Ecological and economic principles in park planning: The Assateague national seashore model

Abstract

The National Park Service is required by law to conserve nationally significant resources for public benefit. Susceptibility to local short‐term economic pressures and a lack of understanding of resource dynamics can jeopardize mandate compliance. Assateague National Seashore is an example of a dynamic barrier island where early understanding of ecologic factors should have preceded its establishment and must precede its management and development. Research conducted on a similar system has demonstrated the dramatic environmental impacts and high maintenance costs associated with an inappropriate recreation management scheme. Alternatives are available which minimize resource degradation and maintenance costs without restricting visitation. To better ensure incorporation of long‐run ecologic and economic criteria into the decision‐making process, a proposal is put forward which recognizes the need for an expanded research effort and close adherence to early planning steps.     

A dynamic model for marginal cost pricing of port infrastructures

ABSTRACT

A dynamic model for marginal cost pricing of port infrastructures links costs to system performance by combining a power-law function with time-dependent queueing analysis. Additionally, the model incorporates the marginal cost of capacity, including the effects of economies of scale. This allows the calculation of the marginal cost price under a dynamic framework. The model accounts for nonlinear behaviour of port demand, which is sensitive to price and service levels. The effects over time of cost and service levels on the port’s operational performance are quantified. The proposed model allows determining the optimal timing for capacity investment. The model is a starting point for the application of marginal cost pricing to ports. However, for practical application of such pricing method it is necessary to apply a system’s approach, as productivity and costs must be assessed at the terminal’s component level. This should allow the derivation of a marginal cost function at the terminal’s component level.     

Black Boxes - Pathetic progress but some success now in sight

Little has been written about the ship demolition market, an essential element in the supply/demand balance for shipping. Either technical or economic obsolescence may be the cause for scrapping a ship, where the latter is strongly influenced not only by anticipated freight market levels, but the rate at which more efficient ships are being introduced. The scrap value of a ship is a function both of the realizable value of the materials within the ship and cost of demolition. Both are strongly influenced by the cost structures prevailing in the likely country of demolition. The paper explores not only the fundamentals of the ship demolition market, but the trends from the 1960s to the present. The shipbreaking market has moved in that time from being West European-centred to Asian-centred, concentrating for some years in Taiwan, but now shifting to the Indian subcontinent.     

The economics of double-hulled tankers

A cost-benefit analysis is conducted on the double-hull requirements for oil tankers in United States' waters contained in the U.S. Oil Pollution Act of 1990. The benefits of reduced spillage are compared with the increased construction and operations costs of double-hulled vessels. In the most probable scanario, the expected benefits are only 20% of the expected costs. Double-hulls do not even show a positive net present value with the most favorable assumptions. Even if double-hulls prevent all of the spillage that occurs due to collisions and groundings, and that the damage per gallon spilled is as extensive as in the ‘Exxon Valdez’ incident, the benefits are under half of the costs.     

Examining the influence of firm performance on business risk-taking and the mediation effect of scale of operations in the container terminal industry

Container shipping and its related service sectors help accelerate globalization of the world economy. This industry has been experiencing rapid growth, prompting container terminal operators to increase their handling capacity in response. Providing container terminal services requires substantial capital investment in physical assets such as cargo handling facilities and information systems. On the other hand, operating container terminals is a long-term investment that typically spans several business cycles. Hence prudent asset management using appropriate tools is critical for container terminal operators to sustain their businesses. Generally, due to risk-adverseness, investors are unwilling to take more risk in their investment unless they can reap a higher return. Contrary to this argument, this study finds no direct influence of better firm performance as a proxy of higher return on business risk-taking by container terminal operators. Instead, scale of operations is positively associated with business risk-taking, suggesting that container terminal operators with a larger scale of operations are willing to take more business risk.     

Building Philippine Local Government Capacity for Coastal Resource Management

The responsibility for managing coral reefs and other coastal resources was largely devolved to coastal municipalities and cities in the Philippines in 1991 with the passage of the Local Government Code. Devolution of powers and responsibilities to local government has paved the way for mainstreaming coastal resource management at the local level. However, the capacity to carry out this mandate has only recently begun to mature as municipalities and cities gain an increased awareness of the importance of coastal resources to communities and economic development. Approaches and strategies to increase local government capacity for coastal resource management are described based on the experiences of the Coastal Resource Management Project of the United States Agency for International Development. Qualitative and quantitative data are used to illustrate the possible impact of these capacity building efforts and to describe the current capacity of local government to undertake coastal resource management. After five years of project implementation, coastal municipalities have increased technical capacity, have allotted financial resources, and have achieved key performance benchmarks in the delivery of coastal resource management as a basic service.