Marine Pollution and Environmental Damage Assessment: Introduction

Environmental Economics and Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

THE USE OF LIABILITY RULES IN CONTROLLING HAZARDOUS WASTE ACCIDENTS: THEORY AND PRACTICE

Resource /Energy Economics and Policy,

RATIONAL ROOTS OF "IRRATIONAL" BEHAVIOR: NEW THEORIES OF ECONOMIC DECISION-MAKING

The neoclassical paradigm has proven to be a rich approach for evaluating a variety of issues for individual and social decision-making. However, an increasing body of literature suggests that actual behavior systematically violates the neoclassical utility model. This paper reviews a number of alternative models for decision-making. Results from the literature show several examples of apparently "irrational" behavior that can be explained in terms of these alternative motivations. The paper also extends the received literature by examining in some detail the implications of one such model which is based on the psychological feeling of ambivalence. The paper demonstrates that ambivalence has the potential for explaining the appearance of intransitive choices, the use of rules of thumb in decision-making and the large discrepancies between stated willingness-to-pay and willingness-to-accept, all of which have been observed in various settings. There are potentially great rewards from innovative research that expands the neoclassical paradigm to incorporate additional motivational factors in decision-making.Institutional and Behavioral Economics,

Behavioral Modeling and Fisheries Management

Because of the extreme uncertainty in fisheries biology, efforts to determine a stock-recruitment relationship have not been entirely successful. In the face of this certainty, this paper argues for a change in focus for fisheries economics from bioeconomic optimization toward goals which are more modest and more easily achievable. In particular, a satisficing approach to management is advocated, whereby efforts are made to reallocate some porportion of effort from overutilized to underutilized fisheries, with no attempt to determine the optimum. In order to achieve such a solution efficiently, managers must accurately predict the response of fishermen to public policy. This paper reports on a study which develops a discrete choice model to predict fishermen's supply response. Fishermen are shown to respond to economic incentives of expected returns and variability of returns, but only after these incentives surpass a substantial threshold.Institutional and Behavioral Economics,

WHO ARE RESOURCE NONUSERS AND WHAT CAN THEY TELL US ABOUT NONUSE VALUES? AN APPLICATION TO COASTAL WETLAND RESTORATION

This paper assesses the potential for incomplete definitions of resource use to influence estimates of nonuser WTP, and whether uses underlying certain use values may escape measurement using standard mechanisms applied to distinguish resource users from nonusers. Empirical results are drawn from a stated preference analysis involving coastal wetland restoration.Resource /Energy Economics and Policy,

Measuring Damages to Marine Natural Resources from Pollution Incidents under CERCLA: Applications of an Integrated Ocean Systems/Economic Model

Several pieces of federal environmental regulation establish strict liability for damages from spills of oil and hazardous substances. This paper discusses the Natural Resource Damage Assessment Model for Coastal and Marine Environments (NRDAMICME), which is to be used for assessing damages from spills of oil or hazardous substances in coastal and marine environments under CERCLA and the Clean Water Act, as amended. The approach employs an integrated ocean systems/economic model to simulate the physical fates and biological effects of a spill and to measure the resulting economic damages. To illustrate application of the model, selected results are presented for hypothetical spills of a number of substances in a variety of environments. The results show that the damage function depends on the physical and chemical properties of the substance spilled, the season, and the environment in which the spill occurs.Environmental Economics and Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, Risk and Uncertainty,

FORECASTING ENERGY SUPPLY AND POLLUTION FROM THE OFFSHORE OIL AND GAS INDUSTRY

Sound energy and environmental policies require reliable forecasts of production and pollution, as well as supply response to policy actions. In this study, we describe a model for forecasting long-term production and pollution in the offshore oil and gas industry in the Gulf of Mexico under different scenarios. A model based on disaggregated field-level data is used to forecast production and pollution through to the year 2050. The time path for resource depletion is determined as the net effect of technological progress and depletion under alternative scenarios for new discoveries. We also quantify potential efficiencies that could result from changing the design of regulations from the current command-and-control regime, to an approach that allows more flexible means of achieving the same environmental goals.Forecasting, energy supply, R&D, technological change, environmental regulations, environmental pollution, offshore oil, gas industry, Resource /Energy Economics and Policy, D24, L71, Q32, Q48,

POTENTIAL WATER USE CONFLICTS GENERATED BY IRRIGATED AGRICULTURE IN RHODE ISLAND

This study constructs a simulation model to evaluate the potential for conflict among residential and agricultural users of water in southern Rhode Island. The model estimates the profitability of irrigation and turf farms and projects the total use and the economic value of irrigation water. The results indicate that the economic value of irrigation water compares favorably with current residential water prices in the area. In addition, substantial demand for irrigation water is projected. Given current rates of growth in turf acreage and residential water use, there appears to be a significant potential for conflict, particularly given the absence of well developed institutions for allocating water among users.Resource /Energy Economics and Policy,

The Windy City: Property Value Impacts of Wind Turbines in an Urban Setting

This paper examines the impact of wind turbines on house values in Rhode Island. In contrast to wind farms surrounded by sparse development, in Rhode Island single turbines have been built in relatively high population dense areas. As a result, we observe 48,554 single-family, owner-occupied transactions within five miles of a turbine site, including 3,254 within one mile, which is far more than most related studies. We estimate hedonic difference-in-differences models that allow for impacts of wind turbines by proximity, viewshed, and contrast with surrounding development. Across a wide variety of specifications, the results suggest that wind turbines have no statistically significant negative impacts on house prices, in either the post public announcement phase or post construction phase. Further, the lower bound of statistically possible impacts is still outweighed by the positive externalities generated from CO2 mitigation

The impact of water quality in Narragansett Bay on housing prices

We examine the impact of water quality in Narragansett Bay on housing prices in coastal towns and cities using a hedonic housing-price model. Unlike other hedonic studies of water quality, we test whether housing market responds to average water quality or more to extreme events. We also test the spatial and temporal extent of effects of water quality on housing prices. We find that poor coastal water quality, measured in terms of the concentration of chlorophyll, has a negative impact on housing prices that diminishes with distance from the shoreline. Furthermore, our finding suggests that housing prices are most influenced by the extreme environmental conditions, which may be accompanied by unpleasant odors, discoloration, and even fish kills. We further predict potential increases in home values associated under water quality improvement scenarios and find an increase in the values of homes in coastal communities along Narragansett Bay of about $18 million up to$136 million