NEGOTIATING A RESPONSE TO CLIMATE CHANGE: ROLE OF BIOLOGICAL EMISSIONS

Researchers have attributed 15 percent of global methane releases to emissions of methane from enteric fermentation in animals (wild and domestic). Bovines contribute approximately two-thirds of this amount. Since methane is a potent greenhouse gas, this source frequently is a target for emission reductions. However, the existing literature overstates the importance of bovine methane as a greenhouse gas by as much as 800 percent. Estimates to date have focused solely on gas emissions, ignoring the biological and chemical cycling that removes carbon from the atmosphere. The analysis presented here demonstrates the importance of these cycles in assessing the overall greenhouse effect of biological methane sources such as rice production, termites, and bovine animals. Ignoring this cycling results in overemphasizing the role of developing countries' total contributions to climate change. In economic terms, the analysis shows that reducing CO2 emissions from energy use in industrialized countries is more efficient than reducing net greenhouse methane from animal sources.     

CONSUMER'S SURPLUS: SIMPLE SOLUTIONS TO AN OLD PROBLEM

The paper presents a concise account of recent results on the axiomatization of various welfare measures. Following the introduction and discussion of some elementary properties that a welfare measure should satisfy, valid measures are derived. In particular, the Hicksian equivalent and compensating variation and a measure based on the money metric are characterized.     

SUBSIDY TO NUCLEAR POWER THROUGH PRICE-ANDERSON LIABILITY LIMIT: COMMENT

Dubin and Rothwell (1990) use details of insurance premiums to develop a methodology for inferring the value to nuclear operators of the Price-Anderson liability limit from but misinterpret the terms of the insurance contracts for which the premiums are paid. This leads them to overstate the subsidy due to the limit by a factor of between four and ten.     

A THEORY OF MIGRATION AS A RESPONSE TO OCCUPATIONAL STIGMA*

A theory is developed of labor migration that is prompted by a desire to avoid “social humiliation.” In a general‐equilibrium framework, it is shown that as long as migration can reduce humiliation sufficiently, migration will occur even between two identical economies. Migration increases the number of individuals who choose to perform degrading jobs and consequently, migration lowers the price of the good produced in the sector that is associated with low social status. Moreover, the greater an individual's aversion to performing degrading jobs, the more likely it is that he will experience a welfare gain when the economy opens up.