Investment Attractiveness of Afforestation in Canada Inclusive of Carbon Sequestration Benefits

Afforestation is one of several possible mechanisms available to sequester carbon and help reduce greenhouse gas concentrations. We have developed a spatial Monte Carlo-based simulation model, Canadian Forest Service—Afforestation Feasibility Model (CFS-AFM) to help assess the financial attractiveness of afforestation as a means of carbon storage in Canada. The model tracks five carbon pools and simulates costs and benefits of plantation investments. In this paper we simulate three afforestation scenarios that could be used in Canada; plantations using hybrid poplar, hardwoods, and softwoods with average growth rates of 14 and 6–7 m³/ha/year, respectively. The attractiveness of afforestation is driven by regional cost and plantation productivity variation and carbon price expectations. The results indicate that afforestation would be an attractive investment in many areas of the country at carbon prices of $10 per metric ton of CO₂ or higher. However, with a zero carbon price, very little afforestation would be financially viable. Thus, with low carbon price expectations, other co-benefits may be required to make afforestation more attractive to Canadian investors.     

Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States

We compare consumer valuations of beef ribeye steaks from cattle produced without growth hormones or genetically modified corn in France, Germany, the United Kingdom, and the United States. Results suggest that French consumers place a higher value on beef from cattle that have not been administered added growth hormones than U.S. consumers; however, valuations of non-hormone-treated beef are statistically indistinguishable across Germany, the United Kingdom, and the United States. Results also suggest that European consumers place a much higher value on beef from cattle that have not been fed genetically modified corn than U.S. consumers.     

Controlling portfolio skewness and kurtosis without directly optimizing third and fourth moments

In spite of their importance, third or higher moments of portfolio returns are often neglected in portfolio construction problems due to the computational difficulties associated with them. In this paper, we propose a new robust mean–variance approach that can control portfolio skewness and kurtosis without imposing higher moment terms. The key idea is that, if the uncertainty sets are properly constructed, robust portfolios based on the worst-case approach within the mean–variance setting favor skewness and penalize kurtosis.     

Non‐Linear Pricing and Price Indexes: Evidence and Implications from Scanner Data

Non‐linear pricing, the fact that prices do not necessarily change in proportion to size, is a ubiquitous phenomenon. However, it has been neither particularly well understood nor well measured. Non‐linear pricing is of practical importance for statistical agencies who, in constructing price indexes, are often required to compare the relative price of a product‐variety of two different sizes. It is usually assumed that prices change one‐for‐one with package and pack size (e.g. a 1‐liter cola costs half as much as a 2‐liter bottle). We question the wisdom of such an assumption and outline a model to flexibly estimate the price‐size function. Applying our model to a large U.S. scanner dataset for carbonated beverages, at a disaggregated level, we find very significant discounts for larger‐sized products. This highlights the need to pursue methods such as those advocated in this paper.     

Self-Regulatory Safeguards and the Online Privacy of Preteen Children

Online advertisers are increasingly enjoying the ability to target messages to specific segments based on information collected at Web sites. Information collection, particularly from children, has been an ongoing concern of regulators, consumer advocates, and advertising industry organizations. Although the U.S. Federal Trade Commission (FTC) has advocated the implementation of safeguards (such as warnings, threats, and barriers) designed to limit children's online disclosure of sensitive information, little research to date has examined the effectiveness of these safeguards. We address this issue by first examining the current state of online safeguards for Web sites that target preteen children, a group shown to be particularly vulnerable to the persuasive efforts of marketers. We then present a quasi-experimental investigation of online safeguard types and how their effectiveness in limiting preteen information disclosure is moderated by the mediation strategies of parents. Implications for advertisers, policymakers, parents, and educators are discussed.     

The Kumulipo,Native Hawaiians,and well-being: how the past speaks to the present and lays the foundation for the future

ABSTRACT

A traditional Native Hawaiian text, the Kumulipo, provides the basis for re-thinking well-being in the Hawaiian context and the relationship between Native Hawaiian cultural practices and Western leisure practices. Grounding the analysis in Indigenous and subaltern scholarship, we describe alternative paths for developing relationships within a pluriverse that opens opportunities to re-think Western leisure.     

Malmquist and Törnqvist productivity indexes: returns to scale and technical progress with imperfect competition

Caves, Christensen and Diewert proposed a method for estimating a theoretical productivity index for a firm using Törnqvist input and output indexes, augmented by exogenous estimates of local returns to scale. However, in order to implement their method, they assumed that the firm maximized revenue in each period, conditional on the observed input vector in each period, taking output prices as fixed. This assumption is not warranted when there are increasing returns to scale. Thus in the present paper, it is assumed that the firm solves a monopolistic profit maximization problem when there are increasing returns to scale and the results of Caves, Christensen and Diewert are modified in accordance with this assumption.     

Measuring catastrophic events on operating viability of firms: hurricane hugo and hospitals

It is important to be able to separate and analyze the effects of sudden changes in the operating environments of firms. Although man-made changes can be studied with the techniques employed in this paper, the effects of a natural disaster are examined here. A model is developed to isolate and make available for study the immediate, short-run and long-run effects of hurricane Hugo on hospitals in its path. This paper reports on the most seriously affected hospitals. Managers as well as regional and national policy makers should be able to isolate and examine the effects of important natural, administrative, and legislated changes in an industry's operating environment. This paper gives one example of how this may be accomplished.Data collection for this study was partially funded by a grant from the Duke Endowment.     

PRODUCT MARKET DISTORTIONS AND THE RETURNS TO BROILER CHICKEN RESEARCH IN CANADA

The economic returns to Canadian federal broiler chicken research between 1968 and 1984 were estimated using the economic surplus approach. The impact of distortions in the product market and of the excess burden of taxes on the net benefits of research and the distribution of gross benefits between producers and consumers were assessed. Rates of return to research investments at the margin over this period were estimated to be between 52% and 60%. All of the benefits of this research have accrued to consumers, and producers have actually been made worse off by broiler research under the existing regime of supply management.