This paper presents a methodology for examining the net benefit of site rehabilitation after an e... more This paper presents a methodology for examining the net benefit of site rehabilitation after an ecological disaster. While restoration of the site seems reasonable on the face of it, the cost of proactive restoration can be very high. In this article, we present a tool for decision makers to decide on the optimal route to rehabilitation – proactive or natural rehabilitation (or some combination thereof). We present a case study of an ecological catastrophe that occurred in June 2017 at an ephemeral desert stream in the south of Israel. We estimated the restoration costs and the benefits of restoration over the relevant time frame using a contingent valuation method. Comparing the present costs and benefits revealed a net present value of ILS 355.5 million in favor of proactive restoration of the stream. We also demonstrate that not all sections of the stream pass the benefit cost test, so a higher net benefit could be achieved through partial restoration. Our study demonstrates the ...
The state of Israel has semi arid climate conditions. In order to operate a desirable and product... more The state of Israel has semi arid climate conditions. In order to operate a desirable and productive agricultural sector, demand and supply of water need to be carefully and thoughtfully managed. This paper deals with one method of supply management, namely wastewater reuse for agricultural purposes.
Journal of Environmental Planning and Management, 2009
High taxes on new cars in Israel provide an incentive for car owners to defer the purchase of new... more High taxes on new cars in Israel provide an incentive for car owners to defer the purchase of new vehicles. The result is a vehicle fleet of older, more polluting vehicles, with air pollution costs estimated at up to $530 million annually. The purpose of this paper is to conduct a cost benefit analysis (CBA) of an accelerated vehicle-retirement (AVR)
International Journal of Water Resources Development, 2002
ABSTRACT Water pricing in Israel led the water situation to become almost disastrous. This was tr... more ABSTRACT Water pricing in Israel led the water situation to become almost disastrous. This was true for both quantity and quality issues. This paper deals with a proposed price reform and its implication for two issues. The first is the optimal timing to switch to a backstop technology--desalinating water in this case. Economic analysis shows that combining both demand and supply management can postpone desalinization projects by more than 20 years. The second issue deals with changing the price block schedule in order to compensate farmers for a given price change. Increasing the marginal price of water to its real value damages the marginal users. The paper tries to calculate and proposes a new price block schedule that will leave the farmers as well off as they were before the change.
In Israel, the government currently implements vari ous measures intended to reduce the amount of... more In Israel, the government currently implements vari ous measures intended to reduce the amount of household waste sent to landfi ll. So far, however, these measures have resulted in only limited success. The commonly heard claim that municipalities prefer to continue sending wast e to landfill because it is less costly than recycling is incorrect. A recent s tudy shows
Significant progress in seawater desalination technology has lowered its costs considerably, maki... more Significant progress in seawater desalination technology has lowered its costs considerably, making it an attractive option to policy makers in countries facing water shortages. However, in making the decision to implement desalination, two issues are often ignored: firstly, seawater desalination is also associated with external costs. Secondly, alternative measures of managing water shortage may potentially be more cost-efficient. The current
Abstract Abstract A typical model of investment under uncertainty, where firms pay an irreversibl... more Abstract Abstract A typical model of investment under uncertainty, where firms pay an irreversible cost in order to produce, is studied. The analysis has a novel focus on the recipient of this payment, which is modeled as a firm or government that sells a resource (or a right) necessary for the production of the final good. Our main finding
The paper presents an analysis of the factors influencing the recycling potential of municipaliti... more The paper presents an analysis of the factors influencing the recycling potential of municipalities in Israel, including population size and density, geographic location, current waste levels, and current waste management system. We employ a standard regression analysis in order to develop an econometric model to predict where potential for economically efficient recycling is highest. By applying this model to readily available data, it is possible to predict with close to 90% accuracy whether or not recycling will be economically efficient in any given municipality. Government agencies working to promote advanced waste management solutions have at their disposal only limited resources and budget, and so must concentrate their efforts where they will be most effective. The paper thus provides policy-makers with a powerful tool to help direct their efforts to promote recycling at those municipalities where it is indeed optimal.
This paper examines the relationship between investment in transportation infrastructure capital ... more This paper examines the relationship between investment in transportation infrastructure capital and the debt-to-gross domestic product (GDP) ratio. We analyse the effect of bringing forward investment originally planned for future years to be executed during times of economic crisis and also consider the possible advantages of carrying out such investments with private sector financing. This paper presents a model which
International Journal of Water Resources Development, 2002
ABSTRACT Water pricing in Israel led the water situation to become almost disastrous. This was tr... more ABSTRACT Water pricing in Israel led the water situation to become almost disastrous. This was true for both quantity and quality issues. This paper deals with a proposed price reform and its implication for two issues. The first is the optimal timing to switch to a backstop technology--desalinating water in this case. Economic analysis shows that combining both demand and supply management can postpone desalinization projects by more than 20 years. The second issue deals with changing the price block schedule in order to compensate farmers for a given price change. Increasing the marginal price of water to its real value damages the marginal users. The paper tries to calculate and proposes a new price block schedule that will leave the farmers as well off as they were before the change.
This paper presents a methodology for examining the net benefit of site rehabilitation after an e... more This paper presents a methodology for examining the net benefit of site rehabilitation after an ecological disaster. While restoration of the site seems reasonable on the face of it, the cost of proactive restoration can be very high. In this article, we present a tool for decision makers to decide on the optimal route to rehabilitation – proactive or natural rehabilitation (or some combination thereof). We present a case study of an ecological catastrophe that occurred in June 2017 at an ephemeral desert stream in the south of Israel. We estimated the restoration costs and the benefits of restoration over the relevant time frame using a contingent valuation method. Comparing the present costs and benefits revealed a net present value of ILS 355.5 million in favor of proactive restoration of the stream. We also demonstrate that not all sections of the stream pass the benefit cost test, so a higher net benefit could be achieved through partial restoration. Our study demonstrates the ...
The state of Israel has semi arid climate conditions. In order to operate a desirable and product... more The state of Israel has semi arid climate conditions. In order to operate a desirable and productive agricultural sector, demand and supply of water need to be carefully and thoughtfully managed. This paper deals with one method of supply management, namely wastewater reuse for agricultural purposes.
Journal of Environmental Planning and Management, 2009
High taxes on new cars in Israel provide an incentive for car owners to defer the purchase of new... more High taxes on new cars in Israel provide an incentive for car owners to defer the purchase of new vehicles. The result is a vehicle fleet of older, more polluting vehicles, with air pollution costs estimated at up to $530 million annually. The purpose of this paper is to conduct a cost benefit analysis (CBA) of an accelerated vehicle-retirement (AVR)
International Journal of Water Resources Development, 2002
ABSTRACT Water pricing in Israel led the water situation to become almost disastrous. This was tr... more ABSTRACT Water pricing in Israel led the water situation to become almost disastrous. This was true for both quantity and quality issues. This paper deals with a proposed price reform and its implication for two issues. The first is the optimal timing to switch to a backstop technology--desalinating water in this case. Economic analysis shows that combining both demand and supply management can postpone desalinization projects by more than 20 years. The second issue deals with changing the price block schedule in order to compensate farmers for a given price change. Increasing the marginal price of water to its real value damages the marginal users. The paper tries to calculate and proposes a new price block schedule that will leave the farmers as well off as they were before the change.
In Israel, the government currently implements vari ous measures intended to reduce the amount of... more In Israel, the government currently implements vari ous measures intended to reduce the amount of household waste sent to landfi ll. So far, however, these measures have resulted in only limited success. The commonly heard claim that municipalities prefer to continue sending wast e to landfill because it is less costly than recycling is incorrect. A recent s tudy shows
Significant progress in seawater desalination technology has lowered its costs considerably, maki... more Significant progress in seawater desalination technology has lowered its costs considerably, making it an attractive option to policy makers in countries facing water shortages. However, in making the decision to implement desalination, two issues are often ignored: firstly, seawater desalination is also associated with external costs. Secondly, alternative measures of managing water shortage may potentially be more cost-efficient. The current
Abstract Abstract A typical model of investment under uncertainty, where firms pay an irreversibl... more Abstract Abstract A typical model of investment under uncertainty, where firms pay an irreversible cost in order to produce, is studied. The analysis has a novel focus on the recipient of this payment, which is modeled as a firm or government that sells a resource (or a right) necessary for the production of the final good. Our main finding
The paper presents an analysis of the factors influencing the recycling potential of municipaliti... more The paper presents an analysis of the factors influencing the recycling potential of municipalities in Israel, including population size and density, geographic location, current waste levels, and current waste management system. We employ a standard regression analysis in order to develop an econometric model to predict where potential for economically efficient recycling is highest. By applying this model to readily available data, it is possible to predict with close to 90% accuracy whether or not recycling will be economically efficient in any given municipality. Government agencies working to promote advanced waste management solutions have at their disposal only limited resources and budget, and so must concentrate their efforts where they will be most effective. The paper thus provides policy-makers with a powerful tool to help direct their efforts to promote recycling at those municipalities where it is indeed optimal.
This paper examines the relationship between investment in transportation infrastructure capital ... more This paper examines the relationship between investment in transportation infrastructure capital and the debt-to-gross domestic product (GDP) ratio. We analyse the effect of bringing forward investment originally planned for future years to be executed during times of economic crisis and also consider the possible advantages of carrying out such investments with private sector financing. This paper presents a model which
International Journal of Water Resources Development, 2002
ABSTRACT Water pricing in Israel led the water situation to become almost disastrous. This was tr... more ABSTRACT Water pricing in Israel led the water situation to become almost disastrous. This was true for both quantity and quality issues. This paper deals with a proposed price reform and its implication for two issues. The first is the optimal timing to switch to a backstop technology--desalinating water in this case. Economic analysis shows that combining both demand and supply management can postpone desalinization projects by more than 20 years. The second issue deals with changing the price block schedule in order to compensate farmers for a given price change. Increasing the marginal price of water to its real value damages the marginal users. The paper tries to calculate and proposes a new price block schedule that will leave the farmers as well off as they were before the change.
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