WAREHOUSES,TRUCKS, AND PM2.5: HUMAN HEALTH AND LOGISTICS INDUSTRY GROWTH IN THE EASTERN INLAND EMPIRE

The eastern Inland Empire of Southern California has experienced dramatic growth of the logistics industry since 2000. This paper analyzes the air pollution implications of that expansion. It is found that truck traffic will generate significant air pollution, especially PM_2.5. The estimated excess mortality associated is 32–64 cases per year, with a combined excess mortality and morbidity value of $247–$455 million per year. This represents 44%–81% of the estimated wages generated by industry growth and $5 million–$9 million per distribution facility. These estimates suggest that policies should be developed to internalize those costs.     

PRICING FOR WATER CONSERVATION

Water utilities tend not to use prices to encourage conservation. Many utilities still use declining block rates. Even after switching to ascending blocks, however, some have hookup charges that amount to fixed charges of more than half the cost of water. Converting the hookup charge from aflat amount to an amount based on actual water use could lead to substantial savings in usage and cost. In Denver, where a hookup charge now is equivalent to $400 per year added to one's mortgage, the savings in usage that would result from a usage-based hookup charge are estimated at between 9 and 32 percent of total use. A usage-based hookup charge would substitute for a proposed dam costing more than $500 million. Structuring prices to control usage would be far simpler than implementing the conservation programs now being proposed in some water utilities, would result in lower water costs for anyone desiring lower costs, and would allow individuals to choose whether to conserve but require them to pay the costs of their decision.     

Willingness to pay for a Green Energy program: A comparison of ex-ante and ex-post hypothetical bias mitigation approaches

The most persistently troubling empirical result in the contingent valuation method literature is the tendency for hypothetical willingness to pay to overestimate real willingness to pay. Two approaches, ex-ante and ex-post, have been developed to mitigate or eliminate the overstatement of hypothetical willingness to pay. The ex-ante approach addresses hypothetical bias in the survey design stage while the ex-post approach addresses hypothetical bias with follow-up questions to the hypothetical willingness to pay question. We find that willingness to pay estimates are similar when either the ex-ante or ex-post approach are employed. Our results suggest that the approaches should be considered as complements and not substitutes. Employing both approaches to mitigate hypothetical bias we estimate that the annual benefits of the regional amenities associated with a Green Energy program in North Carolina are $186 million.     

VALUING HEALTH EFFECTS: THE CASE OF OZONE AND FINE PARTICLES IN SOUTHERN CALIFORNIA

This study presents a conservative estimate of the health benefits that would result from attainment of the federal ozone and fine particle (PM_2.5) standards in the South Coast Air Basin of southern California. A three‐stage approach is used that links pollution exposures to adverse health outcomes to economic values. The annual value of the aggregate health benefits approaches $500 million (with a range of $295–$646 million) for ozone and exceeds $21 billion (with a range of $12.85–$34.22 billion) for fine particles. Such results are useful to regulatory agencies and other policy makers when evaluating the merits of various air pollution reduction strategies. (JEL Q51, Q53)     

WILLINGNESS TO PAY FOR DESERT PROTECTION

This paper uses a referendum-style survey approach known as dichotomous-choice contingent valuation to estimate the benefits of restricting the uses of 6.9 million acres of desert land. Statistical techniques estimate the value to California residents of creating three new national parks and 76 new wilderness areas in the high and low deserts of eastern California. The total amount that California residents would be willing to pay to enact desert protection legislation ranges from $177 million to $448 million per year. This estimate hinges on the assumptions that (i) the residents who did not complete and return the survey questionnaire ("nonrespondents") would receive no benefits from desert protection and (ii) the estimate of willingness to pay for the "respondents" is unbiased.     

An assessment of two environmental and economic benefits of ‘Cash for Clunkers’

This research aims to provide a more comprehensive, life cycle accounting of two categories of environmental and economic benefits associated with the $3 billion US “Cash for Clunkers” vehicle scrappage program. First, using a life cycle emissions methodology developed in Lenski et al. (2010), we find that about 29,000 metric tons of criteria pollutant emissions were avoided, for a benefit of about $23 million; avoided carbon dioxide emissions, by comparison, provided a benefit worth $90 million. Second, we compare the market value of scrapped vehicles to the rebates provided, calculating the consumer surplus or “gift” to participants to be up to $2 billion (about $2000 to $3000 per vehicle). This is significantly more than offered in previous vehicle scrappage programs, and suggests opportunities to get more environmental and economic “bang for the buck.” Finally, these two categories of benefits are found to be heavily concentrated geographically around urban centers. About 2% of US counties (50 counties) received 50% and 30% of the aggregate benefits from avoided criteria pollutant emissions and consumer surplus from the rebates, respectively.     

The Mind Games Cybercrooks Play

The subject line in an e-mailthathitthousandsof in-boxesaroundtheworld lastmonth reads, “lawsuitagainstyou.”Inflawlesslegales,ethemessage warns recipientsthat theyrecentlysentan unsolicitedfax tothesender'soffic.e Citing U .S. civilcode, itsprohibitiono…     

Valuing Mortality Risk in Kuwait: Stated-Preference with a New Consistency Test

We report stated-preference estimates of the value per statistical life (VSL) for Kuwaiti citizens obtained using an innovative test to identify respondents whose survey responses are consistent with economic theory. The consistency test requires that an individual report strictly positive willingness to pay (WTP) for mortality-risk reduction and that his responses to binary-choice valuation questions for two risk reductions be consistent with the theoretical requirement that WTP is less than but close to proportional to the change in risk reduction. Our estimates of VSL, $18–32 million, are approximately two to four times larger than values accepted for the United States. These values may reflect cultural factors as well as the substantially larger disposable income of Kuwaiti citizens.     

WORKER INVESTMENTS IN SAFETY,WORKPLACE ACCIDENTS,AND COMPENSATING WAGE DIFFERENTIALS

The theory of compensating wage differentials (CWDs) assumes that firms supply and workers demand workplace safety, predicting a positive relationship between accident risk and wages. This article allows for safety provision by workers, which predicts a countervailing negative relationship between individual risk and wages: Firms pay higher wages for higher safety‐related productivity. Using National Longitudinal Survey of Youth panel data and data on fatal and nonfatal accidents, our precise CWDs imply a value of a statistical injury of $45.4 thousand and a value of a statistical life of $6.3 million. In line with our model, individual risk and wages are negatively correlated.     

城市饮用水水源地生态补偿标准测算与资金分配研究——以广东省东江流域为例

生态补偿作为解决城市饮用水源地生态环境保护问题,协调保护方和受益方利益冲突的重要手段,已成为国内外学者研究的热点,其中补偿标准是决定生态补偿能否顺利实施的关键环节。选取珠江三角洲城市群重要饮用水水源地——广东省东江流域作为研究对象,在总结分析现有补偿标准的基础上,运用生态保护成本法和条件价值评估法,分别从流域水源地保护方和下游受益方的角度对东江流域生态补偿标准进行测算,并依据下游用水量对补偿金进行分摊。通过测算,广东省东江流域上游六县生态保护总成本为105.38亿元,其中直接成本5.40亿元,间接成本99.98亿元,引入水质修正系数和水量分摊系数后,下游四市应补偿上游六县的生态补偿额度为24.69亿元。下游四市生态补偿支付意愿总额为5.91亿元,应支付总补偿额度超出支付意愿总额18.79亿元。因此,在充分考虑流域上游生态保护成本和下游支付意愿、支付能力的前提下,利益相关双方通过谈判、协商在生态补偿标准问题上达成一致,对东江流域生态环境保护和生态补偿机制的建立有着重要的现实意义。     

Estimating Mortality and Economic Costs of Particulate Air Pollution in Developing Countries: The Case of Nigeria

The value of statistical life is an essential parameter used in ascribing monetary values to the mortality costs of air pollution in health risk analyses. However, this willingness to pay estimate is virtually non-existent for most developing countries. In the absence of local estimates, two major benefit transfer approaches lend themselves to the estimation of the value of statistical life: the value transfer method and the meta-regression analysis. Using Nigeria as a sample country, we find that the latter method is better tailored than the former for incorporating many characteristics that vary between study sites and policy sites into its benefit transfer application. It is therefore likely to provide more accurate value of statistical life predictions for very low-income countries. Employing the meta-regression method, we find Nigeria’s value of statistical life estimate to be $489,000. Combining this estimate with dose response functions from the epidemiological literature, it follows that if Nigeria had mitigated its 2006 particulate air pollution to the World Health Organisation standards, it could have avoided at least 58,000 premature deaths and recorded an avoided mortality related welfare loss of about $28 billion or 19 % of the nation’s GDP for that year.     

SNAKE RIVER SALMON RECOVERY: QUANTIFYING THE COSTS

Economic costs are relevant to endangered species protection in both theory and practice. Recovering endangered Snake River salmon will require modifying public land use, restricting fishing and hatchery production, reducing water for agriculture, and altering the operation of hydroelectric dams. The economic costs are estimated to range from $246 million to $359 million per year. While the estimated cost is not matched by the estimated increased value of fishing, the nonuse value of salmon recovery may be very large. Better economic and biological information is needed to assure that decisions for salmon species protection are reasonably cost effective. ( JEL Q28, H43)     

Prices versus Rationing: Marshallian Surplus and Mandatory Water Restrictions*

An aggregate daily water demand for Sydney is estimated and used to calculate the difference in Marshallian surplus between using the metered price of household water to regulate total consumption versus mandatory water restrictions for the period 2004/2005. The loss in Marshallian surplus from using mandatory water restrictions is calculated to be $235 million. On a per capita basis this equates to approximately $55 per person or about $150 per household – a little less than half the average Sydney household water bill in 2005.     

应用条件价值评估法（CVM）完善环境工程项目审计中对环境绩效的审计——以宁波市内河治理工程为例

在全面综述环境审计基本概念和内容的基础上,根据国际上环境审计的发展趋势,笔者尝试在宁波市内河水质治理工程项目审计中应用条件价值评估法（CVM）对该环境项目产生的经济效益进行量化分析。结果显示：受访人群平均愿意为改善水环境的支付金额保守值平均为76．70元／户,取样居民小区内每年居民总的支付意愿是6．89万元,即居民对改善新河水质产生经济效益的估计价;对位于内河周遍房产所增加的支付意愿保守值平均为81．60元／m^2。通过引入CVM法量化的项目经济效益,直观地反映出政府投资环境工程的绩效。研究结果不仅用经济学方法把环境质量用货币价值表现出来,也为政府在环境治理项目审计中完善有关环境绩效的审计提供了技术上的支持。     

Compensation and performance: An experimental study

This paper investigates how compensation structure affects performance in a simple but effort-consuming task. In this experimental study, the subjects were asked to multiply two-digit numbers for 40 min and were paid using either a linear (with different pay for performance sensitivities) or a convex (option-based) compensation mechanism. We found that per-unit wage has a non-linear positive effect on performance: whereas increasing per-unit compensation from $0 to $0.02 or from $0.05 to $0.15 has virtually no effect on performance, an increase from $0.02 to $0.05 results in higher productivity. We also found that option-based compensation results in better performance.     

Why do we adopt environmentally friendly lawn care? Evidence from do-it-yourself consumers

This study identifies the factors determining the purchase frequencies of organic/natural fertilizers (ONFs) with a focus on do-it-yourself (DIY) consumers’ perceptions and motives. The estimation results of the generalized ordered logit model provide statistical evidence that environmental perceptions are critical factors in directing DIY consumers to purchase ONFs frequently. The results imply that educational programmes, informational campaigns, or advertisements to improve their perceptions on the potential negative impacts of fertilization on the environment may increase the purchase frequencies of ONFs. In addition, the results show that DIY consumers perceive that it is worth using ONFs despite their higher prices than chemical fertilizers. Their purchase frequencies will increase if they positively perceive the values of ONFs and are willing to pay a premium for ONFs. Moreover, the purchasing behaviour of DIY consumers is associated with their perceptions of neighbourhood landscaping. If neighbours or homeowner associations encourage landscaping improvements in their community, DIY consumers may increase their purchase frequencies of ONFs accordingly.     

Willingness to pay for electric vehicles and their attributes

This article presents a stated preference study of electric vehicle choice using data from a national survey. We used a choice experiment wherein 3029 respondents were asked to choose between their preferred gasoline vehicle and two electric versions of that preferred vehicle. We estimated a latent class random utility model and used the results to estimate the willingness to pay for five electric vehicle attributes: driving range, charging time, fuel cost saving, pollution reduction, and performance. Driving range, fuel cost savings, and charging time led in importance to respondents. Individuals were willing to pay (wtp) from $35 to $75 for a mile of added driving range, with incremental wtp per mile decreasing at higher distances. They were willing to pay from $425 to $3250 per hour reduction in charging time (for a 50 mile charge). Respondents capitalized about 5 years of fuel saving into the purchase price of an electric vehicle. We simulated our model over a range of electric vehicle configurations and found that people with the highest values for electric vehicles were willing to pay a premium above their wtp for a gasoline vehicle that ranged from $6000 to $16,000 for electric vehicles with the most desirable attributes. At the same time, our results suggest that battery cost must drop significantly before electric vehicles will find a mass market without subsidy.     

The nature and consequences of lawyers'market regulation in Japan

In Japan, the lawyers'market is regulated so strictly that the contrast between the small lawyers'market and the huge economy is surprising. The number of lawyers is about 15,000, while the GDP and population are $4 trillion and 130 million, respectively. The regulation is governed principally by the Supreme Court of Japan and the Ministry of Justice. Regulations are implemented mainly through (1) strict bar examinations and (2) long trial times. The pass rates of the exam are 2–4% each year, and the average trial time (civil cases and District Courts) is 19.2 months. The consequences of the regulation are that (1) consumers pay 13.9-100.0% higher prices than in countries with no regulation, and (2) the expected rate of return on human capital investment in lawyers is very low, around the 0% level. It is not only a great loss for Japanese economy but also very unfortunate for university students that the investment opportunity in this most respected profession is almost blocked.     

Economic Valuation of Environmental Damages due to the Prestige Oil Spill in Spain

This paper presents a parametric and non-parametric analysis of data from a contingent valuation study (CVM) conducted to estimate environmental use and passive use losses due to the Prestige oil spill. This is the first CVM study conducted in Europe after a large oil spill. The CVM survey was implemented using in person interviews. Mean willingness to pay (WTP) values were computed with both, a parametric and non-parametric approach. Parametric WTP estimation indicates that respondents in the sample are willing to pay about 40.51 € per household to avoid a similar future oil spill in Spain. This implies that on average, the Spanish society places a value of the environmental losses caused by the Prestige oil spill around 574 € million. Non-parametric estimates are slightly higher at 58.08 € per household. WTP results are similar to those obtained in the Exxon Valdez study.     

How Much Will It Cost to Join the Club? The Extra Costs of Approximating Lithuanian Environmental Laws with Those of the European Union

This paper presents estimates of costsassociated with approximating Lithuanianenvironmental protection legislation with thatof the European Union (EU). Lithuania is oneof twelve EU associate members in Central andEastern Europe that is currently preparing foraccession by approximating their legislationwith that of the EU. The costs of fifteen EUdirectives are considered and details are givenon four directives. Necessary investments maytotal Euro 1500 million by 2015 and the presentvalue of all annualized costs is expected to beabout Euro 2200 million. In 2015, annualized costsare estimated to be approximately Euro 500 million,but these costs are only part of the totalcosts of approximation. Non-environmentalcosts are not considered. Assuming a modestlyambitious average annual growth of GDP of 2.0%per year implies that approximation with thefifteen directives analyzed will cost roughly3.5% of GDP in 2015. This level of additional commitment to environmentalprotection is itself much higher than the 2.0%of GDP being spent on average by OECD countriesand suggests the possibility of a substantialeconomic burden on the Lithuanian economy. Public budgets and households are expected tocarry a substantial portion of this cost,because many directives are the responsibilityof national and local governments. Making theright choices that are expected to be part ofapproximation with the environmental acquis is likely to benefit from carefulcomparisons of costs and willingness to pay forthe environmental benefits of approximation.