The paper presents two simple models of dynamic consumer behavior, both taking into consideration the implications for welfare measurement when agents can delay transactions while obtaining additional information. One model studies the effect when a purchased good is non-perishable and can be...

A major concern with TEPs is that stochastic permit prices may discourage abatement investment relative to other policies such as a fixed emissions charge. However, the price uncertainty is fundamentally caused by abatement cost uncertainties, which affect investment under both policies. We...

This study investigates the environmental impacts of several forms of policies that offer farmers subsides in return for the adoption of conservation tillage. The policies differ as to whether the tillage practice or one of several environmental benefits is targeted. We develop an Environmental...

This paper develops an endogenous growth model which links pollution to ineffective input-use, which can be reduced through conservation capital investment. It derives the conditions under which individual preferences for environmental quality and private investment in conservation capital can...

Resource purchasing funds have become a major tool for environmental protection and resource conservation. These funds use various strategies to target resources for environmental conservation, the choice of which may lead to striking differences in environmental performance. This paper develops...

We develop a model of regulation of environmental risks in a heterogeneousindustry when policy makers are sensitive to uncertainties about the processes generating the risks. Optimal source reduction capacity is shown to vary according to site suitability. Optimal source reduction capacity and...

A key argument in the societal debate against polices tosupport biofuels is that production of these alternative fuelsmay in fact consume more energy than they generate andemit more greenhouse gases than they sequester (Fargione etal., 2008; Searchinger et al., 2008; Rajagopal and Zilberman,2007; Farrell et...

It has been hypothesized that differentially applied environmental regulations create pollution havens, as firms will choose to invest in countries with lax environmental standards. Using a theoretical model of pest control adoption and an empirical spatial equilibrium model, we examine one such...

The objective of this research is to determine the contribution of recent agricultural policy reforms in the E.U. on the use of crop protection products. Specifically, we concentrate on the 1992 CAP reforms. Our theoretical model adopts the multi-output generalization of the...