Progress 10/01/02 to 09/30/05
Outputs
LAND: The economics of alternative techniques for reducing non-point water pollution in residential areas were assessed in Neptin (2005). Options analyzed included installing green roofs, forested buffers, porous pavers, alternative septic systems, rain gardens and rain barrels. Economic feasibility analyses compared costs of green roofs, alternative septic systems and porous pavers to their traditional versions. Results showed that these options could be used in new residential developments in Connecticut with small increases in overall costs, mostly from higher septic system costs of about $6000 per house. Using porous pavers can reduce paving costs by 1/3 in new residential developments. MARINE: A survey of Connecticut(CT) and New York (NY) seafood marketers assessed economic and social impacts of the 1999 Long Island Sound lobster die-off. Social impacts (employment/family income loss) were found to be negligible. Economic impacts were greater, with 24% of CT and
43% of NY businesses reporting reduced profits, and 21% of CT and 29% of NY businesses permanently changing their supply sources for live lobster. Recommendations for improving live lobster marketing include improving conservation and management of lobster resources, increasing access to supplies, consumer education and product promotion. WATER: Using a dynamic optimization framework, Palmieri et al (2003) and Annandale et al (2002) developed a benefit-cost model for determining appropriate sediment management strategies for dams. An adaptation of the World Bank's safeguard criterion allowed for eliminating strategies that are unacceptable because of significant negative impacts on natural habitats, cultural assets, and indigenous people. Kawashima et al (2003) describe a computer program written in Microsoft Excel to carry out model simulations and a user guide. The net economic gains from using various sediment removal strategies (such as flushing, hydrosuction, hydraulic dredging,
and trucking) were compared for several dams worldwide. Results indicated that periodic sediment removal could lead to sustainability in a wide range of cases. Kawashima (2004), Kawashima and Shah (2002), Pattanapanchai and Shah (2003) and Pattanapanchai (2005) further examined several important consequences of reservoir sedimentation, including the impact of sedimentation in a system of cascading dams and on multipurpose reservoirs. Optimal control theory was used to conduct a benefit-cost analysis of various sediment removal techniques for promoting sustainable management of dams. The basic and extended models were made operational with computer programs written in Visual Basic and Microsoft Excel, and applications with data from several dams were also conducted. Another focus of Kawashima (2004) related to chosing between rehabilitating and decommissioning an aging (or silted) dam. An option-pricing model was developed to help formulate guidelines for the timing of dam
rehabilitation or removal decisions when there is uncertainty about future environmental damages. Application results suggest that the use of dam rehabilitation to postpone dam removal should be given serious consideration.
Impacts
LAND: Rural lands are being converted into new residential developments, housing growth is continuing in suburban and urban areas, and non-point source water pollution from these activities is growing. Economic feasiblity analyses of alternative building techniques that can be used in new residential developments to reduce non-point runoff showed that many of these methods are economically viable, and their use may result in only slight increases in costs. Policy-makers may use these results to further examine these methods to reduce runoff, and potentially promote their adoption in new housing developments through the use of regulations, tax credits, or other means. MARINE: The Long Island Sound lobster fishery has been seriously depleted since the 1999 die-off. Survey results and estimated economic and social impacts of the die-off can be used to develop recommendations for increasing economic viability of the industry, increasing the supply of LIS lobster product for
sale, and promoting lobster resource conservation and enhancement. WATER: The models and computer programs developed in this project are widely applicable to dams in many locations. They will be useful for policy-makers interested in determining optimal sediment management strategies for dams which will enhance net benefits from dams over time and will aid in evaluating decisions for dam decommissioning. The approach utilized in the research reported here will also enable the elimination of strategies that have unacceptable negative impacts on natural habitats, cultural assets and indigenous people.
Publications
- Annandale, G., Palmieri, A., Shah, F., Dinar, A. 2002. Strategic Alternatives for the Sustainable Management of Reservoirs. In Proceedings of the 22nd Annual Meeting and Conference of the US Society on Dams, pp. 479-484
- Chaudhry, A., Shah, F. 2002. Surface Water Allocation Under Increasing Scarcity and Uncertainty. Abstract. Agricultural and Resource Economics Review Vol. 31, p. 263
- Kawashima, K., Shah, F. 2002. Economic Analysis of Sedimentation Management in a System of Cascading Dams. Abstract. Agricultural and Resource Economics Review Vol. 31, p. 263
- Pattanapanchai, M., Shah, F. 2003. Reservoir Sedimentation and Soil Conservation Under Uncertainty. Abstract. Agricultural and Resource Economics Review Vol. 32, p. 299
- Pattanapanchai, M. 2005. Economics of Renewable Resource Management: An Application to Multipurpose Dams. Ph.D. Dissertation, Dept. of Agricultural and Resource Economics, University of Connecticut, Storrs, CT
- Neptin, B. 2005. Economic Analysis of Alternative Techniques to Reduce Nonpoint Source Pollution in Residential Development. M.S. Thesis, Dept. of Agricultural and Resource Economics, University of Connecticut, Storrs, CT
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Progress 01/01/04 to 12/31/04
Outputs
MARINE RESOURCES: Data from a 2002 Sea Grant-funded survey of New York (NY) and Connecticut (CT) seafood marketers were further analyzed to assess the impact of the 1999 Long Island Sound (LIS) die-off. A draft report summarizing survey results has been prepared. Methodologies are being developed to estimate the economic impact (dollar value) of the die-off on the lobster marketing sector. The social impact (employment/family income loss) appears to have been negligible. As a result of the die-off, some NY and CT seafood marketers experienced reduced profits, while other respondents were able to substitute lobsters originating in Maine or Canada and did not show losses in profits. Approximately half of survey respondents now prefer to sell lobsters from sources other than Long Island Sound and about 80% indicate their clients prefer lobsters from outside the region. These results are being used to develop recommendations to improve the marketing of lobsters by
improving access to supplies, increasing demand for LIS lobsters through promotion and public education, and by enhancing conservation/management efforts. WATER RESOURCES: Kawashima (2004) examines several important consequences of reservoir sedimentation and develops appropriate frameworks for assessing commonly available management options. Optimal control theory is used to carry out a benefit cost analysis of various sediment removal techniques that could lead to reduced sedimentation and sustainable management of dams. Earlier work on this subject is extended to include the impact of sedimentation in a system of cascading dams. The basic and extended models are made operational with computer programs written in Visual Basic and Microsoft Excel. Illustrative applications with data from several dams are also carried out. Another focus of this study relates to the choice between rehabilitating and decommissioning an ageing (or silted) dam. Such dams may pose an increasing
environmental risk to society, but decommissioning is a high cost and irreversible decision as well. An option-pricing model is developed to help formulate guidelines for the timing of dam rehabilitation or removal decisions when there is uncertainty about future environmental damages. Application results suggest that the use of dam rehabilitation to postpone dam removal should be given serious consideration. LAND USE: A study is currently being formulated as an M.S. thesis to analyze the economics of alternative strategies and techniques for reducing non-point source water pollution in agricultural and residential areas. A literature review is underway, alternative strategies and techniques are being identified and reviewed, and models appropriate for determining economic feasibility are being developed.
Impacts
WATER RESOURCES: The models and computer programs developed here will be useful for policy makers interested in enhancing the net benefits from dams and in evaluating the decision for dam decommissioning. MARINE RESOURCES: Survey results and economic impact analysis are being used to develop recommendations for increasing industry viability, increasing availability of LIS lobster product for the consumer, and promoting lobster resource conservation.
Publications
- Kawashima, S. 2004. Management Decisions for Sustainable Use of Dams. Ph.D. Thesis, Department of Agricultural & Resource Economics, University of Connecticut.
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Progress 01/01/03 to 12/31/03
Outputs
MARINE RESOURCES:A survey of New York(NY) and Connecticut(CT) seafood marketing firms was commissioned by CT Sea Grant and completed by the Center for Survey Research and Analysis(CSRA) at the Univ of CT to obtain data and other information on the 1999 Long Island Sound(LIS)lobster die-off. Over 400 businesses were identified as selling lobster or seafood products. CSRA interviewed this group in late 2002. A total of 159 telephone interviews(70-CT and 89-NY)were completed. Preliminary results indicate that respondents consisted of seafood wholesalers(48%), seafood retailers(20%) or restaurants(26%). Their customers were local residents(47%),other businesses(25%), and tourists(11%). LIS supplies about 20% of their live lobster supply in the summer, but little(4-8%)during the rest of the year. Since the lobster die-off occurred in the summer, this event caused a major supply disruption for CT and NY businesses. As a result of the die-off, 21% of CT and 29% of NY
businesses were forced to permanently change their sources of live lobster, and 24% of CT and 43% of NY businesses experienced reduced profits. Respondents said marketing of live lobsters could be improved by stabilizing supplies and price(32%), improving conservation/management(12%), and finding the causes of the die-off and educating the public(10%). WATER RESOURCES: Accumulation of sediment in dams reduces storage capacity and leads to reduction in benefits of dams over time. Sediment may be removed periodically, but such removal can be expensive. On the other hand, the replacement of dams or services they provide is also costly. Palmieri et al.(2003) develop a model that may be used by policy-makers to determine appropriate sediment management strategies for dams. This model is the output of a unique collaboration between economists and civil engineers. Given the inter-temporal nature of reservoir sedimentation, a dynamic optimization framework is proposed, and optimal control
theory is used to solve the problem of sediment management from a social planner perspective. Environmental and social effects of sedimentation management are taken into consideration by using an adaptation of the World Bank's safeguard criterion. This criterion allows one to eliminate any strategies that are unacceptable in terms of having significant negative impacts on natural habitats, cultural assets, and indigenous people. A computer program is written in Microsoft Excel to carry out simulations with the model. Details of the computer program's structure and a user guide are provided in Kawashima et al. (2003). The net economic gains from using various sediment removal strategies (such as flushing, hydrosuction, hydraulic dredging, and trucking) are compared for several dams worldwide. It turns out that periodic sediment removal could lead to sustainability in a wide range of cases.
Impacts
MARINE RESOURCES: Survey results will be analyzed to obtain economic and social costs resulting from the die-off and develop recommendations for enhancing LIS lobster resource value and the marketability of harvested product. WATER RESOURCES: The model developed here will be used by policy-makers to obtain optimal sediment management strategies which will enhance net benefits from dams over time. This framework will also allow for elimination of strategies that have unacceptable negative impacts on natural habitats, cultural assets, and indigenous people.
Publications
- Kawashima, S., T. Johndrow, G. Annandale and F. Shah. 2003. "Reservoir Conservation Volume II: The RESCON Model & User Manual", World Bank.
- Palmieri, A., F. Shah, G. Annandale, and A. Dinar. 2003. "Reservoir Conservation Volume I: The RESCON Approach", World Bank.
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