Examining the value of carbon sequestration in a dynamic model, the authors demonstrate that unless the sequestration is permanent, it is only a fraction of the value of emission abatement. The magnitude of the fraction increases in the duration of sequestration, the natural decay rate of...

Because of payoff uncertainties combined with risk aversion and/or real options, farmers may demand a premium in order to adopt conservation tillage practices, over and above the compensation for the expected profit losses (if any). We propose a method of directly estimating the financial...

We investigate the environmental impacts of several forms of policies that offer farmers subsides in return for adoption of conservation tillage. The policies differ on whether the tillage practice or one of the environmental benefits is targeted. We develop an environmental Lorenz curve that...

This paper is a study of the optimal emission standards under uncertain pollution damages and transaction costs associated with policy changes. The authors show that, in many situations, either policy changes should be avoided or they should be reduced in scale due to the presence of future...

In this study, we estimate empirically the multiple benefits of a subsidy policy that would offer payments to farmers in return for the adoption of conservation tillage and compare the outcomes of alternative targeting designs for such a policy. Using data for roughly 12,000 National Resource...

Evidence from laboratory experiments suggests that important disparities exist between willingness to pay (WTP) and compensation demanded for the same good. This study advances, and experimentally tests, a new explanation of the WTP/WTA disparity--a dynamic theory based on the presence of...

Universities spend almost $2 billion subsidizing their collegiate sports programs. Even the mostpopular women’s sport, basketball, fails to break even. An application of Becker’s theory ofcustomer discrimination is used to calculate the relative preference for men’s basketball for bothmen...

A Bayesian variable selection procedure is used to control for uncertainty in thespecication of a recreational demand model. In contrast to comparing models basedon the likelihood values with unknown sampling properties (as in, e.g., Egan et al,2009), we propose a model that draws on the...

A commonly observed feature of visitation data, elicited via a survey instrument, is a greaterpropensity for individuals to report trip numbers that are multiples of 5's, relative to otherpossible integers (such as 3 or 6). One explanation of this phenomenon is that some surveyrespondents have...

Random Utility Maximization (RUM) models of recreation demand are typically plaguedby limited information on environmental and other attributes characterizing the available sitesin the choice set. To the extent that these unobserved site attributes are correlated with theobserved characteristics...