Dina Franceschi

Beyond strong sustainability

SUMMARY Since the Brundtland Commissions delineation of the term sustainable development in 1987, virtually every country has incorporated the terms sustainability and sustainable development into their planning vocabulary and criteria for decision-making. However, many issues remain unresolved. Broad and sweeping references to sustainability and sustainable development do not necessarily translate into implementable policies to achieve these goals. In particular, unresolved issues include developing an understanding of how one sector of the economy can contribute to the sustainable development of the economy as a whole and the role of ecological resources in sustainable development. Our paper provides an initial conceptual examination of these questions by folding mining and ecological quality into the sustainability discussion. We use the Brazilian Amazon as an application of our sustainable development model.

System reliability and water service decentralization: Investigating household preferences in Nicaragua

Concern continues to grow over unreliable water access at the household level in many developing countries. A contingent valuation survey was designed to elicit willingness-to-pay for safe and reliable drinking water in León, Nicaragua. In addition, split-sample treatments were used to investigate preferences for two forms of service governance: the current, centralized water supplier and a decentralized service implemented at the municipal level. Results show that households are willing to pay a substantial increase in their water bills for reliable water supply. Findings also indicate that households hold greater confidence in the current, centralized provider rather than a localized service based on several characteristics such as overall service, awareness of water issues, interest in solving water problems, capacity, accountability, and potential investment.

Household preferences for municipal water services in Nicaragua

Choice models and a referendum format contingent valuation survey are used to investigate household preferences for improved water services and decentralization levels (actual departmental administration vs. further decentralization to the municipality) in urban Matiguas, Nicaragua. Choice models suggest that households prefer the current departmental administration over municipal provision for service and capacity, but believe that the municipality would be more interested in improving services. Results also indicate that households are willing to pay an increment of at least 112 per cent above their current monthly water bill for reliable and safe drinking water services, regardless of administration type.

Can user perception influence the quality of water services? Evidence from León, Nicaragua

This article investigates the validity of citizen feedback to evaluate the quality of water services in León, Nicaragua. Using generalized ordered logit models, this study presents a comprehensive evaluation of user satisfaction from water service characteristics. Potential asymmetries in the response of user satisfaction to relative perception of service performance are also investigated. Findings indicate that citizen satisfaction is based on basic service characteristics rather than socio-demographics, and that relativity matters. Users tend to overemphasize their frustration if they perceive that they have lower quality of water services than their peers, and understate their satisfaction if they perceive that they have better services. Points for practitioners Based on the evidence presented in this article, citizen surveys can be used as a tool to improve water services, particularly in places where public service users have no voice and alternatives to cope with low quality services do not exist. However, citizen survey results should be carefully interpreted given that users overemphasize their frustration if they perceive that they have lower quality of services than their peers. Policy design based on citizen surveys should take into account this potential asymmetry in citizen satisfaction, particularly in places with heterogeneous service performance.

Water Quality, Household Perceptions and Averting Behavior: Evidence from Nicaragua

We investigate household perceptions of water quality and associated averting behaviors using household survey data from Leon, Nicaragua. Seemingly unrelated instrumental variable probit models are estimated to take the potential endogeneity of water quality perceptions and the relationship between different averting behaviors into account. Survey results indicate that a large majority of households use tap water for drinking purposes. Less than 26% of sampled households implement in-home water treatments and about 33% of households consume bottled water. Results indicate that observed averting behaviors (i.e., consumption of bottled water and in-home water treatments), or lack thereof, are primarily driven by the perceived quality of tap water. Findings also indicate that perceptions of water quality are associated with service performance and assessment of water quality relative to peers. Policy implications are discussed.

Mercury concentrations and awareness in Campos dos Goytacazes, Brazil: baseline measures for examining the efficacy of the Minamata Convention

The 2013 Minamata Convention seeks to reduce anthropogenic emissions of mercury (Hg) and enhance public awareness of Hg exposure and impacts. The treaty also requires countries to increase monitoring of Hg in the environment in order to reduce human exposure and examine the efficacy of the treaty over time. Campos dos Goytacazes, Brazil, is located in a watershed with a history of significant Hg deposition from gold mining and sugarcane farming. This study provides previously unpublished data on the presence of Hg in certain fish in Campos and the awareness of mercury contamination among the local population. We analyzed Hg concentrations in five commonly consumed fish species by the residents of Campos and found concentrations to be elevated in some species, to vary significantly among species, and to correlate with trophic levels likely due to biomagnification. A sample survey of people in Campos found that education levels negatively correlated with knowledge of the presence of Hg in fish and the negative health effects of both Hg and heavy metal contamination in general. These findings have potential importance for understanding Hg levels in the environment, underscore the necessity for public awareness and education efforts regarding Hg contamination (as called for in the new Convention), and provide baseline measures for the presence of Hg in fish in Campos and public awareness related to this presence. These data can be compared to future studies to examine the efficacy of the Convention and other efforts to reduce Hg emissions and exposure to Hg in this part of Brazil.

Do Supervisors Affect the Valuation of Public Goods

Systematic supervision procedures have been proposed to improve contingent valuation surveying, particularly in developing countries. Surprisingly, the CV literature does not say much about the potential effects of supervision even though there is evidence of interviewer effects and social desirability issues that can bias results. This paper investigates the effects of interview supervision on the valuation of public services, using split-sample treatments to include a test of scope of a nested good and to assess the effect of interview supervision on reported WTP. Results suggest that supervisors can be used to improve quality with no effect on WTP estimates.

THE ECONOMIC IMPLICATIONS FOR SUSTAINABLE MINING WITHIN THE PARADIGM OF SUSTAINABLE DEVELOPMENT

Este texto visa discutir o conceito de sustentabilidade em termos de suas implicacoes economicas, com especial enfase nas ramificacoes do setor mineiro no Brasil. Pretende-se examinar esta perspectiva atraves de uma revisao das abordagens conceituais a sustentabilidade dos recursos exauriveis e descrever sua relacao com uma definicao geral do desenvolvimento sustentavel. Adicionalmente visa-se oferecer sugestoes relativas a operacionalizacao do conceito de desenvolvimento sustentavel de modo que o criterio de sustentabilidade possa tornar-se um aspecto real do processo decisorio.

THE POTENTIAL CONTRIBUTION OF ECONOMICS TO THE RECOVERY OF NORTHEASTERN FORESTS

The textbook definition of the science of economics is the study of the allocation of scarce resources. Despite this rather broad definition, many non- economists regard economics as related only to cash flows. Consequently, they do not fully understand the role that the science of economics can play in the revitalization of the Northeastern forests. This paper discusses the potential contribution of the science of economics to the revitalization of forests, begin- ning with a discussion of the economic origins of the decline of the Northeastern forests. Next, the paper discusses the potential contribution of economics to the solution of the problem, through the development of policies to generate the