Environmental taxation of plastic bags and substitutes: Balancing marine pollution and climate change.

Several countries have imposed either a ban or a tax on single-use plastic packaging, motivated by their contribution to marine plastic pollution. This may lead consumers to opt for similar unregulated substitutes, potentially undermining or even counteracting the intended effect of the policy instrument. The purpose of this study is to theoretically and empirically compare the environmental and welfare effects of the first-best Pigouvian taxes on both plastic bags and a substitute (paper bags), with two alternative second-best policy instruments: a tax on plastic products alone, and a common uniform tax on all packaging materials. The empirical analysis accounts for two different types of environmental externalities from the use of both bag types: marine pollution and greenhouse gas emissions. It also compares results for two countries, Denmark and the USA, which differ in the demand for plastic and paper bags. The theoretical analysis shows that a unilateral tax on plastic bags should equal the marginal environmental damage of plastic bags minus a fraction of the marginal environmental cost of paper bags, hence being lower than the Pigouvian tax. The optimal common tax should equal a weighted average of the marginal environmental damage of the two bag types and would be lower than the Pigouvian tax on plastics if the marginal external cost of plastic bags exceeds that for paper bags. The empirical analysis shows that for default parameters, the variation in tax level across the studied scenarios is small. It also shows that if Pigouvian taxes cannot be implemented, a common uniform tax on both bag types would result in a higher welfare gain than a tax on plastic bags alone. Sensitivity analysis reveals that the level of the second-best taxes and their associated environmental and welfare impacts are sensitive to assumptions regarding the littering rate and decay rate of plastic bags in the marine environment.

Increasing the cost-effectiveness of nutrient reduction targets using different spatial scales.

In this paper, we investigate the potential gains in cost-effectiveness from changing the spatial scale at which nutrient reduction targets are set for the Baltic Sea, with particular focus on nutrient loadings from agriculture. The costs of achieving loading reductions are compared across five levels of spatial scale, namely the entire Baltic Sea; the marine basin level; the country level; the watershed level; and the grid square level. A novel highly-disaggregated model, which represents decreases in agricultural profits, changes in root zone N concentrations and transport to the Baltic Sea is used. The model includes 14 Baltic Sea marine basins, 14 countries, 117 watersheds and 19,023 10-by-10 km grid squares. The main result which emerges is that there is a large variation in the total cost of the program depending on the spatial scale of targeting: for example, for a 40% reduction in loads, the costs of a Baltic Sea-wide target is nearly three times lower than targets set at the smallest level of spatial scale (grid square). These results have important implications for both domestic and international policy design for achieving water quality improvements where non-point pollution is a key stressor of water quality.

Toward the Baltic Sea Socioeconomic Action Plan.

This paper analyzes the main weaknesses and key avenues for improvement of nutrient policies in the Baltic Sea region. HELCOM's Baltic Sea Action Plan (BSAP), accepted by the Baltic Sea countries in 2007, was based on an innovative ecological modeling of the Baltic Sea environment and addressed the impact of the combination of riverine loading and transfer of nutrients on the ecological status of the sea and its sub-basins. We argue, however, that the assigned country-specific targets of nutrient loading do not reach the same level of sophistication, because they are not based on careful economic and policy analysis. We show an increasing gap between the state-of-the-art policy alternatives and the existing command-and-control-based approaches to the protection of the Baltic Sea environment and outline the most important steps for a Baltic Sea Socioeconomic Action Plan. It is time to raise the socioeconomic design of nutrient policies to the same level of sophistication as the ecological foundations of the BSAP.

Farmers' preferences for nutrient and climate-related agri-environmental schemes: A cross-country comparison.

We use data from a survey of 2439 farmers in 5 countries around the Baltic Sea (Denmark, Estonia, Finland, Poland and Sweden) to investigate their preferences for adopting agricultural practices aimed at reducing nutrient leaching and greenhouse gas emissions. The measures considered are set-aside, catch crops and reduced fertilization. Contracts vary with respect to the area enrolled, contract length, possibility of premature termination, availability of professional advice and compensation. We quantitatively describe farmers' preferences in terms of their willingness-to-accept compensation for specific attributes of these contracts, if implemented. The results vary substantially between farm types (farmers' characteristics) and between the 5 countries, and support differentiation of contract obligations and payments to improve the uptake of Agri-Environmental Schemes. The results can be readily used to improve the design of country-specific nutrient reduction policies, in accordance with the next Common Agricultural Policy.

Interactions between a population of fallow deer (Dama dama), humans and crops in a managed composite temperate landscape in southern Sweden: Conflict or opportunity?

Landscapes composed of agricultural land mixed with forest are desirable since they provide a wide range of diversified ecosystem services, unlike specialized agricultural landscapes, but that creates a trade-off between these land uses since wildlife usually feed on crops and reduce yields. In Nordic countries, where human population density is low and game hunting can be a viable economic alternative, mixed landscape systems are particularly interesting. To evaluate the economic sustainability of such systems we need to quantify wildlife damage to crops. One important species, being popular among Swedish hunters and therefore economically valuable, is fallow deer (Dama dama). Our objective was to evaluate the economic sustainability of mixed landscape systems including cultivated fields and commercial hunting of fallow deer. We studied the effects of excluding fallow deer by using 86 exclosures and adjacent plots in winter wheat and oat fields in south-west Sweden. We analyzed yield losses and interactions between spatial and temporal grazing patterns, anthropogenic landscape features, and topological characteristics of the landscape. We found that animals avoided exposed spots, irrespective of distance from human activity. We also found a seasonal grazing pattern related to the different growing periods of winter wheat (more grazed, emerging in autumn) and spring oat (less grazed, emerging in spring). We then compared the costs of crop damage against the commercial value of fallow deer hunting. The damage amounted to 375 ±196 € ha-1 for wheat and 152 ±138 € ha-1 for oat, corresponding to a total cost per animal of 82.7 ±81.0 €, while each animal had an estimated market value of approximately 100 €. Therefore the value of fallow deer presence compensated for the associated cost of crop damage. Profit could be further improved in this case by adopting additional management strategies. In general our study confirmed the economic feasibility of this particular mixed land management.

The revealed preferences of Baltic Sea governments: Goals, policy instruments, and implementation of nutrient abatement measures.

Nitrogen and phosphorus loads are considered a major reason for the eutrophication of the Baltic Sea. Until now, most of the abatement has been made at point sources while the implementation of policies for nonpoint sources has not led to equally large reductions in emissions. The purpose of this study is to investigate the determinants of how nutrient abatement measures are implemented by countries in the agricultural sector of the Baltic Sea region. We investigate how goal setting, policy instrument choice, and the level of implementation is determined by characteristics of the abatement measure as well as socio-economic characteristics of the country where it is implemented. Econometric analysis of a cross-sectional data set suggests that income, institutional capacity, and economies of scope in abatement and enforcement are important determinants of policies developed and their implementation.

Reduction of Baltic Sea nutrient inputs and allocation of abatement costs within the Baltic Sea catchment.

The Baltic Sea Action Plan (BSAP) requires tools to simulate effects and costs of various nutrient abatement strategies. Hierarchically connected databases and models of the entire catchment have been created to allow decision makers to view scenarios via the decision support system NEST. Increased intensity in agriculture in transient countries would result in increased nutrient loads to the Baltic Sea, particularly from Poland, the Baltic States, and Russia. Nutrient retentions are high, which means that the nutrient reduction goals of 135 000 tons N and 15 000 tons P, as formulated in the BSAP from 2007, correspond to a reduction in nutrient loadings to watersheds by 675 000 tons N and 158 000 tons P. A cost-minimization model was used to allocate nutrient reductions to measures and countries where the costs for reducing loads are low. The minimum annual cost to meet BSAP basin targets is estimated to 4.7 billion Euro.

The costs of meeting the environmental objectives for the Baltic Sea: a review of the literature.

The environmental targets of the recently agreed Baltic Sea Action Plan (BSAP) targets are likely associated with a considerable cost, which motivates a search for low-cost policies. The following review shows there is a substantial literature on cost-efficient nutrient reduction strategies, including suggestions regarding low-cost abatement, but actual policies at international and national scale tend to be considerably more expensive due to lack of instruments that ensure a cost-efficient allocation of abatement across countries and sectors. Economic research on the costs of reducing hazardous substances and oil spill damages in the Baltic Sea is not available, but lessons from the international literature suggest that resources could be used more efficiently if appropriate analysis is undertaken. Common to these pollution problems is the need to ensure that all countries in the region are provided with positive incentives to implement international agreements.

Cost-effective control of interdependent water pollutants.

Excess nutrient loads to coastal waters lead to increased production of algae, which when decaying cause oxygen depletion in bottom sediments, which in turn leads to major changes in marine ecosystems. A cost-minimization model was investigated in which nitrogen and phosphorus were assumed to interact with respect to algae production. It was investigated under what conditions only a single nutrient should be decreased and when it is cost-effective to decrease both nutrients. The model was applied to the Baltic Proper, which is the largest of the seven major basins in the Baltic Sea. Results showed that the stringency of the environmental target, as well as assumptions regarding substitutability between nutrients, are important factors to determine the nutrient on which to focus. Uniform decrease rates for emissions are often used in international agreements, and the results of this model showed that the costs of making such proportional decreases could be substantial.

Differences in beliefs between patients and pharmaceutical specialists regarding medications.

OBJECTIVE: To investigate beliefs concerning medication among patients and pharmaceutical specialists (3 or 5 years of higher education). METHOD: The Beliefs about Medicines Questionnaire (BMQ)-General, which assesses beliefs about medicines in general, was used. RESULTS: For the analyses, 141 (response rate 82%) and 136 (response rate 79%) questionnaires from the patients and pharmaceutical specialists, respectively, were included. The results showed a statistical significant difference between patients and pharmaceutical specialists in beliefs about medicines. Whereas the patients expressed a more negative attitude about medicines (stronger beliefs about medicines as being harmful and less favourable) the pharmaceutical specialists expressed the contrary. However, the pharmaceutical specialists had stronger concerns regarding over-use of medicines as compared to the patients. CONCLUSION: Patients and pharmaceutical specialists expressed different views regarding medications. To achieve concordance in the pharmaceutical care process, pharmaceutical specialists need to exchange information about patients' experiences and not take for granted that they share their views regarding medications. PRACTICE IMPLICATIONS: The pharmaceutical specialists should elicit the patient's concerns about the prescribed medications and be aware of that non-adherence is often the result of the patients making rational decisions about their treatment.