Theories of agency behavior are examined via an application to hydropower project relicensing by the Federal Energy Regulatory Commission (FERC). In the relicensing of each project, fish and wildlife agencies submit recommendations to FERC. FERC then enters a twostage deliberation process for...

We conduct a benefit-cost analysis of a relicensing agreement for two hydroelectric dams in Michigan. The agreement changed daily conditions from peaking to run-of-river flows. We consider three categories of costs and benefits: producer costs of adapting electricity production to the new time...

This paper evaluates competing models of input use for two inputs, surface water and land, in central California agriculture. Applying a model of the multiproduct firm, a variable input model is compared to a fixed input model using model specification tests. Test results support the fixed input...

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...

We study intertemporal trading of nitrogen oxides permits in Southern California’s RECLAIM program. We model RECLAIM’s distinct intertemporal features: two overlapping permit cycles and two overlapping compliance cycles. In the model, competitive equilibrium is cost-effective, and firms have...