The Definition and Choice of Environmental Commodities for Nonmarket Valuation

Economic analyses of nature must somehow define the “environmental commodities” to which values are attached. This paper articulates a set of principles to guide the choice and interpretation of nonmarket commodities. We describe how complex natural systems can be decomposed consistent with what can be called “ecological production theory.” Ecological production theory--like conventional production theory--distinguishes between biophysical inputs, process, and outputs. We argue that a systems approach to the decomposition and presentation of natural commodities can inform and possibly improve the validity of nonmarket environmental valuation studies. We raise concerns about the interpretation, usefulness, and accuracy of benefit estimates derived without reference to ecological production theory.nonmarket valuation, stated preference, revealed preference, commodities, endpoints

Intel's XL Permit: A Framework for Evaluation

The paper develops a framework to evaluate permits granted to firms under the Environmental Protection Agency's Project XL � with emphasis on the novel air permit granted to the Intel Corporation. We describe the permit, the process that created it, and the types of costs and benefits likely to arise from this type of "facility-specific" regulatory arrangement. Among other things, the paper describes the permit's impact on environmental quality, production costs, transaction costs, and Intel's strategic market position. The paper also considers how an estimate of the costs and benefits � both to Intel and society � might be estimated. While facility-specific regulation typically conjures images of production cost savings as processes are re-engineered and low-cost abatement strategies pursued, the Intel case highlights perhaps a more important source of benefit: flexibility in the form of streamlined permitting. Flexibility in this form allows for accelerated product introductions, with potentially significant benefits to the firm and possibly to society.

TOWARD TARGET 2 OF THE GLOBAL STRATEGY FOR PLANT CONSERVATION: AN EXPERT ANALYSIS OF THE PUERTO RICAN FLORA TO VALIDATE NEW STREAMLINED METHODS FOR ASSESSING CONSERVATION STATUS

Target 2 of the 2020 Global Strategy for Plant Conservation (GSPC) calls for a comprehensive list of the world\u27s threatened plant species. The lack of such a list is one of the greatest impediments to protecting the full complement of the world\u27s plant species, and work to achieve this has been slow. An efficient system for identifying those species that are at risk of extinction could help to achieve this goal in a time frame sensitive to today\u27s conservation needs. Two systems that efficiently use available data to assess conservation status were tested against a provisional International Union for Conservation of Nature and Natural Resources (IUCN) Red List analysis to evaluate the native seed plant species of Puerto Rico. It was demonstrated that both systems efficiently identify species at risk, which is a step toward both the GSPC Target 2 and a more comprehensive IUCN Red List for plants. Both systems were effective at identifying plant species at risk, with the New York analysis identifying 98% and the Smithsonian analysis 85% of the plant species considered Threatened in the IUCN Red List. Both analyses to some extent overestimated those plants at risk, but the species identified are all range restricted and, thus, of some conservation interest

Quantitative Modeling of GRK-Mediated β2AR Regulation

We developed a unified model of the GRK-mediated β2 adrenergic receptor (β2AR) regulation that simultaneously accounts for six different biochemical measurements of the system obtained over a wide range of agonist concentrations. Using a single deterministic model we accounted for (1) GRK phosphorylation in response to various full and partial agonists; (2) dephosphorylation of the GRK site on the β2AR; (3) β2AR internalization; (4) recycling of the β2AR post isoproterenol treatment; (5) β2AR desensitization; and (6) β2AR resensitization. Simulations of our model show that plasma membrane dephosphorylation and recycling of the phosphorylated receptor are necessary to adequately account for the measured dephosphorylation kinetics. We further used the model to predict the consequences of (1) modifying rates such as GRK phosphorylation of the receptor, arrestin binding and dissociation from the receptor, and receptor dephosphorylation that should reflect effects of knockdowns and overexpressions of these components; and (2) varying concentration and frequency of agonist stimulation “seen” by the β2AR to better mimic hormonal, neurophysiological and pharmacological stimulations of the β2AR. Exploring the consequences of rapid pulsatile agonist stimulation, we found that although resensitization was rapid, the β2AR system retained the memory of the previous stimuli and desensitized faster and much more strongly in response to subsequent stimuli. The latent memory that we predict is due to slower membrane dephosphorylation, which allows for progressive accumulation of phosphorylated receptor on the surface. This primes the receptor for faster arrestin binding on subsequent agonist activation leading to a greater extent of desensitization. In summary, the model is unique in accounting for the behavior of the β2AR system across multiple types of biochemical measurements using a single set of experimentally constrained parameters. It also provides insight into how the signaling machinery can retain memory of prior stimulation long after near complete resensitization has been achieved

Robustness of VSL Values from Contingent Valuation Surveys

This paper examines factors that may influence the estimates of the Value of a Statistical Life obtained from contingent valuation surveys that elicit the willingness to pay (WTP) for mortality risk reductions. We examine the importance of distributional assumptions, the choice of the welfare statistics of interest, the procedure for computing them, outliers, undesirable response effects, and internal validity of the WTP responses. We illustrate the importance of these factors using dichotomous-choice and open-ended WTP data from four recent contingent valuation surveys

Using Ecological Production Theory to Define and Select Environmental Commodities for Nonmarket Valuation

Economic analyses of nature must somehow define the “environmental commodities” to which values are attached. We articulate principles to guide the choice and interpretation of nonmarket commodities. We describe how complex natural systems can be decomposed consistent with “ecological production theory,” which, like conventional production theory, distinguishes between biophysical inputs, process, and outputs. We argue that a systems approach to the decomposition and presentation of natural commodities can inform and possibly improve the validity of nonmarket environmental valuation studies. We raise concerns about interpretation, usefulness, and accuracy of benefit estimates derived without reference to ecological production theory