Search Results (30)

This study explores the impact of environmental, social, and governance (ESG) factors on profitability and market capitalization within the European automotive industry. Since the industry is confronted with environmental and regulatory challenges, ESG contributions are valuable to know for strategic decision making and investor attitude. With panel data from 60 automotive firms listed on the Eurostoxx 600 index from 2011 to 2022, the research utilizes panel regression techniques, such as the generalized method of moments, to control for possible endogeneity. The findings show that the social aspect of ESG has a positive effect on return on assets (ROA), illustrating that socially responsible efforts can strengthen operating performance. In contrast, environmental performance weakly negatively affects ROA, probably because substantial sustainability-related expenses are incurred. Governance has no significant impact on profitability. For market valuation, as captured by Tobin’s Q, social factors are negatively correlated, indicating investor doubt regarding quick returns on social investments, while governance is positively but weakly correlated. These results highlight the multifaceted nature of ESG integration in the automotive industry, with the implication that firms need to delicately trade off between sustainability initiatives and profitability and investor expectations. Full article

Marine zoning is a widely used spatial tool for managing ocean spaces, minimizing conflicts between uses, and maintaining ecosystem services. This review examines and profiles the use of marine zoning and its potential to support climate resilience and ecosystem services through a systematic PRISMA analysis of 121 articles. The findings highlight the importance of balancing sustainable resource use and human well-being with nature protection through well-tailored zoning objectives. The review underscores the need to expand research on underrepresented marine habitats such as seagrass and algae, which play a critical role in climate change mitigation. Additionally, it highlights the necessity of broadening the scope to consider human activities beyond fisheries, which are often the primary focus. Stakeholder engagement and public awareness are identified as crucial for effective marine zoning planning. A significant gap is noted in the integration of ecosystem services and natural capital into marine zoning research. Furthermore, despite marine zoning’s potential to address climate change challenges, the reviewed articles reveal limited attention to this topic, indicating an urgent need for further research. This review advocates for the incorporation of ecosystem service valuation and climate change considerations into marine zoning to ensure sustainable management that balances ecological preservation with human well-being. Full article

This paper reviews natural capital (NC) valuation approaches in the context of woodland, forest, and riparian ecosystems, emphasising the need for participatory methods to take priority over neoclassical economics approaches. Focusing on research carried out in Scotland, the study analyses findings according to a classification of natural capital initiatives that we have developed, building on ideas proposed by the UK ENCA initiative, a guideline proposed to help researchers and practitioners understand NC and take it into account in valuation, decision-making and policy. We have found that landscape-scale initiatives that address the relationships between people and place to inform value and decision-making beyond the economic (monetary) benefits generated by ecosystem services (ES) are becoming popular. For instance, recent methods employed to capture stakeholders’ non-utilitarian preferences include the use of participatory GIS mapping, scenario planning, and other participatory methods to identify, explore and quantify less tangible cultural ecosystem services (CES). The review shows that many studies provide information relevant to the formulation of a place-based NC approach, working towards the integration of contextual and relational values into land management decisions to help formulate management strategies that maximise ES delivery. Conversely, we have not found evidence of the integration of shared values arising from an eco-centric perspective of nature valuation into the more classical, instrumental value lens. Such an approach would help inform broader, overarching aspects of woodland and forest management that may foster more effective conservation and help to manage conflicts. Full article

This study examines how ESG risks and opportunities can be systematically identified, assessed, and incorporated into the early-stage design and planning of natural resources projects. The focus for this study will be on the mining activities required to source the resources for the global decarbonization effort. The need for a framework to incorporate ESG risks and opportunities into the strategic mine planning process was first identified in the de Beers Sustainability Valuation Approach. The Social Value Capital Decision Model advanced by BHP represents an advance on the de Beers model. This is the first example of a structured methodology for systematically considering stakeholder values and incorporating these into the capital decision framework. To test the applicability of a new approach to mine design by using Quality Function Deployment (QFD), a case study involving a copper mine located in South America was developed. This case study demonstrates how QFD can provide clear line-of-sight to connect design decisions with priority stakeholder concerns. The framework provides a communications tool for aligning the ESG design process across functional silos within complex organizations. The development of appropriate software tools could assist in managing the inherent complexity associated with integrating stakeholder value concerns into early stage design decisions. Full article

The upper American River watershed (UARW) provides a myriad of valuable benefits for local communities as well as throughout the state, nation, and even globally. These environmental benefits, often called ecosystem goods and services (EGS), include food, water, power, and recreational opportunities, among many others. Current ecological economics frameworks outline over twenty distinct EGS categories. While this information is becoming more widespread, many of these benefits are still undervalued or are not easily applied to policymaking and project-level investment decisions. Conventional EGS valuation focuses narrowly on a few specific EGS categories, ignoring many to the detriment of those seeking information on the economic value of natural infrastructure. This study provides a novel approach to watershed valuation by assessing eighteen EGS categories in a comprehensive watershed valuation by supplementing locally available data with the benefit transfer method. This approach demonstrates that watershed-scale EGS valuation is possible. The resulting valuation shows the natural capital asset in the UAW has a net present value of $731 billion and $1.6 trillion with 2.5% and 0% discount rates (100 years), respectively, and provides over $14.8 billion in annual value. Valuing natural capital in economic terms provides a common metric for comparison and integration with other types of investments in built and social capitals, informing policy and investment decisions for climate adaptation and water resilience. This EGS valuation provides a case study into how benefit transfer can be used to supplement locally available information to provide watershed-scale EGS valuations. The outcome serves as a tool to promote innovation and equity in the design of funding mechanisms and resulting allocation for improving watershed health, the associated EGS productivity, and rural-agricultural community resilience. Full article

This study focuses on digital operational knowledge belonging to natural persons and proposes a greenfield approach to differentiate the value of intangibles from that of human intellectual capital. Our research approach involves two assessments. Assessment 1 evaluates intangible assets using the internally generated goodwill (IGG) measure. We analyze time-series IGG data for six digital sectors, using the top 90 software-as-a-service (SaaS) companies as a benchmark. The results indicate that the IGG of the SaaS benchmark is higher than the total IGG of the six sectors. Assessment 2 focuses on the correlation between digital labor investment and digital investment returns before and after 2013 for the six sectors to identify positive and negative correlations from 2013 onward. The results indicate that, since 2013, a qualitative change has occurred in digital labor capital that has not been reflected in financial statements because of accounting distortions and that the returns on investment for digital labor have been underestimated. The standalone valuation of digital know-how that belongs to natural persons, previously based on operating expense, will be based on capital expenditure. In addition, amortization will have the same contribution as depreciation of tangible assets to value creation. Full article

After recognizing the importance of marine and coastal resources and the use of marine space for economic growth, the European Union (EU) created and implemented a long-term Blue Economy (BE) strategy that supports the development of traditional and emerging marine and maritime sectors, aiming at the enhancement of Blue Growth (BG). However, despite the existence of a robust policy framework that supports the expansion of BE sectors at both an EU Sea Basin and state level, scholars have been sceptical as to whether the pursuit of BG adequately addresses the challenges that usually come with economic development, including those of climate change and marine biodiversity loss. Various frameworks for integrating sectoral goals with each other and with environmental goals that could facilitate the transition towards Sustainable Blue Growth (SBG) already exist and have been suggested and promoted by the European Commission, such as Ecosystem-Based Management (EBM) and Marine Spatial Planning (MSP). They require the consideration of marine ecosystems and biodiversity and their protection as one of the BE sectors to be integrated via planning and management, which in turn requires the estimation of the value of ecosystem services and the spatial implications thereof. Nonetheless, there is little evidence or real-world examples on whether and how ecosystems, and within them coastal and marine biodiversity, are actually integrated (i.e., mainstreamed) when developing sectoral policies and planning and implementing economic activities at sea at various scales, i.e., local, national, and regional, and what the necessary steps and actions are that would facilitate such mainstreaming. By seeking evidence in EU and Atlantic Arc (AA) member states’ sectoral policies on marine tourism, ports and shipping, marine renewable energy, and fisheries and aquaculture (as promoted by the Atlantic Maritime Strategy and its corresponding action plans) and in the outcomes of the Interreg Atlantic Funded Research Project MOSES (aiming at valuating a Sustainable Blue Economy at the national and regional scale of the EU AA), the present article focused on understanding if and how marine biodiversity is taken into consideration by EU and AA BE and/or BG policies, strategies, and sectoral developments. Τhe selected sectoral policies demonstrate a good uptake of marine-ecosystem- and biodiversity-related challenges; however, at both the EU and the AA member-state level, it is unclear whether and how marine ecosystems and biodiversity are addressed as a separate BE sector. As such, we argue why and how Marine Biodiversity Mainstreaming (MBM) could address this gap, and hence it could contribute to planning, implementing, and managing maritime economic activities towards SBG at the Sea Basin level. This is demonstrated by illustrating the central role of MBM in enabling (and being further enabled by) the above integrative frameworks (i.e., MSP and EBM) and by presenting the key elements and actions required for such facilitation. Full article

Jamaica has had over 200 floods in the past 50 years, causing significant human and economic losses. Kingston has often caused the most damage due to its high population density and capital exposure. Kingston is crucial to the country’s socio-economic stability, and climate change is increasing flood risk, but a local-scale assessment of its flood risk is unavailable. This study fills this gap in the literature by using two models of the integrated Valuation of Ecosystem Services and Tradeoffs (inVEST) suite to qualitatively assess Kingston metropolitan pluvial and coastal flood risk. Key locations like Kingston Container Terminal and downtown Kingston are at high coastal flood risk, according to the results. The study also shows that sea level rise (117%) and habitat loss (104%) will increase the highly exposed area. Instead of hard-engineering coastal protection, this study suggests investing in nature-based and ecoengineering solutions to improve coastal resilience and ecosystem services. The urban flood assessment finds downtown, particularly the Mountview and Minor catchments, at high risk due to poor runoff retention and high population density. To fully address downtown pluvial flood risk, structural social reforms are needed. To reduce short-term flood risk, local authorities should consider targeted adaptation measures. These may include maintaining the drainage gully system and reducing surface runoff in uphill downtown areas. Thus, this study seeks to inform Kingston urban planners about risk distribution and suggest adaptation measures to improve flood resilience. Full article

Liquefied petroleum gas (LPG) is a C₃/C₄’s hydrocarbon mixture used as fuel gas, obtained through natural gas processing or crude oil refining. The Ecuadorian LPG production (~1.88 MMbbl/year) comes from the Shushufindi gas plant and the Esmeraldas refinery. However, LPG production cannot meet the Ecuadorian market demand, and over 90% of this commodity is imported. At the same time, the natural gas produced in the Amazon region is not fully valued. A significant quantity of the associated gas is flared (~100 MMscfd), representing wasted energy with a significant environmental impact. Therefore, this study aimed to develop a technical and economic assessment of the potential natural gas valuation in the Amazon region to increase LPG production. The study started with a detailed review of the associated gas produced in the Amazon region. The data were analyzed considering the geographic location of the hydrocarbon fields, molar composition, flowrates, and operational conditions. Then, a natural gas value chain visualization was proposed and technically analyzed. Finally, an economic feasibility (class V) study was conducted, considering a preliminary analysis of capital expenditure (CAPEX) and an economic balance. The outcome of this study showed that by processing 21.50 MMscfd of associated gas from the Sacha field, domestic LPG production could increase by 30.9%. The required infrastructure consists of conventional processes for natural gas processing, with an estimated CAPEX of 36.6 MMUSD. Furthermore, despite the domestic subsidies of commodities, the potential savings for the country would be 32.13 MMUSD/year, an alternative more economically viable than the current LPG imports. Thus, the investment cost will be justified. Full article

Environmental, regulatory, and economic exogenous disruptions force companies within the maritime shipping industry to become more sustainable. Financing for implementing the necessary changes is particularly challenging for these companies, considering their narrow margins. With the changes in the shipping industry being intrinsically capital-intensive, funding is a particular issue, as few institutional or individual investors can provide the capital required. This paper investigates the challenges of financing. Drawing from the theory of pecking order on debt and equity, it conceptualizes the relation between the modes of financing for the maritime shipping companies and the nature of the disruptions. Initially, we analyze the various IMO decarbonization regulations, GHG emissions, alternative fuels, and green energy. Moreover, the relationship between fleet operation and management and finance is explored. The paper provides a framework to illustrate from a financial perspective the plethora of challenges and disruptions that have troubled the industry. We then recommend more suitable funding routes for companies to gauge the proper mix of equity and debt levels, bonds, and leverage, based on the company’s characteristics, such as size or ESG performance, as analyzed via the lens of corporate financing, along with the nature of the disruption, such as high inflation or geopolitical conflicts. In more detail, the paper focuses on key environmental, social, and governance (ESG) drivers both in the short-term and the long-term within the dry bulk shipping industry: impact investing and ESG factors are driving new investment opportunities and contributing to risk mitigation and long-term investment returns. The most pressing financial and economic questions of the time are wildly extended equity and bond valuations, inflation, and the conundrum most central banks face. Given these uncertainties, from an investment perspective for equity markets, the risk/return outlook for risk assets is skewed to the downside, making a cautious approach prudent for maritime shipping companies. Full article

Rural human settlement improvement (RHSI) is the basis for enhancing rural households’ life quality and promoting their well-being. Studying the impact of the livelihood capital level and structure on rural households’ payment willingness for RHSI will help to clarify the effective focus for implementing a payment system for rural environmental governance, which is of great significance for improving rural human settlements and promoting comprehensive rural revitalization. This study reveals the influence mechanism of the livelihood capital level and structure on rural households’ willingness to pay (WTP) for RHSI. According to the survey data of rural households in Hubei Province, China, the level and structure of rural households’ livelihood capital and their WTP for RHSI are analyzed using the entropy value method and the contingent valuation method. The effects of the livelihood capital level and structure on rural households’ WTP for RHSI are tested using the Probit and Tobit models. The results show significant differences in the level and structure of rural households’ livelihood capital. More than half of the rural households have a payment inclination for RHSI, but the distribution of the willingness payment amounts shows a clear polarization, with the average payment amount ranging from CNY 14.48 to 28.32 per month. Both the total livelihood capital level and classification levels (natural capital, human capital, financial capital and social capital) significantly positively affect the rural households’ WTP. In the livelihood capital structure, both the natural-capital-dominant type and financial-capital-dominant type significantly positively affect the rural households’ WTP, and the human-capital-dominant type significantly positively affects the rural households’ willingness payment amount. Accordingly, this study proposes policy recommendations for the multi-dimensional improvement of rural households’ livelihood capital and the optimization of the livelihood capital structure allocation. Full article

This paper reviews some of the key influences that wetlands have had on the development of human society together with the history of wetland use, conservation and management in the context of changing human interactions from prehistoric to modern times. It documents the origins of the Ramsar Convention and the changes in the criteria for defining wetlands of international importance from an emphasis on migratory birds to those of wider functional importance contributing to community well-being. This led to a significant increase in the number of signatories from developing countries The change in scientific emphasis from ecology to ecosystems (and ecosystem services) is identified as a key element of the wetland paradigm shift, which has occurred in the last half century and renewed the recognition of the importance of the natural capital of wetlands. It represents a change in research agenda from what wetlands are to what wetlands do. Modification of the Ramsar wise use concept is documented, and evolution of wetland assessment methods is traced in relation to policy development and the need for a strong science evidence base to improve decision-making connected with wetland conservation and management. The author also addresses the significance of wetland economic valuation and biodiversity issues, transboundary water management with particular reference to the marshlands of Mesopotamia (southern Iraq), conflict, and human livelihood issues. Examples are given of the drive towards wetland restoration in different countries, and at different scales, with awareness of the extraordinarily high costs associated with major schemes such as the Florida Everglades which may prohibit replication in other parts of the world. Adoption of the Ecosystem Approach and the “Wholescapes” concept are seen as important in the future management of wetland ecosystems. The wide-ranging interactions within the structure of a new wetland paradigm are summarized diagrammatically. An examination of current societal priorities and challenges resulting from the nexus of issues arising from food production, energy, water, and environmental change and health suggests both significant threats to wetlands, but also some opportunities for these ecosystems to play a part in sustainable solutions contributing to human well-being. The paper concludes with an endorsement of a new World Charter for wetlands but emphasizes the vital importance of partnership working and the key engagement of local communities to make any new initiative for enhanced protection and management of wetlands to work on the ground. Key challenges facing wetland science are identified, but it is the realization that healthy wetland ecosystems are a significant contributor to human and societal well-being that underpins the paradigm shift in research, management and policy needs. Full article

The record floods experienced along the Tisza River between 1998 and 2001 brought a paradigm shift in infrastructural solutions for flood protection. A flood peak polder system was built for transient water storage without any substantial change in land use in the polders, despite the potential to do so under the new scheme. The recent improvement of quantified flood risk assessment methodologies and stronger foundations for the valuation of carbon sequestration benefits now provide more information on the magnitude of missed opportunities and the potential for comprehensive land use and flood risk management solutions. This paper evaluates and combines the results of three cost-benefit type analyses on the conflicting relations of pursuing flood risk mitigation and land management goals. Although the studies were conducted at different locations of the same river stretch, they are all inspected using the same flood waves. Results assert that as EU-CAP agricultural subsidies stabilize individual benefits from arable land use in the short-run, public benefits and long-term individual benefits fail to reach their potential value. The combined analysis of flood risk change and CO₂ sequestration provides the economic rationale for the ecological revitalization along rivers with flood peak polders, helping to solve the conflict between hydrological and ecological objectives in floodplains. Capitalizing the value of the community benefits of forests in terms of CO₂ sequestration is limited by the unresolved property rights allocation of this natural capacity between landowners and the state, the latter being responsible for fulfilling international CO₂ reduction agreements; this uncertain legal background is an obstacle to the creation of sustainable economic conditions for the development and expansion of beneficial land management processes along rivers. Full article

The paper’s argument is that the specific characteristics of cultural heritage goods help minimise insensitivity to the scope, also known as the embedding effect, of contingent valuation (CV) estimates. This bias happens when estimates of willingness to pay (WTP) do not increase with the quantity of the goods presented, as expected from economic theory. The presence of such effect has been actively debated in the literature since it raises major concerns about the validity of the method itself and its uses within a social cost benefit analysis framework. The research presented in this paper discusses one of the few methodological studies testing the embedding effect within and across samples for cultural heritage goods. The research uses empirical data gathered from three independent and comparable samples focusing on the archaeological park of Campi Flegrei in Italy and two of its components: the Castle of Baia and the archaeological park of Cuma. Findings successfully prove that CV estimates relate to the quantity being valued and could be used with confidence by policy makers concerned with an inclusive, sustainable approach to cultural capital management. Full article

Climate change is threatening coastal cities affected by multiple hazards worldwide. Due to the increase in extreme weather events and the low capacity of cities to adapt to these odds, losses, exposure, and fatalities arise with the occurred events. Besides, traditional hazard mapping and risk planning techniques often fall behind when facing a climate crisis since extreme changes in quantity, frequency, and distribution of meteorological phenomena are observed. Specific and localized flood vulnerability mitigation strategies need to be developed, particularly for settlements on coastal and sloppy areas with a high risk of stream accumulation during rainfall days. This paper uses the urban flood risk mitigation of Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) generated within the Natural Capital Project to determine İzmir’s cloudburst vulnerability level. The city has experienced several cloudbursts in the last couple of months which inundated densely populated areas. The soil’s hydrologic conductibility and the land use/land cover (LULC) map were required as main inputs. The LULC map was produced on the basis of surface imperviousness. The model calculates the run-off volume and how much is retained by soil and vegetation. Outputs were used to concretely apply the sponge district concept while designing performance-based ecosystem solutions. In the light of the findings, the new performance-based design demonstrated how digital ecosystem modelling could support the urban design decision-making process. Full article