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...

Policy makers have turned to competition- based voluntary-enrollment programs as a cost-effective way to achieve preferred land uses. This paper studies bidder behavior in an innovative auction-based program in which farmers compete to sell and retire the right to develop their land. We derive a...

To evaluate the impact of soil conservation on reservoir services, we extend replacement cost theory to cases where reservoir benefits are restored or preserved for multiple years. The framework is used to value the effect that a marginal change in soil erosion has on current and future...

The TOBIT estimator of the linear model is commonly used to control for censoring. However, when predicting either demand or consumer surplus, simply substituting the resulting coefficient estimates back into the linear functional form is incorrect. This failure stems from the non-linear impact...