This paper is a critique on contemporary non-market valuation study. We argue that the consumer value (willingness to pay (WTP)) derived from contingent valuation method or other methods is a poor guideline for resource allocation and cost–benefit analysis. Only shadow value is meaningful for the public and decision makers in resource allocation. Shadow value is the value to the society, or exc...

Poor user experiences with search advertisements can lead to ad avoidance thus reduce search engine’s long-term revenue. We capture the effect of negative user experiences on search engine’s future revenue in a new variable called “shadow costs” and examine the optimal keyword auction mechanisms (KAMs) in a general model that takes into account advertiserspecific and position-specific shadow co...

Mitigating the harmful effects of development projects and industries (negative environmentalism) is inadequate, especially in resource-dependent economies whose resources are at risk from other forces. While positive environmentalism includes conservation projects, the non-market benefits of such projects are difficult to evaluate. This paper provides and illustrates a method for evaluating th...

Glossary Accounting prices Accounting or shadow prices are measures of the social opportunity cost of resource use. The accounting price of a resource is the increase in social wellbeing that would be enjoyed if a unit more of the resource was made available at no cost. Ecological functions The combinations of ecosystem component and ecosystem processes that enable ecosystems to support primary...

Ample evidence exists to suggest that nonlinear asset dynamics can give rise to an environ­ ment of poverty traps. When dynamic asset thresholds matter, asset insurance offers great promise for managing risks that vulnerable households face. In this paper, we use dynamic programming techniques to generate an option value measure of welfare gains attributable to asset insurance in this context. ...

India’s rural roads program, Pradhan Mantri Gram Sadak Yojana, aims to draw villagers into the mainstream by improving not only their terms of trade, but also their educational attainments and health. Treating each all-weather feeder road as an isolated element within the larger network, and using shadow prices to value the main components of costs and benefits, this paper demonstrates that fur...

An alternative approach to multi-region modeling will be presented. This approach (called modular approach) is able to reproduce results obtained with the traditional as well as a modified Negishi approach. We redesigned the Negishi approach to make it applicable in modeling technological spillovers induced by foreign direct investments. While the modular approach is able to completely internal...

DOCUMENT RESUME TM 034 736 Veldkamp, Bernard P.; Ariel, Adelaide Extended Shadow Test Approach for Constrained Adaptive Testing. Research Report. Twente Univ., Enschede (Netherlands). Faculty of Educational Science and Technology. RR-02-07 2002-00-00 30p Faculty of Educational Science and Technology, University of Twente, P.O. Box 217, 7500 AE Enschede, The Netherlands. Email: [email protected]....

Pollution emissions impose serious social negative externalities, especially in terms of public health. To reduce pollution emissions cost-effectively, the marginal abatement costs (MACs) of pollution emissions must be determined. Since the industrial sectors are the essential pillars of China's economic growth, as well as leading energy consumers and sulfur dioxide (SO₂) emitters, estimating M...

Power control can significantly enhance the performance of congestion control mechanisms, such as TCP, in wireless networks. We present a distributed power control algorithm that works together with the original TCP protocol to increase endto-end throughput and energy efficiency of multihop data transmissions in CDMA wireless ad hoc networks. We prove that the resulted nonlinear coupled system ...