ECONOMICS OF SCREENING FOR PESTICIDES IN GROUND WATER1

ABSTRACT: In the United States, millions of dollars are currently spent to monitor water quality for a whole suite of organic compounds. However, results of several surveys conducted in the past decade indicate that only a few pesticides occur in a small proportion of wells. Screening methods based on historical evidence of contamination patterns and knowledge of the locales will have significant potential to reduce these costs and effectively identify contamination problems. In this paper, the economics of utilizing two screening methods, sequential analysis and sample compositing, in the design of monitoring strategies is captured In the form of mathematical models and illustrated for a state-level monitoring program. When the two methods are adopted, the total analytical cost to conclusively identify contaminated wells in a network of 4,000 wells is shown to range from $12,500 to $1,575,000 depending on the extent of contamination. In contrast, the total analytical cost of a conventional program where all the wells in the network are sampled and tested for a standard suite of pesticides at a cost of $250/sample is one million dollars. Given such wide range in costs, it is prudent to incorporate the screening concepts presented in this paper in the development of cost-effective monitoring programs.     

INCENTIVE-BASED NONPOINT SOURCE POLLUTION ABATEMENT IN A REAUTHORIZED CLEAN WATER ACT1

ABSTRACT: This paper summarizes key provisions of the Clinton Administration's proposals for change in the Clean Water Act. Two of the important themes for change are tougher controls for non-point source pollution and the use of market-based instruments. A detailed analysis of market-based abatement suggests limited potential for reducing costs. The keys to nonpoint source pollution control are clearer definition of property rights combined with changes in government programs that encourage polluting activities.     

Economics of an ecotourism operation in Belize

The economic inputs and outputs for the Possum Point Biological Station in Belize during 1990–1992 are described to illustrate some aspects of an ecotourism operation. Eight hundred fifty-four people in 59 groups visited Possum Point during the study period to tour rain forests, estuaries, and coral reefs. The economic input to Possum Point from these groups increased from $74,552 in 1990 to $166,268 in 1992. Outputs were for license fees, capital improvements, goods and services, labor, fossil fuels, and development of a historic sugar mill site. An annual donation was also made to a scholarship fund for local Belizean students. The net cash balance of income and outputs changed from negative (−$6678) in 1990 to positive (+$4811) in 1992, suggesting development of the economic operation. Possum Point meets the economic criteria for ecotourism by feeding back some tourist monies for community and environmental support, particularly donations for the sugar mill site and the scholarship fund. Most of the outputs from Possum Point (about 80%) were retained in the local economy through employment and purchases, which have a positive influence on the local community. We conclude that ecotourism operations, such as Possum Point, offer important sustainable development opportunities for Belize.     

POTENTIAL BENEFITS AND COSTS OF INGROUND STORAGE OF IMPORTED WATER1

ABSTRACT: In the near future, groundwater storage of imported water may become increasingly important as sites for surface storage are less available. This article explores the potential economic costs and benefits of groundwater storage. The costs include capital outlays, maintenance costs, land costs, legal costs, energy costs, and opportunity costs. The benefits include land cost savings, prevention of subsidence, aquifer protection, and higher economic use of surface lands that might be covered by a reservoir.     

THE IMPACTS OF WATERWAY USER FEES ON GRAIN TRANSPORTATION ON THE SNAKE-COLUMBIA RIVER1

ABSTRACT: Grain transportation is a major economic activity on the multiple use Snake-Columbia River System. Congress is currently considering increased transportation user fees aimed at recapturing federal expenditures for waterway operations and maintenance. Three types of fee structure and four levels of cost recovery are evaluated using a network program model. In each case traffic is diverted away from the river to other Puget Sound ports via truck and rail transport modes. Grain shippers in the region will be adversely affected by a higher transport bill. The Lower Columbia River port economic activities will be negatively affected; however, competitive uses of the river, recreation, and hydroelectric generation will likely benefit modestly.     

SOIL EROSION AND GROUND WATER POLLUTION TRADEOFFS FOR NONIRRIGATED FARMING SYSTEMS1

ABSTRACT: Traditional focus on reducing one environmental externality may cause another externality to increase. This article examines the environmental and economic costs of abating soil loss and (or) nitrate leaching through alternative optimal production systems in the nonirrigated farming systems of Northeastern Oregon. Models estimating soil loss and nitrate‐nitrogen leaching rates associated with current production processes, are linked to a Multi‐Objective Programming (MOP) model. The results show that site specific conditions influence the level of abatement expenditures and optimal production strategies to reduce soil loss and leaching rates. Moreover, while existing production strategies are effective in reducing soil loss at little cost, no strategies could be identified to reduce nitrate leaching rate on some soils.     

What Price Cheap Food?

This paper is the report of a meetingthat gathered many of the UK's most senioranimal scientists with representatives of thefarming industry, consumer groups, animalwelfare groups, and environmentalists. Therewas strong consensus that the current economicstructure of agriculture cannot adequatelyaddress major issues of concern to society:farm incomes, food security and safety, theneeds of developing countries, animal welfare,and the environment. This economic structure isbased primarily on competition betweenproducers and between retailers, driving foodprices down, combined with externalization ofmany costs. These issues must be addressed by acombination of legislation, restructuring ofthe market, and use of public funds. Themeeting included workshops that made otherrecommendations for research and education. Themost urgent requirement is recognition thatchange is needed and development of a visionfor what that change must achieve.     

Valuing Water Rights in Douglas County,Oregon, Using the Hedonic Price Method1

Abstract: This paper uses the hedonic price method to estimate the value of an acre‐foot of irrigation water in Douglas County, Oregon. The analysis uses detailed information from 113 arms‐length transactions of farmland for 2000 and 2001. The estimated willingness‐to‐accept of $261 to sell an acre‐foot of irrigation water is consistent with other studies and recent transactions in the study area. Estimates for the value of leasing water are provided using a range of discount rates and leasing periods.     

中国资源驱动型岛屿旅游经济发展分析

从我国沿海岛屿旅游十几年的发展历程来看,各沿海岛屿由于所处的地理位置、历史条件、气候条件及资源与文化丰度差异,决定了其旅游发展水平与发展方式存在明显不同。从旅游发展主要驱动力角度,探讨了那些依托其独特旅游资源开发带动经济发展的岛屿经济发展模式。     

Relaxation algorithms to find Nash equilibria with economic applications

Recent theoretical studies have shown that a relaxation algorithm can be used to find noncooperative equilibria of synchronous infinite games with nonlinear payoff functions and coupled constraints. In this study, we introduce an improvement to the algorithm, such as the steepest-descent step-size control, for which the convergence of the algorithm is proved. The algorithm is then tested on several economic applications. In particular, a River Basin Pollution problem is considered where coupled environmental constraints are crucial for the relevant model definition. Numerical runs demonstrate fast convergence of the algorithm for a wide range of parameters. This revised version was published online in July 2006 with corrections to the Cover Date.