Coordination and Miss-Coordination in Market Entry Games with an Application to Congestion Externalities

Marketing,

Multi-Market Trading for Cooperative Resource Management: An Application to Water Pollution and Fisheries

Increasingly, environmental problems are recognized to involve linkages across multiple environmental variables (e.g., pollution and a fishery). Prior work on managing these complex, linked systems generally focuses on efficiency rather than implementation. However, implementation is important and will generally involve changing human behaviors within the multiple economic sectors that impact upon the multiple environmental variables. Tradable permit markets are generally seen as a coordinating mechanism, within a particular regulated sector, that enhances efficiency by incentivizing agents to respond to behavioral choices of others within the sector. However, prior work stops short of coordinating behaviors across multiple sectors for cases where society benefits from regulation in both sectors and one sector harms the other. We analyze a multi-sector permit market involving both the externality-generating sector and the affected sector. This multi-sector market provides a mechanism for agents in one sector to respond to environmental behaviors made within the other sector. Moreover, unlike traditional permit markets in which the regulated externality sector incurs only costs, we show that the multi-sector market generates efficiency gains that may be redistributed using appropriate allocations of initial endowments. Accordingly, the multi-sector market may generate gains that benefit both sectors, resulting in a win-win outcome for both sectors. We use a simple example of a polluted fishery to illustrate the approach.Permit trading, fisheries, pollution, Shapley values, bioeconomics, Environmental Economics and Policy, Resource /Energy Economics and Policy,

The Coordination and Design of Point-Nonpoint Trading Programs and Agri-Environmental Policies

Agricultural agencies have long offered agri-environmental payments that are inadequate to achieve water quality goals, and many state water quality agencies are considering point-nonpoint trading to achieve the needed pollution reductions. This analysis considers both targeted and nontargeted agrienvironmental payment schemes, along with a trading program which is not spatially targeted. The degree of improved performance among these policies is found to depend on whether the programs are coordinated or not, whether double-dipping (i.e., when farmers are paid twice-once by each program-to undertake particular pollution control actions) is allowed, and whether the agri-environmental payments are targeted. Under coordination, efficiency gains only occur with double-dipping, so that both programs jointly influence farmers' marginal decisions. Without coordination, doubledipping may increase or decrease efficiency, depending on how the agri-environmental policy is targeted. Finally, double-dipping may not solely benefit farmers, but can result in a transfer of agricultural subsidies to point sources.Environmental Economics and Policy,

Improving the Efficiency and Effectiveness of Agri-environmental Policies for the Chesapeake Bay

Water Quality, Nonpoint Source Pollution, Policy Instrument, Chesapeake Bay, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q25, Q58,

THE VALUE OF ECOLOGICAL AND ECONOMIC INFORMATION IN WATER QUALITY MANAGEMENT

Replaced with revised version of paper 08/25/03.Environmental Economics and Policy,

THE DESIGN AND COMPARATIVE ECONOMIC PERFORMANCE OF ALTERNATIVE SECOND-BEST POINT/NONPOINT TRADING MARKETS

There is considerable interest in the use of pollution trading between point and nonpoint sources to improve the cost-effectiveness of water pollution control, but little literature to guide the design of trading systems involving nonpoint sources. We explore the design of two types of trading systems that would allow trading among and between point and nonpoint sources.Environmental Economics and Policy,

The application of high temporal resolution data in river catchment modelling and management strategies

Modelling changes in river water quality, and by extension developing river management strategies, has historically been reliant on empirical data collected at relatively low temporal resolutions. With access to data collected at higher temporal resolutions, this study investigated how these new dataset types could be employed to assess the precision and accuracy of two phosphorus (P) load apportionment models (LAMs) developed on lower resolution empirical data. Predictions were made of point and diffuse sources of P across ten different sampling scenarios. Sampling resolution ranged from hourly to monthly through the use of 2000 newly created datasets from high frequency P and discharge data collected from a eutrophic river draining a 9.48 km2 catchment. Outputs from the two LAMs were found to differ significantly in the P load apportionment (51.4% versus 4.6% from point sources) with reducing precision and increasing bias as sampling frequency decreased. Residual analysis identified a large deviation from observed data at high flows. This deviation affected the apportionment of P from diffuse sources in particular. The study demonstrated the potential problems in developing empirical models such as LAMs based on temporally relatively poorly-resolved data (the level of resolution that is available for the majority of catchments). When these models are applied ad hoc and outside an expert modelling framework using extant datasets of lower resolution, interpretations of their outputs could potentially reduce the effectiveness of management decisions aimed at improving water quality

Thermodynamics of protein folding: a random matrix formulation

The process of protein folding from an unfolded state to a biologically active, folded conformation is governed by many parameters e.g the sequence of amino acids, intermolecular interactions, the solvent, temperature and chaperon molecules. Our study, based on random matrix modeling of the interactions, shows however that the evolution of the statistical measures e.g Gibbs free energy, heat capacity, entropy is single parametric. The information can explain the selection of specific folding pathways from an infinite number of possible ways as well as other folding characteristics observed in computer simulation studies.Comment: 21 Pages, no figure