This paper models a negative impact on the environment as one of the attributes of transport mode. By this modeling, we are able to examine whether individual environmental consciousness of this impact has a significant effect on his/her choice of transport mode. A survey data from Saito and Onohara Area in Northern Osaka of Japan is used to estimate the model with the Heteroscedastic Extreme V...

Researchers, using contingent valuation (CV) to value changes in nonmarket goods, typically believe respondents always answer questions truthfully or they answer truthfully only when it is in their interest to do so. The second position, while consistent with economic theory, implies that interpreting survey responses depends critically on the incentive structure provided. We derive simple test...

The United States Government recently developed a range of values representing the monetized global damages associated with an incremental increase in carbon dioxide (CO2) emissions, commonly referred to as the social cost of carbon (SCC). These values are currently used in benefit-cost analyses to assess potential federal regulations. For 2010, the central value of the SCC is $21 per ton of CO...

In this paper, we elaborate on an idea initially developed by Weitzman (1998) that justifies taking the lowest possible discount rate for far-distant future cash flows. His argument relies on the arbitrary assumption that when the future rate of return of capital (RRC) is uncertain, one should invest in any project with a positive expected net present value. We examine an economy with a risk-av...

Once established, invasive species can rapidly and irreversibly alter ecosystems and degrade the value of ecosystem services. Optimal control of an exotic pest solves for a trajectory of removals that minimizes the present value of removal costs and residual damages from the remaining pest population. The shrubby tree, Miconia calvescens, is used to illustrate dynamic policy options for a fores...

Mexico City’s bus rapid transit (BRT) network, Metrobus, was introduced in an attempt to reduce congestion, increase city transport efficiency and cut air polluting emissions. In June 2005, the first BRT line in the metropolitan area began service. We use differences-indifferences and quantile regression techniques in undertaking the first quantitative policy impact assessment of the BRT system...

This paper describes and implements a method for estimating the average marginal value of a time-varying local public good: air quality. It uses the General Social Survey (GSS), which asks thousands of people in various U.S. locations how happy they are, along with other demographic and attitude questions. These data are matched with the Environmental Protection Agency's Air Quality System (AQS...

This paper uses a real options approach to examine the impact of ramping rate restrictions imposed on hydro operations to protect aquatic ecosystems. We consider the effect on hydro plant value in order to inform policy decisions. A novelty of the paper is in examining the optimal operation of a prototype hydro power plant with electricity prices modelled as a regime switching process. We show ...

This paper estimates hedonic price models for a sample of 610 vacation rental houses located in the vicinity of a lake and four-season ski-golf resort. Hedonic semi-logarithmic regression models are estimated for peak summer and peak winter rentals for 2008. The regression estimates for weekly rental prices are conditioned on explanatory variables for house size, house quality, and recreation f...

Livestock supply must challenge the growth of final demand in the developing countries. This challenge has to take into account its ecological effects since the dairy and livestock sectors are clearly pointed out as human activities which contribute significantly to environmental deterioration. Therefore, livestock activity models have to include desirable and undesirable outputs simultaneously...