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The Social Costs of Mineland Restoration

Author

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  • Jay Sullivan
  • Gregory S. Amacher

Abstract

A model of mineland restoration is presented to show the wedge between mine operator and social planner decisions and social costs of current instruments. We find, first, mine operator efforts may not match socially optimal levels and consequently generate relatively high social costs, second, social costs can be reduced using a bond that targets eventual site factors and land rent generation, and, third, in general, social costs may not be eliminated fully at bond levels that still encourage the mine operator to choose forest over grassland as a postmining use. This suggests greater scope for command- and control-based regulation.

Suggested Citation

  • Jay Sullivan & Gregory S. Amacher, 2009. "The Social Costs of Mineland Restoration," Land Economics, University of Wisconsin Press, vol. 85(4), pages 712-726.
  • Handle: RePEc:uwp:landec:v:85:y:2009:i:4:p:712-726
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    References listed on IDEAS

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    1. Swallow, Stephen K. & Parks, Peter J. & Wear, David N., 1990. "Policy-relevant nonconvexities in the production of multiple forest benefits," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 264-280, November.
    2. Stephen K. Swallow & Piyali Talukdar & David N. Wear, 1997. "Spatial and Temporal Specialization in Forest Ecosystem Management Under Sole Ownership," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 311-326.
    3. Swallow Stephen K. & Wear David N., 1993. "Spatial Interactions in Multiple-Use Forestry and Substitution and Wealth Effects for the Single Stand," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 103-120, September.
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    Cited by:

    1. Kuusela, O.P. & Amacher, G.S. & Moeltner, K., 23. "Performance Bonds in Tropical Timber Concessions: Encouraging the Adoption of Reduced Impact Logging Techniques," Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics, Scandinavian Society of Forest Economics, issue 44, May.

    More about this item

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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