Gasoline Zone Pricing: Good Management or a Politician's Opportunity for Good Press? Working Paper Series--01-02

During 1999 and again in 2000, the retail gasoline markets and the crude oil market saw several severe price spikes. The resulting public furor stimulated political debate and investigation at several levels. This paper focuses attention on the practice of zone pricing or price discrimination. First a theoretical discussion is provided. This is followed by a finding concerning the proposed policies against this practice. In addition, the political discussion leads to a new concept of price herein coined as the "litigation prevention price.

The Basic Economics of a Disaster: Working Paper Series--05-13

This short paper addresses the market forces in the retail gasoline markets in the United States in the aftermath of hurricane Katrina. Although the price increases were substantial, it is argued that the markets essentially acted as a rationing agent during a time of 10% reduction in refining capacity and major national turmoil

Socially Endogenous Modifications of Utility Functions: Working Paper Series--00-07

Recent international agreements are evidence of modifications of the very form of individuals' utility functions as concerns for conservation of natural resources have progressed and increasingly become a major point of discussion within many levels of the global society. While the various policy issues resulting from environmental concerns have been analyzed in a broad spectrum of forums, the major social changes stimulating these policy discussions remain ignored. In a simplistic neo-classical framework, the changes could be thought of as simple responses to price (in the widest possible interpretation of the term) and income changes over time. Following the diverse writings of Greenhut et al., Norgaard, Parsons and Trosper, this paper sketches a theory explaining the alterations in what might be termed the distribution of individual utility functions and how this change influences society's decisions. The resulting sketch of endogenous utility functions develops a better understanding of the changes in individual and societal behavior as our human culture and the environment continue to co-evolve. To borrow Eriksson's term, perhaps the time has come to begin studying homo sociologius

Renewable Good - Fossil Bad: Working Paper Series--03-01

Fossil fuels have fueled, pun intended, the amazing economic and technological growth in the developed world for the last 150 years. However, there are four serious problems stemming from the burning of fossil fuels: health concerns, visibility impairment, acid rain and global warming. As such it is necessary for the global society to begin investing in a new renewable energy age. For most of human history, society managed to support itself from the daily incoming delivery of solar radiation. More recent technological, engineering, policy and market advances are availing the development of renewable energy conversion capabilities that will enable a global modern industrial society to prosper

Renewable Energy Electricity Generation in Arizona: What, Why, and Maybe How: Working Paper Series--02-35

Traditional fossil fuel production of electricity has serious externality issues that influence air quality, public health and viewscapes. In order to limit these influences, public policy aims at increasing the production of electricity using renewable fuels. For a variety of reasons, including market cost barriers, antiquated government policy and the overall lack of knowledge by energy consumers, renewable energy has had a tough time finding a niche in the energy marketplace in Arizona. In this paper we explain the problems with fossil fuel and nuclear energy sources, discuss the possibilities for renewable energy sources, digress on the theoretical question of treating air quality as a private externality or a public good, and propose various policy implements that will allow the state of Arizona to become a leader in the production of electricity from renewable sources

On Obama's Carbon Tax and Tax Credit Idea: A Teaching Note: Working Paper Series--09-08

The new president is proposing a new tax on carbon to be offset by an income tax credit of up to 80% of the incoming revenues from the government's sale of the carbon credits. This type of dual program results in a very convoluted analysis from the consumer's perspective and therefore distorts the policy implementation aspects of the program. The actual outcome of the policy is the opposite of the proposed political claim. From both a simple supply and demand analysis and a more advanced indifference curve assessment, the amount of income paid by the consumers for gasoline actually increases as the price increases to now buy the more limited gasoline. The policy, due to the limited number of available permits, does achieve the policy goal of reducing carbon emissions attributable to gasoline consumption. However, instead of protecting low income consumers, the gasoline producers are being provided with a wealth transfer

Managing tribal assets: Developing long term strategic plans: Working paper series--98-01

As Native American tribes move toward self-determination with their governments and self-sufficiency of their peoples, they face daunting problems. Beginning from the status quo of unemployment rates ranging as high as 90%, concomitant social and health issues unseen elsewhere in the U.S., and limited financial assets, tribes need to develop long-term strategic plans. However, traditional economic development models and techniques are of little use in designing these plans. Additionally, some tribes are earning substantial financial assets through gaming operations. Nearly all tribes, however, still face the challenge of using their assets to build vibrant communities after many years of destitution. To this end, the development of a long-term strategic community development plan is called for. The National Executive Education Program for Native American Leadership (NEEPNAL) in conjunction with the Center for American Indian Economic Development (CAIED) has developed a method for aiding tribes to develop such plans. This paper addresses the multiple, difficult issues surrounding development of an effective long-term strategic planning process for productive uses of tribal assets. Further, the NEEPNAL/CAIED method for overcoming these difficulties is presented, with positive examples from tribal experience

Analysis Concerning the Disaster of the Forest: A Theoretical and Practical Approach: Working Paper Series--04-09

The explosion of serious forest fires in the Rocky Mountain West in recent years has opened the public eye to the unhealthy condition of forests. The extended drought has combined with dense forest conditions to make many residents of rural Arizona quite fearful of the possibility of additional fires. The public interest has even resulted in federal policy changes known as the Healthy Forests Initiative, which has, of course, stimulated increased public discussion. In order to find solutions to the problem, as based on Norgaard, Smith and Jacobs, society must create new ways of organizing and doing. This article explores possible market-based solutions as the one of the available practical remediation processes. Utilizing the forest restoration and engineering literature, we believe that a new forest-based industry founded on the concepts of science-based forest management and ecological sustainability is the logical solution in a market-based economy

A further analysis of the Verde River Watershed ecovalues: Working paper series--10-04

Located in central Arizona, the Verde River flows 170 miles through private property, state, tribal, and National Forest land. The river is the last remaining mostly free-flowing river in otherwise arid Arizona. The challenges facing the stakeholders of the river and its watershed are numerous and complex. The issues of population and industrial growth, drought and climate change all challenge the future of the watershed. As such it is necessary for the stakeholders of the watershed to gain an understanding of the importance (or lack thereof) of the watershed to their communities. Employing a data set created by West et al. (2009a and b), this study analyzes 35 interviews of stakeholders using a methodology developed by the Millennium Ecosystem Assessment (MEA, 2003). This study conducts a strategic environmental assessment by evaluating the open ended responses with regard to how the watershed services correspond to human well being. To the authors' knowledge, this is the first application of the MEA tool to link ecosystem services to human well being. The Verde River watershed provides much more value to society in terms of contributing to human well-being than simply a source for water. The access to water for a variety of uses is vitally important to the stakeholders within the watershed; however, myriad other aspects of the watershed are also very important to the same stakeholders. As the possible threats to the Verde River and its watershed increase at an increasing rate, the stakeholders need to address these threats

Valuing the Verde River Watershed: An Assessment: Working Paper Series--09-03

This valuation study is designed to be the first phase of a larger series of studies to value the ecosystem services of the Verde River and its watershed. Interviews were conducted with 35 anonymous community leaders who live in, work with, or manage some aspect of the watershed (or a combination of the three). The interviews resulted in a large list of values for the watershed and provide a starting point for more studies. This report includes preliminary analysis of the data collected from these interviews, a brief literature review on ecosystem services, and recommendations for future research