THE FEDERAL ROLE IN NATURAL RESOURCE MANAGEMENT

Resource /Energy Economics and Policy,

POLICY SCIENCE IN THE LAND-GRANT COMPLEX: A PERSPECTIVE ON NATURAL RESOURCE ECONOMICS

Resource /Energy Economics and Policy,

MULTIFUNCTIONAL AGRICULTURE AND REGIONAL ECONOMIC GROWTH

Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development,

Is Australia on a sustainability path? Interpreting the clues

Genuine savings is a conceptually valid one-sided indicator as to whether Australia is on a weak sustainability path (negative GS would warn that current welfare is unsustainable). The World Bank’s adjusted net savings (ANS) data summarise the available evidence, and by this indicator Australia is muddling along, at best. ANS misses some important pieces of the picture – net depletion of water, soil and biodiversity, and most kinds of pollution damage – and thus overstates Australia’s genuine savings performance. Weak sustainability can be promoted by getting the prices right, and piecemeal efforts are underway via regulatory approaches and resource/ environmental markets of various kinds. Nevertheless, particular resource problems – habitat conservation, biodiversity, climate change and dryland salinity – are likely to also require strong sustainability approaches. A sustainable future involves pushing weak sustainability as far as the body politic permits, invoking precautionary instruments for specific resource crises, and nurturing policy processes that encourage the consensus-building that will be necessary to get it done.adjusted net saving, genuine saving, getting the prices right, precautionary instrument, resource and environmental assessment, strong sustainability, Resource /Energy Economics and Policy,

VALUING INJURY TO NATURAL RESOURCES: THE EFFECT OF RESOURCE QUALITY INFORMATION ON PERCEPTIONS AND CONTINGENT VALUES

Respondents are heterogeneous in their prior information about resource injury. The analysis derives an updating model of how heterogeneous respondents incorporate new information contained in resource injury descriptions. The analysis confirms that the sign of the information effect is determined by the difference between new and prior information. However, in the present analysis, respondents differ in prior information so that treatment information induces different perceptions and different values in different respondents. The empirical analysis confirms that identical treatments result in different injury perceptions. Across respondents, treatment induced changes in perceived injury vary not only in size, but also in sign. Both theory and empirical results show that willingness to pay varies directly with perceived injury.Resource /Energy Economics and Policy,

INCENTIVE-BASED SOLUTIONS TO AGRICULTURAL ENVIRONMENTAL PROBLEMS: RECENT DEVELOPMENTS IN THEORY AND PRACTICE

Theory predicts that incentive-based regulatory instruments reduce compliance costs by encouraging efficient resource allocation and innovation in environmental technology. Cost reductions from pollution permit trading often have exceeded expectations, but the devil is in the detail: the rules matter. In recent years, IB instruments of many kinds, from permit trading to various informal voluntary agreements, have been introduced in many countries. Point-nonpoint trading programs have been established in the U.S., but recorded trades have been rare. We speculate about prospects for performance-based monitoring of agricultural nonpojnt pollution which, we believe, would encourage trading to the benefit of farmers and society.Environmental Economics and Policy,

TRANSACTION CHAIN APPROACH TO THE REGULATION OF THE NONPOINT WATER POLLUTION FROM FARMS-RUNOFF

We offer a decentralized solution to the asymmetric information and hidden action problems in the nonpoint source (NPS) pollution case. Farmers in the same watershed generate homogeneous NPS pollution. The regulator, R, pays for (or represents a group of point-source, PS, polluters who pay for) pollution reduction credits earned by the group of the farmers. To resolve the asymmetric information problem, R is concerned with only the total level of the abatement achieved, while the group of farmers (called the Association, A), undertakes responsibility to distribute the payment so as to induce farmers to deliver abatement. We show that A can devise an optimal contract to deal with the farmers' hidden action problem. We identify the restrictions under which such a policy can be implemented, evaluate its effects on the product market, and show that in the NPS case information rents are higher than in the PS case.Environmental Economics and Policy,

A Better Approach to Resolving Variable Selection Uncertainty in Meta Analysis for Benefits Transfer

Because original high-quality non-market valuation studies can be expensive, perhaps prohibitively so, benefits transfer (BT) approaches are often used for valuing, e.g., the outputs of multifunctional agriculture. Here we focus on the use of BT functions, a preferred method, and address an under-appreciated problem – variable selection uncertainty – and demonstrate a conceptually superior method of resolving it. We show that the standard method of value-function BT, using the full estimated model, may generate BT values that are too sensitive to insignificant variables, whereas models reduced by backward elimination of insignificant variables pay no attention to insignificant variables that may in fact have some influence on values. Rather than searching for the best single model for BT, Bayesian model averaging (BMA) is attentive to all of the variables that are a priori relevant, but uses posterior model probabilities to give systematically lower weight to less significant variables. We estimate a full value model for wetlands in the US, and then calculate BT values from the full model, a reduced model, and by BMA. Variable selection uncertainty is exemplified by regional variables for wetland location. Predicted values from the full model are quite sensitive to region; reduced models pay no attention to regional variables; and the BMA predictions are attentive to region but give it relatively low weight. However, the suite of insignificant RHS variables, taken together, have non-trivial influence on BT values. BMA predicted values, like values from reduced models, have much narrower confidence intervals than values calculated from the full model.Research Methods/ Statistical Methods,

Day-Night and Energy Dependence of MSW Solar Neutrinos for Maximal Mixing

It has been stated in the literature that the case of maximal mixing angle for \nu_e leads to no day-night effect for solar neutrinos and an energy independent flux suppression of 1/2. While the case of maximal mixing angle and \Delta m^2 in the MSW range does lead to suppression of the electron neutrinos reaching the earth from the sun by P_S=1/2, the situation is different for neutrinos that have passed through the earth. We make the pedagogical point that, just as with smaller mixing angles, the earth regenerates the |\nu_1> state from the predominantly |\nu_2 > state reaching the earth, leading to coherent interference effects. This regeneration can lead to a day-night effect and an energy dependence of the suppression of solar electron neutrinos, even for the case of maximal mixing. For large mixing angles, the energy dependence of the day-night asymmetry depends heavily on Delta m^2. With a sufficiently sensitive measurement of the day-night effect, this energy dependence could be used to distinguish among the large mixing angle solutions of the solar neutrino problem.Comment: JHEP style, 22 pages, 7 figures. References added, and minor rewordin

Protest Adjustments in the Valuation of Watershed Restoration Using Payment Card Data

When using a willingness-to-pay (WTP) format in contingent valuation (CV) to value water-shed restoration, respondents may protest by questioning why they should pay to clean up a pollution problem that someone else created. Using a sample selection interval data model based on Bhat (1994) and Brox, Kumar, and Stollery (2003), we found that the decision to protest and WTP values were correlated. Protest sample selection bias resulted in a 300 percent overestimate of mean WTP per respondent. Using different ad hoc treatments of protesters, protest bias resulted in moderate effects (-10 percent to +14 percent) after controlling for sample selection bias.contingent valuation, protest bias, watershed restoration, sample selection, grouped Tobit, Resource /Energy Economics and Policy,