituting environmental and economic measures to reduce pressures and restore natural resources. The Analytic Network Process (ANP) is utilized to evaluate the performance of four management strategies with regard to the PSR framework on SFM. Priorities of indicators and alternatives are modelled with the ANP resulting from the interconnections to other indicators and their respective cumulative importance. The approach allows for more detailed information on the network of human influences and their impacts on forest ecosystems and goes beyond the limitations of flat-dimensioned indicator sets.

Keywords: Sustainable forest management; Indicators; Pressure-State-Response model; Analytic Network Process (ANP)

by Bernhard Wolfslehner and Harald Vacik; both of Department of Forest and Soil Sciences, Institute of Silviculture, University of Natural Resources and Applied Life Sciences, Peter Jordanstr. 82, A-1190 Vienna, Austria

Journal of Environmental Management via Elsevier Science Direct www.ScienceDirect.com
Volume 88, Issue 1; July, 2008; Pages 1-10