Hartwick's rule and maximin paths when the exhaustible resource has an amenity value

This paper studies the maximin paths of the canonical Dasgupta–Heal–Solow model when the stock of natural capital is a direct argument of well-being, besides consumption. Hartwick's rule then appears as an efficient tool to characterize solutions in a variety of settings. We start with the case without technical progress. We obtain an explicit solution of the maximin problem in the case where production and utility are Cobb–Douglas. When the utility function is CES with a low elasticity of substitution between consumption and natural capital, we show that it is optimal to preserve forever a critical level of natural capital, determined endogeneously. We then study how technical progress affects the optimal maximin paths, in the Cobb–Douglas utility case. On the long run path of the economy capital, production and consumption grow at a common constant rate, while the resource stock decreases at a constant rate and is therefore completely depleted in the very long run. A higher amenity value of the resource stock leads to faster economic growth, but to a lower long run rate of depletion. We then develop a complete analysis of the dynamics of the maximin problem when the sole source of well-being is consumption, and provide a numerical resolution of the model with resource amenity. The economy consumes, produces and invests less in the short run if the resource has an amenity value than if it does not, whereas it is the contrary in the medium and long runs. However, and without surprise, the resource stock remains for ever higher with resource amenity than without.     

Does marginal price matter? A regression discontinuity approach to estimating water demand

Although complex pricing schedules are increasingly common among water and electricity providers, it is difficult to determine whether consumers respond to changes in the pricing schedule because price changes are often confounded with simultaneous demand shocks or non-price policies. To overcome this challenge, we exploit a natural experiment - the introduction of a third price block in an increasing block pricing schedule for water - in Santa Cruz, California. Using a regression discontinuity design, we find that consumers do respond to changes in marginal price. Doubling marginal price leads to a 12% decrease in water use (500 cubic feet per bill) among high-use households.     

Skew and attribute non-attendance within the Bayesian mixed logit model

We investigate non-attendance to choice set attributes and the accommodation of preference heterogeneity within the mixed logit model. We propose a generalisation of the mixed logit enabling the degree of skew of marginal utility distributions to be estimated. The implementation is Bayesian with the marginal likelihood used as an arbiter of model performance. We find strong evidence of skew in the distributions of marginal utilities for most attributes. Models incorporating skew are preferred in all cases. The irrelevance of an attribute to significant numbers of respondents is a possible cause of such skew. We test alternative empirical accommodations of self-reported attribute non-attendance (ANA) and continue to find strong evidence of skew in the distributions of marginal utilities even having accounted for ANA. We find that, contrary to some recent findings, respondents who report having ignored an attribute typically do indeed have a zero marginal utility for that attribute.     

Extraction,reclamation and after use at gravel quarries near Canterbury,Kent

A study of the extraction, reclamation and after use of flood plain gravel quarries between Bagham and Thannington, south west of Canterbury in Kent, South-east England, was made, based on a review of the literature and field work. The area represents a linear extension of the urban fringe of Canterbury. Gravel production has been the most significant industry in terms of environmental impact over the last thirty years, and the result of such activity has been the creation of an extensive area of lakes and wetland habitats. Present and future gravel production will more than double the existing lakes and wetlands areas. It is suggested that, in terms of land use, this man-made environment is best suited for water-based recreation and that three zones should be recognised for an amenity park, angling and wildlife respectively. Further mineral production between Ashford and Bagham may mean a reappraisal of the proposed water resource use, particularly for wildlife. As a result of this study, attention is drawn to the spatial relationships between recreational demand groups and flood plain location with respect to the urban centre and to each other.     

城市景观生态价值的边际效用分析法

本文从城市景观价值量的测定出发,引入经济学的效用和边际效用概念．提出城市景观价值量边际效用分析法,在理想状态下,以城市景观结构边际效用递减率为依据。通过面积-效益损益比,揭示城市景观经济效益与环境效益之间的内在联系．结果表明：在城市自然景观面积按比例递减的条件下,不但使环境效益损失趋于无穷大,而且使增加人工景观面积带来的城市经济效益锐减。     

Abolition of set-aside schemes, associated impacts on habitat structure and modelling of potential effects of cross-farm regulation

In intensively farmed regions, habitat fragmentation represents a major pressure on biodiversity. Depending on its spatial setting, set-aside land can increase size and connectivity of habitats and thus counteract fragmentation. In 2008, the EU-wide set-aside obligation was suspended and a large proportion of set-aside land was re-cultivated. With Denmark as case we apply an indicator to measure the effect of set-aside land on spatial structure of semi-natural habitats in term of habitat size and connectivity. Furthermore, we model effects of a hypothetical spatial regulation, where set-aside land with the greatest benefit for habitat structure is retained as uncultivated, while set-aside land with the least effect is re-cultivated. The model is applied to individual farms and to farm agglomerations of increasing sizes, enabling us to explore potential effects of cross-farm regulation. The novelty of our approach is the application of observed land-uses changes for modelling a hypothetical regulation working on a range of spatial scales. Results show that after abolition of set-aside schemes the effect of set-aside land on habitat structure was more than halved. Modelled spatial regulation considerably reduces impacts. Effects increase with increasing size of farm agglomerations. However, marginal benefits become negligible at agglomeration sizes over 36 km².     

The endowment effect,discounting and the environment

There is a considerable body of evidence showing that our preferences exhibit both reference dependence and loss aversion, a.k.a. the endowment effect. In this paper, we consider the implications of the endowment effect for discounting, with a special focus on discounting future improvements in the environment. We show that the endowment effect modifies the discount rate via (i) an instantaneous endowment effect and (ii) a reference-updating effect. Moreover we show that these two effects often combine to dampen the preference to smooth consumption over time. What this implies for discounting future environmental benefits may then depend critically on whether environmental quality is merely a factor of production of material consumption, or whether it is an amenity. On an increasing path of material consumption, dampened consumption smoothing implies a lower discount rate. But on a declining path of environmental quality and where we derive utility directly from environmental quality, it implies a higher discount rate. On non-monotonic paths, loss aversion specifically can give rise to substantial discontinuities in the discount rate.     

Bidding games for valuation of aesthetic environmental improvements

An empirical case study of the benefits of abatement of aesthetic environmental damage associated with the Four Corners power plant and Navajo mine using the bidding game technique is presented. Bidding games were carefully designed to avoid the potential problems inherent in that technique. The results indicate the existence of substantial benefits from abatement of this aesthetic environmental damage. Aggregate bid curves, marginal bid curves, and estimates of the income elasticity of bid are presented. The effectiveness of the bidding game technique is discussed.     

An integrated model of regional and local residential sorting with application to air quality

We examine the interconnectedness of demand for regionally and locally varying public goods using a residential sorting model. We propose a version of the model that describes household choices at the city (MSA) level and, conditional on city, the neighborhood (census tract) level. We use a two-stage budgeting argument to develop an empirically feasible sorting model that allows us to estimate preferences for regionally varying air quality while accounting for sorting at the local level. Our conceptual and empirical approach nests previous sorting models as special cases, allowing us to assess the importance of accounting for multiple spatial scales in our predictions for the cost of air pollution. Furthermore our preferred specification connects the city and neighborhood sorting margins to the upper and lower elements of a nested logit model, thereby establishing a useful correspondence between two stage budgeting and nested logit estimation. Empirically we find that estimates from a conventional model of sorting across MSAs imply a smaller marginal willingness to pay for air quality than estimates from our proposed model. We discuss how the difference is attributable in part to the omitted variable problems arising when tract level sorting is ignored.     

Voluntary Auctions for Noxious Facilities: Incentives to Participate and the Efficiency of Siting Decisions

This paper explores the efficiency properties of a voluntary auction under which the city submitting the low bid hosts the region′s noxious facility and receives the high bid as compensation. In the Nash equilibrium of the auction game, the auction mechanism is individually rational (participation is rational for all values of the local environmental costs of the facility), incentive-compatible (the facility is located in the low-cost city), and revenue-neutral. If the compensation of the host city distorts location choices, participation in the auction is rational for all values of local environmental costs if the scale economies associated with the noxious facility are large relative to the average local environmental cost and the distortionary cost per dollar of compensation.     

Buybacks with costly participation

Posted price offers and first price auctions, along with the multi-unit discriminatory auction extension, are two widely used mechanisms for allocating conservation contracts. The choice between the two typically hinges on the trade-off between the posted price's simplicity and the potential revenue gains of the auction. In this paper we introduce a novel mechanism that attempts to bridge the gap between the performance of posted price offers and auctions. A two-price and lottery schedule combines the simplicity of the former with some of the flexibility of the latter. Using a model that incorporates agents' cognitive and information costs of bidding, we analyze how the ranking of allocative efficiency and cost-effectiveness between the mechanisms varies as the wedge of participation costs increases. When the number of bidders is endogenously determined by participation costs, bid shading associated with a lack of competition in the auction compromises its cost-effectiveness vis-à-vis the posted price and the lottery schedule. We use data from three recent buybacks for fishing licenses conducted in Maryland to calibrate our model and identify conditions under which the two-price schedule outperforms the other mechanisms.     

基于空间马尔科夫链的关中地区生态安全时空演变分析

生态系统内部和生态系统之间都不是封闭的,各要素间均存在着相互作用。利用已获得的陕西关中地区生态安全格网化评价结果数据,运用空间马尔科夫链对该区域的生态安全时空演变进行了分析,得出以下四个结论：①区域背景在关中地区生态安全趋同时空演变过程中起着相当重要作用;②不同区域背景在区域生态安全等级转移中所起的作用也各不相同;③一个区域生态安全等级向上或向下转移的概率与该区域和周围邻居之间的差异程度不成比例;④空间马尔可夫转移概率矩阵为＂区域趋同的时空演变＂现象提供了空间上的解释。实践表明,空间马尔可夫链方法为定量分析地理环境对区域生态安全变化的空间效应提供了方法依据,值得进一步研究和讨论。     

Forest Taxation and Rotation Age under Private Amenity Valuation: New Results

This paper studies the impact of harvesting, property, and profit taxes on private rotation age in an ongoing rotations model, where the private landowner is interested not only in the present value of harvest revenue, but also in the private amenity services provided by the forest stand. The main finding of the paper is that conventional wisdom about the rotation effects of forest taxes, distilled from the Faustmann model, predominantly ceases to hold. This is because forest taxes distort the relative profitability of timber and amenity production in a way that is sensitive to the precise nature of amenity valuation. Therefore, the design of forest tax policy necessitates good knowledge of the landowner's objective function concerning the type of amenity services.     

Materialphilia,biophilia, and sustainable use of the planet

SUMMARY

The intricate and complex relationships between transhumant pastoralists, livestock and environment at the high altitudes of Indian Central Himalaya has started to break down at an alarming rate. Some of the important factors attributed to this are depletion of grazing resources, commercialization of the rural economy, and integration of these communities with the mainstream of development through education and employment. Traditionally these livestock were assigned different roles in society depending upon their economic benefit and utility. The roles which once depended upon attitude to various risks, such as environmental, social and economic, have lost their significance due to changing of the production process. This paper gives an overview of the various types of roles the livestock played in the transhumant society, and how they are being replaced by the developmental process in the region, and whether the changes are sustainable for such remote regions in a developing country.     

Pigou meets Mirrlees: On the irrelevance of tax distortions for the second-best Pigouvian tax

This paper extends the Mirrlees (1971) model of optimal income redistribution with optimal corrective taxes to internalize consumption externalities. Using general utility structures and exploring both linear and non-linear taxes, it is demonstrated that the optimal second-best tax on an externality-generating good should not be corrected for the marginal cost of public funds, since it equals one in the optimal tax system. In the optimum, distortions of income taxes are equal to marginal redistributional gains. If the government does not have access to a non-distortionary marginal source of finance, the marginal cost of public funds can be either larger or smaller than one depending on subjective preferences for income redistribution. The optimal second-best corrective tax is then either higher or lower than the Pigouvian level. The findings in this paper generalize and amend prior results based on representative-agent models, shedding new light on the weak double-dividend hypothesis, and on the welfare gains of recycling revenue from environmental taxes.     

A compensation mechanism for siting noxious facilities: Theory and experimental design

In locating noxious facilities, such as a trash disposal plant or a hazardous waste disposal incinerator, the host community frequently incurs all the costs while other communities in the region receive the benefits. We propose a mechanism for sharing the benefits with the potential loser. Each community submits a sealed bid indicating the minimum amount it would require to host the facility. The site providing the lowest bid obtains the facility and receives its bid as compensation. This compensation is financed by the other communities. If there are N candidate communities, then each of the other communities would pay 1/(N − 1) of their acceptance bid. A series of controlled laboratory experiments show that the outcomes of this low-bid auction come close to predictions from a theoretical model based on maxi-min rules. Equity and efficiency considerations also are discussed in the context of the noxious facility problem.     

Resource distribution,aggressive asymmetries and variable access to resources in the nectar feeding bellbird

Summary A continuum concept of spatial organization linking territoriality and social hierarchy suggests that individuals will alter their degree of exclusiveness and priority of access to resources in accord with the net benefits of aggression. Thus changes in resource distribution will produce changes in the control of resource space for any one individual. Similarly when comparing among individuals, responses will change in accord with their aggressive abilities when compared to those of possible opponents. The existence of such a continuum model of spacing was investigated in a nectar feeder, the New Zealand bellbird (Anthornis melanura: Meliphagidae). A natural change in spatial distribution of resources from highly concentrated to dispersed provided an opportunity to follow changes in access for known individuals. Comparison of individuals of different hierarchical status, sex and residential status was also possible within each system as was an estimate of comparative rewards. At the concentrated resource, individuals could be ranked in a dominance hierarchy although spatial separation between more dominant individuals did occur. At the more spatially dispersed resource, most individuals obtained a level of exclusive use. Access to both resources varied for different individuals but the asymmetries that related to greater access in one system also produced greater access in the other resource.     

Individual based model of slug population and spatial dynamics

The slug, Deroceras reticulatum, is one of the most important pests of agricultural and horticultural crops in UK and Europe. In this paper, a spatially explicit individual based model (IbM) is developed to study the dynamics of a population of D. reticulatum. The IbM establishes a virtual field within which slug spatial dynamics and changes in abundance were simulated. The strong dependence of slug behaviour on environmental conditions is built into the model, which is based upon previous work on the environmental dependence of slug population dynamics. The simulation results show that the IbM described well changes in the slug population. The IbM proved capable of describing slug populations over 3.5 years, including the presence, magnitude and duration of D. reticulatum population crashes within this period. Moreover, the model was capable of reproducing slug population dynamics at two sites, with distinct weather and some 100 km apart, with minor changes in initialisation values but no change in model structure and parameter values. A study of field heterogeneity, which might simulate various field designs, indicated the importance of spatial structuring to slug population dynamics and the utility of the IbM for simulating a range of potential spatial management treatments for slug control to maximise crop yield. This IbM system performs well and is currently being used as part of an integrated approach to predict slug population dynamics and control in the UK.     

Do Contingent Valuation Estimates Pass a “Scope” Test? A Meta-analysis

This paper considers the scope test proposed to judge the internal consistency of contingent valuation estimates. The test is shown to be quite sensitive to the maintained hypotheses required to derive fairly precise expectations for the properties of WTP functions, and, therefore, a different approach may be needed in gauging the reliability of CV. This paper describes an approach that relies on a weight-of-the-evidence criterion and uses meta-analysis to develop a systematic appraisal of what the economic values of changes in amenity resources are. The approach is illustrated for the case of estimating people's willingness to pay for improving (or maintaining) visibility at the national parks.