Several countries have imposed either a ban or a tax on single-use plastic packaging, motivated by their contribution to marine plastic pollution. This may lead consumers to opt for similar unregulated substitutes, potentially undermining or even counteracting the intended effect of the policy instrument. The purpose of this study is to theoretically and empirically compare the environmental and welfare effects of the first-best Pigouvian taxes on both plastic bags and a substitute (paper bags), with two alternative second-best policy instruments: a tax on plastic products alone, and a common uniform tax on all packaging materials. The empirical analysis accounts for two different types of environmental externalities from the use of both bag types: marine pollution and greenhouse gas emissions. It also compares results for two countries, Denmark and the USA, which differ in the demand for plastic and paper bags. The theoretical analysis shows that a unilateral tax on plastic bags should equal the marginal environmental damage of plastic bags minus a fraction of the marginal environmental cost of paper bags, hence being lower than the Pigouvian tax. The optimal common tax should equal a weighted average of the marginal environmental damage of the two bag types and would be lower than the Pigouvian tax on plastics if the marginal external cost of plastic bags exceeds that for paper bags. The empirical analysis shows that for default parameters, the variation in tax level across the studied scenarios is small. It also shows that if Pigouvian taxes cannot be implemented, a common uniform tax on both bag types would result in a higher welfare gain than a tax on plastic bags alone. Sensitivity analysis reveals that the level of the second-best taxes and their associated environmental and welfare impacts are sensitive to assumptions regarding the littering rate and decay rate of plastic bags in the marine environment.

The objective of this study is to examine the role of surface water quality for the decisions by Swedish municipalities to adopt environmental targets and action plans, as well as allocating these decisions to a responsible authority. To this end, we assess how environmental, socioeconomic, and political factors, as well as the availability of environmental expertise, affect these municipal decisions. Questionnaire data from the Swedish Association of Local Authorities and Regions, in combination with environmental monitoring data and official statistics, are used for the econometric analysis. Results show that: (i) municipalities with bad water quality, greater coastal length, and higher income are more inclined to adopt local policies; (ii) collaboration with interest groups increases the likelihood of adopting local policies; and (iii) municipalities with high Center Party representation tend to set responsibility for environmental policy with the municipal council board.

The purpose of this study is to empirically investigate the environmental Kuznets curve (EKC) relationship between water quality and income within the European Union, considering spatial interdependences across countries. To this end, we apply a spatial econometrics framework using panel data, at the national level, for twenty EU countries across seventeen years, 1998 to 2014. Furthermore, we account for the role of human and livestock population size, institutional quality and economic openness for water quality. Results show that a significant EKC relationship is seen with an inverted N-shaped relationship between income and water quality. Water quality is decreasing in income for low income levels, increasing in income when GDP per capita for medium income levels, and deteriorating for high income levels. Eight out of twenty countries have income levels associated with a declining water quality. Spatial spillovers between countries are significant. Higher livestock density levels are associated with lower levels of water quality, while institutional quality and openness to trade are positively associated with water quality.

In the choice between alternative environmental policy instruments, economists tend to favor policies capable of attaining cost-efficiency, but other considerations may be more important to stakeholders. We perform a choice experiment modeled on Swedish water and marine policy to estimate preferences for different policy instruments among citizens and municipal civil servants. Both the modal citizen and the modal civil servant prefer direct regulation and subsidies to nutrient trading. Moreover, nutrient trading is unlikely to deliver sufficiently large cost savings for civil servants to prefer it to other instruments. These results are consistent with the apparent reluctance to adopt water quality trading in Europe.

Within the European Union, it is agreed that watershed-based management of water quality problems is more efficient than centralised arrangements. In this study, a mechanism for allocating international funds to watershed authorities for nitrogen abatement in the presence of moral hazard is investigated. The results show that when there is a risk of climate change, the cost of moral hazard to the international funding agency can be high if there is a moderate likelihood of climate change and the watershed authority is guaranteed a high minimum compensation.

Despite the recognition of the eutrophication problem, Baltic-wide environmental targets for nutrient pollution reductions have not been met. Possible factors include inefficiency of environmental policy, and a lack of coordination between environmental policy and policies in other fields like agriculture and energy. The former requires improvements in the design of environmental policy while the latter calls for better coordination of different policies. This chapter reviews studies evaluating nutrient policies in the region, with a focus on economic and cross-disciplinary studies that carry out ex post evaluations of policy instruments. It also investigates optimal monitoring and abatement strategies where both upstream and downstream water quality pose a potential problem, looking at how monitoring and abatement costs, and the regulators’ degree of risk aversion, affect the choice of monitoring strategy.

Wildlife such as large grazers are associated with positive hunting values, but also with negative effects in terms of browsing damage to agricultural and forest crops. Hunters’ and land owners’ decisions on wildlife management and land use therefore affects the total gains from the management of the resources. Several tools are available to these decision-makers, such as population control, crop choice, diversion feeding and fencing. The issue is further complicated by the presence of multiple deer species that differ with respect to hunting values and crop damages, while also being ecologically interdependent, i.e. through interspecific competition for food. The purpose of this paper is to analyze the economically optimal management of land use and wildlife, in a situation with two ecologically interdependent deer species causing browsing damage to agricultural crops. Using a numerical optimization model, the Nash equilibrium for two separate agents is compared with the socially optimal outcome. Conditions are identified for diversion feeding and fencing being included in the solutions. Results suggest that fencing is included in the socially optimal solution for fencing investment costs being up to 3.5 times reference values obtained from business calculations. For diversion feeding to be included, the diversion effect needs to be 500 to 600 times the reference value, which was calculated based on species energy intake. The Nash equilibrium implies minor deviations from the socially optimal solution as long as fencing is reasonably cheap. If fencing is expensive, and therefore not applicable, the Nash equilibrium scenario implies an 8 percent reduction in the joint net present value, together with a 38 percent reduction in yield, and a doubling of fallow deer harvests and population.

It has been suggested that carbon labelling of food, on voluntary or non-voluntary basis, could reduce emissions of greenhouse gases. However, there is limited empirical evidence on the influence of such labels on consumer purchases. The purpose of this study was to investigate whether voluntary carbon labelling affects the demand for milk. A randomized field experiment was conducted in 17 retail stores in Sweden, where a sign provided consumers with qualitative information about the carbon impact of climate-certified milk. The results suggest that the sign increased the demand for the climate-certified milk by approximately 6-8%, and the result is robust to alternative model specifications. The effect is entirely driven by large stores, such as supermarkets. We find no statistically significant impact on total milk sales, and the dataset is too small to verify the consequences for other milk brands. The effect on the demand for the labelled milk is short-lived. (C) 2015 The Authors.

Invasive species often cause economic damage due to their impact on economically valuable resident species. We study optimal regulation in terms of simultaneous control and adaptation when the purpose is to manage an invasive species which competes for scarce resources with a resident species. The optimal policy includes both subsidies for control of an invasive species with zero commercial value, and harvesting taxes on the resident species which are adjusted in the presence of an invasion. A numerical age-structured optimization model is used to analyze the role of species’ life history, i.e. the degree of evolutionary specialization in survival or reproduction, for the choice of strategy and the associated economic instruments. Results show that, irrespective of life history, both policies are implemented in efficient solutions, but subsidies for controlling the invader are used to a larger extent when it is possible to target specific age classes of the invader. If a resident species is harvested non-selectively, the optimal subsidy for control of the invader is lower, and if the invader is specialized in survival the control subsidy mirrors the resident species harvest cycle. © 2014, The Author(s).

The purpose of this paper is to investigate cost-effective climate policy instruments for bioenergy and timber, adapted to the impacts on interdependent forest carbon pools, and applied in the EU climate policy to 2050. We develop a discrete time dynamic model including forest carbon pools in biomass, soil, and products, as well as fossil fuel consumption. The analytical results show that the optimal taxes on forest products depend on the growth in the respective carbon pool. The application to the EU 2050 climate policy for emission trading shows that total costs for target achievement can be reduced by 33 percent if all carbon pools are included, and the carbon tax on fossil fuel can be reduced by 50 percent. Optimal taxes on forest products differ among countries and over time depending on the potential for increased carbon sequestration over the planning period. (C) 2017 The Authors. 

The aim of this study is to compare policy schemes for ecological compensation applied at national and regional levels, using exploited inland wetlands as an example. We study whether uncertainty, due to natural variability and measurement difficulties, motivates compensation that is carried out in the same region as that of the exploited site, or whether it rather motivates nationwide compensation schemes. For this purpose, we develop an empirical, chance-constrained programming model of cost-effective wetland management. The model is spatially differentiated and accounts for heterogeneity in wetland quality across wetland types and regions. Wetland quality is defined by three alternative biodiversity indices: species richness, population-weighted species richness, and red-listed species richness, estimated from voluntarily reported data on breeding bird species observations. Results show that regional schemes are more expensive, in particular if the policy maker dislikes uncertainty and wants to prioritize uncommon species. Contrary to expectations from the theoretical analysis, regional schemes would lead to a higher risk-adjusted level of biodiversity at the national level. However, regionalization also implies that targets cannot be achieved if a high safety margin is imposed. Trading ratios are robust to the choice of wetland quality index.

Large carnivores provide ecosystem and cultural benefits but also impose costs on livestock owners, due to predation, and on hunters, due to the competition for game. The benefits as well as the costs that accrue to livestock owners have been studied, but this is not the case for the costs that accrue to hunters. The aim of this paper was to identify the impact of lynx (Lynx lynx) and wolf (Canis lupus) on roe deer (Capreolus capreolus) hunting value. We applied a production function approach, using a bioeconomic model where the number of roe deer harvested was assumed to be jointly determined by hunting effort, abundance of predators, availability of other game, and climatic conditions. The impact of the predators on the roe deer harvests was estimated econometrically, and carnivore impacts for a constant and adjusted, steady state hunting effort were derived. The results showed that the marginal cost in terms of hunting values foregone varied between the counties and ranged between 18,000 and 58,000 EUR for lynx and 79,000 and 336,000 EUR for wolf. Larger costs were found in counties where the hunting effort was high, mainly located in south Sweden. The regional variation in costs has implications for decisions on policies affecting the regional distribution of wolf and lynx.

Large carnivores provide ecosystem and cultural benefits but also impose costs on hunters due to the competition for game. The aim of this paper was to identify the marginal impact of lynx (Lynx lynx) and wolf (Canis lupus) on the harvest of roe deer (Capreolus capreolus) in Sweden and the value of this impact. We applied a production function approach, using a bioeconomic model where the annual number of roe deer harvested was assumed to be determined by hunting effort, abundance of predators, availability of other game, and winter severity. The impact of the predators on the roe deer harvests was estimated econometrically, and carnivore marginal impacts were derived. The results showed that if the roe deer resource was harvested under open access, the marginal cost in terms of hunting values foregone varied between different counties, and ranged between 18,000 and 58,000 EUR for an additional lynx family, and 79,000 and 336,000 EUR for an additional wolf individual. Larger marginal costs of the wolf, in terms of the impact on roe deer hunting, were found in counties where the hunting effort was high and the abundance of moose (Alces alces) was low. If instead, hunters could exert private property rights to the resource, the average marginal cost was about 20% lower than it would have been if there was open access, and the difference in wolf impact between counties with high and low moose density was smaller. Together, results suggest that the current plan for expanding the wolf population in south Sweden can be associated with a substantial cost.

The aim of this paper is to analyze the optimal management of two ecologically interdependent, competing species, roe deer (Capreolus capreolus) and fallow deer (Dama dama). To this end, we develop a numerical stage-structured model, accounting for species-specific life history characteristics, gender, and stage-specific hunting values. Two contrasting management regimes are considered: optimal joint management of the two species and management where the decision maker is ignorant about interspecific competition. Results from our case study show that the presence of interspecific competition reduces roe deer population size and harvest by 30% and 47%, respectively, and reduces the net present value by 9%. High interspecific competition could lead to the exclusion of the roe deer from the area. In contrast, ignorance about the level and consequences of interspecific competition has no impact on harvest decisions and revenues. The explanation is the higher hunting benefits for fallow deer. Summary for Managers Wildlife managers need bioeconomic models for decisions on ecologically interdependent species. This study investigates optimal joint management of roe and fallow deer when the fallow deer exerts a negative impact on roe deer due to interspecific competition. Results show that interspecific competition reduces the net present value of hunting at the study site by 9%. Regulations will not increase the net present value of hunting in a situation where the manager is ignorant of interspecific competition.

Nitrogen and phosphorus loads are considered a major reason for the eutrophication of the Baltic Sea. Until now, most of the abatement has been made at point sources while the implementation of policies for nonpoint sources has not led to equally large reductions in emissions. The purpose of this study is to investigate the determinants of how nutrient abatement measures are implemented by countries in the agricultural sector of the Baltic Sea region. We investigate how goal setting, policy instrument choice, and the level of implementation is determined by characteristics of the abatement measure as well as socio-economic characteristics of the country where it is implemented. Econometric analysis of a cross-sectional data set suggests that income, institutional capacity, and economies of scope in abatement and enforcement are important determinants of policies developed and their implementation. (C) 2017 The Authors.

In this study, we investigate how households' choice of energy source is influenced by the status of the local forest resource. We assume that households choose between clean fuels (e.g., kerosene, LPG, solar, and electricity), dirty biobased fuels (e.g., firewood, animal dung, crop residues, and charcoal), and mixed fuels. We integrate socioeconomic data with high-resolution satellite data on forest conditions from the Uganda National Panel Survey. The findings from a random-effects multinomial logit model indicate that households in vegetated areas are 6–7% less likely to rely solely on dirty biobased fuels, and 6–8% more likely to use mixed fuels, compared to those in non-vegetated areas. A larger forest stock is more strongly associated with lower use of firewood than charcoal. A possible explanation for the findings is the presence of policies for forest conservation and enhanced forest property rights, which improve forest conditions and limit opportunities to collect firewood. Given households' dependence on forest-based fuels, such policies could need to be modified to secure households’ access to these fuels.

Climate change is expected to induce climate variability. This paper aims to investigate how climate variability affects households’ decisions on sanitation facilities that differ in how much they rely on water to function. We use household-level panel data from the Ethiopia Socioeconomic Survey and location-matched, high-resolution weather data to construct climate variability variables. Using a panel fixed effects regression model, we find that increased precipitation variability is associated with a significant shift away from using improved sanitation facilities, in shared ones, toward unimproved sanitation facilities. Temperature variability, however, has the opposite impact. Both precipitation variability and temperature variability have heterogeneous impacts: the effect of precipitation variability is significant only in maleheaded households, while temperature variability particularly encourages the use of shared improved facilities in towns and urban areas. One explanation for the impact of precipitation variability is that heavy rain reduces access to piped water and sanitation networks due to physical damage. Moreover, climate variability reduces incentives to purchase water and water-related infrastructure. This occurs because precipitation variability restricts access to inputs post-flooding, while temperature variability aids the breakdown of solids in septic tanks, which would otherwise require a larger volume of water. These findings could help policymakers and practitioners implement evidence-based sanitation interventions to increase access to improved sanitation facilities. 

Carbon sequestration is suggested as a low-cost option for climate change mitigation, the functioning of which can be threatened by pathogen infestation. This study calculates the effects of infectious pathogens on the cost of achieving the EU's 2050 climate targets by combining the so-called production function method with the replacement cost method. Pathogens are then assumed to affect carbon sink enhancement through the impact on productivity of forest land, and carbon sequestration is valued as the replacement for costly reductions in emissions from fossil fuels for reaching the EU's 2050 climate targets. To this end, we have constructed a numerical dynamic optimization model with a logistic forest growth function, a simple allometr+ic representation of the spread of pathogens in forests, and reductions in emissions from fossil fuels. The results show that the annual value of forest carbon sequestration ranges between approximately 6.4 and 14.9 billion Euros, depending on the impact and dispersal of pathogens. Relatively large values are obtained for countries with large emissions from fossil fuels, e.g., Germany, France, Spain and Italy, which also face costs of pathogen together with countries with large forest area, such as Romania. © 2018 by the authors.

Heavy loads of the nutrients nitrogen and phosphorus cause severe damage in many waters in the world. Nutrient trading markets where capped firms can buy and sell nutrient load credits have been established in several countries in order to achieve certain nutrient reduction targets at minimum costs for society. The availability of multifunctional nutrient abatement measures that simultaneously reduce loads of both nutrients, such as wetland construction, raises the issue of credit stacking, i.e. whether a firm constructing the wetland should earn credits for both nutrients. This article examines theoretically and empirically the implications of establishing alternative nutrient trading market designs (markets with and without credit stacking, a market for a bundled payment of nutrients, and separate markets for either nutrient) for total costs and achievement of stipulated nutrient reduction targets for the Baltic Sea. The results show that the total abatement cost of achieving reduction targets of both nutrients is always lowest if a market design with credit stacking is established, that markets without credit stacking result in higher abatement cost and nutrient abatement in excess of the reduction targets, and that none of the single nutrient market systems is able to generate the required abatement of both nutrients. The application to the Baltic Sea shows that the total abatement cost can be 20% higher when credit stacking is not allowed than when it is allowed.

This study makes an explorative overview on two main research topics in economics of wildlife management: determination of population sizes and policy design. The results point out a large and comprehensive research on each of these issues, in particular on the estimation of values and costs of wildlife, where this information is necessary for the determination of population size. A drawback is that most of the value and cost studies do not relate their estimates to wildlife population size, which limits their usability for efficient policy design. Most valuation studies estimate the recreational value of hunting, which can range between 13 and 545 USD/hunting day (in 2013 prices), and two thirds of the included studies have been applied to wildlife in the USA. A majority of the studies on the costs of wildlife management calculate losses from carnivore predation on livestock and ungulate damage to crops, while a few consider dispersal of diseases and the cost of traffic collisions. Unlike valuation studies, several of the cost estimates apply to wildlife in developing and emerging economies. With respect to policy design the literature, which is mainly theoretical, suggests economic incentives for conflict resolution, where those suffering from wildlife damages are compensated for their losses. However, there are some issues which remain to be addressed by economists: relating costs and benefits to wildlife populations; estimating values and costs of wildlife in developing countries; evaluating wildlife policies in practice; addressing implications of uncertainty in population size, costs, and benefits for policy design; and estimating transaction costs for implementation and enforcement of wildlife policies.

Helcom's recently revised Baltic Sea Action Plan (BSAP) aims to reduce eutrophication in the, Baltic Sea by reducing nutrient loads from all discharging drainage basins. The BALTCOST costminimisation, model, featuring abatement cost and effect functions which utilise spatial data down to, 10×10km2 grid cell resolution, is used to identify a cost-effective distribution of nutrient abatement, measures between drainage basins whilst attempting to achieve specified nutrient load reductions for, separate Baltic Sea regions. Results indicate that the 2013 BSAP load reduction targets for nitrogen and phosphorus can be achieved in most Baltic Sea regions, except for phosphorus into the Baltic Proper, and the Gulf of Finland. The estimated minimum total cost of delivering these reductions is 4.17 billion, Euros annually, with substantial differences in the cost burden between countries and measures.Results are strongly influenced by differences in nutrient retention between drainage basins. Detailed, retention modelling and high spatial resolution source data are major novel features of this research. 

We use data from a survey of 2439 farmers in 5 countries around the Baltic Sea (Denmark, Estonia, Finland, Poland and Sweden) to investigate their preferences for adopting agricultural practices aimed at reducing nutrient leaching and greenhouse gas emissions. The measures considered are set-aside, catch crops and reduced fertilization. Contracts vary with respect to the area enrolled, contract length, possibility of premature termination, availability of professional advice and compensation. We quantitatively describe farmers’ preferences in terms of their willingness-to-accept compensation for specific attributes of these contracts, if implemented. The results vary substantially between farm types (farmers’ characteristics) and between the 5 countries, and support differentiation of contract obligations and payments to improve the uptake of AgriEnvironmental Schemes. The results can be readily used to improve the design of country-specific nutrient reduction policies, in accordance with the next Common Agricultural Policy.

Policy efforts to improve Baltic Sea water quality will be expensive if the ambitious targets agreed are to be achieved. The aim of this study is to evaluate the ex-post cost-effectiveness of nitrogen load reductions to the Baltic Sea made between 1996 and 2010. We first calculate the counterfactual change in nitrogen load to the Baltic Sea and compare to observed loads. The costs of the net reductions are evaluated using a Baltic-wide cost-effectiveness model, which includes a wide set of nitrogen abatement measures in the littoral countries. Results show that the net nitrogen reductions achieved through environmental policy, about 145,000 tons total nitrogen, could have been obtained at 12% of the realized cost, through reallocation of abatement between countries. The total budget spent on abatement could, if used in a cost-effective manner, be sufficient for a doubling of the net nitrogen load reduction. Milestone targets, in combination with a compensation scheme between countries, could help to reduce policy costs. 

The purpose of this paper is to examine and compare the contributions to environmental innovation of the public sector and private sector, respectively, and to compare their determinants. We analyze the development over time of triadic patents, classified as environmental technological innovations, for six major patenting countries from 1990 to 2014. This is done using a factor decomposition analysis framework. The analysis is done at both country aggregate level, and for a set of specific technological topics: alternative energy production, energy conservation, agriculture and forestry, and waste management. Results indicate that there has been a shift at an aggregate level towards environmentally sustainable technologies. In the private sector, the shift can be attributed to changes in research priorities and an increased scale of R&D. In the public sector, increased patenting of environmentally sound technologies can be attributed to efficiency gains. The largest difference between the public and private sector is observed in R&D efficiency, where in the private sector, reductions in efficiency have contributed negatively to patent growth, whereas the opposite is true for the public sector. In both sectors, research focus has shifted towards energy-related technologies.

The purpose of this study is to examine the effects on innovation of environmental regulations aimed at reducing eutrophication. We focus on innovations in nitrogen and phosphorus management technology in the wastewater treatment sector and the agricultural sector. Patent data from Sweden over a 50-year period is used as a measure of innovation. We estimate a negative binomial regression model in a reduced form and by the use of control-functions, taking into account environmental regulation as well as more general determinants of innovation. Our results suggest that increased regulation has induced innovation in the wastewater treatment sector, both in the long and short run. The short-run effect was estimated to 40-70% in the years immediately following the introduction of new environmental regulations. A corresponding effect could not be identified in the agricultural sector. The difference between the sectors is likely explained by differences in policy design, where performance standards are applied in the wastewater sector, while design standards and technology-specific subsidies dominate in the agricultural sector.

Nya resultat visar att musselodlingar i Östersjön har en betydande potential att bidra till att minska övergödningen samtidigt som förutsättningar skapas för en cirkulär ekonomi/produktion. För att ta musselodling till nästa nivå krävs dels ytterligare förfining av den nya tekniken, men framförallt fler och i förlängningen också större odlingar samtidigt som vi måste vidareutveckla alla de initiativ som nu pågår hur näringen kan återanvändas i livsmedelssystemet på ett effektivt och ekonomiskt lönsamt sätt.

Adoption of new manure and fertiliser technology is considered an effective tool to reduce diffuse nutrient pollution from agriculture, and policy instruments to encourage technology uptake are therefore widespread. But policy makers need to understand farmers' reasons for adoption of such technologies to design policies that actually work. Using data from a survey with responses from 2439 farmers in five countries around the Baltic Sea, we identify the drivers of technology adoption for three different abatement technologies: manure spreading equipment, slurry tanks, and precision technology for fertiliser application. We compare drivers for technology investments across technologies with a particular focus on the role of the scale of farm operations, neighbour relations, environmental concerns and innovation readiness. The results show that the scale of farm operation is important for the uptake of all three technologies, while we find no evidence that neighbour relations are important for technology investments. Environmental concerns for soil quality and other on-farm environmental qualities do drive investment; however, the impact of environmental concerns differs across technologies. Innovation readiness is a driver of investments in relation to some technologies, suggesting that the novelty or sophistication of the technology matters to the investing farmers.

Large carnivores are keystone species but represent economic costs to hunters. In Sweden, carnivore territories generally overlap with hunting areas, and as a result, conflicts occur because of the competition for prey. The wolf, lynx, and brown bear are protected species by law but are hunted when authorities allocate license hunting quotas. The aim of these quotas is to limit carnivore numbers. We estimate a hedonic model using ordinary least squares to address the effect of large carnivore occurrence on hunting lease prices by accounting for the presence of license hunting quotas for predators. This result is compared with the least absolute deviation estimations, which reduce the influence of outliers in the survey data. To isolate the effect of carnivores on hunting lease prices, we use snow depth and forest productivity as proxy variables for game harvest in the absence of carnivores. Our results show that lynx and wolf presence reduce hunting lease prices, but lynx presence shows higher significance and robustness. Based on median regressions, the marginal implicit price of an additional wolf territory is about 15% larger than that of an additional lynx territory. In contrast, we found no conclusive evidence that bear abundance directly affects hunting lease prices, but regulated bear hunting is found to have a positive and significant impact on hunting leases, suggesting indirect positive net benefits of increased brown bear abundance.

Notwithstanding their crucial role in ecosystem functionality, large carnivores generally entail economic costs to hunters due to competition for the same prey. This cost could potentially vary depending on carnivore density and the game hunting values at stake. We estimate a hedonic price model applying the unconditional quantile regression method in order to investigate the impact of large carnivores along the distribution of hunting lease prices in Sweden. We compare these impacts with those obtained from conditional quantile regressions, as well as from ordinary least squares estimations. Based on the unconditional quantile estimates, our results indicate that wolf, lynx and bear can exert a negatively significant effect in the middle range of the outcome distribution, while no significant impact is found in the lower quantiles. For the statistically significant quantiles, the average marginal implicit price of an additional wolf territory in the study area is around 3.35 million Swedish kronor (SEK) per year, namely 358 thousand Euros (EUR). This corresponds to an annual reduction in the mean hunting lease price per hectare by 21% in the municipality where the territory is established. Similarly, an additional lynx family group entails an average marginal implicit price of SEK 3.55 million (EUR 379 thousand) per year, and an additional brown bear individual entails an average marginal implicit price of nearly SEK 110 thousand (EUR 11.6 thousand) per year. The corresponding impact on the mean hunting lease price per hectare is a reduction by 22.4% and 0.6% for an additional lynx family group and an additional brown bear individual, respectively, in the municipality where the establishment occurs. Results can be useful for policies targeting the spatial distribution of large carnivores. © 2020 The Authors

The benefits and costs of wildlife are contingent on the spatial overlap of animal populations with economic and recreational human activities. By using a production function approach with dynamic spatial panel data models, we analyze the effects of human hunting and carnivore predation pressure on the value of ungulate game harvests. The results show evidence of dynamic spatial dependence in the harvests of roe deer and wild boar, but not in those of moose, which is likely explained by the presence of harvesting quotas for the latter. Results suggest the impact of lynx on roe deer harvesting values is reduced by 75% when spatial effects are taken into account. The spatial analysis confirms that policymakers’ aim to reduce wild boar populations through increased hunting has been successful, an effect that was only visible when considering spatial effects. 

Landscapes composed of agricultural land mixed with forest are desirable since they provide a wide range of diversified ecosystem services, unlike specialized agricultural landscapes, but that creates a trade-off between these land uses since wildlife usually feed on crops and reduce yields. In Nordic countries, where human population density is low and game hunting can be a viable economic alternative, mixed landscape systems are particularly interesting. To evaluate the economic sustainability of such systems we need to quantify wildlife damage to crops. One important species, being popular among Swedish hunters and therefore economically valuable, is fallow deer (Dama dama). Our objective was to evaluate the economic sustainability of mixed landscape systems including cultivated fields and commercial hunting of fallow deer. We studied the effects of excluding fallow deer by using 86 exclosures and adjacent plots in winter wheat and oat fields in south-west Sweden. We analyzed yield losses and interactions between spatial and temporal grazing patterns, anthropogenic landscape features, and topological characteristics of the landscape. We found that animals avoided exposed spots, irrespective of distance from human activity. We also found a seasonal grazing pattern related to the different growing periods of winter wheat (more grazed, emerging in autumn) and spring oat (less grazed, emerging in spring). We then compared the costs of crop damage against the commercial value of fallow deer hunting. The damage amounted to 375 ±196 € ha^-1 for wheat and 152 ±138 € ha^-1 for oat, corresponding to a total cost per animal of 82.7 ±81.0 €, while each animal had an estimated market value of approximately 100 €. Therefore the value of fallow deer presence compensated for the associated cost of crop damage. Profit could be further improved in this case by adopting additional management strategies. In general our study confirmed the economic feasibility of this particular mixed land management.

Game species generate considerable benefits to society in terms of hunting values, tourism, and maintenance of ecosystem balance. This paper seeks to estimate hunting values for multiple hunted species by diseniangling the role of wildlife harvesting opportunities from other factors that affect hunting lease prices. We examine the determinants of hunting lease prices in Sweden using both spatial and nonspatial econometric techniques. Our analysis confirms considerable hunting values for fallow deer and wild boar. Also, the study reveals the presence of spatial spillovers in lease prices, implying that landowners have little scope for exerting monopoly power on the hunting lease market.

Carnivore conservation is considered essential because the species offer significant benefits to biodiversity. However, their predation on ungulates reduces ungulate populations with subsequent effects on hunters’ harvests and welfare. In this paper, we use the hedonic price method to estimate the effects of large carnivores on hunting lease prices. We divide the impact of carnivores into two effects: one effect affects game harvests, and the other effect affects the hunters’ direct preferences for the presence of carnivores on hunting land. Results reveal that lynx impose a significant economic cost to owners of hunting rights due to the predation of game. On average, the implicit cost of an additional lynx family is SEK 1.51 million (EUR 0.162 million) per year, and with 95% certainty, the cost per lynx family is at least SEK 340 thousand (EUR 36.6 thousand) per year.

Carnivore conservation is considered essential because the species offer significant benefits to biodiversity. However, their predation on ungulates reduces ungulate populations with subsequent effects on hunters' harvests and welfare. In this paper, we use the hedonic price method to estimate the effects of large carnivores on hunting lease prices. We disentangle the impact of carnivores through their effect on game harvest from their effect on hunters' preferences. Results reveal that lynx impose a significant economic cost to owners of hunting rights due to the predation of game. On average, the implicit cost of an additional lynx family is SEK 1.51 million (EUR 0.162 million) per year, and with 95% certainty, the cost per lynx family is at least SEK 340 thousand (EUR 36.6 thousand) per year.

Greenhouse gas emissions from the transport sector can be reduced by decreasing fuel use by different means, and by blending biofuels into fossil fuels. A cost-effective combination of these measures is determined by spatially specific characteristics such as fuel demand, feedstock production costs, and greenhouse gas emissions from the feedstock production. We developed a spatially explicit model to explore the role of reduced transport fuel use and increased use of domestically produced biofuel, respectively, in a cost-effective policy for greenhouse gas abatement. The model is applied to domestic lignocellulosic biofuel from agricultural land, gasoline, and diesel for road transport in Sweden. The results show that the use of biofuel is particularly cost-effective under low and modestly stringent abatement targets. For more stringent targets, decreased fuel end use dominates the abatement portfolio. Replacing the emissions target by a biofuel production target increases the marginal cost of reducing emissions by up to 250%. With the current vehicle fleet, technical constraints on blendin possibilities limit the role of biofuels at higher target levels.

Policies for investment in biofuel production facilities and feedstock may be necessary in order to meet climate and renewable energy targets. These policies entail a trade-off between high transportation costs of biomass and economies of scale of production facilities. We develop a spatial optimisation model and investigate the cost-effective localization of production facilities for ethanol from agricultural land in Sweden. Feedstock costs are found to be most important in determining the location, although high feedstock density motivates locating large facilities in areas with high feedstock costs. At higher production, feedstock from the whole country is preferred despite high transport costs.

This paper analyzes the main weaknesses and key avenues for improvement of nutrient policies in the Baltic Sea region. HELCOM's Baltic Sea Action Plan (BSAP), accepted by the Baltic Sea countries in 2007, was based on an innovative ecological modeling of the Baltic Sea environment and addressed the impact of the combination of riverine loading and transfer of nutrients on the ecological status of the sea and its sub-basins. We argue, however, that the assigned country-specific targets of nutrient loading do not reach the same level of sophistication, because they are not based on careful economic and policy analysis. We show an increasing gap between the state-of-the-art policy alternatives and the existing command-and-control-based approaches to the protection of the Baltic Sea environment and outline the most important steps for a Baltic Sea Socioeconomic Action Plan. It is time to raise the socioeconomic design of nutrient policies to the same level of sophistication as the ecological foundations of the BSAP.

Mechanization in agriculture has greatly improved the efficiency of field operations, but also resulted in heavier agricultural vehicles, which has led to increased risks of soil compaction. Hence, farmers benefit from machinery with higher capacity but may suffer from decreased yields caused by compaction. Compaction may result in further environmental costs to society. We present a framework that relates the machinery capacity to soil compaction and its impacts on crop yields and environmental disservices, and associated revenues and costs for farmers and society. We combined simulations using a soil compaction model and a soil-crop model with simple economic analyses. We applied the framework to a case study of cereal production in Sweden, to derive the optimal combine harvester size that maximizes the farmer's private profit and the societal net benefit, respectively. Increased machinery size decreased harvesting costs, but also reduced simulated crop yields and thus crop revenue as a result of soil compaction. Furthermore, in the model simulations, compaction also increased surface run-off, nitrogen leaching and greenhouse gas emissions. Intermediate machinery size maximized the farmer's net revenue. Net benefits for society were highest for the lowest possible compaction level, due to the considerable external costs from soil compaction. We show that the optimal machinery size and thus compaction level for maximum farmer revenue would decrease if either producer prices were higher, harvesting costs savings from larger machinery were smaller, or if farmers were charged for (part of the) environmental costs.

Forest management affects the quantity of CO2 emissions in the atmosphere through carbon sequestration in standing biomass, carbon storage in forest products and production of bioenergy. The main question studied in this paper is whether forest carbon sequestration is worth increasing at the expense of bioenergy and forest products to achieve the EU emissions reduction target for 2050 in a cost-efficient manner. A dynamic cost minimisation model is used to find the optimal combination of carbon abatement strategies to meet annual emissions targets between 2010 and 2050. The results indicate that forest carbon sequestration is a low-cost abatement method. With sequestration, the net present costs of meeting EU carbon targets can be reduced by 23%. 

Large emissions of greenhouse gases are expected to cause major environmental problems in the future. European policy makers have therefore declared that they aim to implement cost-efficient and fair policies to reduce carbon emissions. The purpose of this paper is to assess whether the cost of the EU policies for 2020 can be reduced through the inclusion of carbon sequestration as an abatement option while equity is also improved. The assessment is done by numerical calculations using a chance-constrained partial equilibrium model of the EU Emissions Trading Scheme and national effort-sharing targets, where forest sequestration is introduced as an uncertain abatement option. Fairness is evaluated by calculation of Gini-coefficients for six equity criteria to policy outcomes. The estimated Gini-coefficients range between 0.11 and 0.32 for the current policy, between 0.16 and 0.66 if sequestration is included and treated as certain, and between 0.19 and 0.38 when uncertainty about sequestration is taken into account and policy-makers wish to meet targets with at least 90 per cent probability. The results show that fairness is reduced when sequestration is included and that the impact is larger when sequestration is treated as certain.

Livestock depredation by large carnivores entails economic damage to farmers in many parts of the world. The aim of this paper is to analyse and compare the costs of livestock depredation by carnivores in Sweden across different carnivore species and counties. To this end, we estimate the government's compensation cost function using Swedish data on the county level over the period of 2001 to 2013. Compensation costs due to depredation by three large carnivores are considered: the brown bear (Ursus arctos), the wolf (Canis lupus) and the lynx (Lynx lynx). The results show that a 1% increase in the density of the carnivores leads to a 03-0.4% increase in compensation costs, whereas a 1% increase in the density of sheep results in a 0.8 and 1.1% increase in the compensation costs for brown bears and wolves, respectively. A larger share of unfenced pastures is associated with higher compensation costs for brown bear. The marginal cost of an additional carnivore individual varies considerably between counties, ranging between 1 and 82 EUR for lynxes, 0 and 266 EUR for brown bears, and 52 and 1067 EUR for wolves. (C) 2017 The Authors. 

Carnivore depredation gives rise to direct costs for killed and injured animals as well as indirectcosts due to productivity losses and additional labor requirements. Our aim was to investigate indirect costs to sheep farmers in Sweden due to carnivore depredation and presence. We estimated these costs using surveydata describing conditions in 2013. Reproduction and time spent on fence maintenance and taking care of animals were analyzed to isolate effects of carnivore exposure from other factors that affect these variables. Results indicate that both high carnivore densities and attacks are associated with comparatively lower sheep reproduction. Farmers who experienced an attack spent much more on labor for maintaining fences, searching for lost animals, and bringing the animals in for the night. Results suggest that the indirect cost per adult female sheep is EUR23 for nonattacked herds in areas with high carnivore densities; EUR71 in herds that were attacked and where sheep are kept on fenced grazing land; and EUR100 on attacked summer-pasture farms, where free-range grazing is applied. A flat rate compensation per adult female sheep, differentiated between herds in areas with high carnivore density that have not been attacked and herds that have been attacked could be used to compensate sheep farmers for these costs.

The Baltic Sea Action Plan (BSAP) requires tools to simulate effects and costs of various nutrient abatement strategies. Hierarchically connected databases and models of the entire catchment have been created to allow decision makers to view scenarios via the decision support system NEST. Increased intensity in agriculture in transient countries would result in increased nutrient loads to the Baltic Sea, particularly from Poland, the Baltic States, and Russia. Nutrient retentions are high, which means that the nutrient reduction goals of 135 000 tons N and 15 000 tons P, as formulated in the BSAP from 2007, correspond to a reduction in nutrient loadings to watersheds by 675 000 tons N and 158 000 tons P. A cost-minimization model was used to allocate nutrient reductions to measures and countries where the costs for reducing loads are low. The minimum annual cost to meet BSAP basin targets is estimated to 4.7 billion a,not sign.

Agri-environmental investment support that compensates landowners for the costs of wetland creation and restoration is considered an effective policy for increasing biodiversity and reducing nonpoint emissions in agricultural landscapes. This study assesses the extent to which such an agri-environmental scheme is propagated across landowners and examines determinants of the adoption of the policy in Sweden. Using spatiotemporal variations in the implementation of the scheme, we show that endogenous spatial interaction across landowners helps propagate the adoption of the scheme. We did not find spatial interactions to play a role in the disadoption of the scheme.