Many developing countries lack universal sanitation services for residents. Years of inappropriate disposal of solid waste and wastewater have increased the potential for devastating environmental and health issues. An economic valuation of sanitation services may help in planning investment projects by demonstrating the benefits that households derive from having access to improved sanitation. We examine Guatemala as a case study and employ a series of hedonic models to estimate the value that households in Guatemala assign to the sanitation services of solid waste collection and connections to sewer infrastructure. Findings indicate that residents are willing to pay higher rents for both wastewater and solid waste removal. Policy implications are discussed.

This study aimed to calculate economic values (EVs) and economic selection indices for milk production systems in small rural properties. The traits 305-d milk yield in kg (MY), fat (FP) and protein (PP) percentage, daily fat (FY) and protein (PY) yield, cow live weight in kg (LW), calving interval (CI), and logarithm of daily somatic cell count (SCC) in milk were considered the goals and selection criteria. The production systems were identified from 29 commercial properties based on the inventory of revenues and costs and of zootechnical field data. Later, bioeconomic models were developed to calculate the productive performance, revenues, and costs concerning milk production to estimate EVs, which were calculated as the difference in annual profit with dairy production resulting from a change in one unit of the trait while keeping the others constant and dividing the value by the number of cows. After the EVs were known, ten economic selection indices were estimated for each system so they could be compared by modifying the selection criteria and calculating the relative importance of each selection criteria, the accuracy of the economic selection index, and response expected to the selection in USD, among other parameters. One of the systems detected was called less intensive (LS) and was characterized by having ten cows in lactation that produced 13·5 l/d and consumed 1·8 kg of concentrate/d. The second system detected was called more intensive (IS) and had 22 cows in lactation that produced 17·5 l/d and consumed 3·4 kg of concentrate/d. Monthly profits per cows in lactation of USD 2·60 and USD 68·77 were recorded for LS and IS, respectively. The EVs of the traits MY, FP, and PP were all positive, while for the other traits they were all negative in all situations. The best economic selection indices were those featuring selection criteria MY, LW, and CI, while the trait LW had the greatest importance in both systems. These results indicate that animal frame must be controlled in order to maximize the system's profit.

A methodological framework was presented for deriving weightings to be applied in selection indexes to account for the impact genetic change in traits will have on greenhouse gas emissions intensities (EIs). Although the emission component of the breeding goal was defined as the ratio of total emissions relative to a weighted combination of farm outputs, the resulting trait-weighting factors can be applied as linear weightings in a way that augments any existing breeding objective before consideration of EI. Calculus was used to define the parameters and assumptions required to link each trait change to the expected changes in EI for an animal production system. Four key components were identified. The potential impact of the trait on relative numbers of emitting animals per breeding female first has a direct effect on emission output but, second, also has a dilution effect from the extra output associated with the extra animals. Third, each genetic trait can potentially change the amount of emissions generated per animal and, finally, the potential impact of the trait on product output is accounted for. Emission intensity weightings derived from this equation require further modifications to integrate them into an existing breeding objective. These include accounting for different timing and frequency of trait expressions as well as a weighting factor to determine the degree of selection emphasis that is diverted away from improving farm profitability in order to achieve gains in EI. The methodology was demonstrated using a simple application to dairy cattle breeding in Ireland to quantify gains in EI reduction from existing genetic trends in milk production as well as in fertility and survival traits. Most gains were identified as coming through the dilution effect of genetic increases in milk protein per cow, although gains from genetic improvements in survival by reducing emissions from herd replacements were also significant. Emission intensities in the Irish dairy industry were estimated to be reduced by ~5% in the last 10 years because of genetic trends in production, fertility and survival traits, and a further 15% reduction was projected over the next 15 years because of an observed acceleration of genetic trends.

The life annuity business is heavily exposed to longevity risk. Risk transfer solutions are not yet fully developed, and when available they are expensive. A significant part of the risk must therefore be retained by the life insurer. So far, most of the research work on longevity risk has been mainly concerned with capital requirements and specific risk transfer solutions. However, the impact of longevity risk on shareholder value also deserves attention. While it is commonly accepted that a market-consistent valuation should be performed in this respect, the definition of a fair shareholder value for a life insurance business is not trivial. In this paper, we develop a multi-period market-consistent shareholder value model for a life annuity business. The model allows for systematic and idiosyncratic longevity risk and includes the most significant variables affecting shareholder value: the cost of capital (which in a market-consistent setting must be quantified in terms of frictional and agency costs, net of the value of the limited liability put option), policyholder demand elasticity and the cost of alternative longevity risk management solutions, namely indemnity-based and index-based solutions. We show how the model can be used for assessing the impact of different longevity risk management strategies on life insurer shareholder value and solvency.

Amid declining shark populations because of overfishing, a burgeoning shark watching industry, already well established in some locations, generates benefits from shark protection. We compile reported economic benefits at shark watching locations and use a meta-analytical approach to estimate benefits at sites without available data. Results suggest that, globally, c. 590,000 shark watchers expend > USD 314 million per year, directly supporting 10,000 jobs. By comparison, the landed value of global shark fisheries is currently c. USD 630 million and has been in decline for most of the past decade. Based on current observed trends, numbers of shark watchers could more than double within the next 20 years, generating > USD 780 million in tourist expenditures around the world. This supports optimistic projections at new sites, including those in an increasing number of shark sanctuaries established primarily for shark conservation and enacted in recognition of the ecological and economic importance of living sharks.

A specific breeding goal definition was developed for Creole goats in Guadeloupe. This local breed is used for meat production. To ensure a balanced selection outcome, the breeding objective included two production traits, live weight (BW11) and dressing percentage (DP) at 11 months (the mating or selling age), one reproduction trait, fertility (FER), and two traits to assess animal response to parasite infection: packed cell volume (PCV), a resilience trait, and faecal worm eggs count (FEC), a resistance trait. A deterministic bio-economic model was developed to calculate the economic values based on the description of the profit of a Guadeloupean goat farm. The farm income came from the sale of animals for meat or as reproducers. The main costs were feeding and treatments against gastro-intestinal parasites. The economic values were 7.69€ per kg for BW11, 1.38€ per % for FER, 3.53€ per % for DP and 3 × 10−4€ per % for PCV. The economic value for FEC was derived by comparing the expected profit and average FEC in a normal situation and in an extreme situation where parasites had developed resistance to anthelmintics. This method yielded a maximum weighting for FEC, which was −18.85€ per log(eggs per gram). Alternative scenarios were tested to assess the robustness of the economic values to variations in the economic and environmental context. The economic values of PCV and DP were the most stable. Issues involved in paving the way for selective breeding on resistance or resilience to parasites are discussed.

Increasingly, modern business and investment management techniques are founded on approaches to measurement of profit and risk developed by financial economists. This paper begins by analysing corporate pension provision from the perspective of such financial theory. The results of this analysis are then reconciled with the sometimes contradictory messages from traditional actuarial valuation approaches and the alternative market-based valuation paradigm is introduced. The paper then proposes a successful blueprint for this mark-to-market valuation discipline and considers whether and how it can be applied to pension schemes both in theory and in practice. It is asserted that adoption of this market based approach appears now to be essential in many of the most critical areas of actuarial advice in the field of defined benefit corporate pension provision and that the principles can in addition be used to establish more efficient and transparent methodologies in areas which have traditionally relied on subjective or arbitrary methods. We extend the hope that the insights gained from financial theory can be used to level the playing field between defined benefit and defined contribution arrangements from both corporate and member perspectives.

The risk of bovine respiratory disease (BRD) has a significant effect on the value of cattle in the marketplace. Calves sold in larger groups have $6.37/45.45 kg more value than those sold as singles or in small groups. Morbidity is higher in unweaned commingled calves than those marketed in groups more than 45 days following weaning. Calves with an aggressive disposition have significantly less value than docile calves, due largely to depressed performance and less carcass value. The value of cattle in the marketplace can be improved by offering larger, uniform lots of cattle that have been weaned at least 45 days. Cattle that suffer BRD in the feedlot have from $23.23 to $151.18 less value than those remaining healthy.

The skill of seasonal mean precipitation and temperature predictions by multi-model ensemble (MME) schemes has been examined using hindcast data from the APEC Climate Network (APCN). The hindcast data of the member models have been collected from several institutions in the APEC region. Skill metrics, namely, anomaly correlation coefficient (ACC), Hanssen-Kuipers skill (HKS), and economic value were used to assess the APCN MME predictions. The member models have a range of skills in predicting the seasonal mean conditions: however, the MME schemes consistently produce improved predictions. Though the weighted multi-model ensemble schemes have better skill scores in terms of ACC, the unbiased multi-model ensemble mean provides better and more useful categorical predictions as seen from the HKS score and the economic values. Prediction skills show distinct seasonality in different regions. Precipitation prediction skill is the lowest in the Asian monsoon region in June-July-August. The APCN MME predictions have positive economic values in most regions and examination of monthly values suggests that the MME predictions are reasonably good and useful even with three-month lead times. An uncalibrated multi-model probabilistic prediction scheme gives an indication of threshold probability for which the seasonal predictions are more beneficial to users. The extreme climatic conditions are predicted well by the MME schemes. However, user sectors for which the extreme climate predictions are beneficial are different to those of regular three-category predictions. These results can be used in planning and preparedness for the extremes of climate in the future, and when developing economic decision support models.

Madagascar's endemic freshwater crayfish (Parastacidae: Astacoides) are harvested by local people for both subsistence use and small-scale trade. There has been concern that populations, and even species, are threatened by overexploitation but little is known about the harvest or its economic importance. We studied crayfish exploitation in eastern Madagascar over 3 years. The existence of local taboos (fady) preventing commercial crayfish harvesting, as well as access to markets and forest, influenced involvement in the harvest. All four crayfish species found in the region were harvested, but A. granulimanus provided the majority of the catch. In one harvesting village more than 50% of the 47 households were directly involved in the harvest, which contributed USD 2,382 to the village economy in 2003/2004, an important sum in the context of local incomes. Subsistence use was widespread, particularly by children to whom it may provide an important protein source. Community-based conservation (through transfer of harvesting rights and responsibilities for forest management to local communities) is central to a new conservation paradigm in Madagascar. This recognizes communities' long term interest in their natural resources and offers an ideal opportunity for those concerned with the sustainability of the harvest to implement management tools (such as avoiding reproductive females, size limits and no-take zones). We discuss each tool with respect to biological implications and practical constraints. We note that community-based approaches may not be sufficient to conserve rarer species, which make up a small proportion of the value of the harvest.

The introduction of swine (Sus scrofa) has adversely affected the environment of many natural habitats throughout the world. Basin marshes are dwindling ecosystems in Florida that are especially vulnerable to damage by feral swine. In January 2003, the estimated amount of swine damage to the exposed portion of the last remnant of a basin marsh system in Savannas Preserve State Park (SPSP) was 19% (an area of 5 ha). Economic valuations for the swine damage were based on the monetary amounts that wetland regulators have allowed permit applicants to spend in mitigation attempts to replace lost wetland resources. In 2003, the area of natural habitat damaged by swine had a total value of US$ 1 238 760–4 036 290. The SPSP implemented a contract for swine control throughout 2003 in all areas of the Park. The damage to the basin marsh was re-estimated in January 2004, after swine removal. The damage sampling transects remained the same as the 2003 survey, but damage was significantly reduced, with 31% of sampling transects showing damage in January 2004 versus 92% in January 2003. Similarly, the total area of swine damage had decreased to 0.95 ha, and the value of the lost habitat had been reduced to US$ 235 355–766 865, an economic benefit of US$ 1 003 355–3 269 265. The benefit-cost ratio (BCR) relating the economic value of the damage reduction against the swine control costs (not all swine control in the park was carried out in the vicinity of the basin marsh) was conservatively estimated at 134–436. When estimating costs for swine control in the vicinity of the marsh based on the proportional number of swine removed there as compared to the Park as a whole, the BCR increased to 480–1562. Benefits of swine removal are very high relative to the costs of control.

This paper presents the economic perspectives applied when either using or not using opportunity costs of postponed replacement in deriving the economic value of herd life. Results show the equivalence of the rescaling method and the correction for opportunity costs. In economic terms, using rescaling or correction for opportunity costs forces the value of genetic improvement to change from revenues of increased output to reduction of costs per unit of (fixed) ouput. Under the zero profit theory, the economic value of herd life is equal when either using or not using correction for opportunity costs. In deriving economic values to define breeding goals, the choice of a method and price parameters will have to depend on foreseen future production circumstances for the system under study.