Sellers' Hedging Incentives at EPA's Emission Trading Auction

Cason (1993, J. Environ. Econom. Management25, 177–195, doi:10.1006/jeem 1993.1041) argued that the auction which the EPA used in order to start the market for sulfur allowances may reduce the efficiency of the market since it gives sellers an incentive to understate their valuation. In this paper we show that the sellers' incentives are even more perverse than Cason suggested when we take into account that sellers can also submit a bid. We show that sellers have an incentive to set their asking price equal to 0 while simultaneously hedging their bets by submitting a positive bid.     

A Systematic Test of an Enterprise Strategy for Community-Based Biodiversity Conservation

Abstract: A commonly held belief is that if people can benefit financially from enterprises that depend on nearby forests, reefs, and other natural habitats, then they will take action to conserve and sustainably use them. The Biodiversity Conservation Network brought together conservation and development organizations and local communities to systematically test this hypothesis across 39 conservation project sites in Asia and the Pacific. Each project implemented one or more community-based enterprises such as setting up an ecotourism lodge, distilling essential oils from wild plant roots, producing jams and jellies from forest fruits, harvesting timber, or collecting marine samples to test for pharmaceutical compounds. Each project team collected the biological, enterprise, and social data necessary to test the network's hypothesis. We present the results of this test. We found that a community-based enterprise strategy can lead to conservation, but only under limited conditions and never on its own. We summarize the specific conditions under which an enterprise strategy will and will not work in a decision chart that can be used by project managers to determine whether this strategy might make sense at their site. We also found that an enterprise strategy can be subsidized and still create a net gain that pays for conservation. Based on our experiences, we recommend developing "learning portfolios" that combine action and research to test other conservation strategies.     

Centaurea Species: the Forb That Won the West

Abstract: Grasslands of the western United States and Canada are being converted to ecosystems that resemble "old fields," dominated in terms of percent cover or biomass by forb species. In particular, five species of the genus Centaurea (star thistle, diffuse, spotted, squarrose, and Russian knapweed ) have invaded millions of hectares of western United States and Canadian grasslands. Centaurea species are fundamentally different from the preexisting dominant species and may exploit changes in resource availability to become established. We suspect that they then maintain dominance by preventing resources from returning to levels that favor the native species. Increased atmospheric nitrogen deposition, reduced fire frequency, and, possibly, direct and indirect fertilization resulting from cattle grazing appear to have reduced the historically strong nitrogen limitation to which native species of western grasslands are adapted. We suggest that the success of Centaurea species in dominating grasslands is explained by their ability to compete successfully for the new limiting resource or resources. Our preliminary evidence suggests that phosphorus limitation or a colimitation of phosphorus and water best explains the current dominance patterns.     

Risk assessment in western mosquitofish (Gambusia affinis): do multiple cues have additive effects?

The threat-sensitivity hypothesis predicts that prey individuals will increase antipredator behaviors as apparent predator risk increases. An implicit assumption of the threat-sensitivity hypothesis is that predator risk is additive. In other words, all characteristics of a predator that indicate risk should contribute in an additive way to determine the degree of risk-sensitive behavior. We tested this assumption in the laboratory by presenting live predators (green sunfish, Lepomis cyanellus) to groups of western mosquitofish (Gambusia affinis). We examined effects of predator diet, hunger level, and size on predator avoidance and inspection behavior of mosquitofish. Both predator diet and predator hunger level were significant and additive determinants of distance maintained from a predator, resulting in a graded response to combinations of these predator cues. In contrast, whereas predator diet was the most important determinant of general avoidance distances, predator hunger level was more important in determining mosquitofish vertical distribution and inspection behavior. Thus, the relationship between predator cue and the antipredator behavior that it elicits is dependent on which cues and behaviors are examined. Our data suggest that during risky behaviors, such as predator inspection, mosquitofish rely mainly on visual cues (behavior differences between hungry and satiated predators), whereas general avoidance behavior is determined by additive responses from visual and chemical cues.     

Emission-based static traffic assignment models

Tailpipe emissions in the road transportation system are a major source of air pollution and greenhouse gases. One of the possible approaches is to influence drivers’ routing decisions such that the emissions and fuel consumption is minimized. In order to evaluate such condition, we develop environmental traffic assignment (E-TA) models based on user equilibrium (UE) and system optimal (SO) behavioral principles. Extending the traditional travel time-based UE and SO principles to E-TA is not straightforward because, unlike travel time, the rate of emissions increases with the increase in vehicle speed beyond a certain point. The results of various TA models show a network-wide traffic control strategy in which vehicles are routed according to SO-based E-TA, can reduce system-wide emissions. However, a system in which drivers make routing decisions to minimize their own emissions (E-UE system) results in a paradoxical situation of increased individual as well as system-wide emissions.     

Metal concentrations in American oyster <Emphasis Type="Italic">Crassotrea virginica</Emphasis> and adjacent sediments from harvestable and non-harvestable sites in the Southeastern USA

Human population growth in coastal areas continues to threaten estuarine ecosystems and resources. Populations of Crassostrea virginica have declined across the USA due to water quality degradation, disease pressure, alteration of habitat, and other changes related to anthropogenic impacts. Metals that may be present in estuarine habitats can bioaccumulate in oysters, with potential consequences to the health of oysters and humans consumers. This study (1) evaluated the occurrence and relationships of metal concentrations in oyster tissue versus estuarine sediments, (2) examined oyster tissue concentrations in relation to state water quality designations, and (3) evaluated the potential risk for humans from oyster consumption related to metal concentrations from harvestable waters. Results indicated metal concentrations in sediments and oysters along coastal South Carolina remain low compared to other areas and that concentrations in oyster tissue and adjacent sediments were not highly correlated with each other. However, high concentrations of some metals occurred in oysters sampled from areas designated as Approved for Harvesting. This is important because most harvest area designation systems rely on regular bacterial monitoring when evaluating the safety of consumption. Others safety measurements may be necessary as part of routine monitoring.     

<Emphasis Type="Italic">Noctiluca</Emphasis> and copepods grazing on the phytoplankton community in a nutrient-enriched coastal environment along the southwest coast of India

The relative grazing impact of Noctiluca scintillans (hereafter referred only Noctiluca) and copepods (Acrocalanus gracilis, Paracalanus parvus, Acartia danae and Oithona similis) on the phytoplankton community in an upwelling–mudbank environment along the southwest coast India is presented here. This study was carried out during the Pre-Southwest Monsoon (April–May) to the Late Southwest Monsoon (August) period in 2014. During the sampling period, large hydrographical transformation was evident in the study area (off Alappuzha, Southwest coast of India); warmer Pre-Southwest Monsoon water column condition got transformed into cooler and nitrate-rich hypoxic waters during the Southwest Monsoon (June–August) due to intense coastal upwelling. Copepods were present in the study area throughout the sampling period with a noticeable increase in their abundance during the Southwest Monsoon. On the other hand, the first appearance of Noctiluca in the sampling location was during the Early Southwest Monsoon (mid-June) and thereafter their abundance increased towards the Peak Southwest Monsoon. The grazing experiments carried out as per the food removal method showed noticeable differences in the feeding preferences of Noctiluca and copepods, especially on the different size fractions of phytoplankton. Noctiluca showed the highest positive electivity for the phytoplankton micro-fraction (av. 0.49 ± 0.04), followed by nano-fraction (av. 0.17 ± 0.04) and a negative electivity for the pico-fraction (av. ?0.66 ± 0.06). In total ingestion of Noctiluca, micro-fraction contribution (83.7%) was significantly higher compared to the nano- (15.7%) and pico-fractions (0.58%). On the other hand, copepods showed the highest positive electivity for the phytoplankton nano-fraction (av. 0.38 ± 0.04) followed by micro- (av. -0.17 ± 0.05) and pico-fractions (av. ?0.35 ± 0.05). Similarly, in total ingestion of copepods, nano-fraction (69.7%) was the highest followed by micro- (28.9%) and pico-fractions (1.37%). The grazing pressure of Noctiluca on the total phytoplankton was found to be 27.7% of the standing stock and 45.6% of the production, whereas in the case of copepods, it was 9.95% of the standing stock and 16.6% of the production. The study showed that the grazing pressure of Noctiluca on the total phytoplankton as well as larger phytoplankton fraction was 2.8- and 8-folds higher than that of the copepods. This suggests the leading role of Noctiluca as an effective grazer of larger phytoplankton along the southwest west coast of India, especially during the Peak/Late Southwest Monsoon.