MEASURING CONSUMER PREFERENCES FOR ECOLABELED SEAFOOD: AN INTERNATIONAL COMPARISON

An analysis of consumer preferences for seafood labeled with information about environmental production attributes is introduced into the food labeling literature. International seafood ecolabeling programs have proposed to create market-based incentives for fisheries managers to promote sustainable fisheries. We investigate differences in consumer preferences for ecolabeled seafood across the United States and Norway. Using a contingent-choice telephone survey of random households in each nation, a wide range of factors is found to influence consumers' likelihood of purchasing ecolabeled seafood. Consumer preferences differ by price premium, species, consumer group, and certifying agency. The effect of these factors often differs between the United States and Norway, suggesting heterogeneity in international reactions to seafood ecolabels.Consumer/Household Economics,

SPARCCS Smart Phone Assisted Rapid Command and Control System (Poster)

Military Wireless Communications (MWC)Military Wireless Communications (MWC

Modeling UK Natural Gas Prices When Gas Prices Periodically Decouple from the Oil Price

When natural gas prices are subject to periodic decoupling from oil prices, for instance due to peak-load pricing, conventional linear models of price dynamics such as the Vector Error Correction Model (VECM) can lead to erroneous inferences about cointegration relationships, price adjustments and relative values. We propose the use of regime-switching models to address these issues. Our regime switching model uses price data to infer whether pricing is oil-driven (integrated) or gas-specific (decoupled). We find that UK natural gas (ICE) and oil (Brent) are cointegrated for the majority of the sample considered (1997-2014). Gas prices tend to decouple during fall and early winter, when they increase relative to oil consistent with heating demand for natural gas creating gas-specific pricing. Using the model to infer relative values when evidence favors integrated markets, we find that the industry 10-1 rule-of-thumb holds, meaning that the value of one barrel of oil is 10 times the value of one MMbtu of natural gas

Seafood prices reveal impacts of a major ecological disturbance

Coastal hypoxia (dissolved oxygen ≤ 2 mg/L) is a growing problem worldwide that threatens marine ecosystem services, but little is known about economic effects on fisheries. Here, we provide evidence that hypoxia causes economic impacts on a major fishery. Ecological studies of hypoxia and marine fauna suggest multiple mechanisms through which hypoxia can skew a population’s size distribution toward smaller individuals. These mechanisms produce sharp predictions about changes in seafood markets. Hypoxia is hypothesized to decrease the quantity of large shrimp relative to small shrimp and increase the price of large shrimp relative to small shrimp. We test these hypotheses using time series of size-based prices. Naive quantity-based models using treatment/control comparisons in hypoxic and nonhypoxic areas produce null results, but we find strong evidence of the hypothesized effects in the relative prices: Hypoxia increases the relative price of large shrimp compared with small shrimp. The effects of fuel prices provide supporting evidence. Empirical models of fishing effort and bioeconomic simulations explain why quantifying effects of hypoxia on fisheries using quantity data has been inconclusive. Specifically, spatial-dynamic feedbacks across the natural system (the fish stock) and human system (the mobile fishing fleet) confound “treated” and “control” areas. Consequently, analyses of price data, which rely on a market counterfactual, are able to reveal effects of the ecological disturbance that are obscured in quantity data. Our results are an important step toward quantifying the economic value of reduced upstream nutrient loading in the Mississippi Basin and are broadly applicable to other coupled human-natural systems.publishedVersio