towards a political economy approach to the convention on biological diversity international conventions are seldom reviewed in the literature devoted to environmental policy instruments however coordination is needed at a global level for global environmental problems characterised by scientific controversies uncertainty irreversibility long term impacts economic and geopolitical dimensions the convention on biological diversity is a good illustration in this regard the rules it promotes are clearly inspired by mainstream economics it has therefore been celebrated as a textbook example of sound environmental policy however its success has been limited so far and its position within the international conservation regime is challenged we argue that an alternative analytical approach to environmental global policies is needed and that the french theories of conventions and regulation open up promising prospects in this respect

the new institutional economics this outstanding book presents new original contributions from some of the world s leading economists including ronald coase douglass c north masahiko aoki oliver e williamson and harold demsetz it demonstrates the extent and depth of the new institutional economics research programme which is having a worldwide impact on the economics profession

climate change uncertainty irreversibility and the precautionary principle this paper begins with a critique of the option value argument used by economists to explain and justify the precautionary principle the argument is shown to misrepresent both uncertainty and irreversibility an alternative justification of the precautionary principle is discussed under conditions of keynesian uncertainty and irreversibility interpreted in terms of incommensurability recent formal decision theories under keynesian uncertainty are reviewed and their limitations explored with particular reference to the insights that decision theory can bring to understanding the precautionary principle throughout the decision problems under consideration are those faced by climate change policy makers copyright oxford university press

bio cooperation and the benefits of crop genetic resources the case of mexican maize abstract concern for equity and conservation has prompted the creation of bio prospecting contracts for biological resources from less developed countries one potential type of contract is between farmers who provide crop genetic resources and seed companies or agencies that use these resources theoretically bio contracts will reward peasant farmers for preserving genetic resources and balance equities between farmers and seed companies using maize from mexico as a case study this paper concludes that contracting is problematic on both efficacy and equity grounds bio cooperation is presented as an alternative institutional support and licensing agreements that support human capital development are proposed as alternatives

beyond environmental and ecological economics proposal for an economic sociology of the environment the vast majority of approaches in environmental economics attribute the current ecological crisis to the fact that from its inception the industrial economic system was founded on premises that made no allowance for the limits and regulatory functions of ecosystems according to these approaches we must therefore remedy the historical error of dissociating the fields of economics from the natural sciences notably by restoring the links between these two disciplines distinguishing themselves from the two historic approaches environmental economics and early ecological economics the emerging institutionalist schools evoke not only the constructed nature of the environmental crisis generally viewed as an objective fact by both traditional environmental economists and ecological economists but also the socially constructed nature of the economy and its institutions an actionalist regulationist approach allows us to formalize this twofold construction and lays the groundwork for a new economic sociology of the environment in which the technical modalities of ecological modernization are studied in light of social relations with the understanding that social relations are also affected by the materiality of the environmental crisis this actionalist regulationist approach also lends itself to anticipating likely trajectories in the future ecological modernization of economic institutions

agglomeration and clusters tools and insights from coagglomeration patterns geographic clusters have received first order policy attention despite our limited academic knowledge about them i explain how coagglomeration patterns of industries can inform the analysis of clusters by allowing us to better delineate them to explore the causal mechanisms underlying them and to more finely assess their impact on various economic outcomes

bioeconomics and post keynesian economics a search for common ground abstract this paper is concerned with the links between two schools of economic thought which challenge the neoclassical synthesis bioeconomics refers to that school of economics stressing the fact that the human species is a part of the larger biosystem of the planet and ultimately subject to the same laws and limitations as other life forms post keynesian economics is a specific school of macroeconomics stressing the fundamental ideas of keynes marx and kalecki concerning uncertainty the nature of production and the role of government in economic affairs bioeconomics and post keynesian economics have much in common in terms of their methodological framework their emphasis on production rather than exchange and their interpretation of the social rate of discount a potential area of conflict between the two schools is their attitude toward economic growth the areas of commonality between the two schools are discussed and a research and policy program which combines the insights of both approaches is suggested

trade related intellectual property rights north south trade and biological diversity in the trade related intellectual property rights trips agreement of gatt 1 january 1995 it was agreed to harmonise intellectual property rights ipr on an international level and to include the option for patent protection for all life forms such as plants and animals article 27 3 b patenting however leads to considerable conflicts between international trade and protection of biological diversity which can be illustrated by the example of seed production we make use of a three stage game to show the strategic incentives for implementation of two different property rights regimes patents and farmers rights on competition and biodiversity we show that the southern government has no incentive to acknowledge international patents even if farmers rights do exist the northern producer will always dominate in the output market if patents are applied but without farmers rights biodiversity will not be maintained by the southern government thus total payoff of the northern firm is maximized if both ipr regimes are implemented however if only farmers rights are valid biodiversity will be maximal

valuing biodiversity for use in pharmaceutical research biodiversity prospecting has been touted as a mechanism for both discovering new pharmaceutical products and saving endangered ecosystems it is unclear what values may arise from such activities however evidence from transactions is incomplete and existing theoretical models are flawed we calculate an upper bound on the value of the marginal species even under favorable assumptions this bound is modest slightly modified assumptions lead to drastically lower estimates we extend our findings to the value of the marginal hectare of habitat and find that the incentives for habitat conservation generated by private pharmaceutical research are also at best very modest

the value of biodiversity markets society and ecosystems the value of biodiversity is discussed at different levels including market value non market values to humans and the value of biodi versity to ecosystems the main conclusion is that although market exchange values of environmental services may be used to justify biodiversity protec tion measures it must be stressed that exchange value constitutes a small portion of total biodiver sity value the total value of existing biodiversity is largely unknown but indications are that it is essen tial to human existence the various levels of biodi versity value point to the need for a hierarchical and pluralistic methodology to determine appropri ate policies for its preservation jel q21 i introduction among ecologists there is a general con sensus that biodiversity1 is of critical impor tance to the health of ecosystems and even for the long term survival of the human species there is also a consensus that bio diversity is being lost at a rate which is a cause for concern 2 economists on the other hand generally view biodiversity as just an other good which is to be placed in the basket of market choices just as any other the discussion of the specifics of biodiver sity policy has been unsatisfactory partly because of the different meanings of the word value used by economists and ecolo gists many ecologists fail to understand the logic of market allocation and why biologi cal resources are used in seemingly irra tional ways many economists fail to ap preciate the narrowness of the concept of economic value as indicated by relative prices determined by market exchange fol lowing anderson 1966 and brown 1984 the discussion below considers economic measures of value to be species of the genus assigned value which belongs to the family value many biologists and paleontologists be lieve that we are at a critical point in the history of the human species and perhaps even in the 600 million year history of com plex multicelled life on earth if the paleon tologists and biologists who study the phe nomenon of mass extinction are correct the current human induced mass extinction may be of the same order of magnitude as the five other major extinction episodes which destroyed between 20 and 96 percent of existing species on the planet ehrlich and ehrlich 1992 ward 1994 wilson 1992 we are living in a truly remarkable period in earth s 41 billion year history the valua tion decisions our species has made in the recent past and will make during the next few decades will determine the fate of life on earth for the next tens of millions of years it is critical to clarify the language and concepts we use to estimate the value of biodiversity and thus policies leading to its destruction or preservation the importance attached to the issue of biodiversity preservation necessarily in volves ethical judgments about duty to fu ture generations and responsibility toward the nonhuman natural world although in dividuals hold a variety of conflicting beliefs about human responsibility to the natural world this does not mean that policy choices

issues of paradigm ideology and democracy in sustainability assessment does the challenge of sustainable development sd have implications for our approches to decision making and evaluation do we need specific sustainability assessment models sams and if so what

from bioprospecting to reflexive governance in this paper i evaluate the contribution of new institutional economics to reflexive governance in the field of bioprospecting my hypothesis is that the design of governance arrangements that are both efficient and legitimate necessitates taking into account the reflexivity of the actors on the proposed institutional design in considering this hypothesis i apply current theoretical insights from new institutional economics as developed by oliver williamson and douglas north to the issue of complex contractual relationships in the field of bioprospecting building on these insights i propose some means for ameliorating the current proposals for institutional framing of the contractual relationships d 2005 elsevier b v all rights reserved

an institutional analysis of methods for environmental appraisal abstract this paper focuses on a set of issues when choosing between methods for environmental appraisal approaches like cost benefit analysis contingent valuation multicriteria analysis and deliberative methods are based on very different assumptions concerning the characteristics of environmental resources the capacities of the individuals involved and the role the methods play in framing the process the present paper views environmental appraisal methods as institutional structures they are seen as rules concerning a who should participate and in which capacity b what is considered data and which form data should take and c rules about how a conclusion is reached specifically the choice of method defines the logic of the appraisal process and next influences the output while cost benefit analysis is based on the assumption of individual rationality deliberative methods assume that individuals can act according to social rationality the first part of the paper is devoted to clarifying what institutions are and their role in the valuation process second the main features of environmental or ecosystem services and the demands they raise for decision making are described a general framework for evaluating appraisal methods is then developed finally this structure is elaborated in more detail as a basis for deciding over the choices of methods in the case of evaluating ecosystem services a set of unresolved issues are identified especially related to how the choice of appraisal methods themselves should be instituted

aviation lock in and emissions trading mainstream economists tend to take a positive view of the role that markets play in solving environmental problems for them environmental problems arise because of missing markets and require the generation of new markets internalising externalities and allowing agents preferences to be registered properly in or through the market this paper provides an illustration of how misguided this basic approach to environmental problems can be specifically the focus of the paper is upon the problem of aviation emissions and the policy solution most prominently advocated to mitigate them emissions trading adopting this focus shows the limitations of a pivotal though largely unacknowledged assumption of mainstream perspectives on environmental problems namely that all emissions and indeed costs are assumed to be equivalent in other words it does not matter how particular emissions come about or what the long term structural conditions are that are faced by any particular emitter however once a focus upon dynamic interdependencies and trajectories of systems is adopted rather than the usual preoccupation with short term maximisation behaviour it becomes clear that in the case of aviation at least emissions trading is most likely to exacerbate an already worrying problem copyright oxford university press

the convention on biological diversity and agriculture implications and unresolved debates1 summary the convention on biological diversity addresses two controversies that surround plant genetic resources pgrs one debate has been over property rights governing pgrs and the distribution of benefits from their use the second has been over the adequacy of measures to maintain crop genetic diversity this paper examines how these two debates are linked and reviews previous multilateral attempts to address them the convention signals wider international acceptance of stricter property rights over pgrs and the need for multilateral assistance for pgr conservation however current proposals to implement the convention appear too limited in scope to achieve their stated conservation objectives while several areas of controversy remain these include debates over i intellectual property protection for biological inventions ii control over pgrs in international gene banks iii the international biosafety protocol regulating biotechnology iv mechanisms to finance pgr conservation and v the allocation of funds between in situ and ex situ conservation q 1998 elsevier science ltd all rights reserved

opportunism and ngos entrepreneurship and green north south transfers abstract through the lens of entrepreneurship this paper applies the new institutional economics to examine two case studies of environmental nongovernmental organizations ngos in latin america to clarify their political economic roles southern ngos that rely on northern donors are viewed as entrepreneurial economic entities producing international public goods these nonprofit ngos take their place alongside for profit firms as contributors to economic production employment institutional innovation and technology transfer the theoretical framework proposed assumes that self interested behavior coexists with loyalty commitment and altruism as well as opportunism

technology transfer licensing contracts and incentives for further innovation technology licensing is common in agricultural and natural resource sectors an important characteristic of technology licenses is that they provide incentives for further innovation on the part of the buyer this paper develops a risk sharing model to analyze how risk preferences and expectations about further innovation possibilities alter technology payments and the incentives for complementary local innovation higher buyer risk aversion which is associated with lower fixed payments reduces the technology buyer s level of innovation sellers are generally better off when innovation is anticipated but buyers are generally better off when innovation is unanticipated although less innovation may be realized

relative and absolute scarcity of nature assessing the roles of economics and ecology for biodiversity conservation abstract our aim in this essay is to identify and analyze some of the difficulties with interdisciplinary integration of economic and ecological contributions to the study of biodiversity loss we develop our analysis from a widely accepted definition of economics which is based on the concept of scarcity taking a closer look at this notion we find that economics actually limits itself to a very particular aspect of scarcity which we denote as relative scarcity we describe in what respect the economic approach towards biodiversity is based on this notion and also reflect on the specific understanding of the relation of humans and nature behind the economic approach we then turn to absolute scarcity as another notion of scarcity and show that this is not within the scope of economics but has been a theme of ecology and ecological economics we describe in which way ecological and ecological economic approaches towards biodiversity are based on the idea of absolute scarcity and also reflect on the specific understanding of the human nature relationship behind this notion of scarcity against this background we discuss the roles of economics and ecology for nature conservation we conclude that the interdisciplinary integration of ecology and economics requires a philosophical underpinning and suggest a framework for further research

the poverty of money marxian insights for ecological economists abstract karl marx s philosophical political and sociological analysis of the workings of capitalism provides insights regarding the character of monetary value price and the role of the market that are relevant to ecological economists ecological economists are divided over the utility of pricing components of ecological systems and the potential role of the market in achieving ecologically sustainable societies in the marxian influenced socialist movements of the 19th and 20th centuries similar issues were raised by those preoccupied with organising state policy and manipulating the market to achieve social justice for example at particular points in the russian and cuban revolutionary processes the potential and limitations of monetary pricing and market exchange were debated in a heated and detailed way in as much as ecological economists hold certain interests in common it is worth reflecting on marx s view of the human role within nature and analysing the discussions and experiences of marxian experimenters in social transformation that relate specifically to exchange

the identity of ecological economics retrospects and prospects the paper first reveals the relevance of ecological economics in the time of a triple crisis ecological social and economic and promotes it as a distinct paradigm comprised of two interconnected and interdependent aspects the qualitative framework within which it operates and the quantitative models and techniques it uses to observe ecosystem resilience measure progress towards sustainability and evaluate policies while acknowledging the progress that has so far been made the paper argues that divergences in understanding the meaning and content of ecological economics hinder its effectiveness and influence on real world policy making and calls for a unified framework as a common ground that would strengthen the field and direct research the implication of this position then follows pointing out what has so far been missing from the ecological economics analysis and what should be done for it to become a more problem oriented and policy relevant alternative copyright oxford university press

using experiments to evaluate performance standards what do welfare to work demonstrations reveal to welfare reformers this paper examines how experimental demonstrations can be used to inform planners about the efficacy of social programs in light of a performance standard the problem is illustrated by considering the situation faced by state governments attempting to design programs to meet the new federal welfare to work standards data from experimental evaluations alone allow only limited inferences about the labor market outcomes of welfare recipients combined with prior information on the selection process however these data are informative suggesting either that the long run federal requirements cannot be met or that these standards will only be met under special circumstances

the nature of heterodox economics heterodoxy serves as an umbrella term to cover the coming together of separate projects or traditions in answering the question what distinguishes heterodoxy from the orthodoxy the author argues that matters of ontology are central in answering the question how are the various traditions that make up the modern heterodoxy to be distinguished from each other the author defends criteria other than varying commitments to specific substantive theories policy measures or techniques or basic units of analysis

the corporate social performance financial performance link strategic managers are consistently faced with the decision of how to allocate scarce corporate resources in an environment that is placing more and more pressures on them recent scholarship in strategic management suggests that many of these pressures come directly from sources associated with social issues in management rather than traditional arenas of strategic management using a greatly improved source of data on corporate social performance this paper reports the results of a rigorous study of the empirical linkages between financial and social performance corporate social performance csp is found to be positively associated with prior financial performance supporting the theory that slack resource availability and csp are positively related csp is also found to be positively associated with future financial performance supporting the theory that good management and csp are positively related 1997 by john wiley sons ltd

private or public school advantage evidence from 40 countries using pisa 2012 mathematics abstractit is known that in most countries private school students outperform students in public schools in international assessments however the empirical literature recognizes that assessing the true effect of private school attendance requires addressing selection and sorting issues on both observabland unobservables the existing empirical evidence on the private school effect mostly covers oecd and latin american countries with little evidence on other parts of the world there is recent emerging country specific evidence doubting the existence of a private school advantage i use pisa 2012 data for mathematics and two different methodologies to derive baseline and bias corrected estimates of the private dependent and independent school effect for 40 countries a robust private school advantage is found only in a handful of countries public schools generally perform as well as private subsidized schools and outperform independent schools accounting for both peer effects and selection is necessa

the contingent governance of teams analysis of institutional complementarity the first purpose of this paper is to design a model of governance structure called the contingent governance which can control the free riding problem in teams in the second best manner the second is to show by a new method of comparative static analysis that the effectiveness of the contingent governance may be enhanced by complementary institutional arrangements of the imperfect labor market and bank centered financial system the paper discusses the implications of such institutional complementarity for the dynamic change of the japanese main bank system and financial system design of transitional economies copyright 1994 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

trends in the development of ecological economics from the late 1980s to the early 2000s abstract as the contributions to ecological economics are very diverse recent years have seen some discussion on both how to delimit the field and in which direction it should develop the intention with this paper is to contribute to the discussion by outlining important trends in the development of the field from the late 1980s to the early 2000s the study is inspired by other studies in the sociology and history of science in particular by the theoretical framework regarding scientific fields as reputational organizations which draws attention to both cognitive and social aspects of the formation of a field the basis for the paper is a combination of literature studies interviews with key researchers in the field and participant observations the paper outlines the characteristic cognitive features of ecological economics at the time of the birth of the field it is then described how the development in ecological economics was influenced by broader social factors during the following years and how the field was shaped by the inflow and outflow of different groups of researchers the emergence of different research programmes is outlined as is the organizational development finally the characteristics of ecological economics are summarized and the future prospects are briefly assessed

returns from hay cultivation in fertilized low diversity and non fertilized high diversity grassland recent ecological experiments suggest that theinterannual stability of ecosystem productivitymay be determined by the diversity of organismspresent in the system we investigate whethersuch effects of biotic diversity on ecosystemstability may translate into economic valuesand possibly into an economic argument for themaintenance of biodiversity in managedhabitats applying a stochastic model fromfinancial economics to long term harvest datafrom a grassland ecosystem we examine thepotential insurance value of plant diversityon the stability of yields and economic returnsin a drought sensitive agricultural setting putative insurance premiums priced as putoptions on revenues from hay yield were higherfor fertilized low diversity grassland than forunfertilized species rich glassland from thisperspective the annual insurance value differential insurance premiums required tolock in specific rates of returns of diverseplant communities may amount to 3 50 to 6 00 per acre the results suggest thatincreased costs of risk in species poorfertilized grassland may affect the optimumlevel of fertilization making lower fertilizerinput and concomitantly higher plant communitydiversity more desirable

the effectiveness of access and benefit sharing in costa rica implications for national and international regimes the convention on biological diversity provides an international framework to ensure conservation and sustainable use of genetic resources the realization of these objectives is based on the state s sovereignty over its biological resources and the idea of a fair and equitable sharing of the benefits arising out of the utilization of genetic resources due to the enormous technical progress in biotechnology the demand for genetic resources increases especially within the pharmaceutical industry and the agribusiness whereas the biological diversity and with it the supply of diverse genetic resources decreases the concept of access and benefit sharing takes these developments into consideration and creates a market for biological resources we identify critical factors which can influence the effectiveness of this concept such as assignment of property and intellectual property rights enforcement problems and bargaining power applying these factors to evaluate the access and benefit sharing regime in costa rica we identify the specifications of these critical factors which favor economic development and sustain biodiversity at the same time we then discuss possible lessons of the costa rican experience for other biodiversity rich countries

ecological economics and scientific controversies lessons from some recent policy making in the eec abstract contrasting the very limited scientific evidence on the forest dieback issue with the sudden adoption of policies on air pollution decided in the frg 1983 1984 and extended to the european community 1985 we propose an interpretative framework for the real internalization process at work in what was tantamount to a social crisis for public opinion the media and political actors we conclude that open scientific controversies on some environmental issues effects causes solutions pave the way for some actors to use the issue for their own techno industrial strategies quite alien to ecological constraints in cases of very high uncertainties on impacts it becomes impossible to apply conventional social cost benefit analysis scba as an optimizing tool we propose to develop economic analysis as a negotiation language and to give pride of place to the value of learning time and to the crucial role of technological pluralism as a condition for flexibility in the future

an inquiry into power and participatory natural resource management decentralised environmental governance based on community participation is increasingly replacing top down natural resource management there is increasing awareness however that such mechanisms might fail to ensure effective participation by all stakeholders and be prone to producing and or perpetuating power inequalities against this backdrop we claim that power should be positioned at the centre of analyses of natural resource management in this paper we provide a taxonomy of positions to analyse participatory decision making in natural resource management we operationalise this framework to analyse two failures of participatory natural resource management in turkey focusing on reasons for failure and the role of power asymmetries our results are based on case studies comprising in depth interviews focus groups and a survey administered to 944 individuals we conclude that participatory mechanisms are highly unlikely to bring democratic and equitable outcomes unless power relations are addressed at both institutional and local levels copyright oxford university press

toward a new conception of the environment competitiveness relationship accepting a fixed trade off between environmental regulation and competitiveness unnecessarily raises costs and slows down environmental progress studies finding high environmental compliance costs have traditionally focused on static cost impacts ignoring any offsetting productivity benefits from innovation they typically overestimated compliance costs neglected innovation offsets and disregarded the affected industry s initial competitiveness rather than simply adding to cost properly crafted environmental standards can trigger innovation offsets allowing companies to improve their resource productivity shifting the debate from pollution control to pollution prevention was a step forward it is now necessary to make the next step and focus on resource productivity

on biodiversity access intellectual property rights and conservation abstract recent international agreements such as the convention on biological diversity and the trade related intellectual property rights have called for increased mutual transfer of biodiversity and biotechnology between poor and rich countries these agreements also call for the protection of intellectual property rights ipr on biotechnology transferors in the receiving countries this paper examines the biodiversity conservation implications of providing physical access and ipr protection to foreign consumers of biodiversity an integrated model of optimal resource extinction and shared resource harvesting game is presented the model results show that as foreign and indigenous users compete for the same open access resource optimal extinction may occur as a noncooperative equilibrium under certain bioeconomic conditions extinction may be prevented by forging successful cooperation between consumers initiating a joint harvesting process depending upon the model parameters even under cooperation increased patent protection and physical access either promotes the conservation of biodiversity or enhances its physical exploitation patent protection and resource access must therefore be developed carefully by biodiversity rich countries to successfully balance their domestic conservation and socioeconomic goals

the wto trade effect this paper reexamines the gatt wto membership efiect on bilateral trade ows using nonparametric methods including pair matching permutation tests and a rosenbaum 2002 sensitivity analysis together these methods provide an estimation framework that is robust to misspeciflcation biases allows general forms of heterogeneous treatment efiects and addresses potential hidden selection biases this is in contrast to most conventional parametric studies on this issue our results suggest large gatt wto trade promoting efiects robust to various restricted matching criteria alternative indicators for gatt wto involvement different matching methodologies non random incidence of positive trade ows and inclusion of multilateral resistance terms

the convention on biological diversity a conventionalist approach the erosion of biological diversity pertains to the category of problems that are brought to the fore in debated universes there are scientific controversies about their definition import and possible solutions and they involve opposing economic interests and political strategies a convention commonly shared values set of definitions rules and norms implying a compromise among various actors and groups is needed to define and enforce policies the convention on biological diversity can be seen as an attempt to define such a middle ground the rights and policy orientations it promotes are however challenged by overlapping norms and rules enacted in other arenas such as the wto the purpose of this paper is to take up a conventionalist stance on the complex international regime that governs biodiversity management and conservation policies

green economics putting the planet and politics back into economics green economics is arising from a study of the economy that takes a philosophical position characterised by a deep respect for nature it is primarily a system of ideas and principles rather than a rationally argued intellectual position its ideas are powerful and influential on developments in policy and politics but it is presently less well grounded in the academy green economists do not dwell overmuch on introspection and their method is implicit rather than explicit relying on a grounded embedded and phenomenological approach and rejecting the scientism and spurious objectivity of neoclassical economics in this paper i outline four key issues central to a green study of the economy the need to end economic growth the importance of equality and questions of the just distribution of resources the requirement to consider appropriate scale in economic decision making and the need to include multiple perspectives in the study of economics copyright oxford university press

evaluating the econometric evaluations of training programs with experimental data this paper takes the results of an employment and training program thatwas run as a field experiment in which the participants were randomlyassigned into a treatment or a control group and compares these results to the estimates that might have been produced by an econometrician who evaluated the program using the same econometric procedures that have been used in the program evaluation literature this comparison shows that many of these econometric procedures fail toreplicate the experimentally determined results and suggests that researchers should be aware of the potential for specification errorsin other nonexperimental evaluations copyright 1986 by american economic association

new foundations for ecological economics abstract ecological economics has been repeatedly described as transdiciplinary and open to including everything from positivism to relativism i argue for a revision and rejection of this position in favour of realism and reasoned critique looking into the ontological presuppositions and considering an epistemology appropriate for ecological economics to meaningfully exist requires rejecting the form of methodological pluralism which has been advocated since the start of this journal this means being clear about the differences in our worldview or paradigm from others and being aware of the substantive failures of orthodox economics in addressing reality this paper argues for a fundamental review of the basis upon which ecological economics has been founded and in so doing seeks improved clarity as to the competing and complementary epistemologies and methodologies in part this requires establishing serious interdisciplinary research to replace superficial transdisciplinary rhetoric the argument places the future of ecological economics firmly amongst heterodox economic schools of thought and in ideological opposition to those supporting the existing institutional structures perpetuating a false reality of the world s social environmental and economic systems and their operation

finding common ground between ecological economics and post keynesian economics abstract post keynesian economics and ecological economics have in common that they are considered to be heterodox schools of thought aside from that there has not been a strong connection between them previous books on post keynesian economics contain no chapter on environmental or ecological issues this neglect has led leading ecological economists to criticize post keynesians for succumbing to the same growth paradigm as the neoclassical school this paper argues that the two approaches are complementary in the sense that they each have different strong points ecological economics has correctly pointed out that the growth of the global economy may not be welfare improving anymore whereas post keynesians have gained valuable insights into the functioning of the capitalist growth process to determine the feasibility of a synthesis between the two schools the paper compares their approaches to the problems of production consumption and economic dynamics as well as the associated policy recommendations it shows that on a theoretical level the two schools have much in common but their policy conclusions differ with regard to the desirability of further growth the paper concludes that a synthesis of both approaches may lead to a better understanding of how a capitalist economy operates in a natural environment with limits to growth and to better informed policy advice

prospects for a heterodox economics of the environment and sustainability this paper introduces a special issue on heterodox economics of the environment and sustainability at present humanity faces several challenges such as resource scarcity biodiversity loss and climate change and yet we would argue contributions from traditional heterodox schools of thought such as post keynesianism marxism and to a lesser extent institutionalism have had relatively little to say about them instead the economic analysis of environmental issues has been dominated by approaches inspired by neoclassical economics and latterly by ecological economics the special issue is part of an effort to stimulate more heterodox work on the environment and to explore connections between existing groups of scholars particularly between ecological and heterodox economists

social media for socially responsible firms analysis of fortune 500 s twitter profiles and their csr csir ratings the instrumental benefits of firm s csr activities are contingent upon the stakeholders awareness and favorable attribution while social media creates an important momentum for firms to cultivate favorable awareness by establishing a powerful framework of stakeholder relationships the opportunities are not distributed evenly for all firms in this paper we investigate the impact of csr credentials on the effectiveness of social media as a stakeholder relationship management platform the analysis of fortune 500 companies in the twitter sphere reveals that a higher csr rating is a strong indicator of an earlier adoption a faster establishment of online presence followers a higher responsiveness to the firm s identity replies and mentions and a stronger virality of the messages retweets incidentally the higher csir rating is also found to be associated with the stronger virality our findings also suggest that socially responsible firms can harvest proactive stakeholders participation user driven communication without investing more resources firm driven communication as the first study that conceptualizes the social media as a proponent of csr this paper contends that being socially responsible makes more practical sense for firms with the rise of social media

localized knowledge spillovers and patent citations a distance based approach abstract we develop a new distance based test of localized knowledge spillovers that embeds the concept of control patents using microgeographic data we identify localization distance for each te

institutions and the environment the case for a political socio economy of environmental conflicts this article presents a sympathetic but critical examination of institutional ecological economics iee a heterodox body of work on environmental governance as developed separately by j paavola and a vatn we highlight the theoretical limitations of iee related to two issues the causes of the emergence of environmental conflicts and the logics driving their regulation these limitations are all related to the underlying theories of institutional change in which power and legitimacy based explanations are confusedly combined both authors develop a normative perspective in which legitimacy becomes the main concern we argue that this perspective leads to contradictions in their respective approaches and provides no or only partial insights into the conditions of the emergence and regulation of environmental conflicts we finally highlight the conceptual adjustments inspired from classical marxism and regulation theory that in our view are needed to deal more adequately with these issues

nonparametric bounds on treatment effects assume that each member of a population is characterized by values for the variables ya yb z x here x is a vector describing a person and z is a binary variable indicating which of two treatments this person receives the treatments are labelled a and b the variables ya and yb are scalar measures of the outcomes of the two treatments for example a cancer patient might be treated by a drug therapy or b surgery the relevant outcome y might be life span following treatment an unemployed worker might be given a vocational training or b job search assistance here the relevant outcome might be labor force status following treatment assume that a random sample is drawn and that one observes the realizations of z x and of the outcome under the treatment received thus ya is observed if treatment a is received but is a latent variable if treatment b is received similarly yb is either observed or latent suppose that one wants to learn the difference in expected outcome if all persons with attributes x were assigned to treatment a or b this treatment effect is

property rights genetic resources and biotechnological change it is well recognized that wild genetic resources the genetic constitutions of plants and animals have substantial social and economic value as repositories of genetic information today genetic information provides direct and indirect inputs into plant breeding programs the development of natural products including drugs and pharmaceuticals and increasingly sophisticated applications of biotechnology 2 recognition of the potential of wild genetic resources in the development of drugs has led the national cancer institute to initiate a massive plant collection project 3 which is a follow up to an earlier 1970s project that sought to identify drugs effective against a variety of cancers and to look at the immune system effects of various drugs it is estimated that 70 percent of the 3 000 species known to have anticancer properties are found in the tropical forests 4 in recent years a number of widely used drugs have been developed from plants including two important anticancer drugs derived from the rosy periwinkle found in tropical madagascar with the recent major breakthroughs in biotechnology the future potential of these resources seems limitless species that have no current commercial application have useful natural chemicals or are as yet undiscovered never

deforestation and the rule of law in a cross section of countries relationships between deforestation and population pressure income growth and insecure property rights are examined with data from 120 countries insecure property rights are hypothesized to arise from two sources government instability or inability to enforce ownership and an absence of government accountability the former source is captured by measures of general lawlessness such as guerrilla warfare revolution and frequent constitutional change the latter is proxied by variables indicating the type of government executive frequency of political purges and the existence of an elected legislature general support is indicated for the property rights hypothesis and for the effects of population growth

the institutional economics of biodiversity biological materials and bioprospecting abstract this paper analyzes the fundamental economic and institutional issues connected with biodiversity biological materials and bioprospecting the main findings are that biodiversity and biological materials are common pool goods and must be governed accordingly research and development using biological materials is a dynamic inter temporal asset transformation process that has a mixed economic nature which requires equally diverse and dynamic governance rules and processes in general bioprospecting is best governed by relationship contracting principals that are designed to fit specific economic and institutional conditions however there are no blueprints for access and benefit sharing in addition to extensive consultations with a wide range of stakeholders developing appropriate policy and regulatory solutions requires detailed empirical analyses of specific asset transformation processes in particular technological cultural and institutional settings

institutions and environmental governance a reconceptualization abstract this article presents the conceptual revisions needed to extend the new institutional approach to environmental governance from its current local and international domains of application to all governance solutions including national environmental and natural resource use policies and multi level governance solutions that are increasingly used to address global environmental change the article suggests that environmental governance is best understood as the establishment reaffirmation or change of institutions to resolve conflicts over environmental resources it also explains why the choice of these institutions is a matter of social justice rather than of efficiency the article suggests a way to understand formal and state centered governance solutions as forms of collective ownership not unlike common property the article demonstrates how institutional analysis can gain resolution by looking at the functional and structural tiers organization of governance functions and formulation of key institutional rules as key aspects of the design of governance institutions

being good while being bad social responsibility and the international diversification of us firms this paper contributes to the discussion on international diversification and corporate social responsibility csr by suggesting that firms can be simultaneously socially responsible and socially irresponsible to test our assertions we analyze data from 222 publicly traded us firms from 1993 to 2003 the findings support our hypotheses and have significant implications for the way in which we conceptualize csr

biocomplexity conceptual challenges for institutional analysis in biodiversity governance abstract institutions for biodiversity governance are located at the interface of human and ecological systems the analysis of such institutions is challenged due to addressing a multitude of complex interactions between these two systems occurring at different natural scales and levels of human organization due to this complexity empirical analysis of biodiversity management often leads to context specific explanations providing little scope for comparative work or the development of more generalised theory based accounts we aim at reducing complexity in understanding human biodiversity relations making cases comparable across sites and propose that in order to address complexity we need a method of abstraction that leads to the development of a more structured analysis based on selection of explanatory factors according to cconceptual models as well as empirical significance we suggest that the stylisation of typical resource use perspectives the combination of typical transactions that are inextricably linked by the interest of the actor can be a useful method for realizing appropriate model selection in this paper we provide an account of how use perspectives can be developed and to what kind of analysis they can contribute using the example of agrobiodiversity in grain as seed food or genetic material

fairness spillovers the case of taxation abstract it is standardly assumed that individuals react to perceived unfairness or norm violations in precisely the same area or relationship where the original offense has occurred however grievances over being exposed to injustice may have even broader consequences and also spill over to other contexts causing non compliant behavior there we present evidence that such fairness spillovers can incur large economic costs a belief that there is unfairness in taxation in the sense that the rich do not pay enough taxes is associated with a twenty percent higher level of paid absenteeism from work

investment crowding out firm level evidence from northern germany michalek j ciaian p and kancs d a investment crowding out firm level evidence from northern germany regional studies the main objective of this paper is to estimate the extent to which firm investment is substituted crowded out by investment support policies granted under the european union rural development programme rdp the empirical analyses employed the difference in difference propensity score matching approach which allows several important sources of bias to be addressed such as selection bias simultaneity bias and functional form misspecification from which many previous studies suffer using panel data of 1333 firms from the schleswig holstein region in germany it is found that the crowding out effect of the rdp is close to 100 implying that firms use public support to substitute for private investments furthermore no evidence was found that due to the rdp programme support firms would have brought forward their investments planned originally for a later period rejecting t

ecological economics and the politics of knowledge the debate between hayek and neurath hayek s epistemic arguments against planning were aimed not just against socialism but also the tradition of ecological economics the concern with the physical preconditions of economic activity and defence of non monetary measures in economic choice were expressions of the same rationalist illusion about the scope of human knowledge that underpinned the socialist project neurath s commitment to physicalism in natura calculation and planning typified these errors neurath responded to these criticisms in unpublished notes and correspondence with hayek these highlighted the epistemological premises his work shared with hayek s representing a response to hayek from hayek s own assumptions this paper examines the cogency and continuing relevance of the arguments in this debate

computers skills and wages computer technology is most prominently used by skilled high wage workers this suggests that computer use requires skills to take full advantage of the possibilities which are particularly present among relatively skilled workers this article develops a simple technology adoption model showing that the decision to adopt computer technology depends on i the tasks to be performed ii the level of skill or education and iii the level of wages applying this model to british data it is shown that the effect of wages and particular tasks on computer adoption is larger than the effect of skills on adoption the estimates suggest that in britain computer use is likely to be a matter of cost efficiency and not so much of workers skills

the physical economy of france 1830 2015 the history of a parasite abstract this article explores long term trends and patterns of material use in france for a 185 year period it is the first long term study of material flows for france with national and yearly data for most of the period based on a material flow analysis mfa that is fully consistent with current standards of economy wide mfas and covers domestic extraction imports and exports of materials we investigated the evolution of the french metabolism from industrialization to financialized capitalism over the whole period there is a 9 fold increase in domestic material consumption an expansion of material use per capita and a spectacular addition of abiotic resources fossil fuels and minerals to biotic materials using a world ecology framework we exhibit a specific metabolic path that of a state benefiting from successive world systems for its economic development through massive material imports

capturing the pharmaceutical value of biodiversity in a developing country the conservation of biodiversity is increasingly being defined as a process made up of three components saving studying and sustainably using biodiversity if the conservation of process is expanded to incorporate the need for both the protection of biodiversity either in situ or ex situ and the generation of valuable information about biodiversity an important issue is the correct balance of investment in these two types of activities this paper explores this issue by focusing on efforts in a developing country to capture the pharmaceutical potential of biodiversity and species information a model of biodiversity investment choice is developed and an analysis of royalty returns to effort in biodiversity protection taxonomic information and the collection of biotic samples is conducted based on data from costa rica the results suggest that although a country can be adequately compensated for its investment in the generation of taxonomic information it is unlikely that pharmaceutical prospecting alone will cover the high opportunity costs of biodiversity protection

economy and environment a theoretical essay on the interdependence of economic and environmental systems preface notation guide 1 introduction part i the physical economy environment system 2 closed physical systems a model 3 structure and time in the physical system 4 technological change and the environmental constraints to physical growth part ii the economic system 5 the price system 6 prices property and the environment 7 economic conflict and environmental change part iii environmental strategies in an evolutionary economy environment system 8 time uncertainty and external effects 9 the market solution 10 the stationary state 11 conclusions references index

regulation school and environment theoretical proposals and avenues of research abstract the article explores the relevance of a particular approach of the institutionalist movement regulation theory to deal with the relationship between the economy and the environment regulation theory which appeared in france at the end of the 1970s is mainly interested in macroeconomic issues in contrast until now it has tended to neglect environmental questions by taking several key concepts of this theory accumulation regime mode of regulation institutional forms we have sought to assess its significance vis a vis the environmental field more precisely from the perspective of establishing an environmental regulationist theory we propose considering the economic relation to the environment as the articulation of three forms a transhistorical form a general capitalist form and a specific capitalist form the latter being variable in capitalist time and space we give several illustrations of the variability of the relation to the environment depending on the different accumulation regimes and the different modes of regulation two principal avenues of research are proposed historical analyses for given economic areas and comparative analyses relating in particular to different capitalist areas

institutional ecological economics abstract new institutional economics and its forerunners have we argue made important contributions to the evolving agenda of ecological economics the conceptualisation of environmental problems as instances of interdependence and the acknowledgement of positive transaction costs are key insights into the nature of environmental problems we also discuss how plurality of behavioural motivations and limited cognitive capacity have important implications for environmental decision making and its analysis we show how evolutionary and collective action theories offer complementary takes on the choice and change of environmental governance institutions and how the concept of social capital can enrich analyses of environmental governance we conclude that an emerging institutional ecological economics has the greatest relative advantage in analysing the design implementation and effectiveness of environmental governance solutions

examining the conventions of voluntary environmental approaches in french agriculture in this paper we consider how growing awareness of environmental problems in agriculture has triggered certain interactions between producers and consumers since both public and private actors resort to collective action to address these problems this article will seek to examine the different forms of economic coordination and their dynamics using an adaptation of salais and storper s worlds of production framework 1992 1997 considering that each world of production is a world of conventions we focus on environmental conventions this work is based on an empirical study of agricultural voluntary environmental approaches as these provide a means of ensuring coordination between producers and consumers and enable products to be differentiated according to their environmental quality copyright oxford university press

sensitivity to exogeneity assumptions in program evaluation in many empirical studies of the effect of social programs researchers assume that conditional on a set of observed covariates assignment to the treatment is exogenous or unconfounded aka selection on observables often this assumption is not realistic and researchers are concerned about the robustness of their results to departures from it one approach e g charles manski 1990 is to entirely drop the exogeneity assumption and investigate what can be learned about treatment effects without it with unbounded outcomes and in the absence of alternative identifying assumptions there are no restrictions on the set of possible values for average treatment effects this does not mean however that all evaluations are equally sensitive to departures from the exogeneity assumption in this paper i explore an alternative approach developed by paul rosenbaum and donald rubin 1983 where the assumption of exogeneity is explicitly relaxed by allowing for a limited amount of correlation between treatment and unobserved components of the outcomes the starting point of the sensitivity analysis is the assumption that the exogeneity assumption is satisfied only conditional on an additional unobserved covariate making assumptions about the effect of the unobserved covariate on the outcome and its correlation with the treatment i trace out the set of possible values for the treatment effect of interest by considering a sufficiently large set of possible correlations with outcomes and treatment one can recover the bounds on the treatment effect derived by manski 1990 the approach here in the spirit of rosenbaum and rubin 1983 and rosenbaum 1995 is to allow only a limited amount of correlation and to judge the sensitivity of average treatment effect estimates to such correlations there are two novel features of the proposed analysis first rather than formulate the sensitivity in terms of coefficients on the unobserved covariate the sensitivity results are presented in terms of partial r values which may be easier to interpret second the partial r values of the unobserved covariates are compared to those for the observed covariates in order to facilitate judgments regarding the plausibility of values necessary to substantially change results obtained under exogeneity the proposed sensitivity analysis is conceptually related to the practice of assessing sensitivity of estimates by comparisons with results obtained by discarding one or more observed covariates james heckman and v joseph hotz 1989 rajeev dehejia and sadek wahba 1999 jeffrey smith and petra todd 2001 the attraction of the sensitivity analysis is that it is more directly relevant one is not interested in what would have happened in the absence of covariates actually observed but in biases that are the result from not observing all relevant covariates

weak comparability of values as a foundation for ecological economics the main argument of this paper is that weak comparability of values should be seen as one characteristic feature of ecological economics the formal properties of the concepts of strong comparability implying strong or weak commensurability and weak comparability implying incommensurability will be clarified multicriteria evaluation offers the methodological and mathematical tools to operationalize the concept of incommensurability at both macro and micro levels of analysis the concept of incommensurability of values already has a long tradition in economics moreover we will show that analytic philosophy theories of complexity post normal science and the recent theories of rationality lead with different trajectories to a non algorithmic approach which in our view could be implemented by some forms of multicriteria evaluation 1998 elsevier science b v all rights reserved

biodiversity poverty and development biodiversity is crucial for the production of a range of marketed and non marketed ecosystem goods and services this paper reviews the empirical evidence for the role of terrestrial biodiversity and biodiversity conservation in economic development and poverty at both the macro e g country and micro e g farm scales it first examines general relationships between biodiversity and economic development before showing how biodiversity influences ecosystem services second future scenarios and challenges for biodiversity and development are examined given projections for further changes in global population economic growth and consumption third the relationship between biodiversity protection and incomes is investigated two specific policies protected areas and bioprospecting are reviewed with respect to their impacts on the welfare of the resource dependent poor in conclusion improvements in policy design and implementation could help minimize the possibility of earth s sixth mass extinction event at least within a few generations while ensuring that the poor are not made worse off as a result of policy implementation

economic schools of thought on the environment investigating unity and division how do ecological and heterodox economists differ if at all from each other and from neoclassical economists addressing environmental problems in 2009 we probed this question by conducting an international survey across these communities namely at conferences of the european society for ecological economics the association for heterodox economics and the european association of environmental and resource economists the research was designed to gain insight into the extent to which ecological economics can be described as heterodox and a distinct field from orthodox environmental and resource economics conflicting visions of ecological economics have led to a prevalence of neoclassical articles and thought mixed in amongst more heterodox work we introduce a novel classification of work in the field of environmental policy in order to test for the existence of differences in terms of methodological and ideological approaches how heterodox economists understand environmental issues is also an important question to answer if there is to be more collaboration between them and ecological economists the findings have implications for cooperation and the future direction of both ecological and heterodox economics

book review feature public policy in an uncertain world by charles f manski cambridge ma harvard university press 2013 pp 224 39 95 isbn 978 0674066892

sustainable de growth mapping the context criticisms and future prospects of an emergent paradigm article i nfo sustainable de growth is both a concept and a social grassroots northern movement with its origins in the fieldsofecologicaleconomics socialecology economicanthropologyand environmentalandsocialactivistgroups this paper introduces the concept of sustainable de growth by mapping some of the main intellectual influences fromthese fields with special focus on the francophone and anglophone thinking about this emergent notion we propose hypotheses pertaining to the appeal of sustainable de growth and compare it to the messages enclosed within the dominant sustainable development idea we scrutinize the theses contradictions and consequences of sustainable de growth thinking as it is currently being shaped by a heterogeneous body of literature and as it interacts with an ample and growing corpus of social movements we also discuss possible future paths for the de growth movement compared to the apparent weakening of the sustainable development paradigm

changing the economics of environmental degradation in madagascar lessons from the national environmental action plan process abstract this paper examines the economic logic and implicit assumptions used to develop and support the national environmental action plan neap process in madagascar the study focuses on three key issues how were the costs of the main environmental problems identified and estimated what underlying factors were identified as causing these problems and how is the neap implementation strategy designed to change these underlying factors the most difficult tasks for neaps will continue to be identifying the key specific underlying factors causing the problem and determining which of these factors are actually feasible for a neap process to change the analysis of the madagascar makes clear that key environmental problems are driven by land use decisions of large numbers of geographically dispersed rural and urban inhabitants these problems are not easy or even feasible targets for specific environmental policy changes if this is the case as it seems to be in madagascar then it is perhaps unrealistic to hope that neaps as constituted can provide a framework for both understanding and alleviating a country s key environmental problems

european environmental taxes and charges recent experience issues and trends abstract the use of environmental taxes and charges in oecd countries increased by over 50 between 1987 and 1994 while revenues raised by environmental taxes and charges remain small relative to overall taxation they comprise a rising proportion in most european countries several european countries have either undertaken or are considering systematic shifts in taxes away from labour and onto the use of environmental resources potential negative effects on competitiveness and regressive distributional effects are the major cause of concern with regard to the introduction of environmental taxes a number of ways of mitigating such effects exist and have been implemented

one world one experiment addressing the biodiversity economics conflict abstract the self organizing principles of markets that have emerged in human cultures over the past 10 000 years are inherently in conflict with the self organizing principles of ecosystems that have evolved over the past 3 5 billion years the rules governing the dynamics of ecosystems within which all human activity takes place are ultimately a function of biological laws not a function of human created economic systems the conflict between these systems is illustrated by the fact that economic indicators have shown vigorous growth during the last century while a variety of environmental indicators have exhibited negative trends ultimately however the growth of human economies faces the constraints that limit all biological systems in this article we outline the bases for the conflict between biological and economic activity and suggest policy approaches that will enhance the chances for creating cultures that are economically and environmentally sustainable

marx s reproduction schemes and the environment abstract ecological economists have argued that marx s reproduction schemes are self contained circular flows that downgrade the importance of natural conditions the present paper evaluates this criticism in light of both marx s methodology and his response to quesnay s tableau economique it is shown that marx follows quesnay in clearly distinguishing monetary circular flows from material throughput and that his schemes encapsulate the dependence of capitalist production on natural conditions as developed elsewhere in capital at the same time the purpose of marx s schemes is not to theorize environmental crises but to set out the basic exchanges necessary for capitalist reproduction as a material and social class process marx s analyses of capitalist environmental crises are developed at other points in capital

encouraging private sector research for tropical agriculture summary agricultural needs in poor tropical countries differ significantly from those in temperate rich countries yet little agricultural research is performed on products for the tropics private research is particularly concentrated in rich countries this is a result of significant failures in the market for research and development r d in particular the difficulty of preventing the resale of seed in developing countries to encourage private r d in tropical agriculture traditional funding of research may be usefully supplemented by a commitment to reward developers of specific new agricultural technologies rewards tied to adoption may be especially useful in increasing up take an illustration of how a commitment to reward developers of new agricultural technologies might work is provided

austrian economics and the limits of markets sagoff s recent criticisms of the shadow pricing of environmental goods deploy arguments from within the austrian tradition of economics against market mimicking approaches to public policy his arguments against market mimicry by public authorities do not lead him to scepticism about markets rather they form part of an austrian argument for solutions to environmental problems within actual markets themselves in this paper i argue that it is not only shadow pricing but the use of actual markets that is open to austrian forms of criticism hayek s epistemic arguments against central planning and in defence of market economies are more ambivalent than is often supposed the paper examines the ways in which the premises in hayek s own arguments point in the opposite direction to the epistemic limits of markets and in particular their limitations for the resolution of environmental problems copyright oxford university press

property rights issues involving plant genetic resources implications of ownership for economic efficiency the economic theory of property rights is applied to the issue of the conservation of plant genetic diversity an issue often discussed in terms of benefit sharing in order to demonstrate that the assignment of property rights is important for reasons of efficiency as well as for equity given the existence of transaction costs within an industry the location of a property rights assignment is a crucial factor determining the incentives for efficient levels of investment at various levels of that industry in the context of plant genetic resources this means that property rights that are located at the retail end of the pharmaceutical and plant breeding industries may not have sufficient effect to generate the incentives to supply adequate amounts of plant genetic resources to the research and development sectors at the base of these industries

reconciling conflicting evidence on the performance of propensity score matching methods there is a long standing debate in the literature over whether social programs can be reliably evaluated without a randomized experiment this paper summarizes results from a larger paper smith and todd 2001 that uses experimental data combined with nonexperimental data to evaluate the performance of alternative nonexperimental estimators the impact estimates based on experimental data provide a benchmark against which to judge the performance of nonexperimental estimators our experimental data come from the national supported work nsw demonstration and the nonexperimental data from the current population survey cps and the panel study of income dynamics psid these same data were used in influential papers by robert lalonde 1986 james heckman and joseph hotz 1989 and rajeev dehejia and sadek wahba 1998 1999 we focus on a class of estimators called propensity score matching estimators which were introduced in the statistics literature by paul rosenbaum and donald rubin 1983 traditional propensity score matching methods pair each program participant with a single nonparticipant where pairs are chosen based on the degree of similarity in the estimated probabilities of participating in the program the propensity scores more recently developed nonparametric matching estimators described in heckman et al 1997 1998a b use weighted averages over multiple observations to construct matches we apply both kinds of estimators in this paper heckman et al 1997 1998a b evaluate the performance of matching estimators using experimental data from the u s national job training partnership act jtpa study combined with comparison group samples drawn from three sources they show that data quality is a crucial ingredient to any reliable estimation strategy specifically the estimators they examine are only found to perform well in replicating the results of the experiment when they are applied to comparison group data satisfying the following criteria i the same data sources i e the same surveys or the same type of administrative data or both are used for participants and nonparticipants so that earnings and other characteristics are measured in an analogous way ii participants and nonparticipants reside in the same local labor markets and iii the data contain a rich set of variables relevant to modeling the program participation decision if the comparison group data fails to satisfy these criteria the performance of the estimators diminishes greatly more recently dehejia and wahba 1998 1999 have used the nsw data also used by lalonde to evaluate the performance of propensity score matching methods including pairwise matching and caliper matching they find that these simple matching estimators succeed in closely replicating the experimental nsw results even though the comparison group data do not satisfy any of the criteria found to be important in heckman et al 1997 1998a from this evidence they conclude that matching approaches are generally more reliable than traditional econometric estimators in this paper we reanalyze the nsw data in an attempt to reconcile the conflicting findings smith department of economics university of western ontario social science centre london on n6a 5c2 canada and nber todd department of economics university of pennsylvania 3718 locust walk philadelphia pa 19104 and nber versions of the paper that is the source for this paper have been presented at a 2000 meeting of the institute for research on poverty in madison wisconsin at the western research network on employment and training summer workshop august 2000 at the canadian international labour network meetings september 2000 and at the university of north carolina we thank james heckman for comments on this paper and we thank robert lalonde for comments and for providing us with the data from his 1986 study we thank rajeev dehejia for providing us with information helpful in reconstructing the samples used in the dehejia and wahba 1998 1999 studies jingjing hsee and miana plesca provided excellent research assistance

selection on observed and unobserved variables assessing the effectiveness of catholic schools in this paper we measure the effect of catholic high school attendance on educational attainment and test scores because we do not have a good instrumental variable for catholic school attendance we develop new estimation methods based on the idea that the amount of selection on the observed explanatory variables in a model provides a guide to the amount of selection on the unobservables we also propose an informal way to assess selectivity bias based on measuring the ratio of selection on unobservables to selection on observables that would be required if one is to attribute the entire effect of catholic school attendance to selection bias we use our methods to estimate the effect of attending a catholic high school on a variety of outcomes our main conclusion is that catholic high schools substantially increase the probability of graduating from high school and more tentatively attending college we find little evidence of an effect on test scores

the reliance of northern economies on southern biodiversity biodiversity as information abstract this paper addresses the issue of how biodiversity is used as an input into important industrial research and development processes biodiversity should be seen as an important source of a stock of information on which these research and development processes are built this stock of information is of the nature of an economic asset that depreciates as the environment creates new problems creating the need for a continual and perpetual supply of new information results are reported from a survey of the agricultural research and development industry demonstrating how the environment engenders new problems in a systematic fashion and how the industry makes recourse to biological diversity for stocks of information to address those problems the rate at which biological diversity is input into the research and development process is indicative of the extent of the reliance of this northern based industry on southern based biodiversity this reliance is very substantial and the elimination of biodiversity could be disastrous for these important industries in the near term

payments for agrobiodiversity conservation services for sustained on farm utilization of plant and animal genetic resources abstract this paper discusses the potential application of payment for ecosystem services like schemes to tackle market failures associated with the public good characteristics of agrobiodiversity conservation services so called payments for agrobiodiversity conservation services pacs would increase the private benefits from utilizing local plant and animal genetic resources on farm through voluntary reward mechanisms so as to sustain their on farm conservation theoretical and applied insights about pacs are discussed and attention drawn to some of the challenges to be overcome in implementing pacs in particular these relate to the identification of potential buyers the complex institutional setting in which pacs might operate and the articulation of a meaningful conservation goal based on a safe minimum standard approach the latter is urgently needed so as to ensure that additional agrobiodiversity services are generated relative to a fixed pricing approach pacs schemes that seek to overcome information asymmetries through the use of conservation auctions may be associated with significant efficiency gains however potential trade offs between ecological effectiveness economic efficiency and social equity considerations need to be carefully evaluated

neoclassical and institutional approaches to development and the environment abstract institutional economics is suggested as a more fruitful approach to environmental problems than the now dominant neoclassical paradigm the historical background of institutionalism in the united states and europe is given as well as the main characteristics of this approach i e holism emphasis on institutional arrangements pattern modelling and emphasis on the political element of economics differences between neoclassical and institutional economics are elaborated with respect to the concept of economics reductionist versus holistic the approach to decision making aggregated versus highly disaggregated and the view of social and institutional change public choice versus actor network approach

economic development and environmental policy in turkey an institutionalist critique turkey has had a prolonged exemplary experience with economic development in this paper we will trace the emergence of an environmental concern within development planning in turkey after a brief theoretical discussion on rival frameworks it is our contention that whereas economic policies are planned to meet certain goals environmental policies are formulated after observing the results of these economic policies and only in a fragmented manner what is needed is an alternative comprehensive policy based on a theoretical framework in tune with karl polanyi gunnar myrdal william kapp and nicholas georgescu roegen in order to uplift the analysis and policy design to a comprehensive level copyright oxford university press

financial asset holdings and political attitudes evidence from revolutionary england the english parliament s struggle for supremacy against monarchical dictatorship during the civil war 1642 1648 was crucial for the establishment of representative government yet its lessons continue to be debated i exploit novel data on individual mps drawn from 1 842 biographies to show that the conflict was over overseas interests and other factors over which the executive enjoyed broad constitutional discretion rather than over domestic property rights i further exploit the coincidence of individual mps ability to sign legally binding share contracts with novel share offerings by overseas companies to measure the effect of overseas share investment on their political attitudes i show that overseas shareholding pushed moderates lacking prior mercantile interests to support reform i interpret the effect of financial assetholding as allowing new investors to exploit emerging economic opportunities overseas aligning their interests with traders by consolidating a broad parliamentary majority that favored reform the introduction of financial assets also broadened support for the institutionalization of parliamentary supremacy over dictatorial rule jel codes o10 g11 f10 k00 n23 p10