Environmental and Resource Economics

The primary concern of Environmental & Resource Economics is the application of economic theory and methods to environmental issues and problems that require ...

List of Papers (Total 489)

The Effect of Risk Context on the Value of a Statistical Life: a Bayesian Meta-model

This paper presents the first value of statistical life (VSL) meta-analysis that empirically estimates correction factors for ‘out of context’ benefits transfer (BT) purposes. In the field of mortality risk reductions elicited willingness to pay values in one risk context, say road safety, are frequently applied in other risk contexts like air pollution. However, differences in...

Potential Contributions of Political Science to Environmental Economics

While political science has much to offer, at least some of its contributions might be difficult to incorporate into economic models. Nevertheless, we argue that environmental economics might benefit from supplementing, combining, or sometimes even replacing the rational choice approach with other approaches commonly used in political science. We develop our argument by examining...

Bayesian Conjoint Choice Designs for Measuring Willingness to Pay

In this paper, we propose a new criterion for selecting efficient conjoint choice designs when the interest is in quantifying willingness to pay (WTP). The new criterion, which we call the WTP-optimality criterion, is based on the c-optimality criterion which is often used in the optimal experimental design literature. We use a simulation study to evaluate the designs generated...

External Tests of Scope and Embedding in Stated Preference Choice Experiments: An Application to Endangered Species Valuation

A criticism often levied against stated preference (SP) valuation results is that they sometimes do not display sensitivity to differences in the magnitude or scope of the good being valued. In this study, we test the sensitivity of preferences for several proposed expanded protection programs that would protect up to three US Endangered Species Act-listed species: the Puget...

Heterogeneous Response to Marine Reserve Formation: A Sorting Model approach

The bioeconomic impacts of spatial fisheries management hinge on how fishing vessels reallocate their effort over space. However, empirical studies face two challenges: heterogeneous behavioral responses and unobservable resource abundance. This paper addresses these two problems simultaneously by using an unusual data set and an estimation technique developed in the industrial...

The Spatial Range of Public Goods Revealed Through Referendum Voting

Billions of dollars are now spent annually in the United States and Europe for spatially delineated environmental services such as agricultural landscape management and river restoration programs, yet little is known about the spatial distribution of the benefits from these policies. This paper develops a framework for recovering information on this question from the spatial...

Can a Focus on Breakthrough Technologies Improve the Performance of International Environmental Agreements?

In a recent paper, Barrett (Am Econ Rev 96(2):22–25, 2006) reaches the conclusion that in general the answer to the question in the title is no, except for a special case in which technology adoption involves increasing returns (network externalities). We show in this paper that a focus on the R&D phase in the development of breakthrough technologies can also increase the...

Energy Conservation More Effective With Rebound Policy

This article sketches the problem of indirect energy use effects, also known as rebound, of energy conservation. There is widespread support for energy conservation, especially when it is voluntary, as this seems a cheap way to realize environmental and energy-climate goals. However, this overlooks the phenomenon of rebound. The topic of energy rebound has mainly attracted...

Who Pays a Price on Carbon?

We use the 2003 Consumer Expenditure Survey and emissions estimates from an input-output model based on the 1997 US economy to estimate the incidence of a price on carbon induced by a cap-and-trade program or carbon tax in the context of the US. We present results on how much different income deciles pay for a carbon tax as well as which industries see the largest increase in...

Choice Certainty and Consistency in Repeated Choice Experiments

The main objective of this study is to examine how repeated choice affects preference learning in stated preference experiments. We test different hypotheses related to preference learning by analyzing response patterns and asking respondents in a choice experiment to report their experienced certainty when going through the choice tasks. In a split-sample test, we show that...

Spatial Management of Invasive Species: Pathways and Policy Options

In addressing the problem of invasive species, decision makers have a variety of options, each targeting different aspects as it evolves over time and space. We develop a 2-region bioeconomic model that includes several transmission pathways that spread the invader. Within each region, inspections, removal efforts, and sustainable land management practices, including habitat...

Environmental Regulation and Industry Location in Europe

This paper estimates the effect of environmental regulation on industry location and compares it with other determinants of location such as agricultural, education and R&D country characteristics. The analysis is based on a general empirical trade model that captures the interaction between country and industry characteristics in determining industry location. The Johnson–Neyman...

Renegotiations in the Greenhouse

International climate policies are being shaped in a process of ongoing negotiations. This paper develops a sequential game framework to explore the stability of international climate agreements allowing for multiple renegotiations. We analyse how the incentives to reach an international climate agreement in the first period will be impacted by the prospect of further...

Effects of Unit-Based Garbage Pricing: A Differences-in-Differences Approach

Using a unique 10-year dataset of all 458 Dutch municipalities, we apply a differences-in-differences approach to estimate the effect of unit-based pricing on household waste quantities and recycling. Community-level studies of unit-based pricing typically do not include fixed effects at the local level. We find that failure to do so may substantially inflate the estimated price...

Fishing Revenue, Productivity and Product Choice in the Alaskan Pollock Fishery

A key element in evaluating fishery management strategies is examining their effects on the economic performance of fishery participants, yet nearly all empirical studies of fisheries focus exclusively on the amount of fish harvested. The economic benefits derived from fish stocks involve the amount of revenue generated from fish processing, which is linked to both the way fish...

Sustainable Development and a Dwindling Carbon Space

Curbing global warming by setting long term maxima for temperature rise or concentrations of greenhouse gases defines spaces within which further emissions of these gases are to remain (referred to here as ‘carbon spaces’). This paper addresses questions related to how to share between countries the carbon space and/or efforts to stay within it, in the perspective of sustainable...

Sources of Mistrust: An Experimental Case Study of a Central Asian Water Conflict

With the disintegration of the USSR a conflict arose between Kyrgyzstan, Uzbekistan and Kazakhstan over the transboundary Syr Darya river. Upstream Kyrgyzstan controls the Toktogul reservoir which generates hydropower demanded mainly in winter for heating. Downstream Uzbekistan and Kazakhstan need irrigation water in summer, primarily to grow an export crop (cotton). Regional...

Entry Facilitation by Environmental Groups

We consider a model of vertical product differentiation where consumers care about the environmental damage their consumption causes. An environmental group is capable of increasing consumers’ environmental concern via a costly campaign. We show that the prospect of such a campaign can induce entry by a firm that is able to employ a cleaner technology than the one used by the...

Strategic Behavior, Private Information, and Decentralization in the European Union Emissions Trading System

In the European Union Emissions Trading System, the supply of carbon permits is determined in a decentralized manner by Member States. Alternatively, the supply could be determined by an EU central authority. We analyze whether decentralization leads to lower total abatement costs under various assumptions about the behavior of Member States and the privacy of information about...

The Impact of Climate Change on the Balanced Growth Equivalent: An Application of FUND

The Stern Review added balanced growth equivalents (BGE) to the economic climate change research agenda. We first propose rigorous definitions of the BGE for multiple regions and under uncertainty. We show that the change in the BGE is independent of the assumed scenario of per capita income. For comparable welfare economic assumptions as the Stern Review, we calculate lower...

Introduction to the Special Issue: Things We Do and Don’t Understand About the Household and the Environment

Environmental economics has been slow to incorporate the full and complex nature of the household into its analytical structures and to reflect empirical evidence on household decision-making. This paper provides an overview of some of the main unanswered questions.