PERCEIVED HAZARD AND PRODUCT CHOICE: AN APPLICATION TO RECREATIONAL SITE CHOICE

This study improves upon the standard "dummy variable" approach to modeling fish consumption advisories by jointly estimating a "perceived hazard" model and a site choice model. The perceived hazard model overcomes the shortcomings of the dummy variable model, namely that all anglers respond equally to advisories and that all anglers know of and believe the advisories. We find that anglers' perceived hazards associated with consumption advisories do affect product (recreational site) choice. Anglers' perceptions also affect welfare measures, where the benefits of contaminant removal follow a more reasonable pattern than that of the dummy variable approach. The joint perceived hazard/product choice model is applicable to a wide variety of risky choices with which consumers are faced.Resource /Energy Economics and Policy,

CONSUMERS' WILLINGNESS TO PAY FOR ECO-CERTIFIED WOOD PRODUCTS

We use Kriström's simple spike model to assess the factors influencing consumers' willingness to pay a premium for a variety of certified wood products. A survey of over 1600 Pennsylvania and Tennessee residents found that approximately 35% were willing to pay some positive "premium" for environmentally certified wood products. For three types of wood products (a $29 shelf, a$200 chair, and a $800 table) we find the estimated market premiums to be 12.9%, 8.5%, and 2.8%, respectively.Consumer/Household Economics,

GENERATION OF RECYCLABLES BY RURAL HOUSEHOLDS

Rising landfill costs have forced solid waste managers to consider ways to reduce the waste stream. Using survey data, models explaining the weight of recyclables generated by households are estimated for paper and glass. Results indicate that households respond to the time cost of recycling paper but not glass. The waste generation models imply total monthly willingness to pay for recycling is $5.78 per household. Waste managers may increase the weight of recycled waste stream with programs which lower perceived time costs of nonrecyclers and improve the efficiency of recyclers.Consumer/Household Economics, Environmental Economics and Policy,

EXPLAINING RURAL HOUSEHOLD PARTICIPATION IN RECYCLING

Rising landfill costs have forced solid waste managers to consider waste stream reduction alternatives such as household recycling. Explaining the factors which motivate households to recycle is important to regions where households must bear a large portion of the recycling cost because unit-based garbage disposal fees and curbside recycling are not feasible options. Empirical results indicate that residents are responsive to constraints introduced by the household production technology, such as time costs and storage space, but are not responsive to variables measuring a recycling promotional program. Promotion efforts should switch focus from broader "public good" benefits of recycling to reducing household-level household production constraints.Dropoff recycling, Household recycling participation, Rural regions, Environmental Economics and Policy,

Revenue Impacts of MPP Branded Funds: A Firm-Level Analysis

The USDA's Market Access Program (formerly Market Promotion Program) recently underwent a major change to redirect all branded products export promotion funds to small domestic firms and cooperatives. The redirection responded to criticisms by the General Accounting Office of past allocations of branded products export promotion funds to large, experienced exporters. This study uses a firm-level analysis to examine whether firm size and export experience matter in how effectively firms use the promotion funds to increase their revenues. The results support neither the GAO criticisms nor the recent program redirection.International Relations/Trade,

REVENUE IMPACTS OF MPP BRANDED FUNDS: A FIRM LEVEL ANALYSIS

The USDA recently redirected the Market Access Program (MAP) to allocate all branded products export promotion funds to small firms and cooperatives. The redirection was, in part, a response to reports by the General Accounting Office that were critical of past allocations of export promotion funds to large, experienced exporters. This study uses a firm level analysis to examine firms' effectiveness in using Market Promotion Program (MPP, which is now the MAP) funds to increase revenues. Whereas point estimates suggested that smaller firms were more effective in translating MPP funds into increased revenue than larger firms, these point estimates for small firms were statistically indistinguishable from zero. In contrast, large firms showed an increase in revenue of greater than one dollar for every dollar of MPP funds. Further, the revenue increase was statistically significant. Thus, the firm level analysis supports neither the GAO hypotheses nor the recent program changes.export promotion programs, export sales, export revenues, Market Promotion Program, firm-level analysis, joint estimation, Financial Economics,

The Welfare Effects of Restricting Off-Highway Vehicle Access to Public Lands

Off highway vehicle (OHV) use is a rapidly growing outdoor activity that results in a host of environmental and management problems. Federal agencies have been directed to develop travel management plans to improve recreation experiences, reduce social conflicts and diminish environmental impacts of OHVs. We examine the effect of land access restrictions on the welfare of OHV enthusiasts in Utah using Murdock’s (2006) unobserved heterogeneity random utility model. Our models indicate that changing access to public lands from fully “open” to “limited” results in relatively small welfare losses, but that prohibiting access results in much larger welfare losses.Off-highway Vehicles, Recreational Access, Unobserved Heterogeneity, Random Utility Model, Environmental Economics and Policy, Land Economics/Use,

The Welfare Effects of Restricting Off-Highway Vehicle Access to Public Lands

Off-highway vehicle (OHV) use is a rapidly growing outdoor activity that results in a host of environmental and management problems. Federal agencies have been directed to develop travel management plans to improve recreation experiences, reduce social conflicts, and diminish environmental impacts of OHVs. We examine the effect of land access restrictions on the welfare of OHV enthusiasts in Utah using Murdock’s unobserved heterogeneity random utility model (Murdock 2006). Our models indicate that changing access to public lands from fully “open†to “limited†results in relatively small welfare losses, but that prohibiting access results in much larger welfare losses.off-highway vehicles, recreational access, unobserved heterogeneity, random utility model, Environmental Economics and Policy,

Risk Perceptions of Arsenic in Tap Water and Consumption of Bottled Water

The demand for bottled water has increased rapidly over the past decade, but bottled water is extremely costly compared to tap water. The convenience of bottled water surely matters to consumers, but are others factors at work? This manuscript examines whether purchases of bottled water are associated with the perceived risk of tap water. All of the past studies on bottled water consumption have used simple scale measures of perceived risk that do not correspond to risk measures used by risk analysts. We elicit a probability-based measure of risk and find that as perceived risks rise, expenditures for bottled water rise.Environmental Economics and Policy, Risk and Uncertainty, Q25, Q53, I12,

DO SPORTFISH CONSUMPTION ADVISORIES AFFECT RESERVOIR ANGLERS' SITE CHOICE?

Increasing numbers of freshwater ecosystems have had sportfish consumption advisories posted in recent years. Advisories are sometimes issued in lieu of environmental remediation if they are considered more cost-effective than "cleaning up" the resource, but this approach assumes that anglers adjust behavior in response to the warning. Previous studies, however, suggest that compliance with advisories can be quite low. In contrast, this study measures a statistically significant response by reservoir anglers to consumption advisories. In particular, anglers are less likely to choose to visit a reservoir with an advisory than a similar reservoir without an advisory. Furthermore, the economic losses due to advisories are quantified for anglers in two regions of Tennessee.Resource /Energy Economics and Policy,