Ross Cullen

New methodology for the ecological footprint with an application to the New Zealand economy

Abstract Sustainable development has become a primary objective for many countries throughout the world since the late 1980s. A major difficulty associated with sustainable development objectives, however, is the absence of reliable indicators to measure progress towards the goal of sustainability. The ‘ecological footprint’ provides an estimate of the land area necessary to sustain current levels of resource consumption for a given population. On an aggregate basis, the ecological footprint may be compared with the amount of ecologically productive land available to give an indication of whether consumption patterns are likely to be sustainable. This paper proposes the use of a modified form of input–output analysis to calculate the ecological footprint. The input–output approach provides a consistent means of calculating an ecological footprint using data collected as part of the system of national accounts in most developed countries. In addition, it makes explicit the link between the level of economic activity in a country and its corresponding impact on the environment. An application of this methodology to New Zealand indicates that it takes 3.49 has of ecologically productive land per year to sustain the average New Zealander’s current level of consumption.

Measuring the productivity of threatened-species programs

Abstract Expenditures on threatened-species programs are increasing in many countries. Evaluation of the effectiveness and cost efficiency of these programs rarely occurs. An obstacle to evaluation of these programs is the need for a versatile unit of output. This paper reports how an output measure, COPY, and Cost–Utility Analysis methodology, are applied to evaluate New Zealand threatened-species programs. Program effectiveness, cost, and cost–utility ratios are presented, and the results show wide divergences occur between the programs studied. Cost–utility analysis provides a practical means to evaluate the productive efficiency of many threatened-species programs.

Estimating values of environmental impacts of dairy farming in New Zealand

Abstract New Zealand is the worlds largest exporter of dairy products, supplying about one‐third of global trade. The dairy sector strives to maintain international competitiveness by continued increases in productivity and intensification in the use of inputs. Increasing intensity of dairy farming and unsustainable agricultural activities contribute to degradation of several ecosystem services such as clean air and water. The New Zealand dairy industry receives widespread public criticism of its environmental impacts. This paper provides a case study of the intensification of dairy farming in New Zealand and its detrimental environmental impacts such as nitrate leaching to streams and rivers, methane gas emissions, demands for surface and groundwater for irrigation and reduced variety in pastoral landscapes. To design efficient policies that will induce farmers to adopt more environmentally friendly practices, resource managers and decision makers need information on the relative values attached by the public to these detrimental environmental impacts. The study uses choice modelling method, in particular a mixed logit model, to evaluate these relative values (willingness to pay), incorporating sources of preference heterogeneity (both observed and unobserved heterogeneity) within a sampled population. The research provides information for policy makers that will be useful in designing policy instruments to encourage farmers to reduce the principal harmful effects of dairy farming on the environment.

New Zealand Freshwater Management and Agricultural Impacts

In New Zealand, it is increasingly recognised, including by government, that water resource allocation and water quality are issues of national importance. Agriculture is frequently portrayed by public media as a major user of water and a major contributor to worsening water quality. We outline the water management systems in New Zealand, and the use of water by agriculture. Official reports on agricultures impact on New Zealand water availability and quality are summarised. We report how the New Zealand public perceive water, its management, and the roles of agriculture in water issues. Data from a nationwide mail survey were analysed to determine how New Zealanders assess the state of New Zealand lakes, rivers and streams, and aquifers, the performance of three agencies responsible for management of freshwater resources, and willingness to fund stream enhancement. We provide brief explanations for the failures of water resource management in New Zealand and report on options, including community-based responses that might address some of the mounting public, scientific, and government concerns about trends in water quantity and quality. A willingness to pay proposition, concerning riparian areas, included in the nationwide survey provides some evidence that the public are willing to pay for improved waterway management. Relevant non-market valuation studies also indicate that the public places considerable value on preservation values of water in New Zealand.

Stakeholder groups in fisheries management

We examine some of the main forms of stakeholder participation in fisheries management, present a New Zealand case study which tests some precepts about fishery management, examine some of the tradeoffs associated with these different approaches, and finally we consider what formats stakeholder involvement might evolve to. Our particular focus is on a test of the commercial stakeholder self-management model. It is concluded that the commercial model, as applied in New Zealand, has much potential to contribute to sustainable fisheries management. Rather than competing with the quota management system and individual transferable quotas, it is an essential and complementary management tool.

Public preferences and efficient allocation of a possum-control budget

Allocation of public money in New Zealand is increasingly requiring justification on efficiency grounds. A limited budget for control of the introduced possum forces difficult choices to be made about where to control possums. Such choices have traditionally been made on “scientific” criteria, which may not meet efficiency requirements. Willingness to pay for possum control at a specific location is evaluated using dichotomous choice contingent valuation applied by way of a postal survey. Willingness to pay is found to be a function of perceptions of site characteristics, some of which are different from the scientific criteria, and of socio—economic characteristics. These findings indicate that the current budget allocation method is inefficient. A new approach to cost-effective allocation of possum-control budgets, which allows simple incorporation of public preferences, is proposed.

Biodiversity protection prioritisation: a 25-year review

Abstract. There are insufficient resources available globally, nationally and in many regions, to conserve all species, habitats and ecosystems. Prioritisation of targets or actions is a rational response to resource scarcity. Prioritisation can be directed at areas for reservation, species, habitats or ecosystems for management, and threat management actions. The scale at which prioritisation is applied is a fundamental decision, and the range includes global, national, regional and patch. Choice of scale influences availability of data and methods available for prioritisation. Since 1986 availability of data, computing power and expertise available have all improved globally and in many countries. Approaches to prioritisation have evolved during the past 25 years as researchers from several disciplines, including biology, ecology, decision sciences, mathematics and economics, have sought ways to achieve greater output from the resources available for biodiversity conservation. This review surveys the literature and groups prioritisation approaches into the following four categories: reserves and reserve selection, prescriptive costed biodiversity prioritisation, ranked costed biodiversity projects and contracted costed conservation actions. A concluding section considers the limitations of current prioritisation approaches and points to areas for further development.

Economic analyses to aid nature conservation decision making

Nature conservation can often be costly and the resources available are often less than are required. Resource allocations and expenditures for nature con- servation have an opportunity cost in terms of foregone projects, but are rarely subjected to as much scrutiny as other public activities. Failure to apply economic tools to nature conservation decision making can result in errors in project selection, wasted use of scarce resources, and lower levels of conservation than it is possible to achieve from the resources available. In some instances where economics has been proposed for use in nature conservation research, the methodologies applied provide information that is of limited usefulness to decision makers. Non-market valuation has limited potential to help in nature conservation decision making, is costly to complete and should be supplanted by more useful techniques that focus on the cost and the payoff from nature conservation actions. In contrast, Cost Effectiveness Analysis and Cost Utility Analysis are practical tools that can provide valuable information for conservation decision makers and improve conservation achievement.

Assignment of measurable costs and benefits to wildlife conservation projects

Abstract. Success of wildlife conservation projects is determined by a suite of biological and economic factors. Donor and public understanding of the economic factors is becoming increasingly central to the longevity of funding for conservation efforts. Unlike typical economic evaluation, many costs and benefits related to conservation efforts are realised in non-monetary terms. We identify the types of benefits and costs that arise from conservation projects and examine several well developed techniques that economists use to convert benefits and costs into monetary values so they may be compared in a common metric. Costs are typically more readily identifiable than benefits, with financial project costs reported most frequently, and opportunity and damage costs reported much less often. Most current evaluation methods rely primarily on cost-effectiveness analysis rather than cost–benefit analysis, a result of the difficultly in measuring benefits. We highlight improved methodology to measure secondary costs and benefits on a broader spatial scale, thereby promoting project efficacy and long-term success. Estimation of the secondary effects can provide a means to engage a wider audience in discussions of wildlife conservation by illuminating the relevant impacts to income and employment in local economies.

Food and Wine Production Practices: An Analysis of Consumer Views

This study was designed to ascertain the degree to which consumers are concerned about human health and environmental issues arising from both food and wine production. In particular, this study sought, for the first time, to compare consumer perceptions regarding food production practices and wine production practices. Interviewer-administered questionnaires were completed with 109 consumers inside supermarkets, general liquor stores and specialty wine stores in the city of Christchurch, New Zealand. In general, consumers expressed a high level of concern regarding the effects of agricultural (food) production practices on both their own health and on the health of the environment. Consumers were found to be less concerned about the effects of wine production practices on their health and the environment, but a large segment reported that they did not know how wine was produced and thus had not, as yet, formed either positive or negative views about the effects of wine production practices. At a practical level, this paper suggests that wine marketers have a window of opportunity in which to positively influence the large number of consumers who currently do not hold any views regarding the effects of wine production on their health or the environment. This paper is of significant value because it provides a unique comparison of consumer views regarding food production and wine production and it has added to our knowledge of the ‘green’ consumer.