Sustainable Resource Development in the 21st Century: Essays in Memory of Peter Berck (Natural Resource Management and Policy, 57)

This is an open access book. This edited volume discusses topics in environmental economics with a focus on sustainability, conservation, and responsible resource management. Written in memory of Peter Berck, Professor of Agricultural and Resource Economics at the University of California, Berkeley, the chapters expand upon his insights about the connections between human activities and the natural world. The volume includes a selection of research on agriculture, energy, forestry, fisheries, land use, recycling, and conservation – all parts of the broad question of how natural resources can meet human needs while avoiding environmental degradation. Written from a 21 st century perspective, with concerns about climate, renewable energy, biodiversity, and sustainable development, this volume will be of interest to researchers and students of agricultural and resource economics. Preface and Acknowledgments 6 Contents 8 Introduction 10 Part I Forestry 12 Peter Berck's Contributions to Forestry Economics 13 References 17 Integrated Management of Bark Beetles: Economic Contributions of Peter Berck and Foundational EntomologicalResearch 19 1 Introduction 19 2 System Structure 21 3 Treatment Strategies and Tactics 22 3.1 Stand Treatments: Thinning 23 3.2 Pest Population Treatments 23 3.2.1 Insecticides 23 3.2.2 Semiochemicals 24 4 Synthesis and Future Research 26 References 28 Assessing the Potential of Eucalyptus Plantation to Supply Timber for Greener Development in China 32 1 Introduction 33 2 Industrial Policies and Forest Production in China 35 3 Assessment of Eucalyptus Plantation in Southern China 35 3.1 Historical Trend of Eucalyptus Plantation Forests (Guangxi) 35 3.1.1 Area, Volume, and Timber Production 37 3.2 Comparison of Timber Yield Curves: Eucalyptus, Chinese Fir, and Masson Pine 38 3.3 Comparison of Carbon Sequestration Potential Among Main Species 40 3.4 Expected Land Value 40 3.5 The Private Sector in Eucalyptus Development 41 4 Conclusion 42 References 43 Hedging with a Housing Start Futures Contract 44 1 Background 44 2 Introduction 45 3 Theory 46 3.1 Optimal Hedging 47 3.2 Materials Supplier 50 3.3 The Builder 51 4 General Equilibrium 52 5 Pricing of the Futures Contract 53 5.1 Predicting Starts 54 6 Constructing the Contract 56 7 Value of Contract 57 8 Hedging 58 9 The Relationship Between Building Materials Output and Construction Output 59 10 Earnings 61 11 Predicting Earnings 61 12 Aggregate Production Regressions 63 13 Basis and Basis Risk 67 14 Regional Basis Risk 67 15 Survey of Potential Users of Housing Start Futures as a Hedge 69 References 70 Part II Agriculture and Fisheries 72 The Future of Agriculture 73 1 Transition from Hunting to Farming 73 2 The Economics of Modern Agriculture 75 2.1 The Three Scenarios of the Future 78 3 Conclusion 83 References 83 How Is Farm Income Affected When Each Farm Has To Produce Its Own Animal Feed? 86 1 Introduction 86 2 Mixed Crop-Livestock Systems 87 3 Sources and Methods of Feeding Livestock 88 3.1 Natural Pastures 88 3.2 Crop Residue and Postharvest Grazing 89 3.3 “Cut and carry” Feeding 90 3.4 Crops Grown as Animal Feed 90 4 Relationship Between Animal Feed and Sustainable Agriculture 91 5 Potential to Grow Fodder Crops 92 6 Potential of Livestock and Forage to Increase Income 93 7 Conclusion 94 References 95 Estimating Agricultural Acreage Responses to Input Prices: Groundwater in California 97 1 Introduction 98 2 Data 100 2.1 Cropland Data Layer 100 2.2 Common Land Unit 101 2.3 Groundwater Depth 103 2.4 Final Dataset and Summary Statistics 104 3 Empirical Strategy 106 4 Results 107 5 Conclusion 109 References 110 Precautionary Heuristic Management and Learning for Data-Poor Fisheries 111 1 Introduction 111 2 Model and Simulation Framework 115 3 Statistical Management 117 4 Heuristic Precaution 118 5 Concluding Remarks 121 References 125 Efficiency Controls and the Captured Fishery Regulator 128 1 Introduction 129 1.1 Background 130 2 Model 132 2.1 The Singular Control 134 3 Steady State and Dynamics 135 3.1 Near Equilibrium Dynamics 136 3.2 Non-equilibrium Dynamics 137 4 Captured Regulator Versus the Optimum 139 5 Example 140 6 Discussion 143 References 143 Part III Conservation and Development 145 Peter Berck's Contribution to the Environment for Development Initiative and Sustainable Development 146 Environmental Attitudes in Developing Countries in Lightof COVID-19 149 1 Introduction 149 2 Environmental Attitudes in Developing Countries: Evidence from Cross-Country Surveys 151 2.1 Environmental Attitudes 151 2.2 Survey Evidence on Environmental Attitudes 152 2.3 Changes Over Time 154 2.4 Comparison with COVID-19 155 3 Factors Affecting Environmental Attitudes in Developing Countries 156 3.1 Carbon Emission Levels 156 3.2 Education 157 3.3 Political Orientation 158 3.4 Extreme Weather Events 159 3.5 Gender 159 3.6 Age 160 4 Environmental Performance in Developing Countries 160 4.1 Environmental Performance Index (EPI) Findings 160 4.2 Comparison with Developed Countries: Factors Affecting Environmental Performance 162 5 Changes in Individual Behaviors to Reduce the Effects of Climate Change 163 5.1 Change in Individual Behaviors 163 5.2 Changes Over Time 165 6 Conclusion 165 References 166 Armed Conflict Increases Elephant Poaching 167 Results 169 Discussion 171 Methods 172 References 176 Bioprospecting and Incentives for Biodiversity Conservation: Lessons from the History of Paclitaxel 178 1 The Medical Value of Biodiversity 178 2 Legal Changes Affecting Biological Innovation and Resources 180 3 Bioprospecting as a Mechanism to Protect Biodiversity? 181 4 Economists Weigh In 183 5 A Case Study Approach: The History of Paclitaxel 185 5.1 Paclitaxel: Discovery and Early Screening 185 5.2 Supply Chain Problems 187 5.3 The NCI: Bristol-Myers Squibb CRADA 188 5.4 Pacific Yew Harvesting Controversies 190 5.5 Searching for Substitutes 192 5.6 Paclitaxel Trademark and Pricing Controversies 193 5.7 Yew Harvest Under Open Access 195 6 Economic and Policy Implications 196 6.1 Economics of Bioprospecting: Some Reevaluation 196 6.2 Health Agencies Making Economic Policy Decisions 198 6.3 Substituting One Extinction Threat for Another 199 6.4 Using Lotteries to Fund Conservation 200 References 200 Part IV Public Economics 206 A Public Economist at a Public University 207 Reference 208 Peter Berck's Impacts on Gender Equity in Environmental Economics 209 Recycling Behavior and Convenience 211 1 Introduction 211 2 Background: Recycling Policies and the California System 212 3 Defining Convenience: Evidence From Two Surveys 214 3.1 AmeriSpeak Survey 214 3.2 Intercept Survey 214 3.3 Definition of Convenience 215 3.4 Close to Home 215 3.5 Open at Good Times 217 3.6 Short Wait Times 217 3.7 Diversity in Recycling Behavior 218 3.8 Change in Convenience Over Time 219 3.9 Survey Insights 220 4 Willingness To Pay for Recycling Options 220 4.1 Modeling Framework 221 4.2 Consumer Valuation of Recycling Method Attributes 221 4.3 Changes in CRV Policy: Stated Preference Elicitation 222 4.4 Changes in CRV Policy: Model Simulation Results 224 4.5 Changes in the Number of Recycling Centers: Model Simulation Results 225 4.6 Takeaways From Discrete Choice Model 225 5 Conclusion and Suggestions for Future Work 226 References 227 So You Want To Be Relevant: A Policy Analyst's Reflections on Academic Literature 229 1 Know Your Audience 230 2 What Would Other Disciplines Say? 232 3 Magnitudes Matter 233 4 Keep It Simple, But Not Too Simple 235 5 Humility 236 6 Relevance Is Possible 237 7 Conclusion 238 References 238 Challenging Conventional Wisdom in Defense and National Security 241 References 242 The Red Queen 244