Managing the Risk of European Corn Borer Resistance to Bt Corn

New pesticidal crops are taking advantage of advances in geneticengineering. For example, corn has been engineered to express Bt proteinsthat are toxic to the European corn borer. These crops are effective pestmanagement tools for United States growers. However, there is concern thatpests will develop resistance to these crops resulting in the increased useof more hazardous pesticides. The purpose of this paper is to develop astochastic dynamic bioeconomic simulation model to help guide regulatorypolicy designed to mitigate the threat of resistance to new pesticidal crops.The model is used to evaluate the insect resistance management guidelinesmandated by the United States Environmental Protection Agency for theuse of Bt corn in the Midwestern United States.     

天津某电池收储场地铅污染及其健康风险评价

对天津市某电子垃圾回收站内的7个电池收储场进行土壤铅污染监测,应用美国环境保护局提供的健康风险评价模型对监测结果进行评价,结果显示:回收站蓄电池收储场地的表层土壤非致癌风险已经超过人类健康生存所能承受的限度,需要及时采取适当措施对该回收站的污染土壤进行治理和修复。     

Commentary on economic valuations of biodiversity

Our planet's biodiversity is in steep decline. Assigning economic values to the impacts of this decline can be very useful in overcoming economic-based objections to sustainable policies at all levels of government. However, economic valuations that are not based on sound scientific analysis threaten to undermine the credibility of ecological valuations in general and could also lead policy makers to misallocate the limited resources available for conservation efforts. Researchers at Cornell University have introduced a valuation into several peer-reviewed journals that asserts that each individual bird in the United States has an average economic value of $30, and they use this valuation to estimate the economic impact of various causes of bird mortality. The $30 valuation is explained with a single sentence that lacks any discernible scientific analysis and can at best be considered a symbolic valuation. While this valuation garnered widespread media attention, it creates a dangerous precedent and could ultimately do more harm than good to native bird populations. As such, further discussion of the role of symbolic valuations in the scientific literature is warranted.     

美国转基因生物安全行政监管特点分析

美国的转基因生物安全行政监管主要由农业部、环保署及食品药品管理局负责,部门之间分工明确,且建立了高效的协调机制和良好的公众参与制度;监管部门均设有下属专业的管理单位,强调检测评价报告以科学为依据,在管制方法上,以研究者为核心,以公司财产为担保,采用"自律"管制.这些特点的产生主要依赖于较完善的法律体系以及相当稳定的社会规范.根据我国转基因生物安全监管的现状,美国的监管体系值得我们借鉴:管理机构问的高度协调机制、专家知识的充分利用与信息共享,以及良好的公众参与制度.     

The benefits and costs of ethanol: an evaluation of the government’s analysis

Ethanol production in the United States has been steadily growing and is expected to continue growing. Many politicians see increased ethanol use as a way to promote environmental goals, such as reducing greenhouse gas emissions, and energy security goals. This paper provides a benefit-cost analysis of increasing ethanol use based on an analysis by the Environmental Protection Agency. We find that the cost of increasing ethanol production to almost ten billion gallons a year is likely to exceed the benefits by about three billion dollars annually. We also suggest that earlier attempts aimed at promoting ethanol would have likely failed a benefit-cost test, and that Congress should consider repealing ethanol incentive programs, such as the ethanol tariff and tax credit.      

The Economic Value of Water Quality

Stated preference values for water quality ratings based on the US Environmental Protection Agency National Water Quality Inventory ratings provide an operational basis for benefit assessment. Iterative choice survey results for a very large, nationally representative, Web-based panel imply an average valuation of $32 for each percent increase in lakes and rivers in the region for which water quality is rated “Good.” Valuations are skewed, with the mean value more than double the median. Sources of heterogeneity in benefit values include differences in responses to average water quality information and the base level of water quality. Conjoint estimates are somewhat lower than the iterative choice values. The annual economic value of the decline in inland US water quality from 1994 to 2000 is over $20 billion.      

Problems in valuing the benefits of biodiversity protection

This paper considers two problems in valuing the benefits of biodiversity protection. These are, firstly, that preferences for biodiversity protection may be lexicographic rather than utilitarian. The more individuals for whom this is true, the less is cost-benefit analysis validated as a means of decision making for biodiversity protection, since lexicographic preferences are incompatible with the Kaldor-Hicks Compensation Test. Secondly, people may be poorly informed about the meaning of biodiversity, complicating the use of contingent valuation as a means of measuring preservation benefits. This paper first discusses the meaning of biodiversity, and trends in diversity over time. We offer some empirical evidence with regard to lexicographic preferences; consider the implications of having poorly-informed consumers; and then report the results of a contingent valuation study of biodiversity protection with varying levels of information. We find that willingness to pay for biodiversity protection increases with the level of information provided.We thank David Pearce, participants at a seminar at University College London, and two referees for comments on earlier versions of this paper.     

The role of market forces in EPA enforcement activity

As corporate concern regarding environmental issues grows, recent studies have debated the stock market's role as an enforcer of environmental regulation. We examine stock market reactions to EPA judicial actions on a sample of publicly traded firms from 1972–91. Specifically, we find that (a) there is a significant decline of 0.43% in violator firm value during the week of settlement; (b) the market penalty is unrelated to fine size, (c) more pronounced for citations under the Clean Air Act, (d) for repeat violators, and (e) for more recent EPA actions. These stock market reactions appear to reinforce the intent of EPA enforcement efforts.Funding from the United States Environmental Protection Agency (Grant #818496-01-0) is gratefully acknowledged. We would like to thank John Dennis, Tom Adams, V. Denise Saunders, and Robert Papetti for helpful discussions and Bill Lewellen for his insightful comments. The research assistance of Dan Hillis, Nick Wade, and Chris Munger was invaluable. Suggestions by anonymous referees at this journal have greatly improved this paper.     

Using Revealed Preferences to Infer Environmental Benefits:Evidence from Recreational Fishing Licenses

We develop and apply a new method for estimating the economic benefits of an environmental amenity. The method is based upon the notion of estimating the derived demand for a privately traded option to utilize an open access good. In particular, the demand for state fishing licenses is used to infer the benefits of recreational fishing. Using panel data on state fishing license sales and prices for the continental United States over a 15-year period, combined with data on substitute prices and demographic variables, a license demand function is estimated with instrumental variable procedures to allow for the potential endogeneity of administered prices. The econometric results lead to estimates of the benefits of a fishing license, and subsequently to the expected benefits of a recreational fishing day. In contrast with previous studies, which have utilized travel cost or hypothetical market methods, our approach provides estimates that are directly comparable across geographic areas. Our findings show substantial variation in the value of a recreational fishing day across geographic areas in the United States. This suggests that current practice of using benefits estimates from one part of the country in national or regional analyses may lead to substantial bias in benefits estimates.Financial support of this work was provided by Resources for the Future, the U.S. Environmental Protection Agency, and the Dean’s Research Fund, John F. Kennedy School of Government. The analysis benefitted from discussions with Andrew Metrick, Richard Newell, and Kerry Smith, and comments from participants at seminars at the National Bureau of Economic Research and Harvard University, and very helpful comments from two anonymous referees. The data set, which builds upon previous work by Wolf (1988), was assembled with the help of a series of research assistants, including: Rod Bender, Nancy Bilica, Alisha Bloom, Diane Cherry, Peter Condon, Andrew Hoffman, and Michael Susanto. The authors alone are responsible for any errors.     

Mapping Biodiversity Indicators and Assessing Biodiversity Values in Global Forests

Biodiversity loss is a problem of global concern affecting ecosystem functioning and services provided to humans. The Millennium Ecosystem Assessment is built on a conceptual framework that links biodiversity with the services ecosystems provide to society and human welfare. Numerous empirical studies have measured ecosystem goods and services in terms of economic values; however, less evidence is available of the indirect effect of biodiversity on these values. Based on this, we first compile market and non-market forest valuation studies and, secondly, explore the potential of an econometric modelling exercise by conducting a worldwide meta-analysis. This exercise aims to highlight the role of biodiversity indicators on valuation. In this way, we can study the underlying transmission mechanisms that explain to what extent biodiversity is related to human welfare. Furthermore, we also propose to evaluate the magnitudes of the respective distributional impacts, including the different ecosystem goods and services under consideration. Our results show that biodiversity indicators may have an underlying effect on forest ecosystem values, which also depend on the type of ecosystem services. Lastly, the results are discussed and analysed with respect to their policy implications concerning biodiversity conservation.     

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.     

淮河源旅游产业发展对生物多样性保护的影响研究

淮河源是我国南北过渡地带生物多样性最丰富的地区之一,近年来快速发展的旅游业对生物多样性保护构成了严重威胁,其主要原因是法规制度不健全、缺乏科学的总体规划与专业管理人员、缺乏有效的社区参与机制及旅游收益转化机制、科普宣教功能不足、部分旅游发展政策不合理、旅游活动对生物多样性的影响评价严重不足。明确区域功能、加强旅游活动中的生物多样性保护宣教、持续发展生态旅游地周边社区经济、完善旅游活动对生物多样性的影响评价、严格旅游活动中的生物多样性保护执法是促进淮河源旅游产业与生物多样性保护协调发展的主要途径。     

Are There Income Effects on Global Willingness to Pay for Biodiversity Conservation?

This paper is concerned with the empirical relationship between biodiversity conservation values and income. We use random effects panel models to examine the effects of income, and then GDP per capita, on willingness to pay for habitat and biodiversity conservation. In a meta-analysis, 145 Willingness To Pay estimates for biodiversity conservation where existence value plays a major role were collected from 46 contingent valuation studies across six continents. Other effects included in the meta-analysis were the study year; habitat type; continent; scope as presented to respondents; whether WTP bids were for preventing a deterioration or gaining an improvement in conservation, whether a specific species or specific habitat was protected; whether the questionnaire used a dichotomous choice or an open-ended format; distribution format; and the choice of payment vehicle. GDP per capita seemed to perform as well as an explanatory variable as respondent’s mean stated income, indicating that it is wealth in society as a whole which determines variations in WTP. Even if large variation, our main conclusion is, that the demand for biodiversity conservation rises with a nation’s wealth, but the income elasticity of willingness to pay is less than one.     

The economic consequences of substituting carbon payments for crop subsidies in U.S. agriculture

There is a growing body of literature on the costs of sequestering carbon. However, no studies have examined the interplay between farm commodity programs and carbon sequestration programs. This study investigates two dimensions of the interaction between farm commodity programs and afforestation programs, using a price-endogenous sector model of agriculture in the United States. First, this study compares the fiscal and welfare costs of achieving specific carbon targets through afforestation, with and without current farm programs. Second, it examines the welfare, fiscal, and carbon consequences of replacing existing farm subsidies, wholly or in part, with payments for carbon. Two approaches, Hicksian and Marshallian, are investigated. In the first, the sector model is used to quantify the carbon consequences and fiscal costs associated with various combinations of farm commodity and carbon sequestration programs that leave consumers and producers in the U.S. agricultural sector no worse off than under existing farm programs. The second approach focuses on the carbon and welfare consequences of various farm commodity and carbon sequestration programs that hold total program fiscal costs constant at current levels. Althouth the methodology and data are applied to the United States, the issues addressed are common in a number of developed nations, particularly within the European Union (EU). Adapting existing sector models in these nations to perform similar analyses would provide policy makers with more precise information about the nature of the trade-offs involved with second-best policies for replacing farm commodity subsidies with tree planting subsidies.The research reported in this paper was partially funded by the United States Environmental Protection Agency under contract number 68W90077. It does not reflect the official position of that agency. Mention of trade names does not constitute endorsement.     

REVIEWS

The International Labor Code, 1939
Economics for Commerce. By J. K. Gifford
Publc Investment and the Trade Cycle in Great Britain. By R. F. Bretherton, F. A. Burchardt and R. S. G. rutherford
Distribution Costs-An International Digest. By Malcolm P. McNair and Stanley F. Teele
Cambridge History of the British Empire
The Problems of Modern Government. Edited by R. MacGregor Dawson
World Economy Survey, 1939-40. Economic Intelligence Service
Soviet Economy and the War. By Maurice Dobb London, George Routledge
First Annual Report of the Federal Security Administrator
Cash Benefits under voluntary Disability Insurance in the United States Federal Security Agency: Social Security Board
An Outline of Foreign Social Assurance and Assistance Laws Federal Security Agency: Social Security Board
An Introduction to Political Economy. By V. W. Bladen
The Rice Economy of Monsoon Asia. By V. D. Wickizer and M. K. Bannett
The I.L.O. and Reconstruction
Federal Resrve Charts on Industrial Production
The Theory of Incidence of Sales Taxation. By John F. Due King's
War Time Developments in Government Employer Worker Colaboration
Organization for Kentucky Local Tax Assessments
The Economics of Peace. By Sir Alfred Davidson Angus and Robertson
Banking Studies. By Members
Economics of W. S. Jevons, By E. W. Eckard     

CAN P.S. 27 TURN A PROFIT? PROVISION OF PUBLIC EDUCATION BY FOR‐PROFIT SUPPLIERS

School districts in the United States have begun to use for-profit contractors to provide management and instructional services. Studies of this phenomenon are limited because this alternative to public provision is relatively new. This article begins to fill the void by examining the conditions under which contractors can be financially viable and can improve quality. Also considered is the potential role of contractors in other policies to restructure public education.     

Economic Valuation of Health for Environmental Policy: Comparing Alternative Approaches. Introduction and Overview

Protecting human health is a primary goal of environmental policy and economic evaluation of health can help policy-makers judge the relative worth of alternative actions. Economists use two distinct approaches in normatively evaluating health. Whereas environmental economists use benefit-cost analysis supported by monetary valuation in terms of willingness-to-pay, health economists evaluate interventions based on cost-effectiveness or cost-utility analysis (CEA), using quality-adjusted life-years (QALY) or similar indexes. This paper provides background on the controversy about the relative merits of these approaches and introduces the remaining papers in the special issue. These papers (with one exception) were presented at a conference sponsored by the Department of Economics at the University of Central Florida with support from the US Environmental Protection Agency. Although CEA might not lead to substantially different implications for environmental policy than benefit-cost analysis, and QALY may provide a benefit transfer tool to fill gaps in the morbidity valuation literature, the papers in this issue raise serious concerns about the suitability of QALY-based CEA for environmental regulatory analysis. QALY does not in general appropriately represent individual preferences for health and CEA is neither independent of income distribution nor adequate to assess efficiency.     

CERCLA AND DEEP POCKETS: MARKET RESPONSE TO THE SUPERFUND PROGRAM

This paper uses event study methods to estimate wealth effects upon shareholders who are named by the U.S. Environmental Protection Agency (EPA) as potentially responsible parties at a Superfund site. Impacts appear to be divided into three periods: an initial program period where stock market effects depend largely on prior visibility of the site, a second period where likely financial impact is more important, and a third period where notification has little association with either visibility or financial measures. However, the expected remediation cost burden is not borne evenly. "Deep-pocket" firms appear to be disproportionately penalized by the market during the second period.     

An Operative Framework for Total Hicksian Income Measurement: Application to a Multiple-Use Forest

A methodology for estimating total hicksian income in multiple-use forests is presented. The approach consistently incorporates commercial as well as non-commercial economic values and enables the measurement of national accounting aggregates taking into account variation in man-made and natural capital. Innovative solutions are developed (i) for the estimation of non-market values, such as recreation, where an attempt to determine exchange values has been made simulating markets, (ii) for timber, where standing timber valuation methods have been extended to cover uneven stands, and (iii) for carbon fixation valuation, where only permanently fixed carbon after 1990 has been taken into account. The methodology is applied to a multiple-use pinewood in the Guadarrama mountains, near Madrid (Spain). Timber, cattle grazing, hunting, recreation, carbon fixation and conservation values are measured and integrated in the accounting system, using primary microeconomic data from the case study. Results indicate the importance of non-commercial income, which accounts for 51% of the total income, and the social relevance of the analysed forest, implying that only 31% of the total income generated is appropriated by the forest owner.