Environmental Economics

Environmental Economics 1

ENVIRONMENTAL ECONOMICS

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Environmental Economics 2

Question One: How can the concept of domestication be used to analyse the development of

the human agricultural economy? Compare how the concept is used by Diamond (2002)

and how it could be applied to the themes brought up by Smil (2004; 2011). Focus on

important changes in agriculture and its environmental effects.

Diamond (2002) affirms that plant and animal domestication is the most crucial

development in human history. Accordingly, Diamond (2002) reveals that domestication led to

two consequences; changes in human behavior and changes in plant and animals. However,

domestication itself involved the selection of wild plants and the taming of wild animals. It also

involved the broadening of diets that included the development of various levels of food choices.

Therefore, the concept of domestication can be used widely in the analysis of the development of

the human agricultural economy. As Thrall, Bever and Burdon (2010) state, the evolutionary

applications allowed humans to consciously and unconsciously select plants and animal species

that would later form part and parcel of the development of modern agriculture.

The concept of domestication has been extensively analyzed by Diamond (2002), who

states that the emerging agricultural lifestyles led to changes in both plants and animals. With the

emergence of competitive advantage of the process, human beings were able to transit from the

lifestyle of hunting and gathering to a more conventional food production system. Accordingly,

Diamond (2002) infers that an extensive selection process was initiated to identify the animal

trait that affected their desirability to human beings. As such, animals with same ancestral

species were domesticated for various purposes.

Furthermore, diamond explains that only very few wild species were domesticated due to

various obstacles that existed such as poisonous plant conditions, bad animal habits, and

viciousness as well as better peripheral visions. Another obstacle proved to be diet, slow growth

Environmental Economics 3

rate, reluctance to breed in captivity as well as nasty dispositions. Again, Diamond (2002)

explains that the nativity of wild species of animals also proved to be an important aspect that

was used in domestication, and this included the existence of fertile and climatically favorable

regions that could support changes in both the plant and animal lives. However, Diamond also

notes that domestication required locations that shared same latitudes and seasonalities as they

supported evolutionary changes and adaptations of the domesticated species of plants and

animals (2002).

Accordingly, Smil (2004; 2011) suggests that there is the need for more efficient

fertilizing that comes with various forms of improvement such as repeated soil testing methods

that can be used to support domestication processes. Through the effective fertilizer application

process that utilizes advanced satellite and computer technologies, Diamond’s concept of

domestication could have been increased as the selected plant species could be grown in different

locations through the elimination of trial and error. Soil testing could have allowed the human

beings to determine which crops could grow in which environments, and this would have

reduced the cost and time for domestication.

Smil (2004; 2011) also suggested that proper timing for fertilizers saves nitrogen and can

be done by identifying periods of greatest nitrogen needs. Such a technology would have allowed

Diamond’s concept of domestication to prosper with limited agricultural lands.

Besides, Smil (2004; 2011) states that three solutions would improve plant populations.

They include the direct incorporation of nitrogen-fixing genes into the plant genomes,

developing artificial symbiotic systems between nitrogen-fixing prokaryote and plants, as well as

the development of transgenic crops (Smil, 2004; 2011). Ideally, such technologies would have

improved the rate of domestication and allowed Diamond’s concept to be utilized in almost all

Environmental Economics 4

locations. Through these developments, the early man would have been capable of selecting

plants species for crop production and inducing in their genomic makeup the ability to resist

adverse conditions. In the long run, food production would have increased exponentially.

Diamond also suggests that domestication of plants and animals with a further

improvement in agriculture brought about certain changes in human lives and the environment as

a whole. The emergence of metabolically thrifty genotypes have predisposed human beings to

various disease conditions such as diabetes mellitus, and the slat conserving genotypes have led

to hypertensive conditions (Diamond, 2002). Also, other genotypes predispose to various other

conditions such as lipid disorders. As such, Diamond suggests that the gene frequency changes

that result from domestication processes will only lead to more disease conditions.

However, Diamond affirms that new domestication processes can only be achieved when

human beings recognize the value of modern science and use it to improve on the difficulties that

had been previously med during the early attempts at domestication.

Question 2: What driving forces and effects do Williams (1990) and Meyer and Turner

(1962) see as the most important to explain global forest history 1650-1980? Use the

concept of externalities to analyze environmental effects and conflicts of forestation and

deforestation.

One important driving force that has been used to explain the changes in global forest

history from 1650-1980 is the ever increasing human population that significantly needs

agriculture for sustenance. According to Williams (1990), the great European forest colonization

witnessed the clearing of woodlands to create farms. Accordingly, the subtropical forests were

altered immensely through the purposeful introduction of new crops such as tea and coffee that

required huge tracts of land. Mayer and Turner (1962) also concur with this notion, stating that

Environmental Economics 5

the total percentage of cultivated land in the world increased exponentially to 466% just from

1700 to 1980. As such, with the accelerated expansion of the cultivated land, environments that

were rainfed have been consumed, in addition to tropical forests, grasslands and even the

wetlands that continue to experience a lot of pressure due to the agricultural expansion.

Interestingly, the move to cultivate more land has led to great deforestations with reduced tree

cover, a change that is believed to be an externality cost. Besides, Meyer and Turner (1962)

affirm that over 20.00x 10 6 km 2 of the formerly cultivated land has eventually been lost

permanently as part of the externality cost brought about by agriculture.

The second driving force that led to changes in the forest history stem from the

emergence of industrialized states which is depicted through technological change. With these

changes came a more intensive need to exploit the forests to improve production as explained by

Williams (1990). The industrial lumbermen began to commercialize trees that were extensively

cut for logs and to maximize returns and minimize costs; these individuals often left trash behind

in the forests that substantially led to the widespread forest fires which consumed more forest

cover that could have been imagined. The industrialization also led to the development of cheap

water transport, especially through log-driving. In addition to this, newer technologies witnessed

the emergence of tractors and mills which led to a greater cutting capacity especially after the

1870s (Williams, 1990). Meyer and Turner (1962) affirm that with the industrialization came a

need to expand the settlement. These settlements supported human habitation, industry, and

transportation, and required the alteration of land surfaces to support buildings and pavements.

Eventually, urban areas and settlements managed to occupy a significant portion of the earth’s

surface, with Meyer and Turner (1962) approximating the global area of urban at 2.47x 10 6 km

Environmental Economics 6

The third most important factor to change socioeconomic organization that is penned on

grassland/pasture. It is interesting to note that the world area of grasslands has not changed

significantly due between the 1700s and today (Meyer and Turner, 1962). However, the subtle

changes that have been witnessed emerge from their conversion to cropland as well as

deforestation. However, with the human trends, desertification has become a significant problem

that has impacted these grasslands, and Meyer and Turner (1962) assert that 6% of the world has

become a human-made desert. Williams, on the other hand, asserts that the changes in forest

cover have been as a result of clearing to create pastures for cattle ranching for beef production.

Even though the changes witnessed in the forest history have been especially good for

supporting human life, they have had their externality costs which range from desertification to

increase carbon in the atmosphere and global warming. Meyer and Turner (1962) state that the

human activities have contributed to the trace species of gases in the atmosphere that stem from

industrial metabolism. These include the greenhouse gases, CO2 from forest clearance and soil

carbon oxidation as well as the N2O from soils and fertilizers have become an externality cost

that is beyond imagination. Together, these trace elements and gases have led to the ozone

depletion. Meyer and Turner (1962) also comment on the hydrological changes due to the

alteration of land cover. With the severe depletion of groundwater aquifers, human beings have

opted for irrigation which also contributes to the depletion of downstream rivers.

Question Three: Describe the four ideal types of property regimes detailed by Bromley

(1991). Give at least one example on how this topology can help us better understand the

global transformation during the 19

and 20

century

Bromley (1991) describes four major resource management property regimes, which are

essential in understanding the policies in environmental economics. These four regimes include;

Environmental Economics 7

the private property, state or public property, common property, and non-property or open access

regimes. In a public property regime, the control and ownership over land usage lies with state

and, decisions on allocation are solely made by the state. Individuals use the natural resources

such as land, and only at the discretion of the state (Bromley, 1991). The state is generally in full

control of land allocation and distribution. The control can be done direct through state agencies,

or rights over land use can be leased over a certain period of time to certain individuals or groups.

Examples of state property regimes national parks, natural forests, military reservations among

others. Normally the management of such resources rests on the state, and the public uses the

resources at the control of the government. According to Bromley (1991), the state property

regimes convey no long-term requirements in terms of the security of the tenure.

Private property regimes

Bromley (1991) emphasizes that the private property is not just individually owned, but

even corporate property is classified as private property. For private property regimes, the full and

absolute control is bestowed on the owner, and therefore, any decision related to the use of the

natural resource such as land hence, lies with the rightful owner. The owner also makes

management decisions, which may not be influenced by any other party. Bromley, also states that

the private property regimes is mostly preferred to any other. It is common, because of reasons

such as when the owners of private property commit to manage the resource well and, produce

what is valued and required by the society. The unique and effective management, makes the

private property to be preferred most to others. Most agricultural cultivation takes place in private

property, but benefits the entire public. However, certain activities limit the extent of private

property regimes, for instance when landowners start cultivating land for various activities, the

land which was previous private property slowly seizes to be private and therefore becomes

Environmental Economics 8

common property. Bromley asserts that private property regime is moderated by the extent to

which the property regime is utilized. In terms of economic socialization, the private property is

socially compelling and socially useful, as long as it remains an industry inducement and not

substitute (Bromley, 1991).

Common Property Regimes

According to Bromley (1991), common property regime is tied to the private property

regime. It represents private property for group of cooperatives which collectively gather resources

for common use. Other than the cooperatives, the individuals also have duties and rights in a

common property. Common property regimes are majorly group owned, with registered social

units which may manage the property. Such social groups can be in form of tribes, clans among

others, which serve common interests of the people. An example is farmland ownership in Africa

during the colonial times, when most resources were under the customary tenure: individuals

would cultivate the plots, and other people would have unrestricted rights for use. The management

authority of cooperative/group property regimes is vested in particular groups or cooperative, and

the leadership of the group leads on the property management.

Open access regime

This is another regime of the property rights as listed by Bromley. In this regime, there is

no property because of the absence of property rights. Hence the saying that “Everybody’s property

is nobody’s property” do not apply in this case, rather it can be stated that everybody’s access is

nobody’s property (Bromley, 1991). This, therefore means that anyone can have access to natural

resources, such as land and, which therefore, implies that, in that case the land is nobody’s

property. No individual has exclusive control over open access land property rights. These open

access can include resources like fisheries among others. Economically, open access property

Environmental Economics 9

rights over resources like land, build individuals economically equal, this is to say that if people

have same rights of access, they are subject to receive fairness in resource distribution. In that

sense, there will be a boost in individual economic growth. Agricultural economics in open access

regimes, would do better than that in private property, and even public property regimes; at times

there can be biasness in public property regime in terms of resource allocation and distribution.

The four types of property regimes can help us better understand the global transformation

of land use in several ways. First, it is very important that people understand the property rights in

existence, and their varied applications. During the 19

century, land use was majorly on open

access and common property regimes, where the resources were shared communally, and this

boosted the environmental economic developments. A number of changes have since taken place,

in regards to land use, which saw some public property resources being privatized and converted

into private property regimes, in bid to solve problems related to the environment policies. A

practical example where the topology can be of help is the in resource management. For effective

and efficient resource management, the knowledge of property rights is very essential and, an

important tool in managing land use.

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List of References

Bromlye, D. (1991) Environmental and Economy: Property Rights and Public Policy. Blackwell Publishers

Diamond, J 2002, 'Evolution, consequences and future of plant and animal domestication',

Nature, 418, 6898, p. 700-707.

Meyer, W, & Turner II, B 1992, 'Human Population Growth and Global Land-Use/Cover

Change', Annual Review of Ecology & Systematics, 23, p. 39-61.

Smil, V. ‘Nitrogen and civilization: managing the nitrogen cycle.’pp 199-221.

Thrall, P. H., Bever, J. D., & Burdon, J. J 2010. ‘Evolutionary change in agriculture: the past,

present and future.’ Evol Appl, 3, 5-6, pp. 405-408.

Williams, M. ‘Forests.’ Transformations of the Global Environment. pp 179-201.

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