Do Large Firms with More Technologies Pay More?

Investigation of size wage premium in earning’s literature neglects the important role played by technology adoption. This study models the size selection corrected earning’s function by introducing an extra dimension of selection of technology complexity, using a sample from workers in US hog farms. The estimated wage gap between large and small farms is reduced once correction in selection is controlled. Workers compensate monetary income for better work environment, better health and more job security, in which large farms and technologically advanced farms have advantages.size, technology adoption, wage, double selection, agriculture, health, Research and Development/Tech Change/Emerging Technologies, Agribusiness,

The Environment, Trade and Innovation with Heterogeneous Firms: A Numerical Analysis

We employ a two-sector heterogeneous firms model in the presence of endogenous innovation and environmental constraints. We perform simple numerical simulations concerning the implication of a stringent environmental policy and trade cost differences between dirty and clean inputs. Our objective is to highlight the effects of these policy proposals on the process innovation, trade pattern, and productivity dynamics.Cap and Trade, Heterogeneous Firms, Process Innovation, Trade Pattern, Environmental Economics and Policy, International Relations/Trade, Research and Development/Tech Change/Emerging Technologies, F18, Q55, Q56, C63,

Three Essays in Non-market Valuation and Energy Economics

The focus of my dissertation is in two areas: modeling recreation behavior with limited information and the interaction between two greenhouse mitigation instruments in the power market. My first dissertation chapter, entitled Modeling Recreation Demand when the Access Point is Unknown , seeks to use the aggregation technique to model Iowan\u27s riverine recreation behavior without knowing their detailed access points. The task of modeling the recreation demand for geographically large sites, such as rivers and beaches or large parks with multiple entrances, is often challenged by incomplete information regarding the access point used by the individual. Traditionally, analysts have relied upon convenient approximations, defining travel time and travel distances on the basis of the midpoint of a river or beach segment or on the basis of the nearest access point to the site for each individual. In this paper, we instead treat the problem as one of aggregation, drawing upon and generalizing results from the aggregation literature. The resulting model yields a consistent framework for incorporating information on site characteristics and travel costs gathered at a finer level than that used to obtain trip counts. We use a series of Monte Carlo experiments to illustrate the performance of the traditional mid-point and nearest access point approximations. Our results suggest that, while the nearest access point approach provides a relatively good approximation to underlying preferences for a wide range of parameter specifications, use of the midpoint approach to calculating travel cost can lead to significant bias in the travel cost parameter and corresponding welfare calculations. Finally, we use our approach in modeling recreation demand for the major river systems in Iowa using data from the 2009 Iowa Rivers and River Corridors Survey. The second paper in my dissertation, entitled Modeling Recreation with Partial Trip Information , tries to use the same aggregation technique in another set of situations with partial information about residents\u27 visitation patterns. Full information about visitation pattern to all the related recreational sites is unavailable with surveys yielding trip information to a subset of possible sites. Conventional methods tend to focus on the sites with trip information and discard the sites with partial trip information. In this paper, we treat the partial information as an aggregation choice for this group of sites. In doing so, a similar aggregation modeling technique is proposed then, under some circumstances, allows one to recover preference parameters and avoid the possible bias caused by the conventional methods. A series of Monte Carlo simulations are conducted to study the possible bias caused by conventional methods and the performance of the aggregation model when the application is possible. The results show that the aggregation model performs quite well in recovery of preference and subsequent welfare analysis. Both methods are applied to data from 2009 Iowa lake and river projects. The results show that both methods give qualitatively similar preference parameters but produce significant differences in terms of the welfare measures. The third paper in my dissertation, entitled Carbon Tax, Wind Energy and GHG reduction - ERCOT as an Example , seeks to evaluate the performance of two greenhouse gas intervention policies in the exas ERCOT, power market.In the battle to control the greenhouse gas (GHG) emission, a prominent component contributing to the climate change, there are several schemes already taken by governments. Direct targeted policies, such as cap-and-trade program or a potential carbon tax, and indirect policies, such as promotion of renewable energies are receiving governments endorsements worldwide. With data from the Texas ERCOT power market, we develop a simple electricity generation dispatch model to analyze the relative performance in emission reduction when a carbon tax and significant amount of wind generation co-exist in the power grid. The simulation results show that during the research period, both policies have significant effects on reduction of carbon dioxide emission under hypothetical policy scenarios. The combination of a carbon tax policy and the promotion of wind energy seems more effective to achieve big reduction targets in the short run

Agricultural Land Use Change in the Corn Belt

The conversion of grass-like land to row crops (in our case, corn or soybeans) and general land use change in the Corn Belt region has important water quality implications. Additional agricultural production can increase nutrient runoff into the Upper Mississippi River Basin, thereby increasing the size of the Gulf of Mexico hypoxic zone. We use two data sources from the National Agricultural Statistical Services (NASS) to obtain detailed land use information in the Corn Belt from 2006 to 2014. We also identify and analyze any similarities and discrepancies between both data sources

Water-based Recreation and Water Quality Indices: A Revealed Preference Approach

Benefit estimates of water pollution control policies rely heavily on water quality indices. Since the 1970s, these measures of water quality have been used extensively in stated preference surveys to estimate willingness to pay for water quality that is suitable for recreational use. However, there is little empirical evidence of how well these indices correspond to observed recreational behavior. This paper utilizes a unique micro-dataset of individual household recreational use and water quality in a revealed preference framework to explore how well several major water quality indices explain water-based recreational use

Modeling Recreation Demand when the Access Point is Unknown

The task of modeling the recreation demand for geographically large sites, such as rivers and beaches or large parks with multiple entrances, is often challenged by incomplete information regarding the access point used by the individual. Traditionally, analysts have relied upon convenient approximations, defining travel time and travel distances on the basis of the midpoint of a river or beach segment or on the basis of the nearest access point to the site for each individual. In this paper, we instead treat the problem as one of aggregation, drawing upon and generalizing results from the aggregation literature. The resulting model yields a consistent framework for incorporating information on site characteristics and travel costs gathered at a finer level than that used to obtain trip counts. We use a series of Monte Carlo experiments to illustrate the performance of the traditional mid-point and nearest access point approximations. Our results suggest that, while the nearest access point approach provides a relatively good approximation to underlying preferences for a wide range of parameter specifications, use of the midpoint approach to calculating travel cost can lead to significant bias in the travel cost parameter and corresponding welfare calculations. Finally, we use our approach in modeling recreation demand for the major river systems in Iowa using data from the 2009 Iowa Rivers and River Corridors Survey

Degraded Water Quality in Lakes: Consequences for Use

Iowa, like many states in the Midwest, suffers from poor water quality. Excess nutrients in the state’s lakes and streams contribute to odor, limited clarity, excess algae and plant growth, and can contribute to a number of other undesirable changes to habitat and water quality. These changes, in turn, can reduce the usage and enjoyment of lakes and streams. Likewise, improvements in water quality brought about by reduced nutrient pollution or lake improvement projects can increase the number of visitors and their enjoyment of natural environments. To better understand what Iowans value about their natural environment and how changes in water quality and other factors alter that value, the Center for Agricultural and Rural Development (CARD), with funding from the Iowa Department of Natural Resources and the US Environmental Protection Agency, initiated a set of household surveys in 2002

Agricultural Innovation and Adaptation to Climate Change: Insights from Genetically Engineered Maize

Climate change is one of the major threats to the global food supply, and adaptation by technological progress is believed to be essential. What is the scope of the required innovation tasks? To address this question, we estimate the yield gain in US maize production due to a major novel technology: genetically engineered (GE) varieties. Next, the yield model is used to extrapolate future expected yields given climate change projections from twenty large-scale models and two warming scenarios. We find that climate change entails significant yield shortfalls. The scale of these yield gaps, by the end of the century, ranges from about 2.7 to 6.3 times the total yield gains from GE varieties. These results suggest that the scope of adaptation is challenging. Ambitious and targeted R&D efforts, and innovation breakthroughs, may be required to close the yield gaps likely to arise from climate change

World’s Largest Pork Producer in Crisis: China’s African Swine Fever Outbreak

AFTER SUFFERING a major blow from trade disruptions with China and Mexico, US pork producers are keeping close watch on African Swine Fever (ASF) in China and other countries. The βirst case of ASF in China was conβirmed August 2, 2018 in the northeastern city of Shenyang. According to our information, by the end of October 2018, there were 45 cases of ASF in China with 5,439 pigs infected and 3,841 pigs dead (download the ASF cases in China as an Excel βile )