Valuing congested recreation sites

This note discusses the issue of measuring consumers' surplus at crowded facilities. It is argued that surplus should be measured with congestion held constant. The area under an aggregate demand curve which has congestion varying has no normative significance. Whether travel cost demand curves estimated for congested facilities properly measured consumers' surplus depends on the sampling procedure and the specification of the demand curves.     

Congestion and participation in outdoor recreation: A household production function approach

This paper examines the effects of congestion on recreational behavior within a household production model of consumer behavior. We assume that congestion affects the household's ability to produce constant quality recreational service flows and derive a reduced-form model for participation decisions in remote and developed camping. Empirical estimates of the effects of a congestion measure on the conditional probability of participation as well as on the level of participation are estimated for each activity by the type of trip using information from the 1972 National Recreation Survey. The findings suggest that congestion was most likely to affect the decision to participate and not the level once that decision had been made. While differences in these effects were observed across the activities studied, it is not clear how they should be interpreted since our congestion measure was a proxy variable likely to perform better for remote camping than developed camping.     

When is increasing consumption of common property optimal? Sorting,congestion and entry in the commons

First-best pricing or assignment of property rights for rival and non-excludable goods is often infeasible. In a setting where the social planner cannot limit total use, we show that common-property resources can be over or under-consumed. This depends on whether the external benefits of reallocating users to less congested resources outweigh the additional costs imposed by new entrants. Importantly, we show that it may be optimal to encourage consumption of some common property resources. Our results have important implications for settings ranging from fisheries and forestry to recreational demand and transportation.     

Estimates from a consumer demand system: implications for the incidence of environmental taxes

Most studies suggest that environmental taxes are regressive, making them less attractive policy options. We consider the distributional effects of a gasoline tax increase using four incidence measures and under three scenarios for gas tax revenue use. To incorporate behavioral responses we use Consumer Expenditure Survey data to estimate a consumer demand system that includes gasoline, other goods, and leisure. Our estimates confirm that when revenues are not recycled, a gasoline tax is regressive. Use of incidence measures that ignore demand responses, however, will substantially overstate this regressivity. In contrast, the differences between the equivalent variation and easier-to-implement consumer surplus measures are relatively small. In addition, our results suggest that using the additional gas tax revenue to fund labor tax cuts makes the policy substantially less regressive while using the revenue to fund lump-sum transfers actually makes it progressive.     

Values Associated with Management of Yellowstone Cutthroat Trout in Yellowstone National Park

Recent emphasis on a holistic view of natural systems and their management is associated with a growing appreciation of the role of human values in these systems. In the past, resource management has been perceived as a dichotomy between extraction (harvest) and nonconsumptive use, but this appears to be an oversimplified view of natural-cultural systems. The recreational fishery for Yellowstone cutthroat trout ( Oncorhynchus clarki bouvieri ) in Yellowstone National Park is an example of the effects of management on a natural-cultural system. Although angler harvest has been drastically reduced or prohibited, the recreational value of Yellowstone cutthroat trout estimated by angling factors (such as landing rate or size) ranks above that of all other sport species in Yellowstone National Park. To maintain an indigenous fishery resource of this quality with hatchery propagation is not economically or technically feasible. Nonconsumptive uses of the Yellowstone cutthroat trout including fish-watching and intangible values, such as existence demand, provide additional support for protection of wild Yellowstone cutthroat trout populations. A management strategy that reduces resource extraction has provided a means to sustain a quality recreational fishery while enhancing values associated with the protection of natural systems.     

A simulation model for the management of low density recreational areas

In order to take account of the congestion externalities associated with increased use intensity during a given period at a low density recreational resource, it is necessary to determine the effects of alternative use levels on the expected quality of each individual's experience. This paper describes a simulation model for wilderness recreation designed to provide such measures. In order to illustrate the model it is applied to the Spanish Peaks Areas in Montana.     

Remanufacturing

This paper presents a theoretical model of remanufacturing where a duopoly of original manufacturers produces a component of a final good. The specific component that needs to be replaced during the lifetime of the final good creates a secondary market where independent remanufacturers enter the competition. An environmental regulation imposing a minimum level of remanufacturability is also introduced. The main results establish that, while collusion of the firms on the level of remanufacturability increases both profit and consumer surplus, a social planner could use collusion as a substitute for an environmental regulation. However, if an environmental regulation is to be implemented, collusion should be repressed since competition supports the public intervention better. Under certain circumstances, the environmental regulation can increase both profit and consumer surplus. Part of this result supports the Porter Hypothesis, which stipulates that industries respecting environmental regulations can see their profits increase.     

Remanufacturing

This paper presents a theoretical model of remanufacturing where a duopoly of original manufacturers produces a component of a final good. The specific component that needs to be replaced during the lifetime of the final good creates a secondary market where independent remanufacturers enter the competition. An environmental regulation imposing a minimum level of remanufacturability is also introduced. The main results establish that, while collusion of the firms on the level of remanufacturability increases both profit and consumer surplus, a social planner could use collusion as a substitute for an environmental regulation. However, if an environmental regulation is to be implemented, collusion should be repressed since competition supports the public intervention better. Under certain circumstances, the environmental regulation can increase both profit and consumer surplus. Part of this result supports the Porter Hypothesis, which stipulates that industries respecting environmental regulations can see their profits increase.     

Between discrete and continuous: consumer-resource dynamics with synchronized reproduction

In many consumer-resource systems the consumer population has synchronized reproduction at regular intervals (e.g., years) but consumes the resource and dies continuously, while the resource population grows continuously or has overlapping generations that are short relative to the time between consumer reproductive events. Such systems require "semi-discrete" models that have both discrete and continuous components. This paper defines and analyzes a canonical, semi-discrete model for a widespread class of consumer-resource interactions in which the consumer is a discrete breeder and the resource reproduction can be described continuously. The model is the analog of the Nicholson-Bailey and Lotka-Volterra models for discrete and continuous systems, respectively. It thereby develops the basis for understanding more realistic, and hence more complex, semi-discrete models. The model can display stable equilibria, consumer-resource cycles, and single-species-like overcompensation cycles. Cycles are induced by high maximum fecundity in the consumer. If the resource grows rapidly and the consumer has high maximum fecundity, the model reduces to a single-species discrete-time model of the consumer, which can exhibit overcompensation cycles. By contrast, such cycles in discrete consumer-resource models typically occur only in the resource once the consumer is extinct. Also unlike a common class of discrete models that do not display consumer-resource cycles with periods below four years, semi-discrete models can exhibit consumer-resource cycles with periods as short as two years.     

Estimating net benefits of recreation under conditions of excess demand

The public provision of outdoor recreation necessitates the development of nonmarket measures of the value of resources in recreational use. Such values can be used as surrogates for market values in the decision-making process. Another aspect of recreation as a publicly provided good is the absence of a mechanism to eliminate automatically excess demand. The absence of such a mechanism has resulted in conditions of excess demand at many recreation sites.This paper deduces the implications of excess demand for the travel cost method of benefit estimation. We show that when excess demand results in rationing at a particular site, the travel cost method will underestimate the true benefits of the site. The results are important because they help identify the direction of bias of one measure of the benefits from the use of a natural resource.     

农业化肥污染的政策成因及对策分析

化肥污染是农村面源污染的重要组成部分,如何解决该问题已经成为中国学者热议的话题。为了定量分析国家政策对化肥过量施用的影响,基于我国1998—2007年各省市的面板数据,借助STATA软件包和化肥施用效用模型假设,对其进行了回归分析。结果表明：一是随着经济发展水平的提升,农业化肥污染仍会不断加剧。二是多年来国家给予化肥企业＂优惠＋补贴＋限价＂的化肥行业发展政策是化肥过量施用的根本政策原因,当前国家惠农政策有助于降低化肥的需求量。三是当国家取消对化肥企业的补贴政策,继续当前的惠农政策时,则农民直补政策需以农民有利于环境的施肥方式为前提。四是若国家继续当前化肥行业发展政策和惠农政策,则视国家给予化肥企业的补贴确定一个直补额度,当对农民直补小于该额度时,则直补有利于农民减少对化肥的需求;但当直补超过这一额度时,农民则会增加对化肥的需求,因此后者需以农民施肥行为有利于环境为前提。     

Jointly produced exhaustible resources

Natural resources are often produced jointly from composite ores, which in turn are extracted from fixed reserve endowments. In this paper market behavior is examined for such resources, and it is shown how the price of each resource will depend on its demand, and the demands and storage costs for the other resources present in the ore. The measurement of resource scarcity is discussed and the effects of uncertainty over future resource demands are examined. It is shown that the competitive market will still extract, produce, and store at socially optimal rates if firms are risk neutral and the average cost of storage is constant. Policy implications are noted, particularly with reference to government stockpiling programs.     

What Is Consumer′s Surplus Per Day of Use, When Is It a Constant Independent of the Number of Days of Use, and What Does It Tell Us about Consumers Surplus?

An individual′s consumer′s surplus per day of use for a change in the price of recreational site is the price change, so it is a constant, independent of the number of days of use. Consumer′s surplus per day of use for a change in a site′s characteristics is not, in general, a constant. When a constant compensating variation per day of use exists, it multiplied by the number of days at the site in the original state (proposed state) bounds the compensating variation, CV, from below (above). The average of these two approximations is an almost second-order approximation to the CV. Simulations indicate the approximation biases can be large.     

Sequential development and exploitation of an exhaustible resource: do monopoly rights promote conservation?

This paper explores the problem of sequential exploitation of exhaustible resources by a monopolist, when a setup cost must be incurred to access the next pool. Under certain circumstances, the monopolist will always follow a more conservationist path of extraction and delay the introduction of new resource pools compared to a social planner. However, with other forms of consumer demand, the monopolist may exhaust the resource more quickly, especially if many new options will follow. These results may apply especially to depletable resources like antibiotics or biotech products, for which significant research and development costs are required, followed by monopoly rights conferred by patents.     

On monopoly power in extractive resource markets

Potential monopoly power in extractive resource markets is reduced by the depletability of reserves. This paper examines the dependence of monopoly power on resource rent, and on uncertainty over future reserve levels. A model is developed that treats reserves as “inventories” that fluctuate stochastically over time as a result of exploration, development, and production activities. Solutions of the model illustrate how output and monopoly power vary with the elasticity of demand, rent as a fraction of price, and the variance of reserve fluctuations. It is shown that uncertainty over future reserves can speed up production and by reducing resource rent, restore part of the monopoly power otherwise lost because of depletion. Antitrust implications are discussed, with reference to several resources.     

Appraisal of coastal recreational resources in Qingdao by travel cost method

This paper serves to appraise the monetary cost of coastal recreational resources in Qingdao using the travel cost method (TCM), which is typically used in developed countries. The total revenue produced by Qingdao’s coastal recreational resources is about RMB 5.51×10¹⁰ annually, based on questionnaires given at Qingdao’s major tourist destinations. These questionnaires establish correlation functions that factor in the number of tourists, travel expenses, etc. The data processing software named Eviews was used to determine the tourist demand regression curve and to calculate their residual and actual travel expenses. The results of this study can provide a scientific basis for applicable industries interested in development and management decision-making. Therefore, this study assesses the reasonable usage of coastal recreational resources.     

Community composition and consumer identity determine the effect of resource species diversity on rates of consumption

The effect of species diversity on ecosystem function is commonly studied within a single trophic level, but less is known about how resource diversity affects species interactions between trophic levels. We conducted a grazing experiment to determine how resource species diversity affects rates of consumption by three species of freshwater zooplankton consumers. We measured the effect of resource diversity on rates of consumption for several resource community compositions. These compositions varied in terms of palatability for the consumers. The effect of resource diversity on consumption rates depended on the diet breadth of the consumer species (from specialist to generalist) and the community composition of resources. Overall, high resource diversity commonly caused a decline in consumption rates of consumers. The most selective grazer showed reduced consumption for nearly all community compositions, whereas the most generalist grazer showed accelerated consumption when all resource species were palatable. Our results demonstrate that resource species diversity can modulate rates of consumption through the action of multiple different mechanisms.     

An experiment on the economic value of visibility

This paper reports on the development and application of an iterative bidding technique to examine proposed visibility reductions in the Four Corners Region of the southwest United States. The iterative bidding technique is a method to elicit honest bids for “goods” not priced in formal markets. Four issues associated with direct revelation of preferences for environmental goods are explored: (1) the establishment of linkages between the physical parameters of visibility and representation of the “good” called visibility to individuals for valuation purposes; (2) a systematic test for both observed and induced biases associated with the interative bidding technique; (3) replication of the results of previous experiments; and (4) reporting of empirical divergences between compensating and equivalent surplus measures of consumer surplus.     

Distribution of the generation of air pollution

Consumer spending creates pollution both directly and indirectly, through derived demand relationships. This paper estimates total generation of five air pollutants by family income class based on a large-scale input-output model of production, consumption, family income, and rediduals relationships. Pollution generation is shown to be disproportionately attributable to the number of families in the higher-income classes. However, it is closely correlated with the level but not the pattern of consumer spending. Comparisons are also made between distribution of pollution generation and estimates of exposure to pollution by income class as reported in the literature.