Serving Two Masters: Center for Consumer Research at the University of California,Davis, 1976-1992

Faculty at research universities face the challenge of doing research that both interests consumer agencies and possesses academic credibility. The Center for Consumer Research at the University of California, Davis, evolved an approach for doing this based on ecological methodology, an action research model, multi-channel dissemination, and post-research evaluation. The lessons learned during the 16-year history of this nondepartmental center should be of interest to consumer researchers.     

High Natural Gas Prices in California, 2000–2001: Causes and Lessons

The market prices of natural gas delivered to California rose to unprecedented levels in late 2000 and remained well above levels elsewhere in the country until the summer of 2001 (Figure 1). In addition to the direct impact on natural gas consumers, the high natural gas prices were also a major cause of the high electricity costs suffered by California and other western states in the June 2000–June 2001 period. This paper describes the market and regulatory circumstances that led to such high prices over such an extended period. Lessons are drawn from this experience for other regions wishing to understand and avoid such problems in natural gas markets.     

Consumer‐generated media and product labelling: designed in California,assembled in China

Product country‐of‐origin labelling is an important extrinsic cue for consumers about a product's attributes. In a globalized world where products components and parts originate from multiple countries, companies have resorted to inventive country‐of‐origin labelling. The objective then of this paper is to better understand consumers' evaluation of products that have inventive country‐of‐origin labelling (i.e. Designed in California, Assembled in China). Exploratory qualitative data were collected from consumer‐generated media (36 weblogs) using Nielsen's Research BlogPulse tool. A grounded theory analysis revealed that four key themes emerged from the data that related to confusion about the labelling strategy, strong symbolic and emotional ties to country‐of‐origin, and the importance of country‐of‐origin as a quality signal.     

The History of Electricity Restructuring in California

This paper aims to provide an objective history of electricity restructuring in California from the mid-1990s to the immediate end of the “California Energy Crisis” in June 2001. We discuss the restructuring debate that led to the restructuring law (AB1890), and describe how the new structure worked after it took effect in April 1998. We discuss the course of events during the crisis, and factors contributing to it, including the supply-demand balance in California and in the West, rising gas prices, the complexity of the market design, market power, and the regulatory decision to cap retail but not wholesale prices.     

Paul Sabin. Crude Politics: The California Oil Market, 1900-1940. Berkeley: University of California Press, 2004. xx + 307 pp. ISBN 0-520-24198-3, $39.95 (cloth).

Champions of the oil industry have long claimed that oil isthe cheapest form of energy. Why is it so cheap? The conventionalanswer emphasizes oil’s natural abundance and the wondersof market supply and demand. Most historians who study the industryat least implicitly accept this explanation. But is not resourceabundance a socially constructed concept? Can we so easily isolatemarket forces from politics and government policy in explainingthe cost and price of oil? These     

A California Conundrum: Tradeoffs Among Rates, Reliability and the Environment During California’s 2000–2001 Energy Crisis

The 2000–2001 California energy crisis was a public policy problem of huge complexity and scope. Once considered a national and international electric restructuring model, the California system veered far off course in 2000 and 2001 as demand increases, supply shortages, a poorly designed market and abuses of market power led to exorbitant wholesale electricity prices, ongoing threats of blackouts and threats to the environment. The purpose of the paper is to consider actions of policy makers that were undertaken in 2000 and early 2001 to address policy objectives of rates, reliability and the environment within the context of the unfolding energy crisis. The paper develops a theory of how these three objectives can be addressed in a crisis. The paper then examines the actual behavior of policy makers as they developed and implemented various programs to fix or limit the consequences of the electricity crisis. Finally, the paper compares theory to practice. The paper concludes that policy makers prioritized improved reliability over low rates and environmental improvement, and prioritized low rates over environmental improvement. Based on information and predictions available at the time, policy makers’ choices reflected the expected level of degradation of each objective: policy makers believed reliability would suffer more than rates might increase and more than the environment would degrade. However, policy makers’ choices increased taxpayer and ratepayer future costs by billions of dollars.     

Victoria E. Dye. All Aboard for Santa Fe: Railway Promotion of the Southwest, 1890s to 1930s. Albuquerque: University of New Mexico Press, 2005. xi + 163 pp. ISBN 0-8263-3657-4, $24.95 (cloth).

All Aboard covers the Atchison Topeka and Santa Fe (AT&SF)railroad’s attempts to promote tourism in the Southwest.The emphasis is on New Mexico, particularly Santa Fe and, asa separate narrative, Albuquerque. Interestingly, the AT&SFdid not pass through Santa Fe. In the 1870s, when the companyplanned a route from Dodge City, Kansas, to Colorado, whereabundant fuel could be loaded, to New Mexico then to California,the foothill town of     

施瓦辛格加州欲建中国商贸城

<正>美国加州州长施瓦辛格派遣招商团到中国,并有使者已到义乌,为在加州建设一个美国最大的中国商贸城"探路"。一个受美国加利福尼亚州州长施瓦辛格派遣的由20多人组成的招商团最近活跃在中国的厦门、上海、杭州、北京、太     

The Issue of Governance and the Role of the Regulator: Lessons from the California Deregulation Experiment

The deregulation of the California electricity industry began as a collaborative effort between the regulatory institutions, legislature, the regulated utilities and consumer stakeholders. However, the authorizing legislation failed to define the ongoing role and authority of the principal regulatory institution in the State—the Public Utilities Commission. As a consequence, roles and responsibilities were assumed largely by institutional initiative as opposed to a master plan with the result that competition for authority extended through State and Federal jurisdictions without formal resolution. Under the weight of an inverse relationship of wholesale to retail costs, the wholesale electricity market began to disintegrate. In response, the Federal Energy Regulatory Commission, the California Governor’s Office and the California Legislature began to exert or assert authority over operations and regulation of the market. The result was confusion, increased cost, limited response to extraordinary conditions and ultimately loss of regulatory control by the Public Utilities Commission. Options were available to forestall or avoid the eventual outcome but were not adopted or advocated in time. The lessons learned should help craft future deregulation efforts.     

Equal Credit Opportunity Legislation and Indicators of Credit Worthiness: An Economic Study of Women Applicants for Credit in California

Although much equal credit opportunity legislation has been passed in recent years, little has been done to ascertain whether the new laws have actually altered lending practices or whether the practices were sex-biased initially. This research makes use of a sample of 241 women from five counties in California to show what factors affect the probability of credit extension to women in that state, and whether these variables are different from those that were associated with lending practices before the law's passage. The results indicate that prior to the passage of the law, several market indices, including home ownership and spousal support, were associated with an applicant's ability to obtain credit. After passage of the law these indices were no longer significant predictors of loan approval. Within the limits of the data and the design used here, the empirical evidence supported the hypothesis that California credit institutions changed their lending criteria after the passage of equal credit opportunity legislation.     

The Impacts of the California Beverage Container Recycling and Litter Reduction Act on Consumers

In late 1987 the California Beverage Container Recycling and Litter Reduction Act went into effect. Like mandatory beverage deposit legislation in other states, this Act is designed to promote returns through the payment of a redemption value. However, unlike traditional legislation, the Act attempts to promote recycling with lower redemption values and more state intervention. This paper presents a methodology for analyzing the impacts of beverage container recycling legislation on consumers. Applying this methodology to California, it is found that the Act will significantly reduce beverage container solid waste and litter, but the net benefits of the Act depend critically on consumers' valuations of intangible benefits.     

Second Generation Electricity Reforms in Latin America and the California Paradigm

In this paper we discuss second-generation electricity reforms being formulated in Latin America and how they are being reshaped by the California crisis, which had stood as a paradigm, at least in theory, for fully competitive markets. We argue that the main lesson policy makers in Latin America should draw from the experience in California and other electricity markets around the world is that the liberalization of wholesale markets will not result in more competitive outcomes where market concentration is significant, final consumers are isolated from actual marginal production costs and capacity is tight. At least in the case of Argentina and Chile, the California crisis has had a “positive externality” by persuading policy makers, at least momentarily, to postpone liberalization reforms and make them realize the complexities in implementing competitive markets.     

Rethinking the area approach: Immigrants and the labor market in California

A framework that uses a Constant Elasticity of Substitution (CES) production function with skill differentiation and integrated national labor markets has predictions for the employment effect of immigrants at the local level. The employment (rather than wage) response to immigration by skill in a state reveals the production substitutability-complementarity between native and immigrant labor. This, in turn, reveals the degree to which immigrants stimulate or depress the demand for native labor. To estimate this elasticity, I use a novel instrument based on demographic characteristics of total Central American migrants or of the Mexican Population to predict immigration by skill level within California. Looking at immigration to California between 1960 and 2005 these estimates support the assumption of a nationally integrated labor market by skill and they support the hypothesis that natives and immigrants in the same education-experience group are not perfectly substitutable. This explains the counter-intuitive fact that there is a zero correlation between immigration and wage and employment outcomes of natives in the state.     

The California Electricity Crisis: Editors’ Introduction

This short piece introduces the papers in the special issue on the California Energy Crisis of 2000/2001. The papers illustrate aspects of the crisis, such as the role of the gas market, future trends for investment, and the crisis’ impact on consumers. Three papers analyze policy-makers’ responses to the crisis, with case studies of over-lapping regulation, the trade-off between prices, reliability and the environment, and policies that helped achieve demand reductions in the summer of 2001. Two papers consider lessons for other countries, in Latin America and Europe.     

The Impact of Price Advertising: The California Eyewear Market After One Year

Recent judicial decisions and regulatory actions have reversed advertising restrictions enforced in the professions. This study examined the degree to which such regulatory reform has in its first year resulted in increased advertising competition among California eyewear practitioners. It also analyzed price differences between advertising and nonadvertising ophthalmologists, optometrists, and opticians. The study found that while relatively few practitioners engaged in advertising, those that did charged 17 percent less than nonadvertisers.     

Laura Hein. Reasonable Men, Powerful Words: Political Culture and Expertise in Twentieth-Century Japan. Washington, D.C., and Berkeley, Calif.: Woodrow Wilson Center Press and University of California Press, 2004. xvii + 328 pp. ISBN 0-520-24347-1, $45.00.

Laura Hein begins this engaged and original study by notingthe greater economic sophistication of Japanese than of Americanstoday—and one need only browse the extensive popular economicssection of any Japanese bookstore or look at the use of economiccharts and statistics in Japanese print and television newsto see that this is so. To achieve national economic literacywas a major goal of the tight-knit cohort of progressive economistswho are the subject of Hein’s book. Why then,     

Will California come to Europe? A Numerical Simulation

We discuss under what conditions California’s electricity crisis may happen in Western European countries, taking The Netherlands as an example. We use a simulation model containing the electricity generation and distribution sector. We simulate exogenous events, such as a sudden shift in demand levels, a sharp rise in world fuel prices and a cutback in foreign supply. We use the model to investigate whether supply remains secured under different regulatory regimes. Our results suggest a trade-off between controlled prices and security of supply. Europe’s electricity supply security is vulnerable if prices are not allowed to reflect scarcity. If prices are unrestricted however, they will reach oligopoly levels.     

Richard J. Orsi. Sunset Limited: The Southern Pacific Railroad and the Development of the American West, 1850-1930. Berkeley: University of California Press, 2005. xxii + 615 pp. ISBN 0-520-20019-5, $29.95.

This richly detailed labor of love by Richard J. Orsi attempts"a new approach to an important theme in the history of theAmerican Far West: the complex impact of a large, powerful businesscorporation on the process of settlement, economic development,and environmental change in a frontier region" (p. xiii). Itpays scant attention to traditional corporate history, withits emphasis on leaders, interline relations, politics, regulation,labor, freight, and passenger matters. Orsi dispatches     

David Mitch, John Brown, and Marco H. D. van Leeuwen, eds. Origins of the Modern Career. Burlington, Vt.: Ashgate, 2004. xiii + 342 pp. ISBN 0-7546-3496-5, $99.95.

Here is a sturdy volume that presents the theory, methods, andevidence involving employment patterns that constitute the moderncareer. This information is especially important to scholarsof labor studies who are interested in making historical comparisonsacross disciplinary frameworks. While the audience is likelyto be small, the book’s concerns traverse central juncturesin social history. For an edited volume the essays presented here are unusuallycogent, especially given the range of topics.