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A Herculean Task? Economics, Politics, and Realigning Government in the Case of U.S. Polar-Orbiting Weather Satellites AgEcon
MacAuley, Molly K..
In 1994 one of the most radical institutional restructurings in the U.S. government's provision of critical weather information took place after eight unsuccessful attempts. A presidential decision directive merged weather data collection by satellites operated by the Department of Defense for military operations and satellites operated by the Department of Commerce for civilian weather forecasting. Such radical restructuring involving government agencies with different objectives, economic constraints, and operating cultures is rare. This paper reviews the decision that led to "convergence," discusses economic arguments advanced for the merger, and finds that the problem of an incomplete contract, from the perspective of contract theory, is the...
Tipo: Working or Discussion Paper Palavras-chave: Weather economics; Space economics; Value of information; Government policy; Environmental Economics and Policy; Q28; O32; Q00.
Ano: 2004 URL: http://purl.umn.edu/10539
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A Model of Producer Incentives for Livestock Disease Management AgEcon
Ranjan, Ram; Lubowski, Ruben N..
We examine the management of livestock diseases from the producers' perspective, incorporating information and incentive asymmetries between producers and regulators. Using a dynamic model, we examine responses to different policy options including indemnity payments, subsidies to report at-risk animals, monitoring, and regulatory approaches to decreasing infection risks when perverse incentives and multiple policies interact. This conceptual analysis illustrates the importance of designing efficient combinations of regulatory and incentive-based policies.
Tipo: Working or Discussion Paper Palavras-chave: Livestock disease; Asymmetric information; Reporting; Indemnities; Risk management; Livestock Production/Industries; C61; D82; Q12; Q18; Q28.
Ano: 2004 URL: http://purl.umn.edu/15653
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A Note on Emissions Taxes and Incomplete Information AgEcon
Chavez, Carlos A.; Stranlund, John K..
In contrast with what we perceive is the conventional wisdom about setting emissions taxes under uncertainty, we demonstrate that setting a uniform tax equal to expected marginal damage is not generally efficient under incomplete information about firms’ abatement costs and damages from pollution. We show that efficient taxes will deviate from expected marginal damage if there is uncertainty about the slopes of the marginal abatement costs of regulated firms. Moreover, efficient emissions tax rates will vary across firms if a regulator can use observable firm-level characteristics to gain some information about how the firms’ marginal abatement costs vary.
Tipo: Working or Discussion Paper Palavras-chave: Emissions Taxes; Incomplete Information; Uncertainty; Environmental Economics and Policy; Public Economics; Risk and Uncertainty; L51; Q28.
Ano: 2008 URL: http://purl.umn.edu/42129
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A note on the performance measure of conservation auctions AgEcon
Latacz-Lohmann, Uwe; Schilizzi, Steven.
We argue that previous assessments of discriminatory-price conservation auctions may have systematically overestimated their performance relative to uniform-payment schemes due to an inappropriate counterfactual comparison. We demonstrate that the cost curve (and not the bid curve) is the relevant supply curve when a uniform payment is offered and provide a theoretically rigorous counterfactual based on that insight. We estimate that the performance of BushTender may have been overrated by more than 50%.
Tipo: Working or Discussion Paper Palavras-chave: Auctions; Procurement; Tenders; Conservation; Economic experiments; Model validation; Plus: assessment method; Agricultural policy; Environmental policy; Market-based instruments; Environmental Economics and Policy; Research Methods/ Statistical Methods; C91; C92; D44; Q24; Q28.
Ano: 2011 URL: http://purl.umn.edu/100885
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A Safety Valve for Emissions Trading AgEcon
Stranlund, John K..
This paper considers the optimal design of an emissions trading program that includes a safety valve tax that allows pollution sources to escape the emissions cap imposed by the aggregate supply of emissions permits. I demonstrate that an optimal hybrid emissions trading/emissions tax policy involves a permit supply that is strictly less than under a pure emissions trading scheme and a safety valve tax that exceeds the optimal pure emissions tax as long as expected marginal damage is an increasing function. While the expected level of emissions under a hybrid policy may be more or less than under pure emissions trading or a pure emissions tax, under the assumption that uncertainty about aggregate marginal abatement costs is symmetric the most likely...
Tipo: Working or Discussion Paper Palavras-chave: Emissions Taxes; Emissions Trading; Uncertainty; Safety Valve; Hybrid Emissions Control; Environmental Economics and Policy; Public Economics; Risk and Uncertainty; L51; Q28.
Ano: 2009 URL: http://purl.umn.edu/53125
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A Tale of Two Market Failures: Technology and Environmental Policy AgEcon
Jaffe, Adam B.; Newell, Richard G.; Stavins, Robert N..
Market failures associated with environmental pollution interact with market failures associated with the innovation and diffusion of new technologies. These combined market failures provide a strong rationale for a portfolio of public policies that foster emissions reduction as well as the development and adoption of environmentally beneficial technology. Both theory and empirical evidence suggest that the rate and direction of technological advance is influenced by market and regulatory incentives, and can be cost-effectively harnessed through the use of economicincentive based policy. In the presence of weak or nonexistent environmental policies, investments in the development and diffusion of new environmentally beneficial technologies are very likely...
Tipo: Working or Discussion Paper Palavras-chave: Technology; Research and development; Environment; Externality; Policy; Environmental Economics and Policy; O38; Q28; H23.
Ano: 2004 URL: http://purl.umn.edu/10815
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Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases AgEcon
Alberini, Anna; Austin, David H..
Proponents of environmental policies based on liability assert that strict liability imposed on the polluter will induce firms to handle hazardous wastes properly and to avoid disposing them into the environment. Economic theory and a few well-publicized cases, however, suggest that a number of factors may dilute the incentives posed by strict liability. In this paper, we run regressions relating unintended releases of pollution into the environment (aggregated at the state level, and followed over nine years from 1987 to 1995) to the imposition of strict liability on the polluter, exploiting variation across states in the liability provisions of their mini-Superfund laws, and in the years these were adopted. We experiment with instrumental variable...
Tipo: Working or Discussion Paper Palavras-chave: Strict liability; Toxic spills; Policy endogeneity; Environmental Economics and Policy; Q28; C33; K32.
Ano: 1999 URL: http://purl.umn.edu/10450
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Accidents Waiting to Happen: Liability Policy and Toxic Pollution Releases AgEcon
Alberini, Anna; Austin, David H..
Proponents of environmental policies based on liability assert that strict liability imposed on polluters induces firms to handle hazardous wastes properly. We run regressions relating unintended pollution releases to strict liability imposed on polluters, exploiting variation across states and over time in the liability provisions of state mini-Superfund laws. Strict liability reduces the frequency and severity of pollution releases, provided it is modeled endogenously with the latter. Its effects vary with firm size. Partially sheltered from liability, small firms may have specialized in riskier production processes, but their number has not necessarily grown in response to the states' liability policy.
Tipo: Working or Discussion Paper Palavras-chave: Strict liability; Negligence; Hazardous waste; State environmental policy; Endogenous policy adoption; Environmental Economics and Policy; Q28; D72; K13.
Ano: 2001 URL: http://purl.umn.edu/10518
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Accumulative Pollution, "Clean Technology," and Policy Design AgEcon
Withagen, Cees; Toman, Michael.
Environmental policymakers must address the adverse effects of a number of pollutants that accumulate in the environment. Goals for the regulation of these damages often involve holding long-term emissions below a level deemed to be "dangerous", or outright banning of offending products or processes along with subsidization of more "green" alternatives. This paper builds upon previous studies by Keeler, Spence, and Zeckhauser (1971) and Tahvonen and Withagen (1996) in addressing the optimal long-term management of an accumulative but assimilatable pollutant through policies that restrict more damaging production processes and thereby induce more benign alternatives. Using a simple general equilibrium approach, we consider the possibility that the...
Tipo: Working or Discussion Paper Palavras-chave: Stock externalities; Nonconvexities; Sustainable development; Environmental Economics and Policy; Q20; Q28; D62.
Ano: 1998 URL: http://purl.umn.edu/10748
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Adaptation, Mitigation and “Green” R&D to Combat Global Climate Change. Insights From an Empirical Integrated Assessment Exercise AgEcon
Bosello, Francesco.
This work develops a framework for the analysis at the macro-level of the relationship between adaptation and mitigation policies. The FEEM-RICE growth model with stock pollution, endogenous R&D investment and emission abatement is enriched with a planned-adaptation module where a defensive capital stock is built through adaptation investment. Within this framework the optimal path of planned adaptation, the optimal inter and intra temporal mix between adaptation, mitigation and investment in R&D, and the sensitivity of a strategy to each other is identified. The major conclusions of this research show that adaptation, mitigation and R&D are strategic complements as all concur together to the solution of the climate change problem; nonetheless...
Tipo: Working or Discussion Paper Palavras-chave: Climate Change Impacts; Mitigation; Adaptation; Integrated Assessment; Environmental Economics and Policy; Q25; Q28.
Ano: 2010 URL: http://purl.umn.edu/59746
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AD-DICE: An Implementation of Adaptation in the DICE Mode AgEcon
de Bruin, Kelly C.; Dellink, Rob B.; Tol, Richard S.J..
Integrated Assessment Models (IAMS) have helped us over the past decade to understand the interactions between the environment and the economy in the context of climate change. Although it has also long been recognized that adaptation is a powerful and necessary tool to combat the adverse effects of climate change, most IAMs have not explicitly included the option of adaptation in combating climate change. This paper adds to the IAM and climate change literature by explicitly including adaptation in an IAM, thereby making the trade-offs between adaptation and mitigation visible. Specifically, a theoretical framework is created and used to implement adaptation as a decision variable into the DICE model. We use our new AD-DICE model to derive the adaptation...
Tipo: Working or Discussion Paper Palavras-chave: Integrated Assessment Modelling; Adaptation; Climate Change; Environmental Economics and Policy; Q25; Q28.
Ano: 2007 URL: http://purl.umn.edu/9548
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Adjusting Carbon Cost Analyses to Account for Prior Tax Distortions AgEcon
Parry, Ian W.H..
This paper discusses how carbon abatement policies interact with the tax system, and how these interactions affect the overall costs of carbon controls. We provide formulas for adjusting cost estimates of auctioned and grandfathered carbon emissions from partial equilibrium energy models into rough estimates of general equilibrium costs that account for fiscal interactions. In the basic model with a tax on labor income, the general equilibrium costs of (revenue-neutral) auctioned permits are around 25% higher than the partial equilibrium costs; those of grandfathered permits, which do not directly raise revenues for recycling, are typically more than 100% higher. However, when allowance is made for complicating factors, such as the effect of tax subsidies...
Tipo: Working or Discussion Paper Palavras-chave: Carbon permits; Tax distortions; Revenue recycling; General equilibrium costs; Environmental Economics and Policy; Public Economics; Q28; H21.
Ano: 2002 URL: http://purl.umn.edu/10481
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AGRICULTURAL PRICE VOLATILITY UNDER CLIMATE CHANGE: The Impact of Multiple Objectives on Commodity Prices AgEcon
Fuss, Sabine; Havlik, Petr; Szolgayova, Jana; Obersteiner, Michael; Schmid, Erwin.
Agricultural price volatility has moved to the forefront of research efforts and political discussion, where much work is already being undertaken with respect to the impact of fluctuations in input prices (e.g. fertilizer, feed and energy). In this paper we also want to take into account the impact of climate change on prices via increased volatility in crop yields. In addition, we analyze the impact of having multiple objectives competing for the land on which crops are grown. In particular, we want to address the concerns that have been voiced about biofuel targets and calls for prioritization of food security.
Tipo: Presentation Palavras-chave: Energy; Food security; Food price volatility; Optimization under uncertainty; Risk and Uncertainty; Q12; Q18; Q28; C61; D81.
Ano: 2012 URL: http://purl.umn.edu/122539
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Agricultural Production with Change and Uncertainty: A Temporal Case Study Simulation of Colorado Potato Beetle AgEcon
Heikkila, Jaakko; Peltola, Jukka.
Changes in climatic and policy environments combined with uncertainty related to stochastic environmental fluctuations make design of invasive pest policy challenging. These external changes are often exacerbated by changes in the species characteristics. We discuss facing local change and uncertainty when deciding ex ante on a specific policy strategy. Our empirical case deals with an invasive agricultural pest, Colorado potato beetle, and agricultural production in Finland. Invasions are modelled as temporally random events and stochasticity in key variables is built into the analysis. The viability of two specific policy options is evaluated given uncertainty and local change.
Tipo: Conference Paper or Presentation Palavras-chave: Colorado potato beetle; Protected zone; Zone protegee; Invasive alien species; Crop Production/Industries; Q1; Q28; Q58.
Ano: 2005 URL: http://purl.umn.edu/24679
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Agri-Environmental Policies When the Spatial Pattern of Biodiversity Reserves Matters AgEcon
Bamiére, Laure; David, Maia; Vermont, Bruno.
The aim of this paper is to compare different policy instruments for cost-effective habitat conservation on agricultural lands, when the desired spatial pattern of reserves is a random mosaic. We use a spatially explicit mathematical programming model which studies the farmers' behavior as profit maximizers under technical and administrative constraints. Facing different policy measures, each farmer chooses its land-use at the field level, which determines the landscape at the regional level. A spatial pattern index (Ripley L function) is then associated to the obtained landscape, indicating on the degree of dispersion of the reserve. We compare a subsidy per hectare of reserve with an auction scheme and an agglomeration malus. We find that the auction is...
Tipo: Conference Paper or Presentation Palavras-chave: Agri-environmental policies; Biodiversity; Mathematical programming; Spatial optimization; Reserve design; Cost-efficiency; Environmental Economics and Policy; Resource /Energy Economics and Policy; H23; Q57; Q12; Q28.
Ano: 2011 URL: http://purl.umn.edu/114239
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Alternative Paths toward a Low Carbon World AgEcon
Bosetti, Valentina; Carraro, Carlo; Tavoni, Massimo.
Tipo: Working or Discussion Paper Palavras-chave: Climate Policy; Stabilization Costs; Environmental Economics and Policy; C72; H23; Q25; Q28.
Ano: 2010 URL: http://purl.umn.edu/90948
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An Econometric Analysis of the Environmental Benefits Provided by the Conservation Reserve Program AgEcon
Fleming, Ronald A..
Over $1.7 billion has been spent on the Conservation Reserve Program (CRP) since 1985. The purpose of this study is to show that these expenditures have aided the environment. Rather than quantify changes in environmental variables, a spatial econometric model is used to test if CRP enrollments are greater in counties with poorer environmental quality. In seven of nine regions, CRP enrollments are higher in counties with an environmental concern. This positive finding justifies past expenditures by the CRP and supports continued funding as an environmental program. The CRP is targeting current environmental concerns that will lead to future improvement.
Tipo: Journal Article Palavras-chave: Conservation Reserve Program; Econometrics; Environmental quality; Soil erosion; Spatial data; Water quality; Wildlife habitat; Q28; Q58; C31; Q24; Q25.
Ano: 2004 URL: http://purl.umn.edu/43388
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Analysis of Participation in Multifunctional Agriculture: U.S. Rice Farms AgEcon
Tur Cardona, Juan; Wailes, Eric J.; Dixon, Bruce L.; Danforth, Diana M..
Multifunctional agriculture is particularly fundamental to some working lands conservation policies and programs, such as the Environmental Quality Incentive Program (EQIP), Conservation Security Program (CSP) and Wildlife Habitat Incentive Program (WHIP). Farmers can also be engaged in providing recreational and agri-tourism services such as hunting, fishing, bird-watching, farm tours, petting zoos and hospitality services. Using the Agricultural Resource Management Survey (ARMS) we analyze factors associated with participation in conservation, recreation and agri-tourism activities as a function of farm structure, farm financial measures, production practices, and socio-demographic characteristics of the farm operator. To estimate the functional...
Tipo: Presentation Palavras-chave: Multifunctional agriculture; Agri-environmental policy; Rice; Logistic model; Agricultural and Food Policy; Community/Rural/Urban Development; Crop Production/Industries; Environmental Economics and Policy; Land Economics/Use; Q18; Q26; Q28.
Ano: 2012 URL: http://purl.umn.edu/119750
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Analysis of Participation in Multifunctional Agriculture: U.S. Rice Farms AgEcon
Tur Cardona, Juan; Wailes, Eric J.; Dixon, Bruce L.; Danforth, Diana M..
Multifunctional agriculture is particularly fundamental to some working lands conservation policies and programs, such as the Environmental Quality Incentive Program (EQIP), Conservation Security Program (CSP) and Wildlife Habitat Incentive Program (WHIP). Farmers can also be engaged in providing recreational and agri-tourism services such as hunting, fishing, bird-watching, farm tours, petting zoos and hospitality services. Using the Agricultural Resource Management Survey (ARMS) we analyze factors associated with participation in conservation, recreation and agri-tourism activities as a function of farm structure, farm financial measures, production practices, and socio-demographic characteristics of the farm operator. To estimate the functional...
Tipo: Presentation Palavras-chave: Multifunctional agriculture; Agri-environmental policy; Rice; Logistic model; Agricultural and Food Policy; Land Economics/Use; Q18; Q26; Q28.
Ano: 2012 URL: http://purl.umn.edu/119768
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Are Agricultural Measures for Groundwater Protection Beneficial When Compared to Purification of Polluted Groundwater? AgEcon
Hasler, Berit; Lundhede, Thomas.
The groundwater resource, the drinking water areas and the surface water quality can be protected by measures, e.g. by reductions of pesticide and nutrient applications, conversion of arable land to grasslands or forests etc. The objective of the paper is to estimate the benefits of groundwater protection by the valuation method choice experiments. This method allows for separate estimation and comparison of the different attributes connected to groundwater protection i.e. the effects on drinking water and surface water quality as compared to the benefits from cleaning and treatment of polluted drinking water to make it suitable for drinking water consumption. The results indicate that the benefits are significant, and that the willingness to pay for...
Tipo: Conference Paper or Presentation Palavras-chave: Groundwater; Pollution; Drinking water; Valuation; Choice experiments; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q25; Q26; Q28; C42; D62.
Ano: 2005 URL: http://purl.umn.edu/24587
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