May 8 2015

AN INTRODUCTION TO ECOLOGICAL ECONOMICS

Reviewed by Frank Ackerman, Massachusetts Institute of Technology

Seemingly intended for a specialized niche as a supplementary text in certain courses
9781566706841

An Introduction to Ecological Economics, Second Edition, by Robert Costanza, John H. Cumberland, Herman Daly, Robert Goodland, Richard B. Norgaard, Ida Kubiszewski, and Carol Franco, CRC Press, 2014

Ecological economics is an important field that typically receives little, if any, attention in standard economics textbooks. The title and authorship of this book suggest that it could fill that void, as a text coauthored by some of the best-known names in the field. Unfortunately, it may instead be an example of the problems of writing a book by committee; several of the authors have done more interesting and compelling writing in sole or dual-authored works.

This book opens with the statement that it “is not intended to be a stand-alone economics textbook, nor is it a comprehensive treatment” of ecological economics. Rather, it seems intended for a specialized niche as a supplementary text in certain courses. Issues are explained in the authoritative and somewhat simplified voice of a textbook, yet familiarity with the underlying material is often assumed. The bulk of the book consists of two long chapters, one on principles of ecological economics and the other on institutions and policies. These are generally better than the earlier material, though they suffer from some of the same defects. A two-page discussion of the 1997 paper by Constanza et al. on the total value of the world’s ecosystems mentions that it has been cited 5,000 times, that it has since been updated by the authors, and that it has been controversial among economists (the latter is an understatement). Nothing at all is said, however, about the content of those controversies.

The discussion of institutions and policies helpfully includes Herman Daly’s list of ten key principles. I would be delighted to endorse eight of them as cornerstones of a new economy. One of the exceptions is “stabilize population,” which seems to include enforcement of immigration laws – a topic fraught with troubling implications for racial and economic inequality in rich countries today, where a more nuanced and detailed discussion is needed. Finally, there is “move away from fractional reserve banking toward a system of 100% reserve requirements.” How did this make it into the top ten policy ideas of ecological economics? It proposes a very complex restructuring of the banking system, which is on no one else’s agenda, and does not address the important current questions of financial regulation.

Better alternatives are available. For a textbook on ecological economics, try Ecological Economics, Second Edition: Principles and Applications, by Herman Daly and Joshua Farley, or Ecological Economics, An Introduction, by Michael Common and Sigrid Stagl. And if colleagues ask you to join an enormous committee to write a book, just say no.


May 8 2015

GOVERNING THE NILE RIVER BASIN: THE SEARCH FOR A NEW LEGAL REGIME

Reviewed by Yasmin Zaerpoor, Massachusetts Institute of Technology

Providing a helpful review of the Nile Basin in relation to the political economy of transboundary water resource management

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Governing the Nile River Basin: The Search for a New Legal Regime, by Mwangi Kimenyi and John Mukin Mbaku, Brookings Institution, 2015

Governing the Nile River Basin: The Search for a New Legal Regime is a clear and timely primer for anyone interested in hydropolitics in the Nile Basin and, more specifically, in understanding the significance of the recently signed Declaration of Principles on the Grand Ethiopian Renaissance Dam or Tanzania’s recent ratification of the Cooperative Framework Agreement (CFA). The book’s eleven chapters provide a helpful desk review of the Nile Basin in relation to the political economy of transboundary water resource management including chapters on hydrology (Ch. 2), 1929 and 1959 Nile Agreements (Ch. 4), and recommendations for a future legal framework (Ch. 11).

Although the book clearly introduces the obstacles to cooperation in transboundary water management in the Nile Basin; at times, it adopts a less than objective tone when describing Egypt’s role in the Basin. While Egypt’s power in the Basin is indisputable, and most of the book’s more critical references to Egypt’s control in the Basin are references to other authors’ works, the ‘Egyptian perspective’ is not as well developed as the upstream perspective. That said, the authors do recognize Egypt’s near-complete dependence on the Nile and emphasize that any future basin-wide legal framework must recognize this as well.

The authors aptly point out that the ‘question in the Nile River basin today is not whether to change the status quo but how to do so.’ In the final chapter, they highlight several components of a process they believe will lead to the development of an effective basin-wide legal instrument. These include (i) recognition of Egypt’s dependence on the Nile; (ii) an inclusive and participatory process; (iii) ownership of the process by the Nile Basin states; (iv) basin-wide consultation to ensure the buy-in of all stakeholders (not just government representatives and technocrats); (v) adequate support (e.g. lodging, translators, etc.) for participants engaged in the process; and (vi) flexibility in the design of the legal instrument to account for uncertainty related to climate change.

It is not entirely clear, however, how their recommendations are different from the CFA drafting and negotiation process. In other words, by the end of the book, although the authors clearly illustrate the limited efficacy of the CFA as a basin-wide legal framework in the absence of Egypt and Sudan’s support, they do not present a very clear or strong case for why their recommendations would lead to a different outcome. Given the very recent developments in the Nile Basin (which occurred after the book was published), it would be interesting to hear the authors’ perspectives on how, if at all, the momentum for cooperation catalyzed by recent events could be used to renew the Basin states’ commitment to the CFA process. After ten years of negotiation, it would be a shame to abandon the CFA altogether.

 


Sep 12 2014

THE FUTURE IS NOT WHAT IT USED TO BE: CLIMATE CHANGE AND ENERGY SECURITY

Reviewed by Mike Gunter, Jr., Rollins College

 A thought-provoking analysis of the rather pessimistic prospects for dealing effectively with climate change and energy security

Jorg Freidrichs2

The Future Is Not What It Used To Be, by Jörg Friedrichs, MIT Press, 2013

International development scholar Jörg Friedrichs offers a thought-provoking analysis of the rather pessimistic prospects for dealing effectively with climate change and energy security. Arguing our industrial society is inherently transitory, Friedrichs goes beyond other recent analyses on climate change politics, spelling out in his sixth chapter the “moral economy of inaction.” Such inaction prevails thanks to the four obstinate obstacles of free-riding with collective action problems, psychological coping with seemingly intractable threats, and the discount factors of both time and space. This follows the logic of David Hume (1739) that the more distant a threat is, the less one cares.

After introducing his topic and discussing the links between climate change and energy scarcity in his first two chapters, chapters three and four delve into an intriguing set of case studies. With its focus upon climate change, the second case study in chapter three contrasts the medieval Norse settlements of Iceland and Greenland during the Little Ice Age (pp. 67–71) and makes a convincing argument that settlers in Iceland were more flexible then their Greenland brethren, adjusting agriculturally and becoming more accomplished fishermen.

Similarly, chapter four offers two case studies focusing upon energy scarcity. The latter study, which compares the Hermit Kingdom in North Korea to the Castro regime in Cuba, is more interesting. Both communist regimes were hurt by the loss of Soviet oil subsides at the end of the Cold War. However, while hundreds of thousands died from hunger in mid-1990s in North Korea, those in Cuba exploited the social capital offered by family, friends, and neighbors and survived.

Friedrichs next prescribes four solutions for our twin threats including lower energy consumption, better energy efficiency, the switch from fossil fuels, and carbon capture and storage. At the same time, he takes into account realistic limitations. The rebound effect, or Jevons paradox, for example, limits efficiency as there is considerable risk it will not lead to lower consumption, but will rather, because of reduced costs, actually encourage higher consumption.

Finally, despite its numerous strengths, the book falls short in the fifth chapter, a critique of the struggle over knowledge about climate change and peak oil. While Friedrichs is certainly correct that our knowledge base is flawed, one might take issue with his analysis as to why. Regarding climate in particular, Friedrichs gives the so-called skeptics too much credit. Mainstream climate scientists are labeled as alarmists while skeptics are assigned their preferred choice of terminology (instead of the deniers label) simply for the reason that they “openly talk about climate change” (p. 129).

Friedrichs justifies this reasoning by saying that the deniers label should only be reserved for those who avoid the issue altogether, but in doing so cedes significant rhetorical power to skeptics in terms of agenda setting. Additional references to skeptics as typically less published and less cited than peers (p. 133) is a gross understatement and there is a lack of attention to their financial connections to the fossil fuel industry.


Sep 10 2014

CLIMATE CHANGE ADAPTATION IN PRACTICE: FROM STRATEGY DEVELOPMENT TO IMPLEMENTATION

Reviewed by Danya Rumore, Massachusetts Institute of Technology

The book fails to provide a cohesive message or specific take-aways

Climate Change Adaptation in Practice: From Strategy Development to Implementation, Wiley-Blackwell, 2013

For those working in the field of climate change adaptation, the fundamental question is, “What does effective adaptation look like in practice?” We have many theories and ideas about how to help communities and ecosystems become more resilient; yet, just how these approaches will play out remains to be seen. Hence, it was with quite a bit of curiosity—as well as some skepticism—that I picked up Climate Change Adaptation in Practice.

The book draws together diverse case studies from the European Climate Change: Impacts, Costs, and Adaptation in the Baltic Sea Region (BaltCICA) project. The chapters, written by a range of academics and practitioners, review case studies ranging from efforts to support participatory adaptation decision-making in Kalundborg, Denmark, to ways of modeling climate change effects on groundwater in Hanko, Finland.  In so doing, the book seeks to illuminate a wide variety of technical and political approaches to preparing for and managing climate change risks.

While it does provide a snapshot of early adaptation efforts, possible technical approaches, and various engagement strategies, the book’s usefulness is limited.  The cases are largely descriptive, devoid of empirical evaluation. Although it is written in a scholarly style, the cases offer little by way of theoretical development. Additionally, like many scholarly collections, the book fails to provide a cohesive message or specific take-aways. Given that adaptation scholarship and practice are still in their early stages, a descriptive collection like this may prove useful to those looking for information on what is going on in communities worldwide, particularly the Baltic Region of Europe; however, beyond this, it is not clear that Climate Change Adaptation in Practice makes an important contribution to the field.


Jul 4 2014

WATER – ITS CONTROL AND COMBINATION: MULTIFUNCTIONALITY AND FLOOD DEFENCE by Monica Altamirano, Rik Jonker, and Jurgen van der Heijden

Reviewed by Frans Evers, Dutch OECD National Contact Point, Netherlands

Combining land use and water management objectives is the key to sustainable development

Water – its Control and Combination: Multifunctionality and Flood Defences, by Monica Altamirano, Rik Jonker, and Jurgen van der Heijden, Osborne/Deltares, June 2013 (Google the title for free download of the recent English version)

A road on a dyke with sheep on the slope beside it. Can this age-old combination inspire the development of modern flood defenses? Think of dykes producing renewable energy, or serving as nurseries for new plantlife. A good reason to make combinations like these is their sustainability. Three Dutch experts present and analyse a collection of almost thirty examples, mostly from the Netherlands. Although meant as a factual report, this book puts forward a message deserving extra thought.

An area is set aside for water storage to prevent flooding of a nearby city. This area is also a place for nature conservation, water treatment, open city and recreation. Developing and using the same land for multiple purposes saves space, time and money. Yet, however interesting, this isn’t what makes these combination special.

Authorities are used to optimizing each function separately; for instance, creating a basin for water storage as wide and deep as possible at the lowest possible cost. Combining functions sharing can bring the cost down, but what is special is how multiple functionalities can optimize one another. Water storage helps nature, and nature helps water treatment. Such combinations enhance spatial quality, resulting in a better place for recreation. Revenues from recreation can be devoted to nature conservation.

Using one function to optimize others provides a unique economic force that has always been there, but has yet to be fully explored. The authors prove with almost thirty examples that such an approach contributes to sustainable development. This is an inspiring book for water managers who want to go beyond traditional solutions.