Showing papers in "Land Economics in 1999"
Journal Article•
TL;DR: In this paper, a new elicitation format, referred to as the dissonance-minimizing (D M) format, is proposed to reduce the occurrence of yea-saying.
Abstract: A number of recent papers have provided estimates of willingness to pay derived in contingent valuation surveys exceeding those revealed in experimental or real-life markets One possible explanation for the overestimation of values is the presence of yea-saying With the objective of reducing the occurrence of yea-saying, a new elicitation format, referred to as the dissonance-minimizing (D M) format, is proposed An empirical comparison of the DM format with the conventional dichotomous-choice (DC) format and the ambivalence-reducing polychotomous choice (PC) format suggested by Ready, Whitehead, and Blomquist (1995) is made Results are encouraging for the DM
276 citations
TL;DR: In this paper, the authors examined the Dallas area housing market before, during, and after the closure and cleanup of a 50-year-old lead smelter west of downtown Dallas, using a pooled time series and cross-sectional data set that covered all single family homes sold through the multiple-listing service from 1979 through 1995-over 200,000 observations.
Abstract: The Dallas area housing market is examined before, during, and after the closure and cleanup of a 50-year-old lead smelter west of downtown Dallas, using a pooled time series and cross-sectional data set that covered all single family homes sold through the multiple-listing service from 1979 through 1995-over 200,000 observations. Consistent with the existing literature, property values around the smelter were lower before the cleanup. However, after the cleanup, the prices consistently rebounded across all neighborhood types, although the areas that were nearest and poorest did so more slowly.
197 citations
Posted Content•
TL;DR: In this paper, the authors combined a large household-level data set with the two-stage hedonic estimation technique to derive new estimates of willingness to pay (WTP) for reduced air pollution.
Abstract: This paper combines a new, large household-level data set with the two-stage hedonic- estimation technique to derive new estimates of willingness to pay (WTP) for reduced air pollution. The WTP estimates are found robust against functional-form specification. Marginal WTP estimates for a reduction in particulate matter (PM-10) are found to be quite comparable with some previous estimates. Benefits of nonmarginal changes exhibit consistently higher monetary returns in the case of PM-10 than in the case of SO2, signifying that households dislike particulate pollution more than they do sulfur.
191 citations
TL;DR: In this article, the authors examined the costs of meeting explicit targets for increments of carbon sequestered in forests when both forest management decisions and the area of forests can be varied, and estimated the welfare losses in markets for forest and agricultural products.
Abstract: This paper examines the costs of meeting explicit targets for increments of carbon sequestered in forests when both forest management decisions and the area of forests can be varied. Costs are estimated as welfare losses in markets for forest and agricultural products. Results show greatest change in management actions when targets require large near-term flux increments, while land area change is largest when long-term increments are needed, Marginal costs per tonne of carbon flux do not vary greatly with the form of the target and are similar to findings of earlier studies for comparable size of average carbon flux increment.
181 citations
Posted Content•
TL;DR: The extent to which agricultural support programs have been capitalized into farmland prices has been examined in this paper, where a present value land price model was developed which decomposes returns to the land base into its two possible sources (farm production and government subsidies) and allows the discount rates associated with these two income sources to vary.
Abstract: The extent to which agricultural support programs have been capitalized into farmland prices has been examined in this study A present value land price model was developed which decomposes returns to the land base into its two possible sources (farm production and government subsidies) and allows the discount rates associated with these two income sources to vary The empirical results indicate that government payments are discounted less than marketbased returns in Ontario Thus, government payments have been viewed as a more stable source of income to Ontario farm operators during the last half century than market-based returns
171 citations
Posted Content•
TL;DR: A reestimation of Haas's model reveals that he did a respectable job in an age before computational machinery was available as mentioned in this paper, showing that some of the adjustments to price, especially his time adjustments, were amazingly accurate.
Abstract: G. C. Haas produced a hedonic study more than 15 years prior to A. T. Court who first published the term hedonics. Haas's application was to agricultural land prices with a particular focus on distance to the city center and city size. Thus, Haas's work has much of the flavor of contemporary urban economics. A reestimation of Haas's model reveals that he did a respectable job in an age before computational machinery was available. The estimation of a new model reveals a tiny value gradient and shows that some of Haas's adjustments to price, especially his time adjustments, were amazingly accurate.
152 citations
TL;DR: This article examined the connection between labor supply and recreation demands, and focus on conditional demand systems, and illustrate that corner solution models are not needed to explain several interesting time-related recreation issues.
Abstract: Recreation demand modelers have attempted to identify and incorporate the opportunity cost of an individual's time in travel and on-site in the model. Larson (1993b) focused on the value of leisure time in a model where individuals face a fixed work week. In this paper we examine the connection between labor supply and recreation demands, and focus on conditional demand systems. We illustrate that corner solution models are not needed to explain several interesting time-related recreation issues.
106 citations
Posted Content•
TL;DR: In this paper, the role of waste disposal service fees and household characteristics in determining recycling rates and waste generation was investigated using individual household data from Portland, Oregon, where a multistage household decision process regarding waste generation and recycling effort under a block pricing system, including the choice of container size and reduced-form demand equations for recyclables, non-recyclables, and recycling rate.
Abstract: This paper investigates the role of waste disposal service fees and household characteristics in determining recycling rates and waste generation. Using individual household data from Portland, Oregon, we model a multistage household decision process regarding waste generation and recycling effort under a block pricing system, including the choice of container size and reduced-form demand equations for recyclables, non-recyclables, and recycling rate. The choice of container size is not affected by the price of waste disposal services, but within a given container size, households respond to a price increase by increasing recycling to avoid charges for waste generation above contracted volumes.
96 citations
Posted Content•
TL;DR: In this paper, the authors present measures of segregation in public schools for metropolitan areas and show that most of that segregation is due to racial disparities between districts rather than segregative patterns within districts.
Abstract: This paper presents measures of segregation in public schools for metropolitan areas. It shows that, not only are metropolitan areas very segregated, most of that segregation is due to racial disparities between districts rather than segregative patterns within districts. Metropolitan areas in the South and West tend to have larger districts, and thus feature less fragmentation by school district. Segregation at the metropolitan level appears to vary systematically with size, racial mix, and region. Because larger metropolitan areas tend to have more jurisdictions and exhibit greater differences in racial composition among jurisdictions, measured segregation rises with size, as measured by school enrollment
85 citations
Posted Content•
TL;DR: In this paper, the authors introduce a method for incorporating information on the willingness to pay for landscape preservation gained from contingent valuation studies in the objective function of a price-endogenous, mathematical programming model for the agricultural sector.
Abstract: It is often asserted that agricultural land yields significant amenity benefits that could be used as a rationale for some of the substantial support to agriculture occurring in many industrialized countries. This paper introduces a method for incorporating information on the willingness to pay for landscape preservation gained from contingent valuation studies in the objective function of a price-endogenous, mathematical programming model for the agricultural sector. Optimal levels of support, production, land use, and employment can then be calculated. The method is illustrated using data from Sweden and four U.S. communities, and a programming model for the Norwegian agricultural sector.
70 citations
Posted Content•
TL;DR: In this article, the welfare change estimates obtained from discrete-response contingent valuation experiments normally assume a particular distribution of willingness-to-pay (WTP) using conventional microeconomy theo
Abstract: Welfare change estimates obtained from discrete-response contingent valuation experiments normally assume a particular distribution of willingness-to-pay (WTP) Using conventional microeconomy theo
Posted Content•
TL;DR: The authors developed a temporal reliability test of the contingent valuation method and found that the estimates are temporally reliable after accounting for attitudes which have changed over the five-year period, values are not significantly different five years apart.
Abstract: We develop a temporal reliability test of the contingent valuation method Separate random samples were administered the same telephone survey five years apart In the retest, respondents have less favorable attitudes toward the environment Given this result, a temporally reliable contingent valuation would find lower willingness to pay We find that the estimates are temporally reliable After accounting for attitudes which have changed over the five-year period, values are not significantly different five years apart This study provides additional evidence that use of the contingent valuation method can provide useful information for environmental policy analysis
Posted Content•
TL;DR: In this article, the authors examined the existence and policy feasibility of two alternative initial allocations intended to leave the two principal industry participants, the fishers and processors, no worse off, while maximizing efficiency.
Abstract: Advancement of rights-based fishing is stymied by industry and congressional concern over distributional issues arising out of traditional ITQ design. This paper examines the existence and policy feasibility of two alternative initial allocations intended to leave the two principal industry participants, the fishers and processors, no worse off, while maximizing efficiency. Market structure is shown to be a critical consideration, not only to avoid unintended wealth redistribution, but also to achieve efficiency.
Posted Content•
TL;DR: In this article, the Double-Bounded Dichotomous-choice (DB-DC) Contingent Valuation format is thought to yield more precise welfare estimates, but questions remain about its validity.
Abstract: The Double-Bounded Dichotomous- Choice (DB-DC) Contingent Valuation format is thought to yield more precise welfare estimates. Questions remain about its validity. The initial bid may represent information with which respondents update their willingness to pay. A Bayesian model of respondent decision making is estimated for two data sets. The results indicate updating or shifts in respondent willingness to pay between iterated valuations. Nonparametric testing of the welfare estimates reveals that the model incorporating updating yields different values from the standard model. The expected increases in the precision of the DB-DC welfare estimates are lost when updating occurs.
Posted Content•
TL;DR: In this paper, the potential economic impacts of climate change on U.S. agriculture have been investigated and several "big picture" lessons can be drawn, including that current policy efforts should focus on reducing climate change uncertainties and increasing farm sector flexibility.
Abstract: Recent studies estimate potential economic impacts of climate change on U.S. agriculture. While results are not directly comparable, several "big picture" lessons can be drawn. These broader findings are developed and put into a policy context. While the estimated impacts on U.S. agriculture, and the U.S. economy, do not yet justify costly adaptation or mitigation strategies, some regional and environmental impacts could be quite severe. Current policy efforts should focus on reducing climate change uncertainties and increasing farm sector flexibility. From a national perspective, future agreements to limit greenhouse gas emissions could be partially met through adjustments of farm practices.
Posted Content•
TL;DR: This paper studied plant level data on actual and permitted levels of water pollution emissions for the pulp and paper industry and found that there is widespread and substantial overcompliance with the relevant regulations: aggregate BOD emissions in 1992 were only 50% of the amount allowed.
Abstract: This paper studies plant level data on actual and permitted levels of water pollution emissions for the pulp and paper industry. There is widespread and substantial overcompliance with the relevant regulations: aggregate BOD emissions in 1992 were only 50% of the amount allowed. Overcompliance appears to imply a zero marginal abatement cost and its prevalence therefore has the potential to substantially change the debate over the costs of regulation. We show instead that plants incurred substantial costs to overcomply. Marginal abatement costs were roughly $13,000/ton in 1992. We discuss possible explanations for costly overcompliance and their implications for estimation.
Posted Content•
TL;DR: In this paper, an hourly constrained optimization framework for estimating the short-run costs of restricting hydropower operations is introduced, based on newly available market-based prices are employed.
Abstract: Environmental externalities resulting from the construction and operation of a number of hydropower plants are now being reexamined. The focus of many recent analyses is on identifying new, often more restrictive, operational regimes which will improve downstream environmental conditions. These new regimes may create significant market and nonmarket benefits but constraints on hydropower operations frequently lead to economic costs. This paper introduces an hourly constrained optimization framework for estimating the short-run costs of restricting hydropower operations. Glen Canyon Dam, on the Colorado River in Arizona, is used as a case study. Newly available marketbased prices are employed.
TL;DR: The authors showed that the opportunity cost of time-wage rate connection is severed when several household members have the opportunity to par- ticipate in the labor market at fixed wages, showing that the rec- reation demand models and estimates of con- sumer surplus are sensitive to household labor market choices.
Abstract: This paper introduces household labor market choices into the demand for recre- ation, showing that the opportunity cost of time- wage rate connection is severed when several household members have the opportunity to par- ticipate in the labor market at fixed wages. An ap- plication of recreation demand for households in New Bedford, Massachusetts, shows that the rec- reation demand models and estimates of con- sumer surplus are sensitive to household labor market choices. (Q26)
Posted Content•
TL;DR: In this article, the authors developed a model of irrigator profit and ability to pay for water using data from thirteen water districts in California, and compared to ability-to-pay estimates from a farm budget study of the districts.
Abstract: The reclamation program sets prices based on irrigators' ability to pay for water. In contrast to the traditional approach (the farm budget study), this research develops a model of irrigator profit and ability to pay. The shadow price (marginal revenue) of water is shown to measure ability to pay per acre-foot of water. The model can be estimated econometrically with commonly available, although deficient, data. Using data from thirteen water districts in California, annual, district-level shadow price functions are derived for 1981-91 and compared to ability-to-pay estimates from a farm budget study of the districts.
Posted Content•
TL;DR: This paper explored potential focus shift asymmetries in an ordered strength of preference model applied to contingent choice data and found that respondents weight factors differently when assessing preference for an "accepted" scenario than they do when assessing preferences for a "rejected" scenario, and that respondents do not refer to a single underlying preference function.
Abstract: This paper explores potential focus shift asymmetries in an ordered strength of preference model applied to contingent choice data. A focus shift occurs when respondents weight factors differently when assessing preference for an "accepted" scenario than they do when assessing preference for a "rejected" scenario, and may imply that respondents do not refer to a single underlying preference function. Using data drawn from a survey which addressed preferences for watershed management, the model results identified focus shift asymmetries in the ordered strength of preference model. The paper discusses implications for policy, survey design, and discrete-choice preference estimation.
TL;DR: In this article, the authors review the theory of endoge-nous on-site time, and show how the theory may apply to the Random Utility Model (RUM).
Abstract: Careful modeling of on-site time may substantially improve estimates of the bene- fits of recreational visits using the travel cost method, especially when on-site time is endoge- nous. This paper reviews the theory of endoge- nous on-site time, and shows how the theory may apply to the Random Utility Model (RUM). An empirical example of a two-level, nested-choice model of sport fishing in southcentral Alaska il- lustrates a discussion of the relative advantages of the different ways to specify endogenous on- site time. (JEL Q26)
Posted Content•
TL;DR: In this article, a framework for the analysis of regional development over the long run is presented, with the first stage representing one of regional economic closure and each subsequent stage involving the regional export base being dominated by a particular sector of economic activity.
Abstract: A framework is outlined which provides a generalized account of the process of regional development over the long run. The framework utilizes a stages approach, the first stage representing one of regional economic closure. Each subsequent stage involves the regional export base being dominated by a particular sector of economic activity. The sequence of stages (in terms of the sectors dominating the export base) is as follows: primary; secondary (separated into two types); tertiary. Development of the region does not generally depend on passage through the sequence of stages but rather on the overall expansion of its export base.
Posted Content•
TL;DR: In this article, two nations seek a cooperative agreement to control bilateral flows of an industrial pollutant, and both nations are motivated to attempt to manipulate the terms of the agreement by making strategic investments in sunk capital prior to its completion.
Abstract: Two nations seek a cooperative agreement to control bilateral flows of an industrial pollutant. From previous noncooperative production choices, the nations hold a certain amount of sunk capital. If production requires relatively large investments in sunk capital, the nations may find that they cannot negotiate production quotas that improve on their noncooperative choices. When the nations find cooperation worthwhile, negotiated levels of production will be higher than in the absence of sunk capital. Furthermore, both nations are motivated to attempt to manipulate the terms of the agreement by making strategic investments in sunk capital prior to its completion.
Posted Content•
TL;DR: In this article, the authors evaluate how much longer the setback length for surface application must be to encourage soil incorporation of swine manure in order to improve air quality near large swine production sites and manure application fields.
Abstract: To improve air quality near large swine production sites and manure application fields, Kentucky has legislated setback requirements. Unlike other states, however, Kentucky requires swine producers to control all acreage in the setback. Furthermore, the setback length for surface application, an odorous option, is longer than that for incorporation. This paper evaluates how much longer the setback length for surface application must be to encourage soil incorporation of swine manure. Results indicate that Kentucky's setback lengths do not encourage odor control via incorporation;t he setback length for surface application must be substantially longer than that for incorporation
Posted Content•
TL;DR: In this article, the authors examined how to harvest a biomass exposed to a potential collapse at an uncertain date and identified a specific recovery effect which may be positive or negative, and applied the model to the North Sea herring fishery.
Abstract: This paper examines how to harvest a biomass exposed to a potential collapse at an uncertain date. A specific recovery effect is identified which may be positive or negative. In general, the effect on the optimal biomass is indeterminate and depends upon the failure rate, the expected collapse, and the function relating the extent of the collapse to the size of the precollapse stock. Apart from balanced harvest strategies, even extreme strategies of total extinction or extreme precaution may be optimal in some cases. The model is applied to the North Sea herring fishery.
Posted Content•
TL;DR: In this article, the authors highlight the following trade-off associated with unfunded mandates: on the one hand, no funding creates a risk of over-regulation by the higher level government (the accountability principle), but on the other, full funding creating a moral hazard problem whereby the lower-level government fails to minimize the cost of implementation.
Abstract: Unfunded mandates are orders imposed by higher level governments on lower-level governments without providing the funds necessary for implementation. We highlight the following trade-off associated with unfunded mandates: on the one hand, no funding creates a risk of over-regulation by the higher-level government (the accountability principle), but on the other, full funding creates a moral hazard problem whereby the lower-level government fails to minimize the cost of implementation. We examine threshold rules that simultaneously provide incentives for efficient decisions by both levels of government. We then apply the results to the Unfunded Mandate Reform Act.