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Environmental compensation is not for the birds

assessing social welfare impacts of resource-based environmental compensation

Cole, Scott (2012). Environmental compensation is not for the birds. Diss. (sammanfattning/summary) Umeå : Sveriges lantbruksuniv., Acta Universitatis Agriculturae Sueciae, 1652-6880 ; 2012:29
ISBN 978-91-576-7665-8
[Doctoral thesis]

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The European Union (EU) recently implemented the Environmental Liability Directive (ELD), requiring that environmental damage be restored so that the affected environment returns to (or toward) its baseline condition and the public is compensated for the initial damage and the losses during the time it takes for the environment to recover (interim losses). Equivalency Analysis (EA) represents a method for scaling environmental compensation to offset interim losses. Ensuring appropriate compensation for resource loss requires a merging of ecological measurement with the theories of welfare economics. This thesis explores some of the issues in scaling resource-based compensation in three papers. Paper I is a quantitative application of the EA method to compensate for sea eagle mortality from wind turbine collisions. It is co-authored with a biologist and proposes a new and innovative compensatory measure based on electrocution prevention on power lines. Paper II is written for an ecological readership and communicates fundamental economic assumptions in a way that might be helpful for cross-discipline collaboration. The main contribution is to clarify that the underlying goal of environmental compensation should be "no net loss of welfare." Paper III scrutinizes the conventional EA method from a social efficiency perspective, suggesting that the focus on equity for the victim may preclude a socially optimal compensatory outcome. The overarching conclusion is that EA fails to inform policy makers of the inescapable environmental trade-offs that arise in compensating environmental losses.

Authors/Creators:Cole, Scott
Title:Environmental compensation is not for the birds
Subtitle:assessing social welfare impacts of resource-based environmental compensation
Series Name/Journal:Acta Universitatis Agriculturae Sueciae
Year of publishing :May 2012
Number of Pages:44
ICole,Scott and Espen Lie Dahl (2012). "Scaling electrocution prevention measures to compensate for white-tailed eagle (WTE) mortality losses at the Smøla wind-power plant,Norway." Submission to interdisciplinary journal planned May 2012
IICole,Scott (2011). Wind power compensation is not for the birds: An opinion from an environmental economist. Journal of Restoration Ecology. Volume 19, Number 2. March.
IIICole,Scott (2012). Equity over efficiency: a problem of credibility in scaling resource-based compensation?Submission to economic journal planned May 2012
Place of Publication:Umeå
Publisher:Institutionen för skogsekonomi, Sveriges lantbruksuniversitet
Associated Programs and Other Stakeholders:SLU - Environmental assessment > Data from Environmental Assesment (FoMA) is used
SLU - Agricultural Sciences for Global Development > Restoration of degraded rural landscapes
ISBN for printed version:978-91-576-7665-8
Publication Type:Doctoral thesis
Full Text Status:Public
Agris subject categories.:E Economics, development, and rural sociology > E10 Agricultural economics and policies
P Natural resources > P01 Nature conservation and land resources
Subjects:Obsolete subject words > SOCIAL SCIENCES > Business and economics > Economics
Agrovoc terms:environmental impact assessment, compensation, environmental policies, welfare economics, cost benefit analysis
Keywords:Equivalency Analysis (EA), environmental compensation, Cost Benefit Analysis, environmental liability
Permanent URL:
ID Code:8874
Department:(S) > Dept. of Forest Economics
External funders:Swedish Environmental Protection Agency
Deposited By: scott cole
Deposited On:14 May 2012 13:28
Metadata Last Modified:02 Dec 2014 10:50

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