Water Management and the Valuation of Indirect Environmental Services

Comprehensive water basin and watershed planning and management require valuation of the intermediate ecological services provided to the water resources themselves. Valuation of forest cover in the augmentation of water resources is discussed in the context of aggregate economic planning, water-basin or sectoral planning, and conservation project evaluation. The importance of valuing intermediate non-market goods is illustrated for each planning tool in the context of an illustrative example of the Pearl Harbor/Ko'olau watershed in Hawaii. In the context of water allocation and investment in waterworks, considerations of full income valuation imply that the value of water should incorporate the risk of watershed degradation contingent on the expected conservation effort. What appear to be new objectives of economic planning, such as sustainable development, do not require new criteria but rather the augmentation of existing methods of income accounting and project valuation to include the values on non-market goods. We also show that measurement of non-market valuation does not necessarily require the use of contingent-valuation methods, even when the usual alternatives (hedonics, household production, etc.) are not directly applicable.

Economic Impacts of E. Coqui frogs in Hawaii

Eleutherodactylus coqui, a small frog native to Puerto Rico, was introduced to Hawaii in the late 1980s, presumably as a hitchhiker on plant material from the Caribbean or Florida (Kraus et al. 1999). The severity of the frogs' songs on the island of Hawaii has lead to a hypothesis touted both in the scientific community and in the popular media that the presence of the frog on or near a property results in a decline in that property's value. The objective of this study is to explicitly test the extent to which this hypothesis is true, and if it is, what the level of localized damage incurred on a property's value is. The invasion began on either Hawaii or Maui, and has now expanded to Oahu and Kauai. Spread has occurred through the movement of nursery plants and through intentional introduction of the frogs to previously uninfested areas. The coqui frogs have attained some of the highest densities ever observed for terrestrial amphibian populations (up to 133,000 per ha on Hawaii). These extremely dense populations have lead to both economic and ecological concerns, especially on the island of Hawaii. The loud mating song of the male frogs is the most widely cited complaint in Hawaii. The frog's song has been measured to range in the 80-100 decibel level (Beard and Pitt 2005). Given that 45 decibels may be enough to prevent the average person from sleeping , the song of the coqui is considered a form of noise pollution in Hawaii. In this study we focus only on the direct damage costs of the coqui's loud mating songs through a hedonic pricing model. Because this only one component of the economic costs of noise pollution, it should be considered a lower bound estimate of the true cost of their noise and their presence. Since this lower bound is generated through measurable losses in property value, its use in invasive species policy should be welcomingly straightforward compared to survey methods or other efforts to quantify damages from ecosystem change. We find that coqui frogs do impose localized damages to real estate values, but by 800 meters distance from a complaint this damage is declining relative to the effect at 500m. The per-transaction reduction in value when frog complaints have been lodged within 500m appears to be about 0.16%, holding constant district, acreage, financial conditions, zoning, and neighborhood characteristics. This is just over 1/3 of the impact that an increase of 1% in mortgage rates is estimated to have on price.Land Economics/Use,

Control of Invasive Species: Lessons from Miconia in Hawaii

Once established, invasive species can rapidly and irreversibly alter ecosystems and degrade the value of ecosystem services. Optimal control of an exotic pest solves for a trajectory of removals that minimizes the present value of removal costs and residual damages from the remaining pest population. The shrubby tree, Miconia calvescens, is used to illustrate dynamic policy options for a forest invader. Potential damages to Hawaii's forest ecosystems are related to decreased aquifer recharge, biodiversity, and other ecosystem values. We find that population reduction is the optimal management policy for the islands of Oahu, Maui, and Hawaii. On the island of Kauai, where tree density is lower and search costs higher, optimal policy calls for deferring removal expenditures until the steady state population is reached.Environmental Economics and Policy,

Prevention, Eradication, and Containment of Invasive Species: Illustrations from Hawaii

Invasive species change ecosystems and the economic services such ecosystems provide. Optimal policy will minimize the expected damages and costs of prevention and control. We seek to explain policy outcomes as a function of biological and economic factors, using the case of Hawaii to illustrate. First, we consider an existing invader, Miconia calvescens, a plant with the potential to reduce biodiversity, soil cover, and water availability. We then examine an imminent threat, the potential arrival of the Brown treesnake (Boiga irregularis). The arrival of the snake in Guam has led to native bird extirpations, power outages, and health costs.invasive species, bioeconomics, optimal control, Miconia calvescens, Boiga, Resource /Energy Economics and Policy,

The origins of the institutions of marriage

Standard economic theories of household formation predict the rise of institutionalized polygyny in response to increased resource inequality among men. We propose a theory, within the framework of a matching model of marriage, in which, in some cases, institutionalized monogamy prevails, even when resources are unequally distributed, as a result of agricultural externalities that increase the presence of pair-bonding hormones. Within marriage, hormone levels contribute to the formation of the marital pair bond, the strength of which determines a man's willingness to invest in his wife's children. These pair bonds are reinforced through physical contact between the man and his wife and can be amplified by externalities produced by certain production technologies. Both the presence of additional wives and the absence of these externalities reduce the strength of the marital bond and, where the fitness of a child is increasing in paternal investment, reduce a woman's expected lifetime fertility. Multiple equilibria in terms of the dominant form of marriage (for example, polygyny or monogamy) are possible, if the surplus to a match is a function of reproductive success as well as material income. Using evidence from the Standard Cross Cultural Sample and Murdock's Ethnographic Atlas, we find that agricultural production externalities that affect neurological pair-bonding incentives significantly reduce the tendency to polygyny, even when resource inequality is present

Bioeconomic factors of natural resource transitions: The US sperm whale fishery of the 19th century

This paper uses bio-economic modeling and simulation to investigate the de-mise of the sperm whale industry in the mid-19th century. Petroleum is widely credited both contemporaneously and today with 'saving the whales.' We investigate the transition in illumination technologies from whale oil to petroleum as a stochastic dynamic process in which there is uncertainty over the parameters of the fishery and the timing of available substitutes for sperm oil in order to determine the effect on the whale population. Using new biological analysis of the sperm whale fishery (Whitehead, 2002) and insights from natural resource economics we show that under most economic conditions the dynamics, even without a substitute, would have prevented extinction; this result is notably different, for economic and biological reasons, than that usually determined for the better studied baleen whales. This research builds on a long history of understanding the whale fisheries, particularly Davis et al. (1988) and related work, integrating new scientific and economic evidence

Larger Domains from Resonant Decay of Disoriented Chiral Condensates

The decay of disoriented chiral condensates into soft pions is considered within the context of a linear sigma model. Unlike earlier analytic studies, which focused on the production of pions as the sigma field rolled down toward its new equilibrium value, here we focus on the amplification of long-wavelength pion modes due to parametric resonance as the sigma field oscillates around the minimum of its potential. This process can create larger domains of pion fluctuations than the usual spinodal decomposition process, and hence may provide a viable experimental signature for chiral symmetry breaking in relativistic heavy ion collisions; it may also better explain physically the large growth of domains found in several numerical simulations.Comment: 4pp, 2 figs, Revtex. Minor revisions, conclusions unchange

On the microscopic dynamics of DCC formation

The dynamics of the pion field after a quench is studied in the framework of the linear sigma model. Our aim is to determine to what extent the amplified pion field resembles the DCC picture originally proposed in the early '90s. We present the result of a computer experiment where, among other things, we study in detail the correlation between isospin orientations of the distinct modes of the field. We show that this correlation is absent. In a sense, the distinct modes behave as distinct DCCs. The implications of this observation are discussed.Comment: 19 pages, Latex2e, 7 figures in EPS, uses (included) boldgreek.sty and standard epsf package