Major International Environmental Agreements and Initiatives - Chronology

1872: The Swiss gov’t. proposed an international commission to protect migratory birds.
1900: Convention for the Preservation of Animals, Birds and Fish in Africa, which was signed in London by the European colonial powers with the intent to protect African game species, particularly to limit the export of ivory which was leading to severe hunting p ressure on the African elephant.
1900: European littoral states sign treaty to regulate transportation of toxic substances on the Rhine River.
1909: Canada-US Boundary Waters Treaty
1911: The North Pacific Fur Seal Commission was established by USA, Canada, USSR and Japan to regulate harvest of seals in North Pacific.
1918: US-Canada negotiate and sign the Migratory Bird Treaty Act, designed to protect bird species particularly waterfowl that seasonally migrate between the two nations.
1931: First international convention to discuss the regulation of commercial whaling, eventually led (in
1946) to the International Convention for the Regulation of Whaling and the establishment of the International Whaling Commission, a permanent body responsible for negotiating & setting policy re- the harvest and preservation of whales.
1940: Convention on Nature Protection and W ildlife Conservation in the Western Hemisphere.
1946: Founding of the United Nations and W orld Bank, centerpieces for an international effort to promote world peace and post-war reconstruction. T hese institutions subsequently played lead ing roles in international environmental cooperation, through the World Bank, UN-IMCO, FAO, UNDP, WHO, and later, UNEP and UNESCO.
1950: International Convention to Protect Birds
1954: International Convention for the Prevention of P ollution of the Sea by O il, signed in London, the culmination of 28 years of negotiations by Western European and North American nations.
1958: International Maritime Consultative Organization (UN-IMCO) established, assuming principal responsibility for negotiating international agreements on ocean pollution.
1962/69: Amendments to the International Convention on Oil Pollution.
1971: RAMSAR Convention on Wetlands of International Importance Especially as Waterfowl Habitat.
1972: UNESCO-sponsored Convention for the Protection of World Cultural and Natural Heritage, which designates W orld Heritage Sites.
1972: Oslo Convention for the Prevention of M arine P ollution by Dumping from Ships and Aircraft.
1972: Great Lakes Water Qaulity Agreement (US - Canada). Key agreements on marine pollution in the North Sea and E ast Atlantic.
1972: Stockholm-United Nations Conference on the Human Environment. Outputs: Stockholm Declaration of the UN Conference on the Human Environment: 26 principles, intended as a foundation for future developments in international environmental cooperation. Action Plan for the Human Environment: consisting of 109 recommendations for govt and intergovt action across the full range of environmental policy issues, ranging from species conservation, forests and atmospheric and marine pollution, to development policy, technology transfer and impact of environment on trade. Resolved to establish United Nations Environment Program (UNEP) and the Environment Fund.
1972: London Convention for the Prevention of Marine Pollution by Dumping of Wastes and Other Matter (restricts toxic & nuclear waste dumping at sea).
1973: International Convention for the Prevention of Pollution from Ships (MARPOL) (restricts release/dumping of oil, garbage, sewage, ballast waters, etc.).
1974: Paris Convention for the Prevention of Marine Pollution from Land-based Sources, intended to control land-based pollution to the North Sea.
1974: Helsinki Convention on the Protection of the Marine Environment of the Baltic Sea.
1975/80: Mediterranean Action Plans: control marine and land-based pollution.
1973: Convention on the International Trade of Endangered Species (CITES).
1974/84: First and Second UN Population Conferences: contentious events that, nonetheless, helped to focus attention and coordinate support for implementation of family planning programs in many countries.
1979: Convention on Long-Range, Transboundary Air Pollution (LRTAP). Negotiated between Canada, the US and European countries primarily in response to concerns about acid rain, this was the first major
international effort to regulate air pollution.
1980: World Conservation Strategy. Coordinated by IUCN/WWF/UNEP, this was a major effort sponsored by non-government agencies to promote national conservation programs in LDCs.
1982: UN Conference on the Law of the Sea (UNCLOS). Established 200 mile territorial jurisdictions over coastal waters.
1982: Whaling moratorium adopted by IWC.
1983: International Tropical Timber Agreement (formation of ITTO: Int. Tropical Timber Organization)
1985: Helsinki Protocol on the Reduction of Sulphur Emissions.
1985: Vienna Convention for the Protection of the Ozone Layer, established initial targets for gradual reductions in CFC production.
1987: Montreal Protocol (London Amendments, 1990) on Substances that Deplete the Ozone Layer, established specific time-tables for reductions and phase-out of CFC’s by the turn-of-the-century, and established financial mechanism (Ozone Fund) to assist LDCs and former Soviet Bloc nations in phase-out.
1987: Our Common Future published (Report of the W orld Commission on Environment & Development/Brundtland Commission)
1988: Intergovernmental Panel on Climate Change formed by UNEP & WMO.
1989: Basel Convent. on Control of Transboundary Movements of Hazardous Wastes and Their Disposal.
1990: Kingston Protocol on Specially Protected Areas and Wildlife in the Caribbean
1991: Protocol on Environmental Protection of Antarctica, established a moratorium on mineral and related exploration and development for 50 years.
1991: Canada-US Air Quality Agreement, reducing emissions that cause acid rain
European Union: Major progress on international environmental efforts, with 280 items of environmental
legislation ranging across a range of policy areas, including toxics, water quality, waste management, air
pollution, wildlife protection and noise pollution.
1992: Rio-United Nations Conference on Environment & Development. Outputs:
Rio Declaration: statement of key principles for environment & development
Agenda 21: detailed list of recommendations
Statement of Forest Principles (scaled down from Forest Convention)
Biodiversity Convention (signed by 153 countries, but not US)
Climate Change Convention
Global Environment Facility (GEF)
Established UN Commission on Sustainable Development to review progress of Rio efforts
1993: North American Commission for Environmental Cooperation, established as side agreement to North American Free Trade Agreement with the intent of addressing environmental problems and arbitrating related conflicts that arise through international trade between Mexico, US and Canada.
1994: UN Convention to Combat Desertification (particularly in Africa).
1994: 3rd International Population Conference, Cairo, established broad consensus over need to make women’s issues - health, education, employment, rights & empowerment - as central to concerns of family planning, fertility management and social development.
1995: Beijing International Conference on Women & Development
1996: Protocol to the 1972 London Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter
1997: International agreement to reduce the production, storage and use of land mines.
1997: Kyoto Protocol on the Reduction of Greenhouse Gases: Established first binding, numerical targets for reducing greenhouse gases.
1998: Rotterdam Convention on Prior Informed Consent for Trade in Hazardous Chemicals and Pesticides
1999: World Trade Organization meeting in Seattle crashed by environmental protests.
1999: Canada-US Pacific Salmon Treaty renewed
2000: Ozone Annex to the 1991 Canada-US Air Quality Agreement, reducing emissions that cause smog (especially NO-x)
2001: Cartegena (BioSafety-GMO) Protocol to UN Convention on Biological Diversity
2001: UN-Stockholm Convention on Persistent Organic Pollutants (DDT, PCBs, dioxin, furans)
2001: Bonn Framework Agreement for the Kyoto Protocol of the UN Convention on Climate Change
2002: Rio + 10: UN World Summit for Sustainable Development, Johannesburg
2005: Kyoto Protocol of 1997 comes into force
2006: Asia-Pacific Partnership on Clean Development and Climate
2007: UNFCC-Bali Conference on Climate Change: post-Kyoto road-map

Environmental Economics

I.    What is Environmental Economics?

Economics is the study of the allocation of scarce resources.

Environmental Economics undertakes theoretical or empirical studies of the economic effects of national or local environmental policies around the world. Particular issues include the costs and benefits of alternative environmental policies to deal with air pollution, water quality, toxic substances, solid waste, and global warming.

Environmental economics is distinguished from ecological economics in that it emphasizes the economy as a subsystem of the ecosystem with its focus upon preserving natural capital. One survey of German economists found that ecological and environmental economics are different schools of economic thought, with ecological economists emphasizing "strong" sustainability and rejecting the proposition that natural capital can be substituted by human-made capital.

Note that the theories of economics can be applied to any scarce resource, not just traditional commodities. Economics is not simply about profits or money.  It applies anywhere constraints are faced, so that choices must be made. Economists study how incentives affect people’s behavior.

Environmental and natural resource economics is the application of the principles of economics to the study of how environmental and natural resources are developed and managed.

Natural resources – resources provided by nature that can be divided into increasingly smaller units and allocated at the margin.

Environmental resources – resources provided by nature that are indivisible.

Natural resources serve as inputs to the economic system.  Environmental resources are affected by the system (e.g. pollution).

II.    Why Study Environmental Economics?

In general, prices reflect the relative scarcity of goods.        However, in environmental economics, markets, and thus prices, often do not exist.

What aspects of environmental and natural resource economics make it unique?

Market failures - When market failures exist, government intervention may be appropriate.

Dynamics - The decision to consume a good today typically does not affect the ability to consume it tomorrow.  However, the decision to use natural resources today does affect what will be available tomorrow.

Note that prices will influence this. Higher prices both provide incentives to conserve resources, encourage exploration for new sources, and the development of technologies to better obtain resources.

Irreversibility - Damage to natural resources has long-term effects.  For example, if the Grand Canyon were flooded, future generations would be unable to enjoy its beauty.  This is not as large a problem for normal consumer goods.

Linkages between the economic and ecological system -  An interdisciplinary understanding of the environment, political science, etc. necessary to be a good environmental economist.

III.    Key questions for environmental economics

What is the market failure? Typically, externalities are a problem.  However, we will also deal with other market failures. For example, imperfect competition leads to regulated utilities.

What type of intervention works best?  The problem in environmental economics is often that there is no market for environmental resources. Thus, one option is to create a market. However, economists realize that this is not always the best solution.

           

How to evaluate environmental programs?

Ideally, we need to know what level of environmental protection is desired. Economists focus on decisions at the margin: equating marginal costs and marginal benefits. The choice is not between clean air and dirty air, but rather between levels of pollution.

Note that this requires placing a value on environmental protection.

However, this valuation is complicated by the lack of market prices for environmental goods.

               

Efficiency versus equity

Finally, we need to remember that even when an efficient solution occurs, it might not be desirable. Recall that the fundamental theorem of welfare economics says nothing about the distribution of resources in an efficient solution.

Equity issues are also important. Policymakers need to consider how various groups will be impacted.

Solutions

Environmental regulations.

Under this plan, the economic impact has to be estimated by the regulator. Usually this is done using cost-benefit analysis. There is a growing realization that regulations (also known as "command and control" instruments) are not so distinct from economic instruments as is commonly asserted by proponents of environmental economics. E.g.1 regulations are enforced by fines, which operate as a form of tax if pollution rises above the threshold prescribed. E.g.2 pollution must be monitored and laws enforced, whether under a pollution tax regime or a regulatory regime. The main difference an environmental economist would argue exists between the two methods, however, is the total cost of the regulation. "Command and control" regulation often applies uniform emissions limits on polluters, even though each firm has different costs for emissions reductions. Some firms, in this system, can abate inexpensively, while others can only abate at high cost. Because of this, the total abatement has some expensive and some inexpensive efforts to abate. Environmental economic regulations find the cheapest emission abatement efforts first, then the more expensive methods second. E.g. as said earlier, trading, in the quota system, means a firm only abates if doing so would cost less than paying someone else to make the same reduction. This leads to a lower cost for the total abatement effort as a whole.

Quotas on pollution.

Often it is advocated that pollution reductions should be achieved by way of tradeable emissions permits, which if freely traded may ensure that reductions in pollution are achieved at least cost. In theory, if such tradeable quotas are allowed, then a firm would reduce its own pollution load only if doing so would cost less than paying someone else to make the same reduction. In practice, tradeable permits approaches have had some success, such as the U.S.'s sulphur dioxide trading program or the EU Emissions Trading Scheme, and interest in its application is spreading to other environmental problems.

Taxes and tariffs on pollution/Removal of "dirty subsidies."

Increasing the costs of polluting will discourage polluting, and will provide a "dynamic incentive," that is, the disincentive continues to operate even as pollution levels fall. A pollution tax that reduces pollution to the socially "optimal" level would be set at such a level that pollution occurs only if the benefits to society (for example, in form of greater production) exceeds the costs. Some advocate a major shift from taxation from income and sales taxes to tax on pollution - the so-called "green tax shift."

Better defined property rights.

If people living near a factory had a right to clean air and water, or the factory had the right to pollute, then either the factory could pay those affected by the pollution or the people could pay the factory not to pollute. Or, citizens could take action themselves as they would if other property rights were violated. The US River Keepers Law of the 1880s was an early example, giving citizens downstream the right to end pollution upstream themselves if government itself did not act (an early example of bioregional democracy). Many markets for "pollution rights" have been created in the late twentieth century.