OPTIMIZING COMPLEX BIOECONOMIC SIMULATIONS USING AN EFFICIENT SEARCH HEURISTIC

For simulation to be truly useful for investigating many problems in agricultural economics, non-simplifying optimization techniques need to be employed. General methods for simulation optimization that do not inhibit system characterization or analysis are available, and they would appear to provide much of the mathematical and optimizing rigor demanded by economists. This paper describes the theory and algorithm of a robust and efficient simulation optimization approach, the Complex Method. An example of implementing the algorithm is illustrated using a pest management problem.simulation, optimization, Complex Method, hill-climbing, Research Methods/ Statistical Methods,

ECONOMIC LINKAGES BETWEEN COASTAL WETLANDS AND HABITAT/SPECIES PROTECTION: A REVIEW OF VALUE ESTIMATES REPORTED IN THE PUBLISHED LITERATURE

This manuscript summarizes a total of 8 peer-reviewed studies, published from 1975 to 2001, reporting 24 separate estimates for the disaggregate2 value of habitat and species protection services provided by coastal and non-coastal wetlands. Estimates varied within a single order of magnitude and were fairly tightly bounded. Considering only coastal zone wetlands across all study categories, the value of habitat and species protection ranged from $168.96/acre/year to$403.16/acre/year, with a mean and median of $249.44/acre/year and$253.47/acre/year, respectively. By comparison, reported estimates of willingness-to-pay (WTP) values for wetland habitat and species protection services ranged from a low of $30.12 to$434.67, with a mean and median of $211.59 and$213.86, respectively. Geographic location and type of wetland appeared to have a relatively minor impact on the estimated values.Resource /Energy Economics and Policy,

TECHNOLOGY AND MANAGEMENT IN MAURITANIAN CEPHALOPOD FISHERIES

If the technology in a multi-species fishery is such that there is jointness in inputs and non-separability between inputs and outputs, then management on a species-by-species basis may lead to unintended outcomes, including over-exploitation of the resource. This study investigates the nature of the technical and economic relationships underlying the 1989-90 Mauritanian cephalopod fishery by estimating a system of dual output supply functions derived from a generalized Leontief revenue function. Model results indicate the existence of jointness in inputs and non-separability between inputs and outputs in the fishery. Cross-price elasticities indicated a number of substitute and complementary relationships, with these relationships changing in magnitude across years. Taken together, the results suggest that any attempts to economically manage the resource should be based on multi-product product production theory, not single-species biological response functions. Besides ruling out single-species management, the dominance of substitute relationships in the Mauritanian cephalopod fishery precludes the use of "key species" management of the entire resource.Resource /Energy Economics and Policy,

TECHNOLOGY AND MANAGEMENT IN MAURITANIAN CEPHALOPOD FISHERIES

If the technology in a multi-species fishery is such that there is jointness in inputs and non-separability between inputs and outputs, then management on a species-by-species basis may lead to unintended outcomes, including over-exploitation of the resource. This study investigates the nature of the technical and economic relationships underlying the 1989-1990 Mauritanian cephalopod fishery by estimating a system of dual output supply functions derived from a generalized Leontief revenue function. Model results indicate the existence of jointness in inputs and non-separability between inputs and outputs in the fishery. Cross-price elasticities indicated a number of substitute and complementary relationships, with these relationships changing in magnitude across years. Taken together, the results suggest that any attempts to economically manage the resource should be based on multi-product production theory, not single-species biological response functions. Besides ruling out single-species management, the dominance of substitute relationships in the Mauritanian cephalopod fishery precludes the use of "key species" management of the entire resource.Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy,

The Potential Role of Management Regulations in Controlling Consumer Exposure to Contaminated Fishery Products

Food Security and Poverty,

REASONABLE VALUE AND THE ROLE OF NEGOTIATION IN AGRICULTURE'S USE OF THE ENVIRONMENT

Social pressures to regulate agriculture's use of environmental resources have been building for many years and show no signs of abating. While the agricultural and environmental communities can react to these events in many ways, perhaps the most promising avenue for resolving joint agricultural and environmental disputes lies with negotiated regulations mediated by governmental agencies. When first conceived by Commons, negotiated regulation was seen as a way to achieve both efficient and equitable dispute resolution by directly using the preferences, skills, and operational knowledge of stakeholders. This approach should be attractive to the agricultural community because it provides an opportunity to educate environmental groups about the complexities facing modern agriculture. It also assures that private business interests are considered in the development of regulations, and should result in regulations that give dynamic flexibility to the way environmental standards are achieved. In today's litigious society, negotiated regulations may also reduce many transaction costs associated with agricultural and environmental issues, particularly those associated with contract development and enforcement. Ultimately, negotiated regulations may be the best hope for satisfying the dual social objectives of a clean environment and an economically viable agricultural sector.Environmental Economics and Policy,

TECHNICAL CHANGE AND NEW DIRECTIONS FOR COTTON PRODUCTION

This report summarizes a year-long study of the current and future role of technology in the Mid-South, Southeast, and High Plains cotton production systems. Specific research objectives were to: 1) Identify the impacts of emerging technology on regional cotton production systems, including the implications of technology adoption on the economic and environmental stability of the system; 2) Examine the future direction of technical change in cotton production and its implications for the biological and economic structure of the cotton production system; and 3) Determine the potential role of future technologies on shifting regional competitiveness in cotton production. Information used in the analysis was collected through a series of consultations with leading cotton research and extension personnel at regional research facilities and land grant universities. Given the verbal, descriptive nature of the information collected, the analysis represents the expert opinions of individuals working with and in the cotton production industry. In short, this report documents the combined vision of cotton production scientists and extension personnel with respect to the future of U.S. and regional cotton production. Necessary background information was obtained from published academic, industry, and government sources.Production Economics, Research and Development/Tech Change/Emerging Technologies,

The Public Health and Economic Impacts of Persistent, Bioaccumulative, and Toxic (PBT) Contaminants on U.S. Fisheries

Widely dispersed information from the public health, economic, and fisheries management literature is synthesized to examine the impacts of PBT contamination, including current and potential impacts on public health and the ongoing economic impacts this contamination has on the U.S. fishing industry.Environmental Economics and Policy,

Location Choice Behavior of Gulf of Mexico Shrimpers under Dynamic Economic Conditions

This study uses a mixed logit model to analyze monetary and nonmonetary factors that influence location choice behavior of the U.S. Gulf of Mexico shrimpers. Shrimpers’ responses to economic conditions are compared and contrasted for two periods related to changing economic conditions in the industry. Results show that even though shrimpers are generally revenue driven in choosing a fishing site, their past experience also plays an important role. Further, changes in economic conditions appear to exhibit an influence on the risk attitudes of some shrimpers.location choice, loyalty, mixed Logit, risk averse, shrimp fishery, Resource /Energy Economics and Policy, Q2, L2,

Dynamics of Heterogeneous Congestion Tolerance in the Location Choices of U.S. Gulf of Mexico Shrimp Fishermen

Location choice is one of the most important short-run decisions made by commercial fishermen. Previous studies of location choice by commercial fishermen have focused primarily on site fidelity, profit-maximization behavior, and risk attitudes as factors influencing their location choice behavior. Although the recreational literature gives extensive consideration to the influence of congestion on site selection, few studies have considered the influence of congestion tolerance on site selection in the commercial fishing sector. This study uses a mixed logit model to analyze the heterogeneous congestion tolerance in location choice among U.S. Gulf of Mexico shrimp fishermen. The dynamics of fishermen responses to economic conditions are compared and contrasted for two periods; the first period coinciding with relative economic stability in the industry and the second period coinciding with deteriorating economic conditions. Results suggest that congestion externalities have significant influence on the location choice of shrimp fishermen, but that congestion tolerance level differs among them. A better understanding of heterogeneous congestion tolerance should aid the implementation of management tools such as area closures.location choice, congestion, mixed logit, shrimp fishery, Resource /Energy Economics and Policy,