A ban on one is a boon for the other: Strict gasoline content rules and implicit ethanol blending mandates

Ethanol and methyl-tertiary butyl ether (MTBE) were close substitutes in the gasoline additives market until MTBE was banned due to the concerns about groundwater contamination, leading to a sudden and dramatic substitution toward ethanol as an alternative oxygenate and octane-booster. We use variation in the timing of MTBE bans across states to identify their effects on gasoline prices. We find that state bans increased reformulated gasoline prices by 3–6 cents in non-Midwestern states for which the bans were binding, with larger impacts during times of high ethanol prices relative to MTBE and crude oil. We find qualitatively similar, yet smaller effects for conventional gasoline. We argue on the basis of a simple conceptual model and supporting empirical evidence that these bans functioned as implicit ethanol blending mandates in areas that were previously using MTBE to comply with strict environmental constraints. Overall, our results are consistent with the theoretical prediction that mandating a minimum market share for a more costly alternative fuel—either directly, or implicitly through a ban on the preferred conventional fuel—will inevitably increase fuel prices in a competitive market.     

The higher price of cleaner fuels: Market power in the rail transport of fuel ethanol

This paper provides evidence of market power in the transportation of ethanol used in reformulated gasoline and alternative transportation fuels. I estimate a reduced form model for railroad route-level prices. My identification strategy instruments for railroad entry, controls for selection and explicitly models capacity constraints. A detailed understanding of this industry is important because U.S. environmental policies seek to substantially expand ethanol use. Evidence of market power may alter the types of policies pursued by lawmakers. I find that ethanol shipment prices are lower for more competitive routes. I also find evidence that railroads price discriminate based on environmental regulation at route destinations. Monopolist prices for shipments to carbon monoxide non-attainment areas are 3% higher than shipments to other destinations. This price premium falls sharply with increased competition. This suggests a perverse result where environmental regulation increases the price of a clean input.     

Using DNA barcoding to track seafood mislabeling in Los Angeles restaurants

Seafood mislabeling is common in both domestic and international markets. Studies on seafood fraud often report high rates of mislabeling (e.g., >70%), but these studies have been limited to a single sampling year, which means it is difficult to assess the impact of stricter governmental truth‐in‐labeling regulations. We used DNA barcoding to assess seafood labeling in 26 sushi restaurants in Los Angeles over 4 years. Seafood from 3 high‐end grocery stores were also sampled (n = 16) in 2014. We ordered 9 common sushi fish from menus, preserved tissue samples in 95% ethanol, extracted the genomic DNA, amplified and sequenced a portion of the mtDNA COI gene, and identified the resulting sequence to known fish sequences from the National Center for Biotechnology Information nucleotide database. We compared DNA results with the U.S. Food and Drug Administration (FDA) list of acceptable market names and retail names. We considered sushi‐sample labels that were inconsistent with FDA names mislabeled. Sushi restaurants had a consistently high percentage of mislabeling (47%; 151 of 323) from 2012 to 2015, yet mislabeling was not homogenous across species. Halibut, red snapper, yellowfin tuna, and yellowtail had consistently high (<77%) occurrences of mislabeling on menus, whereas mislabeling of salmon and mackerel were typically low (>15%). All sampled sushi restaurants had at least one case of mislabeling. Mislabeling of sushi‐grade fish from high‐end grocery stores was also identified in red snapper, yellowfin tuna, and yellowtail, but at a slightly lower frequency (42%) than sushi restaurants. Despite increased regulatory measures and media attention, we found seafood mislabeling continues to be prevalent.     

The production of lumber using chainsaws in Guyana

SUMMARY

The structure, conduct and performance, and the environmental impacts of the chainsaw lumber production sector in Guyana are investigated. Chainsaws are a highly mobile lumber technology that is used to rip or produce lumber within the forest. Chainsaw lumbering operations have become the dominant lumber producer for the domestic market. Production costs are only 53% of wholesale lumber prices. On a ms basis, chainsaw operations' net profit is 80% of the gross price paid for logs at sawmills and more than twice the profit of firms engaged in the harvesting and transportation of logs to sawmills. Sawmills recognize this cost advantage and are increasingly using chainsaws in the production of lumber.

The handling and transportation of chainsawn lumber within the forest is environmentally less damaging than log production. The log recovery rate is 10–15% for chainsaw operations, as compared to the sawmill average of 40–45%. Log residue from chainsaw operations is left within the forest which promotes faster forest regrowth, while that at sawmills is wasted. Chainsaw operations harvest immature trees, engage in the harvesting of selective species, over-harvest trees per unit area of land, and engage in frequent reentry of the forest. Because of these practices, the chainsaw lumber sector is not environmentally sustainable and will require regulation. Policies that follow a non-market solution will be required in regulation.     

Build it,but will they come? Evidence from consumer choice between gasoline and sugarcane ethanol

How consumers might switch from gasoline and diesel to alternative energy sources is not known, since the availability of alternatives is currently very limited. To bridge this gap, we exploit exogenous variation in ethanol prices at Brazil's pumps and uncover substantial consumer heterogeneity in the choice between long-established gasoline and an alternative that is similarly available and usable: sugarcane ethanol. We observe roughly 20% of flexible-fuel motorists choosing gasoline when gasoline is priced 20% above ethanol in energy-adjusted terms ($/mile) and, similarly, 20% of motorists choosing ethanol when ethanol is priced 20% above gasoline. We use transaction-level data to explore “non-price” characteristics which differentiate the two goods in the minds of different groups of consumers. Our findings suggest—and a counterfactual illustrates—that switching away from gasoline en masse, should this be desired, would require considerable price discounts to boost voluntary adoption, in the US and elsewhere.     

Species composition of the international shark fin trade assessed through a retail‐market survey in Hong Kong

The shark fin trade is a major driver of shark exploitation in fisheries all over the world, most of which are not managed on a species‐specific basis. Species‐specific trade information highlights taxa of particular concern and can be used to assess the efficacy of management measures and anticipate emerging threats. The species composition of the Hong Kong Special Administrative Region of China, one of the world's largest fin trading hubs, was partially assessed in 1999–2001. We randomly selected and genetically identified fin trimmings (n = 4800), produced during fin processing, from the retail market of Hong Kong in 2014–2015 to assess contemporary species composition of the fin trade. We used nonparametric species estimators to determine that at least 76 species of sharks, batoids, and chimaeras supplied the fin trade and a Bayesian model to determine their relative proportion in the market. The diversity of traded species suggests species substitution could mask depletion of vulnerable species; one‐third of identified species are threatened with extinction. The Bayesian model suggested that 8 species each comprised >1% of the fin trimmings (34.1–64.2% for blue [Prionace glauca], 0.2–1.2% for bull [Carcharhinus leucas] and shortfin mako [Isurus oxyrinchus]); thus, trade was skewed to a few globally distributed species. Several other coastal sharks, batoids, and chimaeras are in the trade but poorly managed. Fewer than 10 of the species we modeled have sustainably managed fisheries anywhere in their range, and the most common species in trade, the blue shark, was not among them. Our study and approach serve as a baseline to track changes in composition of species in the fin trade over time to better understand patterns of exploitation and assess the effects of emerging management actions for these animals.     

Fishing quota markets

In 1986, New Zealand responded to the open-access problem by establishing the world's largest individual transferable quota (ITQ) system. Using a 15-year panel dataset from New Zealand that covers 33 species and more than 150 markets for fishing quotas, we assess trends in market activity, price dispersion, and the fundamentals determining quota prices. We find that market activity is sufficiently high in the economically important markets and that price dispersion has decreased. We also find evidence of economically rational behavior through the relationship between quota lease and sale prices and fishing output and input prices, ecological variability, and market interest rates. Controlling for these factors, our results show a greater increase in quota prices for fish stocks that faced significant reductions, consistent with increased profitability due to rationalization. Overall, this suggests that these markets are operating reasonably well, implying that ITQs can be effective instruments for efficient fisheries management.     

SMART-SREC: A stochastic model of the New Jersey solar renewable energy certificate market

Markets for solar renewable energy certificates (SRECs) are gaining in prominence in many states, stimulating growth of the US solar industry. However, SREC market prices have been extremely volatile, causing high risk to participants and potentially less investment in solar power generation. Such concerns necessitate the development of realistic, flexible and tractable models of SREC prices that capture the behavior of participants given the rules that govern the market. We propose an original stochastic model called SMART-SREC to fill this role, building on established ideas from the carbon pricing literature, and including a feedback mechanism for generation response to prices. We calibrate the model to the New Jersey market and backtest it, analyzing parameter sensitivity and demonstrating its ability to reproduce historical dynamics. Finally, we run simulations to investigate the role and impact of regulatory parameters, thus providing insight into the crucial role played by market design.     

Biofuels and agriculture: a past perspective and uncertain future

The US corn ethanol industry has grown from virtually nothing in the early 1980s to over 14 billion gallons in 2011. Subsidies have been an important impetus for the industry, and they have existed in one form or another throughout the life of the industry. This paper provides (1) a brief look at the history of the linkages between energy and agriculture and how they have changed with biofuels; (2) a review of some of the major impacts of the US corn ethanol program; and (3) analysis of prospective impacts of cellulosic biofuels. There is no doubt that biofuels have brought about a new era for global agriculture. Historically, the prices of agricultural and energy products moved in response to supply and demand factors relevant to each market, but moved largely independent of one another. Corn ethanol has changed that, and today there is a link between crude oil and corn that is driven by the demand side. Since agricultural commodity prices are linked both on the demand and supply sides, the corn–crude oil link spills over to other agricultural commodities as well. Development of cellulosic biofuels has been much slower than hoped. The feedstocks are more expensive than initially believed. Conversion technologies remain uncertain and expensive. There are many uncertainties through the cellulosic supply chain, and government policy remains uncertain as well. Thus, the future of the cellulosic biofuels industry is, at this point, an open question.     

尾巨桉人工林小流域降水产流特征分析

研究尾巨桉(E.urophylla×E.grandis)生长阶段(林龄3.5—5.5 a)所处小流域的降水产流特征,有助于了解桉树生长过程的生态水文效应,对修订桉树人工林经营方案中注重提高生态系统的水源涵养能力有重要参考意义。以广西南宁桉树森林生态系统定位观测研究站(南宁桉树生态站)的闭合尾巨桉林小流域为试验区,在小流域出水口建设1个测流堰,在测流堰附属房的测定池安放1个自动水位计,定位观测小流域2013年5月—2015年4月的地表径流,使用生态站的自动气象观测系统观测降水量和土壤体积含水量,建立降水、土壤含水量和径流的函数关系,分析土壤前期含水量对径流形成和持续的影响。小流域年均降水量1300 mm,以小雨为主,两个年度小雨共计191场,占降水强度等级总场数74%;降水年内分布不均,雨季集中在季夏,占全年降水量的60%以上,冬季降水最少,属于干旱季节;降水产流现象在降水集中的月份才可能出现,2013年5月—2014年4月的径流深为81 mm,径流系数6%,2014年5月—2015年4月的径流深只有9 mm,径流系数仅为0.7%;径流初始时间明显滞后于降水初始,滞后时间与前期土壤含水量密切相关;径流递增率与降水历时呈线性函数关系,径流递减率与径流消退时间呈对数函数关系;降水产流过程经历径流递增期、稳定期和递减期3个阶段。     

Externalities, Market Power, and Resource Extraction

This article analyzes the effect of market power in the presence of dynamic and biological externalities. When several countries harvest fish in international waters the evolution of fish population is affected by their joint action, thus generating a biological and a dynamic externality. If there is trade, the market-clearing prices depend on the harvesting and consumption in all countries. Therefore, market-clearing prices also generate an externality. We find a subgame perfect Cournot–Nash equilibrium and study the conditions under which it may be efficient. We also analyze the role of different externalities in generating inefficiency.     

Do environmental right-to-know laws affect markets? Capitalization of information in the toxic release inventory

This paper investigates how information contained in the U.S. Environmental Protection Agency's Toxic Release Inventory (TRI) program, one of the largest environmental right-to-know programs, affects prices in the housing market. I use a strengthening of the reporting requirements for the chemical lead in 2001 as exogenous variation to test for housing price changes near existing firms who must now report. Using a difference-in-differences specification, I find that listing an existing firm in the Toxic Release Inventory lowers housing prices up to 11% within approximately 1 mile. The results suggest that housing market participants do capitalize into prices at least some information conveyed by the TRI program.     

Equilibrium Prices in a Vertically Coordinated Fishery

Competition among processing firms is analyzed in a fishery that is managed under a total allowable catch constraint. Firms compete first in the ex-vessel market for round fish and then in the downstream consumer market. Nash equilibrium prices are characterized at each stage of the vertical market. When the number of processors is sufficiently large, equilibrium prices are approximately Walrasian. The ex-vessel price is close to the processor marginal valuation of the round fish and the consumer price clears the total quantity of processed fish. Implications for market structure, conduct and performance, and fisheries management policy are drawn.     

Effects of ambient temperature on regulated gaseous and particulate emissions from gasoline-, E10- and M15-fueled vehicles

• Emissions from two sedans were tested with gasoline, E10 and M15 at 30°C and -7°C. • As the temperature decreased, the PM, PN and BC emissions increased with all fuels. • Particulate emissions with E10 and M15 were more sensitive to the temperature. • The PN and BC generated during cold start-up dominated those over the WLTC. Ambient temperature has substantial impacts on vehicle emissions, but the impacts may differ between traditional and alcohol gasolines. The objective of this study was to investigate the effects of temperature on gaseous and particulate emissions with both traditional and alcohol gasoline. Regulated gaseous, particle mass (PM), particle number (PN) and black carbon (BC) emissions from typical passenger vehicles were separately quantified with gasoline, E10 (10% ethanol and 90% gasoline by volume) and M15 (15% methanol and 85% gasoline by volume) at both 30°C and -7°C. The particulate emissions with all fuels increased significantly with decreased temperature. The PM emissions with E10 were only 48.0%–50.7% of those with gasoline at 30°C but increased to 59.2%-79.4% at -7°C. The PM emissions with M15 were comparable to those with gasoline at 30°C, but at -7°C, the average PM emissions were higher than those with gasoline. The variation trend of PN emissions was similar to that of PM emissions with changes in the fuel and temperature. At 30°C, the BC emissions were lower with E10 and M15 than with gasoline in most cases, but E10 and M15 might emit more BC than gasoline at -7°C, especially M15. The results of the transient PN and BC emission rates show that particulate emissions were dominated mainly by those emitted during the cold-start moment. Overall, the particulate emissions with E10 and M15 were more easily affected by ambient temperature, and the advantages of E10 and M15 in controlling particulate emissions declined as the ambient temperature decreased.     

Property prices and the value of amenities

Implicit hedonic prices of amenities are estimated by means of a study of the variation in house prices in Sydney. The results include estimated hedonic prices for aircraft noise, road traffic, road widening, good views, spacious streets, good access to shops, and high quality neighborhoods. Since hedonic prices are the response of the market at the margin to supply as well as demand forces, they do not necessarily reflect average household willingness to pay prices. However, the paper concludes that they provide a basis from which the values of amenities to be used in benefit cost studies can be estimated.     

Is energy efficiency capitalized into home prices? Evidence from three U.S. cities

We test for evidence that energy efficiency features are capitalized into home prices in three U.S. metropolitan areas. Using hedonic regressions and multiple matching procedures, we find that Energy Star certification is associated with higher sales prices in two of the markets: the Research Triangle region of North Carolina and Portland, Oregon. We find that local “green” certifications in Portland and in Austin, Texas, are also associated with higher prices and that the estimated price impacts are larger than those from Energy Star. Matching on observables proves to be important in some cases, reducing the estimated impacts compared with models without matching. We calculate the implied energy savings from the estimated premiums and find that, in the Research Triangle market, the Energy Star premiums approximately equal the savings that program is designed to achieve, but in Portland, the premiums are slightly greater than the program's savings due to low energy costs in the region.     

Robust technology policy against emission leakage: The case of upstream subsidies

Asymmetric regulation of a global pollutant between countries can alter the competitiveness of industries and lead to emissions leakage, which hampers countries’ welfare. In order to limit leakage, governments consider supporting domestic trade-exposed firms by subsidizing their investments in abatement technology. The suppliers of such technologies tend to be less than perfectly competitive, particularly when both emissions regulations and advanced technologies are new. In this context of twin market failures, we consider the relative effects and desirability of subsidies for abatement technology. We find a more robust recommendation for upstream subsidies than for downstream subsidies. Downstream subsidies tend to increase global abatement technology prices, reduce pollution abatement abroad and increase emission leakage. On the contrary, upstream subsidies reduce abatement technology prices, and hence also emissions leakage.     

Microbial decolorization and bioremediation of melanoidin containing molasses spent wash

Molasses spent wash from cane-molasses based distilleries contains a brown coloured recalcitrantpolymer melanoidin, which if disposed untreated poses a great threat to environment. Microbial decolorization and chemical oxygen demand (COD) reduction was found to be dependent on specific carbon and nitrogen source. Under optimal condition of pH, carbon and nitrogen concentration for each treatment, it was found that Bacillus sp isolated from soil was capable of removing COD (85. 35%) and colour (81.10%) from distillery waste to the maximum extent after 9 days atpH 7 in the medium containing 0.5% peptone, 2% glucose and 10% (v/v), followed by Phanerochaete chrysosporium and lowest reduction was obtained by using native microbial consortium.     

Coping with the liquidity crisis: a new dynamic quota readjustment scheme for carbon markets

Environmental Geochemistry and Health - Because of insufficient liquidity, prices in the carbon market are more vulnerable to unexpected events, for which the impact duration lasts longer than that...     

Impact of a burrowing deposit-feeder, Monoporeia affinis, on viable zooplankton resting eggs in the northern Baltic Sea

We investigated the effect of different densities of the burrowing deposit-feeding amphipod Monoporeia affinis on the potential for recruitment of zooplankton from benthic resting eggs. Hatching of resting eggs was induced in the laboratory on sliced and resuspended 1-cm depth-sections of sediment cores, collected at six stations in an archipelago area of the Gulf of Bothnia, Baltic Sea. The uppermost 5 cm of the sediment was studied. The most common species that hatched was Eurytemora affinis (Copepoda). Individuals from another copepod genus, Acartia, hatched in significant numbers only in the cores from two stations with low amphipod abundance. Cores from stations with high amphipod densities showed a deeper distribution of emerging E. affinis nauplii compared with stations with few amphipods; the oxidised sediment layer was also deeper at high M. affinis densities than at low. Total (0 to 5 cm strata pooled) number of hatched E. affinis nauplii was independent of amphipod density. This indicates that the effect of M. affinis on E. affinis eggs involves deeper burial due to bioturbation, rather than predation. Decreased benthic recruitment of zooplankton at localities with high M. affinis density is suggested, since more deeply positioned eggs are less likely to hatch. When hatching was induced in intact, non-sliced cores from one station, the number of E. affinis nauplii that hatched was on average 43% of the number that hatched in the upper centimetre of the sliced cores from the same station. This fraction (43%), if applied to the other stations, implied a potential for benthic recruitment of up to 80 000 ind m⁻² for E. affinis. Due to its high abundance, M. affinis is likely to greatly reduce benthic recruitment of zooplankton in this system. Received: 17 September 1999 / Accepted: 23 February 2000