1/20/16

Exploring the Arsenal

    Venice did not disappoint by any means, such a beautiful city. Given the opportunity I would go back to that city any time of the year. We learned so much while we were there and explored many different parts of the city. A couple areas we explored were Chioggia, an island off the main city that is a huge fishing town, Burano the colorful city, Murano the glass city, we got to talk to the engineer behind the Mose project which would help the flooding in Venice. So it was hard to be unsatisfied while in this amazing city. One of the most interesting things to me was getting the chance to have a guided tour through the navy base in Venice called the Arsenal. Not many people in their life times will get the opportunity to view the inside of the Arsenal, this made the tour that much more special and made me feel blessed. Jackson (my article partner) and I were able to read an article titled The Growth of the Arsenal this was a very historical and economic filled article which explained more of the areas within the base in depth. Reading the article before getting to visit the Arsenal made me more eager to learn and see the base which I was extremely excited about. The article talks about how the growth of the Arsenal really came into need during the 16th century and how powerful their navy actually was before and after this time. It also talked about the types of ships that were created in the area as well as the goals for the ships. It explained in depth the trading caravans that were necessary for the growth of Venice as a state. This allowed trading to become a lot easier, having such a large navy because Venice was never overlooked and no one would want to mess with their ships. While on our tour the guide also informed us about where the wood was coming form during the time of need for these ships. I thought it was very interesting that the wood was coming from the Cavalese mountains where we had been given the chance to experience before hand! It was nice being able to make those connections between the two cities and seeing how one depended on the other to allow their city to strive! Overall seeing the Arsenal was incredible, Venice as a whole was one of the best experiences of my life, and those few days will be something that I will cherish for the rest of my life!

Inside the Arsenal!(left)

Pictures of a few of the boats used in middle ages (right)

1/15/16

Organic Farming

We have spent the past few days in the Trentino region of Northern Italy, learning about the sustainable agriculture and farming industries that are gaining notoriety throughout Europe in recent years. Staying in Cavalese has been an absolute blast, and they have definitely taken care of the Lutes! Bailey and I got to present an article about the growth in organic farming practices in the European Union, after visiting both an organic veal farm and a cheese factory that produces both organic and nonorganic products. Through EU regulations of agriculture and produce, both have found difficulties competing in open markets, as organic products often must be sold at higher prices to make a profit. Still, there has been an increase in the production and availability of these products in larger markets, with consumers becoming more educated on the benefits of organic produce and increased advertising and promotions. This rise has began to catch up to the amount sold in smaller, regional markets like many that we have seen, that sell local produce often following the same practices that were used before the need for mass production of agricultural goods. In a sense, we are seeing these farmers go back to the old way of production! Seeing the way that these farmers produced their goods definitely made me consider my choices at the grocery store, and the organic cheese tasted great!

-Jackson Leech

Fishing Permits in the Venice Lagoon

Fishing in the Venice lagoon has always been subject to strict rules due to a history of overfishing. During the 1970s, overfishing created an extremely low fish population. They tried to help the situation in 1983 by introducing the Asian clam. This clam can be harvested all year round and can provide a fisherman with a decent income. At the same time, it harms the biodiversity of the lagoon and is contributing to erosion because of the way it needs to be harvested. In order to prevent these issues from continuing, the harvesting will be limited to certain areas which means the number of fishermen also needs to be limited. 

One way to allocate fishing permits is to use a system of ‘grandfathering’. People who have fished in the lagoon the longest will be the first to receive permits under this system. This type of system is actually quite inefficient. The alternative would be to auction off the 500 permits for clam fishing. This is seen as more efficient and a more equitable distribution of permits. Options for different kinds of auctions include sealed bid, English (ascending bid), Dutch (descending bid), or second price (winner pays amount of second highest bid). Each kind of auction caters to a different priority. A sealed bid might get more participants, a Dutch auction might avoid collusion, and repeating an English auction 500 times will take a huge amount of time. The best auction to choose will be the one that has the best mix of costs and benefits and considers the priorities of the sale. For example, if the organizers want the least complicated auction, an English auction might be the best to choose because it is the type most people are familiar with. 

Our group traveled to the southern end of the Venice Lagoon to the town of Chioggia to visit the fish market. While there, we were able to watch that day’s catch get auctioned off to wholesale buyers. Buyers would whisper their bid to the middleman in charge of that sale and he would choose the highest bidder. Sometimes one buyer would buy all of the catch or other times it would get divided up among multiple buyers. This type of auction is quite similar to a sealed bid auction. After the market, we were walking through the town with one of the men from the fish market. He pointed out what was likely an illegal fishing boat because it had a very large motor and a poor attempt at hiding illegal fishing equipment. Unfortunately, illegal fishing is widespread and a lot more than just fishing permits are needed to solve the issue. Even if they found a way to fairly distribute fishing permits, illegal fishing would remain an issue. 

The first picture shows the scene at the fish market and the second shows some of the fish for sale. 

Comparative Economic Regulation of Viticultural Appellations: U.S. Practices and Italian Wine Law

In 1978 the United States Bureau of Alcohol, Tobacco, and Firearms (ATF) created the first regulations for geographically labeling and recognized by the Government. In Italy specific wine laws had been created and were functioning since 1963. These two systems worked in different ways to create regulations both in the United States and Italy viewed as necessary. For the ATF the regulations allowed the establishment of any viticulture areas which allowed the winery to establish a specific geographic label. The American regulations require the winery or coalitions of wineries to meet specific criteria of the ATF. In Italy wine law has four specific tiers of regulation and therefore supposed quality assurance by the Italian government. These regulations can include specific varieties of grapes allowed, how much can be grown, and other regulations imposed on these winemakers. These are D.O.C.G, D.O.C, Vini Tipici, and Vino da Tavola, and IGT. The D.O.C.G and D.O.C wines area confined to areas of significance or historical importance with an established reputation for the winery. IGT is the government recognized wine label which opts out of the rest of the wine regulations. The IGT can still be high quality wine but removes the grower from the regulations of the other wine designations. In the United States there are no such a system.

There are four areas of economic issues related to wine which can be further examined. These are the exclusivity principle, problem of the commons, value conveyed by official governmental recognition and approval of appellations, and issues involving consumers. The exclusivity principle is private property rights of a resources ability to exclude others from the right to exclude others to a resource. In the case of wine making winemakers used lawsuits and consortiums to create consistent quality. The next issue with wine is the problem of the commons. The problem of the commons is common resources in which excessive use can occur as everyone has access to the land and no incentive not to over use the land. Most wine areas do not have a single owner for a wine label instead these areas have many growers all of which can use the same label. The issue here is that overproduction of inferior wine can occur with some wineries producing more causing harm to all the wineries in the area. To deal with the issue of overproduction before specific wine laws in Italy for example, private agreements were created and successfully enforced. Official governmental recognition and approval is as the name implies the government recognition of a specific area of wine production which in the Italian case can be enforced by law. The recognition has value and can use this for economic benefit as it is a transfer of wealth from the government to the vineyard. Even without government recognition the names have value. The recognition does enhance the value of even these already named wines. The final economic issue is consumer issues. For the consumer the names of the of geographically specific wines is not beneficial unless the wines have different tastes which the consumer can detect. The consumer will decide which are the best properties of wine and choose to purchase such wine. The regulations both in the United States and in Italy worked to address the economic issues.

Outside of Trento we visited a winery which belong to the IGT. For this particular winemaker the D.O.C.G and the D.O.C regulations were too burdensome and she choose to be IGT as it offered her far more freedom. Though I am not particularly qualified as a wine coinsurer, as a consumer I found the wine produced at this winery of a high quality. Thus I found IGT does have a high quality and as a consumer I would choose to buy this particular vineyards wine. Understanding the regulations which are faced by winemakers it is clear some winemakers will choose to abstain from government control and choose instead to guarantee quality through consumer taste and reputation. Therefore, even today wine law in Italy is significant and those who are producing wine must still choose what regulations they want to be under.

Winery outside of Trento, Italy

Venice and the MOSE system

Venice is an architectural masterpiece built on several islands lying inside a lagoon. The city of Venice is full of cultural and historical heritage making it a major part of the UNESCO World Heritage sites. The geographical location of Venice causes a periodical flooding phenomenon known as acqua alta. Acqua alta is threatening historical preservation as well as interfering with the everyday life of citizens and tourists. After a long debate, the government has decided the best way to stop acqua alta and preserve the city is by using MOSE. MOSE is a series of mobile dams that are strategically placed in the three inlets of the lagoon. When the water level of the Adriatic sea is too high the MOSE system will raise the flood gates which acts as a dam from the sea to the lagoon stopping acuqa alta. After the water levels reach above 110cm the MOSE system is not completely effective and at least some flooding will occur. Even with waves that reach over 110cm the MOSE system will help prevent erosion of the sediments which lie under the city of Vencie because the majority of the waves momentum will be broken on impact with MOSE.

The MOSE system is a highly controversial topic because when the gates are raised, all entrances and exits to the lagoon will be blocked. Having the lagoon blocked causes a negative impact on the economy of Venice due to cargo ships having to be delayed which means the economy suffers. Without the MOSE system the harbor would still be fully operational but the city of Venice will be flooded meaning the city is shutdown. When the city of Venice is flooded the economy also suffers and the city has the potential for cultural heritage losses from flood damage. The article mentions various models that have been developed to represent decision making problems under ambiguity. The main model the article talks about is the Choquet Expected Utility model which is applied to MOSE mobile barriers given the ambiguity affecting the possible forecasts of the environmental parameters. The environmental parameters being the rise in sea level, the frequency of acuqa Alta, and giving uniquely determination of its economic impact. 

During our stay in Venice we saw the wooden walkways that are placed around St. Mark’s Square and the Rialto area to be used in times of acuqa Alta when the city intentionally floods these areas. The wooden walkways are designed to help keep St. Mark’s Square open in times of acuqa Alta when the rest of Venice shuts down. We also met with an engineer that works on the MOSE project and heard his thoughts on the project. It was interesting to learn that the project will cost 5 billion Euros and the gates are expected to last for over 100 years. The MOSE system will hopefully be a long term solution to slow the erosion of the sediments under the city of Venice even if that means having economic losses because shipping cargo has to wait to enter the harbor. They expect to only need to use this system about six times per year. 

Pictures are from Venice and show the water and one is from the meeting with the city engineer. 

Landslides in Cinque Terre

On Friday October 25th, 2011 extreme rainfall caused major flooding and landslides along the coast of Cinque Terre in the town of Vernazza. The landslides triggered hundreds of shallow landslides and a debris flood that caused three casualties and an economic loss of $130 million Euros. Terraces in Cinque Terre have been around since Roman times and were used for vineyards. Terraces are made by cutting into the hillside of the sea cliffs and clearing away the rocks then building multiple levels of stone walls that are comprised of loose rocks so water can pass through. Landslides have only been a recent issue due to terraces being abandoned by farmers beginning in the 1960’s. Terraces need constant maintenance of the loose rocks in stonewalls. The roots of the vine and other natural plants keep the sediment of the terraces in place and stop erosion. 

In order to stop the erosion of terraces and stop future landslides from happening in the Cinque Terre, the National Park can choose to do a combination of the following: restore some of the abandoned terraces, reforestation of plants, and implement local structures to stop landslides. Which every choice the National Parks department needs to decide how committed they are to preserving the cultural heritage of the terraces and also how badly they want to help the local wine industry. Reforestation is a long term solution and will take 30 years for the roots of the plants to be effective enough to slow the erosion process. Local structural work and restoring the abandand terraces are only short term solutions and very costly to maintain. During a hike along the trail of a terrace it was very apparent how much the terraces have eroded from lack of maintenance.

During our stay in Cinque Terre we visited a local vineyard and winery where we learned that many farmers have a hard time selling their wine in Cinque Terre. Since this wine is costly to produce (due to the necessary farming techniques), the price tends to be higher than wines from other regions. In order to make money, the farmers must develop markets for their wine outside of the local region. It was also brought up that the majority of local restaurants in Cinque Terre do not even carry wine that is produced from local vineyards, which means more and more terraces become abandoned due to local farmers not being able to sell their wine. This is unfortunate because the restaurant owners are only making the terraces weaker by not supporting local vineyards and the development of new vineyards on abandoned terraces. In order for the option of restoring terraces to be a viable solution, it is important for farmers to have an incentive to grow crops (either wine or something else). 

Pictures of the vineyard and the coastline from the hike. Both show terraces and the erosion. 

Venetian Waterways

I had no idea that I would enjoy Venice as much as I did. It is by far my favorite place that we have visited so far. I was warned that it kind of smelled and it had some crazy people like most big cities do, both of which I quickly found out were true, but it's also the most gorgeous place I have ever been and I never want to leave.

Venice is a city controlled by the water that surrounds it and flows through it. On our way back from dinner our first night in Venice, we saw the water lapping over the edge and onto the ground where a couple of gondalas were resting. The next day, I visited a massive cathedral with my friend, but we had to walk on platforms to enter the building and everywhere on the first floor because there was a layer of water covering the ground. I saw more of these platforms in the main square of the city in case of flooding from the lagoon. Water management is a great concern of the city.

We later listened to a presentation about the Mose system by an institution called the Water Authority to help control the flooding from the lagoon in Venice. This system involves several mobile barriers at the lagoon inlets that rise up using compressed air when flooding is imminent to separate the lagoon from the sea in order to protect the city. This is a massive project that is in the final stages with one barrier already completely finished.

Our article talked about Water Resource Management (WRM) in the Veneto region throughout the years. Before the land came under Roman rule, water flooded the area frequently due to the many rivers and channels flowing through it. Roman settlers were the first group to try and make the land livable around the 1st century A.D. by assigning war veterans to plots of land to manage the water in their sections. With the fall of the Roman Empire, however, this water management system also fell. The Benedictine monks tried to control the land again in the 11th century, but it wasn't until the 16th century with the expansion of the Republic of Venice that water management made substantial progress. The Water Authority and the Uncultivated Soil Authority were both established at this time to control flooding and increase food productivity, respectively. Managing the Veneto region was a task too great for individuals alone, so consortia, or large associations, of landowners were institutionalized under the Water and Uncultivated Soil Authorities to manage the land together.

The Water Authority is still a working organization today since its founding in the 16th century. I strongly believe the Veneto region is worth all of the time and resources that have been put forth throughout history to make it the beautiful region it is today.

Below is a picture of the lagoon flowing through Venice and a picture of the water nearly going over the edge by the gondalas.