Resources: Fall 2008, Issue

New Resources from RFF Press available december 2008 available now The Emergence of Land Frontiers in Resource and Rural Markets in Africa: Economics: Human-Nature, Impacts on Poverty, Equity, Rural-Urban Interdependencies and Efficiency Junjie Wu, Paul W. Barkley, and Bruce A. Stein T. Holden, Keijiro Otsuka, Weber, editors and Frank M. Place, editors “This book will be valuable to those interested in “This book is a truly welcome contri- regional planning, rural community develop- bution. It provides detailed, well- ment, urban sprawl and exurban change, and nat- structured studies on recent initia- ural resources.” —Mark Partridge, The Ohio State tives in Ethiopia, Uganda, Kenya, and University Ma lawi. The book is usefully policy Paper, ISBN 978-1-933115-65-8, $41.95 oriented . and it is an invitation for Cloth, ISBN 978-1-933115-64-1, $85.00 rigorous impact analysis and to further experimentation in the use of land markets.” Perspectives on Sustainable Resources in America —Alain de Janvry, University of California at Roger A. Sedjo, editor Berkeley “An insightful and provocative look at the evolving definition of resource rff This is the first publication in the new Press sustainability. Its review of past trends and the current conditions of Environment for Development (efd) book series (www.environmentfordevelopment.org). America’s natural resources clearly illustrates the accelerating pace of Cloth, isbn 978-1-933115-69-6, $90.00 change, and the challenge this poses for scientists and resource managers alike.” —V. Alaric Sample, President, Pinchot Institute for Conservation Cloth, isbn 978-1-933115-62-7, $80.00 / Paper, isbn 978-1-933115-63-4, $38.95 TO ORDER, VISIT WWW.RFFPRESS.ORG OR CALL 800.537.5487 (U.S.) OR 410.516.6965 NON-PROFIT US POSTAGE PAID PERMIT NO. 3361 1616 P Street, NW Washington, DC 20036-1400 BALTIMORE, MD return service requested RESOURCES FALL FALL 2008 · NUMBER 170 · EQUITABLE · EQUITABLE CLIMATE · POLICY · GEOGRAPHY CARTOGRAPHY Bringing Maps into the Policy Process RESOURCES FOR THE FUTURE w e l c o m e RESOURCES F A L L 2 0 0 8 · ISS U E NUM BE R 1 7 0 Reaffirming Our Mission RESOURCES FOR THE FUTURE 1616 P Street, NW Washington, DC 20036–1400 202-328-5000 www.rff.org philip r. sharp and emery castle Resources is available to individuals and institutions at no cost. To subscribe, contact Scott Hase at RFF ([email protected]) or ne of the great pleasures and benefits of being president of rff is the opportunity to in- 202-328-5006. The publication is also available on the RFF website † www.rff.org. teract and consult with my forerunners in the job. Just two months ago, we were de- Olighted to have a visit from Emery Castle, who served as vice president and president OFFICERS of rff from 1976 to 1986. Today he is a professor emeritus of agricultural and resource economics President, Philip R. Sharp Vice President–Finance & Administration and Treasurer, at Oregon State University. Even now, his beloved rose garden in the rff courtyard is still in bloom. Edward F. Hand Emery talked about one of the most significant challenges he faced as rff grew to be the mul- Vice President–Development and Corp. Secretary, Lea Harvey Vice President for Research, Mark Cohen tifaceted institution it is today, namely the need to forge our own identity. Foundations wanted us to be advocates, and government agencies were especially aggressive, trying to get the rff impri- BOARD OF DIRECTORS Lawrence H. Linden, Chair matur on things they wanted. Hard thought had to be given to what was truly important, Emery Steven W. Percy, Vice-Chair said. Credibility was number one: rff needed to be seen as absolutely independent. Vicky A. Bailey, Michael J. Bean, Preston Chiaro, W. Bowman Cutter, John M. Deutch, E. Linn Draper, Jr., Maintaining our scholarly integrity is our highest priority today, coupled with our need to make Mohamed T. El-Ashry, Daniel C. Esty, Linda J. Fisher, Dod A. a difference. rff has had the most impact when it has identified the emerging issues and shaped Fraser, Kathryn S. Fuller, David G. Hawkins, R. Glenn Hubbard, Charles F. Kalmbach, Frank E. Loy, Michael A. the subsequent agenda, in Emery’s view. Mantell, Peter J. Robertson, Robert N. Stavins, Joseph E. Stiglitz, Mark R. Tercek Emery made a very important point: big intellectual advances come when creative minds take on important real-world problems. Emery himself exemplifies this approach. RESOURCES He is a pioneer in the discipline of place-based economics, having done original research on Peter Nelson, Director of Communications Felicia Day, Managing Editor water issues and rural resource economics, always working closely with engineers, biologists, and Adrienne Foerster, Assistant Editor soil conservationists. Emery’s work brought resource economics to the forefront of U.S. environ- Tiffany Clements, Contributor Marc Alain Meadows, Art Director mental policy, and his interests correspond closely with the thrust of many current rff researchers Published quarterly since 1959, Resources (ISSN 0048-7376) tackling real-world problems. contains news of research and policy analysis regarding environ- Emery Castle both exemplifies and reminds us of the historic mission of rff. In the face of daunt- mental, energy, and natural resources issues. The views offered are those of the contributors and should not be attributed to ing economic and energy challenges, we must continue to attract excellent minds and give these Resources for the Future, its directors, or its officers. researchers real incentives and intellectual freedom. Only then can we continue to provide the sea- © 2008 Resources for the Future. All rights reserved. No soned perspectives that will contribute to practical and inventive policy solutions. part of this publication may be reproduced by any means, either electronic or mechanical, without permission from the publisher. Contact Felicia Day at RFF (email: [email protected]). Design and production: Meadows Design Office, Inc. ®r‰ Printed with soy-based inks on 50% recycled (and recyclable) paper containing 25% post-consumer ﬁber, processed chlorine free, in an fsc-certiﬁed plant. contents DEPARTMENTS FEATURES Goings On Why Place Matters In Environmental and sixth annual hans landsberg lecture A Job Half-Done: Reform of the U.S. Resource Economics 7 Electricity Sector 3 Emery N. Castle Tiffany Clements Environment for Development: RFF Joins Initiative to Strengthen Green Location, Location, Location: Policies in Developing Countries 4 The Geography of Ecosystem Services 10 Allen Blackman and Gunnar Köhlin James Boyd rff policy commentary Driving Restrictions and Air Quality in Mexico City 6 The New Cartography of Climate Change 16 Lucas W. Davis Shalini P. Vajjhala and Janet Nackoney Inside RFF Crafting a Fair and Equitable Climate Policy: in memoriam Neil Potter and Blair Bower 24 A Closer Look at the Options 20 RFF Index 25 Dallas Burtraw, Richard Sweeney, and Margaret Walls RESOURCE LINKS About the cover: The cover, a satellite photograph To learn more about the feature stories in this issue, please enter these links listed below in your web brows- depicting logging roads in the Amazon, provides another er or, if reading from our online pdf edition, simply select an active link and a new window will open. example of how maps can contribute to the policy † This triangular symbol seen throughout Resources indicates an active link. process. (Source: esri arcgis Online). Why Place Matters † www.rff.org/whyplacematters Location, Location, Location † www.rff.org/location The New Cartography of Climate Change † www.rff.org/newcartography Crafting Equitable Climate Policy † www.rff.org/equitableclimatepolicy contributors Allen Blackman is a senior fellow at rff and specializes in the economics of the environment in developing countries. His research has covered topics such as decentralization of small businesses, clean and climate-friendly technological change, market-based mechanisms for pollution control, pollution control programs based on public disclosure of environmental performance, and tropical deforestation. rff Senior Fellow James Boyd works in the fields of environmental regulation and environmental law and economics, in particular, the analysis of environmental institutions and policy. Specific ar- allen blackman james boyd eas of expertise include water regulation, environmental and product liability law, and incentive- based regulation. Dallas Burtraw, an rff senior fellow, is one of the nation’s foremost experts on electricity and the environment. His research interests include the design, costs, and benefits of environmental regulation, and the regulation and restructuring of the electricity industry. Currently Professor Emeritus at Oregon State University, Emery N. Castle served as president of rff from 1979 to 1986 and, before that, was vice president of the organization for three years. He is a dis- tinguished researcher, teacher, administrator, and public servant. Throughout his career, he has made dallas burtraw emery n. castle contributions to the studies of land and water economics as well as rural people and places. Lucas W. Davis is an assistant professor of economics at the University of Michigan and a faculty research fellow at the National Bureau of Economic Research. Central to his research and teaching interest are public finance, applied microeconomics, and energy and environmental economics. As co-founder of the Environmental Economics Unit in the Department of Economics at the Uni- versity of Gothenburg, associate professor Gunnar Köhlin has spent 20 years working with appli- cations of environmental economics in developing countries. He is also the director of the Environ- ment for Development initiative. Currently, he focuses his research on sustainable natural resource lucas w. davis gunnar köhlin management in Africa. Janet Nackoney is an environmental conservation professional with experience in natural resources research and gis (geographic information systems) mapping. She recently joined rff to provide mapping and spatial analysis support to several projects within the organization, including one on mapping projected impacts of climate change.

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