DIVERSIONS FROM THE GREAT LAKES: OPPORTUNITIES AND DANGERS

Resource /Energy Economics and Policy,

DYNAMIC SUPPLY FROM A COMMON PROPERTY RESOURCE: WATER DIVERSIONS FROM THE GREAT LAKES

Resource /Energy Economics and Policy,

ALTERNATIVE PRICE SPECIFICATION FOR MUNICIPAL WATER DEMANDS: AN EMPIRICAL TEST

Based on data from 92 Minnesota cities, the analyses shows that neither marginal price or average price appear as the better predictor of demand. The price elasticity of demand ranges from -. 17 for marginal price in the linear model to -.27 for average price in the log linear model. It appears from the analysis that many consumers are unaware of the marginal price of their water. Thus utilities should simplify their pricing structures and present consumers with an easy to understand costs of water such as the cost of six hours of lawn watering.Demand and Price Analysis, Public Economics,

Cost Benefit Analysis of Wastewater Reuse in Israel

The state of Israel has semi arid climate conditions. In order to operate a desirable and productive agricultural sector, demand and supply of water need to be carefully and thoughtfully managed. This paper deals with one method of supply management, namely wastewater reuse for agricultural purposes

Price discrimination as a policy tool for Nature Reserve Management.

The issue of pricing nature reserves becomes more relevant as budgetary constraints become a limiting factor for their proper operation. This paper considers and compares different pricing alternatives for managing Nature Reserves (NRs) and applies them to two nature reserves in Israel. We compare 4 pricing strategies: Free entrance, maximum revenue pricing, cost recovery pricing and differential pricing. These strategies were implemented to both the existing situation and to a development scenario in which an upgrade in the Nature reserve is considered. The analysis was implemented on two nature reserves in Israel: Darga Nature Reserve (DNR), an open reserve where no entrance fee is charged, and Gamla Nature Reserve (GNR), a closed reserve, where an entrance fee is charged. Benefits were derived using the Travel Cost Method (TCM). Results show that differential pricing is the most cost effective policy. It recovers costs in both policy scenarios with the least dead weight loss (DWL). The consequence of the differential pricing however, is that there is a cross subsidy of the Gamla NR in 45 – 80 percent depending on the scenario analyzed. It was shown that there are conditions in which only a cross subsidy can make a development plan sustainable. Usually, policy makers differentiate pricing according to the characteristics of the visitors. That is, different prices are determined for domestic and international visitors, the elderly and the young, etc. Differential pricing among different reserves provides another tool for policy makers that can be consistent with cost recovery while minimizing DWL. Another potential advantage is that site differentiating causes less social tension due to the pricing being tailored not to a person, but rather to a site

Price discrimination as a policy tool for Nature Reserve Management.

The issue of pricing nature reserves becomes more relevant as budgetary constraints become a limiting factor for their proper operation. This paper considers and compares different pricing alternatives for managing Nature Reserves (NRs) and applies them to two nature reserves in Israel. We compare 4 pricing strategies: Free entrance, maximum revenue pricing, cost recovery pricing and differential pricing. These strategies were implemented to both the existing situation and to a development scenario in which an upgrade in the Nature reserve is considered. The analysis was implemented on two nature reserves in Israel: Darga Nature Reserve (DNR), an open reserve where no entrance fee is charged, and Gamla Nature Reserve (GNR), a closed reserve, where an entrance fee is charged. Benefits were derived using the Travel Cost Method (TCM). Results show that differential pricing is the most cost effective policy. It recovers costs in both policy scenarios with the least dead weight loss (DWL). The consequence of the differential pricing however, is that there is a cross subsidy of the Gamla NR in 45 – 80 percent depending on the scenario analyzed. It was shown that there are conditions in which only a cross subsidy can make a development plan sustainable. Usually, policy makers differentiate pricing according to the characteristics of the visitors. That is, different prices are determined for domestic and international visitors, the elderly and the young, etc. Differential pricing among different reserves provides another tool for policy makers that can be consistent with cost recovery while minimizing DWL. Another potential advantage is that site differentiating causes less social tension due to the pricing being tailored not to a person, but rather to a site

The Benefits and Costs of Noise Reduction

This paper attempts to measure, in a cost–benefit analysis, a stricter noise abatement programme for noise originating from roads in Israel. Using the hedonic price method for three large cities and rural area transactions, a benefit from noise reduction was found. In order to perform a social cost–benefit analysis, a measure of benefit has been derived for 1 km of road and has been compared with the cost of noise reduction under different types of road structure. The results indicate that even though benefits have largely increased when compared to past decades (e.g. 1.2% of an average urban property value per 1 decibel reduction), the decision to insulate a given road is dependent on location and road structure. This raises the normative question of a national vs. regional standard that decision makers should be aware of and such studies could be of help in this respect

The economic impact of the invasion of Acacia saligna in Israel

This paper illustrates the use of alternative, non-market valuation methods to estimate the economic value of ecological damage caused by the invasive plant Acacia saligna. We discuss the motivation to perform an economic valuation for bio-invasion in general and then examine the costs and benefits of conservation management programmes that reduce the risk of A. saligna invasion at the Nizzanim Long-Term Ecosystem Research (LTER) nature reserve in Israel. The study found that the annual mean willingness to pay (WTP) for containment or eradication of A. saligna was US$8.41 and US$8.83, respectively. The value placed on conserving the nature reserve was then compared to the cost of containment or eradication of the species, enabling a standard economic benefit–cost analysis. The result of this analysis showed that, using the most conservative method of valuation of the nature reserve, eradication of A. saligna gave a net benefit

The economic impact of the invasion of Acacia saligna in Israel

This paper illustrates the use of alternative, non-market valuation methods to estimate the economic value of ecological damage caused by the invasive plant Acacia saligna. We discuss the motivation to perform an economic valuation for bio-invasion in general and then examine the costs and benefits of conservation management programmes that reduce the risk of A. saligna invasion at the Nizzanim Long-Term Ecosystem Research (LTER) nature reserve in Israel. The study found that the annual mean willingness to pay (WTP) for containment or eradication of A. saligna was US$8.41 and US$8.83, respectively. The value placed on conserving the nature reserve was then compared to the cost of containment or eradication of the species, enabling a standard economic benefit–cost analysis. The result of this analysis showed that, using the most conservative method of valuation of the nature reserve, eradication of A. saligna gave a net benefit