Embedding effects in choice experiment valuations of environmental preservation projects

This paper addresses the question, whether attribute values derived from a CE study of one nature restoration and preservation project depend on the overall scale of nature preservation activities in which it is embedded. A split-sample CE study was undertaken in which a particular nature preservation project was evaluated in three plausible and strictly different embedding contexts. Respondents' attention was drawn to a varying number of forthcoming substitute preservation projects to be implemented prior to the one in question. Results show that while WTP for the project in focus is sensitive to the presentation of substitute projects as such, there does not seem to be any clear and unidirectional relationship between WTP and the number of substitute projects. Furthermore, effects vary across the project's attributes.     

Environmental evaluation of agri-environment schemes using participatory approaches: Experiences of testing the Agri-Environmental Footprint Index

The Agri-Environment Footprint Index (AFI) has been developed as a generic methodology to assess changes in the overall environmental impacts from agriculture at the farm level and to assist in the evaluation of European agri-environmental schemes (AES). The methodology is based on multi-criteria analysis (MCA) and involves stakeholder participation to provide a locally customised evaluation based on weighted environmental indicators. The methodology was subjected to a feasibility assessment in a series of case studies across the EU. The AFI approach was able to measure significant differences in environmental status between farms that participated in an AES and non-participants. Wider environmental concerns, beyond the scheme objectives, were also considered in some case studies and the benefits for identification of unintentional (and often beneficial) impacts of AESs are presented. The participatory approach to AES evaluation proved efficient in different environments and administrative contexts. The approach proved to be appropriate for environmental evaluation of complex agri-environment systems and can complement any evaluation conducted under the Common Monitoring and Evaluation Framework. The applicability of the AFI in routine monitoring of AES impacts and in providing feedback to improve policy design is discussed.     

Continuous strategic sourcing

This article is based on a specific situation and competence analysis research project. The objective of the project is to point out possible action areas for improvements and potential competence areas; areas that should be integrated in the company's future strategic work. In the long term, the objective is to develop specific tools that can support a company's decision processes when in and/or outsourcing. The specific tools form the basis for the development of a conceptual framework that may facilitate the work with and the understanding of strategic in and outsourcing.During recent years new theories on SCM, outsourcing, supplier cooperation, etc. have emerged. Each theory has its own specific basis seeking to give solutions to problems concerning how to use and cooperate with suppliers. All theories, however, seek to solve a well-known problem within economic theory. Thus, the issue on division of labour and specialization is well known (Foretag i netwark, Stockholm, Studieforbundet for Naringsliv och Sammhallet, 1982; Joint Venture: theoretische und empirische analyse unter besonderer berücksichtigung der chemischen industrie der schweiz. Verlag Rugger, Germany, 1989). From an economic point of view it is a question of reaching the situation with the lowest production and transaction costs (Handbook of Industrial Organization. Amsterdam, 1989, pp. 135).     

Forecasting performances of three automated modelling techniques during the economic crisis 2007–2009

In this work we consider the forecasting of macroeconomic variables during an economic crisis. The focus is on a specific class of models, the so-called single hidden-layer feed-forward autoregressive neural network models. What makes these models interesting in the present context is the fact that they form a class of universal approximators and may be expected to work well during exceptional periods such as major economic crises. Neural network models are often difficult to estimate, and we follow the idea of White (2006) of transforming the specification and nonlinear estimation problem into a linear model selection and estimation problem. To this end, we employ three automatic modelling devices. One of them is White’s QuickNet, but we also consider Autometrics, which is well known to time series econometricians, and the Marginal Bridge Estimator, which is better known to statisticians. The performances of these three model selectors are compared by looking at the accuracy of the forecasts of the estimated neural network models. We apply the neural network model and the three modelling techniques to monthly industrial production and unemployment series from the G7 countries and the four Scandinavian ones, and focus on forecasting during the economic crisis 2007–2009. The forecast accuracy is measured using the root mean square forecast error. Hypothesis testing is also used to compare the performances of the different techniques.     

Determinants of Consumer Attitudes and Purchase Intentions With Regard to Genetically Modified Food – Results of a Cross-National Survey

Previous research has shown consumers to be highly sceptical towards genetic modification in food production. So far, however, little research has tried to explain how consumers form attitudes and make decisions with regard to genetically modified foods. The paper presents the results of a survey which was carried out in Denmark, Germany, Italy, and the United Kingdom to investigate the formation of consumer attitudes towards genetic modification in food production and of purchase decisions with regard to genetically modified yoghurt and beer. Altogether, 2031 consumers were interviewed in the four countries.Results show that attitude formation and decision-making are more comparable among Danish, German, and British consumers than with Italian consumers. Italian consumers turned out to be significantly less negative towards genetic modification in foods than particularly Danish and German consumers. Across countries, the attitude towards genetic modification in food production was deeply embedded in more general attitudes held by the consumers, in particular attitude towards nature and attitude towards technology. These general attitudes were found to influence perceived risks and benefits of the technology. Purchase decisions with regard to the two product examples were almost exclusively determined by attitudes towards purchasing the products. These were, in turn, significantly influenced by the overall attitude towards genetic modification in food production through their effects on beliefs held by consumers regarding the quality and trustworthiness of the products.The results suggest that attitudes towards genetically modified foods are quite strong, despite their lack of basis in actual product experience. Likewise, the strong relation of product-specific attitudes to the attitude towards using genetic modification in food production suggests that at present consumers reject the technology overall rather than evaluate products on a case-by-case basis. This situation may, however, be changed by a possible increased availability of genetically modified food products on the consumer market.     

Forest Value and Optimal Rotations in Continuous Cover Forestry

The Faustmann forest rotation model is a celebrated contribution in economics. The model provides a forest value expression and allows a solution to the optimal rotation problem valid for perpetual rotations of even-aged forest stands. However, continuous forest cover forest management systems imply uneven-aged dynamics, and while a number of numerical studies have analysed specific continuous cover forest ecosystems in search of optimal management regimes, no one has tried to capture key dynamics of continuous cover forestry in simple mathematical models. In this paper we develop a simple, but rigorous mathematical model of the continuous cover forest, which strictly focuses on the area use dynamics that such an uneven-aged forest must have in equilibrium. This implies explicitly accounting for area reallocation and for weighting the productivity of each age class by the area occupied. We present results for unrestricted as well as area-restricted versions of the models. We find that land values are unambiguously higher in the continuous cover forest models compared with the even-aged models. Under area restrictions, the optimal rotation age in a continuous cover forest model is unambiguously lower than the corresponding area restricted Faustmann solution, while the result for the area unrestricted model is ambiguous.     

The effects of current income and expected change in future income on stated preferences for environmental improvements

We formulate and test the hypothesis that expectations regarding changes in future income influences the WTP for environmental goods. For valuation of environmental goods in forests and other habitats in Denmark, we find that both current income and expected changes in future income are significant determinants for preferences. The effect of income on WTP seems to be caused by changes in preferences for environmental attributes rather than by marginal utility of income. The results suggest that to evaluate the distributional impacts of environmental improvements, researchers need a better measure of expected future consumption options than current income.