bluuebunny/crossref_metadata_2025 huggingface dataset:
Overheating Willingness to Pay: Who Gets Warm Glow and What It Means for Valuation
Authors: Interis Matthew G. , Haab Timothy C.
Published: September 2016

In traditional contingent valuation, the researcher seeks the amount a respondent is willing, ceteris paribus, to pay to obtain something. But if a respondent receives a “warm glow” from a yes response, ceteris is not paribus. In estimating willingness to pay (WTP) to reduce environmental impacts from consumption of transportation fuel, we find that respondents who were relatively less environmentally focused in the past receive greater warm-glow benefits from a “yes” response and have greater “warm” WTP (WTP that includes warm-glow benefits). Yet respondents who were relatively more environmentally focused in the past have greater “cold” WTP (WTP excluding warm-glow benefits).
Consumer Valuation of Food Safety: The Case of Postharvest Processed Oysters
Authors: Bruner David M. , Huth William L. , McEvoy David M. , Morgan O. Ashton
Published: September 2016

Consumers’ willingness to pay for postharvest-processed (PHP) raw oysters—oysters without health risks—is studied in experimental auction markets. The experimental design decomposes the effects of taste, objective risk information, and information on four PHP technologies on consumer valuations. Results show that relatively uninformed consumers are willing to pay equivalent amounts for PHP and traditional raw oysters. However, after a blind taste test, consumers are willing to pay a significant premium for traditional raw oysters, and the premium persists after objective information on risk and processing technologies is provided. The results are robust across PHP technologies.
High Tunnels Are My Crop Insurance: An Assessment of Risk Management Tools for Small-scale Specialty Crop Producers
Authors: Belasco Eric , Galinato Suzette , Marsh Tom , Miles Carol , Wallace Russell
Published: September 2016

High tunnels are being used by specialty crop producers to enhance production yields and quality, extend growing seasons, and protect crops from extreme weather. The tunnels are unheated, plastic-covered structures under which crops are planted directly in the soil, and they provide greater environmental protection and control than open-field production. This study uses field-level experiments to evaluate high-tunnel production. The results suggest that investments in high tunnels can provide increased profits and superior protection against adverse risks relative to crop insurance.
State-Branded Programs and Consumer Preference for Locally Grown Produce
Authors: Nganje William E. , Hughner Renée Shaw , Lee Nicholas E.
Published: September 2016

Revitalization of state brands is deemed important to several constituencies. Stated preference with choice experiment methods were used to elicit consumer preferences for two locally grown products: spinach, which has had a well-publicized food safety incidence, and carrots, which have had no such incidence in recent history. A full factorial design was used to implement the choice experiment, with each commodity having four identical attributes varying at different levels. Findings reveal that consumers are willing to pay a premium for locally grown spinach marked with the Arizona Grown label over locally grown spinach that was not labeled. This premium was higher than the premium that would be paid for state-branded carrots. This difference highlights consumers’ perceptions of “locally grown” as an indicator of safety in their food supply. Findings have important implications with respect to providing consumer value and point to differentiated positioning strategies for state-branded produce.
Comparing Willingness to Pay for Organic, Natural, Locally Grown, and State Marketing Program Promoted Foods in the Mid-Atlantic Region
Authors: Onken Kathryn A. , Bernard John C. , Pesek John D.
Published: September 2016

A choice experiment of Mid-Atlantic consumers was conducted to determine marginal willingness to pay for the attributes organic, natural, locally grown, and state marketing program promoted for strawberry preserves. The influence of purchasing venue on willingness to pay was also examined. Results indicated a price premium when purchased at a farmers market across all five states and versions. Organic was preferred to natural in only one state. Preference ordering between local and state program promoted varied. Consumers in Maryland and Pennsylvania clearly preferred local, while those in New Jersey seemed most likely to prefer the state program version.
The Impact of Parcel Characteristics on the Cost of Development Rights to Farmland
Authors: Wichelns Dennis , Kline Jeffrey D.
Published: September 2016

This paper examines the economic impact of selected farmland characteristics on the appraised value of development rights. Price elasticities are estimated for the size and location of farmland parcels, the amount of road frontage, the existence of panoramic views, and the distance to urban centers. Estimated elasticities suggest that parcel characteristics have a substantial impact on the cost of preserving farmland. For example, the per-acre cost of development rights is estimated to be 53 percent higher on farmland parcels that have a panoramic view of water than on parcels that have no water view. Similarly, the per-acre cost of development rights on a typical 25-acre farm is estimated to be 90 percent higher than on a typical 150-acre farm. Results suggest that the net social benefits obtained through farmland preservation programs may be enhanced by considering the impact of farmland characteristics on the marginal costs of purchasing development rights, when selecting among a set of candidate farms.
Factors Affecting the Adoption of Sustainable Agricultural Practices
Authors: D'souza Gerard , Cyphers Douglas , Phipps Tim
Published: September 2016

The extent to which individual factors influence the adoption of sustainable agricultural practices is estimated using a logit model and data from a 1990 survey of West Virginia producers. The results are, as expected, different than those for conventional agricultural technologies. For example, the effects of human capital characteristics are significant, while those for structural and institutional characteristics are not. However, the likelihood of adoption of sustainable agricultural practices is affected most by the environmental characteristic of whether or not the producer is aware that ground water contamination exists on his farm. This creates an important “awareness effect” upon which policies to promote sustainable agriculture adoption can be formulated. It also implies the existence of a derived demand for sustainable agriculture.
Thirty Years of Economics at the Environmental Protection Agency
Authors: McGartland Al
Published: September 2016

When the modern era of environmental policy began with creation of the Environmental Protection Agency and passage of the Clean Air and Clean Water Acts, economists and economics were little used. Over time, economics became a major contributor to formation of environmental policy. Executive Order 12291 pushed economics into the policy process but also rendered benefit-cost analysis controversial. I report on economics’ role in the policy process over time and examine contributions by economists to environmental policymaking. Advancing benefit-cost analysis is an obvious contribution. I describe other areas in which economists have contributed and highlight milestones for economics at EPA.
Commodity Prices Revisited
Authors: Tomek William G.
Published: September 2016

Empirical models of commodity prices are potentially important aids to decision-makers, especially as the economy has grown more complex. A typical time series of commodity prices exhibits positive autocorrelation, occasional spikes, and random variability, and conceptual models have been developed to explain this behavior. But, the leap from theory to empirical applications is large because of model specification and data quality problems. When modeling price expectations, for example, should a price series be deflated and if so, by what deflator? The choice can have a large effect on empirical results. Nonetheless, it is possible in some applications to obtain relatively stable estimates of structural parameters that are useful for addressing specific problems. This may not happen often, however, because the incentives in academia do not encourage rigorous, in-depth appraisals of empirical results.
Evaluating the Economic Impacts of Regional Milk Pricing Authorities: The Case of Dairy Compacts
Authors: Bailey Kenneth W.
Published: September 2016

Congress consented to the creation of the Northeast Interstate Dairy Compact in the 1996 Federal Agriculture Improvement and Reform Act. Interest is now growing in expanding this compact and creating new multi-regional dairy compacts. Dairy compacts provide a floor for Class I fluid prices and thus stabilize and enhance farm milk prices in compact regions. This analysis indicates that multi-regional dairy compacts will result in clear economic tradeoffs between dairy farmers, processors, retailers, and consumers. While dairy farmers within the compact region may economically benefit from higher farm milk prices, processors, retailers and consumers in the compact region and dairy farmers outside the compact region will face economic losses.
A Profitability Analysis of Dairy Feeding Systems in the Northeast
Authors: Winsten Jonathan R. , Parsons Robert L. , Hanson Gregory D.
Published: September 2016

This study analyzes the use and profitability of three distinct feeding systems; confinement feeding, traditional grazing, and management-intensive grazing from a randomly selected sample of northeastern dairy farms. The confinement feeding farms were significantly larger and produced more milk per cow, while the farms using management-intensive grazing incurred the lowest production costs. Both confinement feeding and management-intensive grazing generated significantly higher rates of return to farm assets relative to farms using a mixed system. Multiple regression analysis confirms the critical importance of herd size, milk production per cow, debt level and veterinary expenses to farm profitability in all production systems.
Cost Efficiency of Dairy Farming in New Zealand: A Stochastic Frontier Analysis
Authors: Jiang Nan , Sharp Basil
Published: September 2016

Research on the efficiency of dairy farming in New Zealand is limited and has focused predominantly on technical efficiency. We contribute to the literature on empirical analysis by examining cost efficiency of New Zealand dairy farms. We construct simplified translog stochastic cost frontiers based on an unbalanced panel of 824 farms. Average cost efficiency is estimated at 83 percent for dairy farms in the North Island and 80 percent for farms in the South Island. Our analysis of the relationship between inefficiency and farm characteristics suggests significant associations between cost efficiency and capital intensity, livestock quality, and farm size.
Using Former Farmland for Biomass Crops: Massachusetts Landowner Motivations and Willingness to Plant
Authors: Timmons David
Published: September 2016

Producing biomass energy requires extensive land resources. In western Massachusetts, where almost 90 percent of former farmland is no longer in commercial use, we study factors that motivate landowners to grow biomass energy crops. A geographic information system model identifies a landowner population, and a contingent valuation survey reveals payments landowners are willing to accept (WTA) for growing biomass crops. The median WTA estimate is $321 per hectare per year, which is high compared to regional land rental rates. Nonpecuniary factors appear to be as important in landowner acceptance as profit opportunities, especially for nonfarmer landowners.
Participation in Agricultural Land Preservation Programs: Parcel Quality and a Complex Policy Environment
Authors: Duke Joshua M.
Published: September 2016

Data on owner and land characteristics are used to analyze factors affecting participation decisions in Delaware's agricultural lands preservation program, federal commodity programs, and federal conservation programs. A trivariate probit model estimates a set of random utility models of participation. Participation decisions at the state and federal levels are found to be driven by many of the same observed factors, but uncorrelated in unobserved characteristics. The important exceptions are that owners of small parcels under development pressure and with parcels of relatively low environmental quality tend to enroll in commodity programs rather than preservation. In part, the complex policy environment may therefore limit the effectiveness of programs seeking to preserve parcels with the highest environmental quality or facing the greatest development pressure.
The Obligations of a Policy Economist
Authors: Portney Paul R.
Published: September 2016

It is impossible for me to begin this short talk with anything other than a heartfelt thank-you to the members of this association for making me the recipient of this year's Award for Outstanding Public Service Through Economics. I'm not the kind of person who gets awards and, as with many of the honors given to government figures in Washington, DC, from which I hail, it's undeserved! You should note, however, that I came to Halifax yesterday afternoon to be sure I was here to receive the award today, so I hope you know how pleased and honored I am to be here.
How Institutions Affect Outcomes in Laboratory Tradable Fishing Allowance Systems
Authors: Anderson Christopher M.
Published: September 2016

The objective of this paper is to illustrate that economic institutions matter, i.e., that different rules of trade present different incentives for bidding, asking, and trading in new markets, and that these different incentives lead to different price discovery patterns, which yield materially different outcomes. In a laboratory tradable fishing allowance system, when trade takes place through a double auction, which parallels an institution common in extant tradable allowance systems, markets are characterized by high volatility, and equilibrium does not obtain. However, when only leases, and not permanent trades, are permitted in the early periods, volatility is significantly reduced and equilibrium obtains. This dependence of equilibration and outcomes on institutions implies policy-oriented economists must consider institutions in designing new market-based management systems.
County Amenities and Net Migration
Authors: Rupasingha Anil , Goetz Stephan J.
Published: September 2016

U.S. county-level net migration data and a general spatial model are used to examine the effects of various amenities on migration decisions. Results suggest that higher county cancer risks and the presence of superfund sites in a county, or a higher ranking on the Environmental Protection Agency's hazard ranking system, reduce the relative attractiveness of a county to prospective migrants, while natural amenities on balance attract migrants, ceteris paribus. The results also reveal spatial dependence among contiguous counties in terms of net migration behavior.
Agricultural Contracting and the Scale of Production
Authors: Key Nigel
Published: September 2016

This study presents evidence that contracting is positively associated with the scale of production for six major U.S. agricultural commodities. Specifically, contract producers tend to operate at a larger scale than do independent producers, and the likelihood of an operation contracting increases with its scale. This relationship is strongest in the cattle and hog sectors, where it persists even among large commercial operations. Six theoretical explanations for the observed correlation between scale and contracting are proposed, including imperfect capital markets, contractor transaction costs, input leverage, grower risk aversion, asset specificity, and technological change. Information from five annual national surveys is used to examine the validity of three of the proposed mechanisms.
Performance Results and Characteristics of Adopters of Genetically Engineered Soybeans in Delaware
Authors: Bernard John C. , Pesek John D. , Fan Chunbo
Published: September 2016

Genetically engineered (GE) soybeans first became available to farmers in 1996. Despite the common questions regarding any new crop technology, the new seeds were rapidly adopted. This study examines the characteristics of adopters, as well as yield and weed control cost changes, using survey results from Delaware farmers at the start of the 2000 season. Duration analysis reveals that earlier-adopting farmers had larger farms and tended to use computers for financial management, while regression analysis shows significantly lower weed control costs and, to a lesser extent, higher yields for GE soybeans.
Joint Estimation of Revealed and Stated Preference Data: An Application to Recreational Red Snapper Valuation
Authors: Gillig Dhazn , Woodward Richard , Ozuna Teofilo , Griffin Wade L.
Published: September 2016

This study extends the joint estimation of revealed and stated preference data literature by accounting for truncation in the revealed preference data. The analytical model and estimation procedure are used to estimate the value of recreational red snapper fishing in the Gulf of Mexico. This recreational red snapper valuation is decomposed into its direct and indirect components. As expected, the value of recreational red snapper fishing using the joint revealed-stated preference model proposed in this analysis is bracketed on the upper limit by the value obtained using the contingent valuation method and on the lower limit by the travel cost method. The results also indicate that the joint model improves the precision of estimated recreational red snapper valuation.
Consumer Response to Genetically Modified Food Products in Japan
Authors: McCluskey Jill J. , Grimsrud Kristine M. , Ouchi Hiromi , Wahl Thomas I.
Published: September 2016

In Japan, a large U.S. export market, there has been growing public opposition against genetically modified (GM) foods. Using a dichotomous choice contingent valuation method, findings show the discount needed for Japanese Seikyou consumers to purchase GM food products is positively affected (i.e., a greater discount is required) by higher levels of self-reported risk perceptions toward GM food, higher levels of concern about food safety and the environment, higher self-reported knowledge about biotechnology, education levels, and income. Interestingly, gender does not significantly affect the discount needed for GM food. Further, it can be inferred from the results that a transformation of Japanese consumers’ perceptions and attitudes is needed for GM food products to successfully enter the Japanese market.
Watershed-Scale Economic and Environmental Tradeoffs Incorporating Risks: A Target MOTAD Approach
Authors: Qiu Zeyuan , Prato Tony , Kaylen Michael
Published: September 2016

This paper evaluates the economic and environmental tradeoffs at watershed scale by incorporating both economic and environmental risks in agricultural production. The Target MOTAD model is modified by imposing a probability-constrained objective function to capture the yield uncertainty caused by random allocation of farming systems to soil types and by introducing environmental targets to incorporate environmental risk due to random storm events. This framework is used to determine the tradeoff frontier between watershed net return and sediment yield and nitrogen concentration in runoff in Goodwater Creek watershed, Missouri. The frontier is significantly affected by environmental risk preference.
Modeling U.S. Broiler Supply Response: A Structural Time Series Approach
Authors: Kapombe Crispin M. , Colyer Dale
Published: September 2016

A structural time series model is used to estimate the supply response function for broiler production in the United States using quarterly data and a structural time series model. This model has the advantage of expressing trend and seasonal elements as stochastic components, allowing a dynamic interpretation of the results and improving the forecast capabilities of the model. The results of the estimation indicate the continued importance of feed costs to poultry production and of technology as expressed by the stochastic trend variable. However, seasonal influences appear to have become less important, since the seasonal component was not statistically significant.
Behavioral Economics, Food Assistance, and Obesity
Authors: Just David R.
Published: September 2016

While there is mixed evidence of the impact of food assistance programs on obesity, there is general agreement that the food-insecure are at higher risk of obesity and obesity-related diseases. Food assistance programs, originally designed to overcome a lack of available food, now need to confront a very different problem: how to provide for the food-insecure while encouraging healthy lifestyles. This paper examines the potential to address these competing needs using traditional economic policies (manipulating information or prices) versus policies engaging behavioral economics and psychology.
A Stochastic Frontier Approach for Measuring Technical Efficiencies of Date Farms in Southern Tunisia
Authors: Belloumi Mounir , Matoussi Mohamed Salah
Published: September 2016

The main objective of this research is to compare estimates of technical efficiency obtained from the stochastic frontier approach for two samples of farmers of private and water user associations in the Nefzaoua Oases region (Tunisia), which are characterized by a severe scarcity of water and especially a high degree of salinity. Technical inefficiency effects are modeled as a function of farm-specific socioeconomic factors. Results suggest that both systems are technically inefficient. On average, the private system is found to be slightly more efficient than the associative one. Date yield could be explained mainly by four variables: water quantity applied per palm tree, labor per palm tree, phosphate per palm tree, and water salinity. Output elasticities of all inputs are found to be positive and significant except for the farmyard manure. Water salinity has a considerable negative impact on date productivity. For the technical inefficiency model, none of the socioeconomic variables seem to matter.
U.S. Consumers' Willingness to Pay for Food Labeled ‘Genetically Modified’
Authors: Onyango Benjamin , Nayga Rodolfo M. , Govindasamy Ramu
Published: September 2016

This study analyzes U. S. consumers' choice of cornflakes under five different labeling statements. Using a nationwide survey and choice modeling framework, results indicate that consumers value labeling statements differently, depending on the information contained on the label. The random parameter logit model results indicated that, compared to cornflakes that have no label information, cornflakes labeled “contains no genetically modified com” have a value of 10 percent more, the label “USDA approved genetically modified com” has a value of 5 percent more, and the label “com genetically modified to reduce pesticide residues in your food” has a value of 5 percent more. The results also suggest that consumers negatively valued the label “contains genetically modified com,” paying 6.5 percent less, and the label “may contain genetically modified com,” paying 1 percent less than the product that has no label information.
Entry, Exit, and Structural Change in Pennsylvania's Dairy Sector
Authors: Stokes Jeffrey R.
Published: September 2016

Data on the number of Pennsylvania dairy farms by size category are analyzed in a Markov chain setting to determine factors affecting entry, exit, expansion, and contraction within the sector. Milk prices, milk price volatility, land prices, policy, and cow productivity all impact structural change in Pennsylvania's dairy sector. Stochastic simulation analysis suggests that the number of dairy farms in Pennsylvania will likely fall by only 2.0 percent to 2.5 percent annually over the next 20 years, indicating that dairy farming in Pennsylvania is likely to be a significant enterprise for the state in the foreseeable future.
An Experimental Investigation of Consumer Willingness to Pay for Non-GM Foods When an Organic Option Is Present
Authors: Bernard John C. , Zhang Chao , Gifford Katie
Published: September 2016

This research compared bids that consumers placed on non genetically modified (GM), organic, and conventional versions of food products in order to determine if the organic market well serves those seeking to avoid GM foods. Auction experiments using potato chips, tortilla chips, and milk chocolate were conducted with 79 subjects. Bids were modeled as a function of consumer demographics using a heteroskedastic tobit regression model. Results with the non-GM attribute nested into the organic characteristic showed that the latter's marginal effects were insignificant. This suggested the potential to further develop non-GM products for consumers not willing to pay extra for the remaining organic attributes.
Looking for Locapours: Using Zagat Survey Data to Examine Restaurant Demand for Local Wine
Authors: Perla Joseph M. , Rickard Bradley J. , Schmit Todd M.
Published: September 2016

There is increasing interest in local foods among consumers in the United States and a rise in offerings of local products in restaurants. We use Zagat survey data and restaurant-specific menu information to estimate factors that influence the availability of New York State (NYS) wine in 1,401 NYS restaurants. We focus on wine because its production region is clearly labeled on menus and there is a burgeoning industry in NYS. Our econometric results indicate that decor ratings, cuisine styles, certain wine list characteristics, and distance to wine regions have statistically significant impacts on the likelihood of NYS restaurants serving local wine.
Organizational Structure and Operation of the Illinois Wine Industry
Authors: Franken Jason R. V. , Bacon Kevin J.
Published: September 2016

This study examines vertical coordination in the wine industry emerging in Illinois. We find that quality matters as temporal issues related to grape perishability increase the probability of written contracts being used to procure grapes. Holdup concerns related to sourcing adequate quality grapes and at-risk investments in grape storage and winemaking equipment lead to vertical integration. In general, larger wineries must obtain some grapes from outside vineyards and sell wine predominantly through tasting rooms and distributors. Smaller wineries rely more on direct sales to retailers, festivals, and farmers' markets. Marketing outlet selection also reflects the types of wine produced.
Willingness to Pay for Sensory Attributes in Beer
Authors: Gabrielyan Gnel , McCluskey Jill J. , Marsh Thomas L. , Ross Carolyn F.
Published: September 2016

As microbrew beers have become more popular, the intrinsic characteristics of beer have become more important in consumer purchasing decisions. We identify sensory properties that influence consumers' willingness to pay for beer using a contingent valuation model that includes subjective sensory evaluations and socio-demographic characteristics of consumers. We find that overall taste and hoppiness of a beer have a significant and positive impact on willingness to pay.
Unraveling Demand for Dairy-Alternative Beverages in the United States: The Case of Soymilk
Authors: Dharmasena Senarath , Capps Oral
Published: September 2016

Soymilk is one of the fastest growing categories in the U.S dairy alternative functional beverage market. Using household-level purchase data from Nielsen's 2008 Homescan panel and the Tobit econometric procedure, we estimate conditional and unconditional own-price, cross-price, and income elasticities for soymilk, white milk, and flavored milk. Income, age, employment status, education level, race, ethnicity, region, and presence of children in a household are significant drivers of demand for soymilk. White milk and flavored milk are competitors for soymilk, and soymilk is a competitor for white milk. Strategies for pricing and targeted marketing of soymilk are also discussed.
The Impact of Regulatory Change on Retail Pricing: The New York State Milk Price Gouging Law
Authors: Rabinowitz Adam. N. , Liu Yizao
Published: September 2016

This study examines the causal effect of a change in administration of the New York State milk price gouging law on retail milk prices. Specifically, we focus on the November 2008 shift from a threshold pricing policy that consisted of monthly announced prices to a fixed margin policy. Using a regression discontinuity approach, we find lower prices and thus increased consumer welfare for retail milk purchasers in New York State. Furthermore, the change in application of the law may have eliminated previously hypothesized coordination in pricing by retailers through a more competitive retail milk environment.
Fifty Years of Farmland Protection Legislation in the Northeast: Persistent Issues and Emergent Research Opportunities
Authors: Bills Nelson
Published: September 2016

Over the past fifty years, several different types of publicly sponsored programs have been devised by state and local governments for the express purpose of encouraging owners to maintain land in an agricultural use. Although these units of government can, and do, wield considerable police power or regulatory influence, most attention has been given to voluntary, incentive-based approaches. First-generation programs were developed beginning in the mid-1950s, with state legislation centered on the provision of direct cash benefits via reduced property tax levies on farm real estate (Tremblay et al. 1987).
Optimal Media Allocation of Generic Fluid Milk Advertising Expenditures: The Case of New York State
Authors: Dong Diansheng , Schmit Todd M. , Kaiser Harry M.
Published: September 2016

A fixed-effects panel data demand model for five New York State markets is estimated to determine the differential impacts of generic fluid milk advertising by media type. Empirical results indicate that among the four media outlets, television advertising has the largest impact on per capita demand, followed by radio, outdoor, and print. Based on the estimated media-specific elasticities, media reallocation of advertising expenditures suggests that milk sales could increase significantly. The results indicate that cooperative media plan strategies developed between the New York regional advertising program and the national advertising programs would achieve the greatest benefits.
Voluntary Approaches to Transitioning from Competitive Fisheries to Rights-Based Management: Bringing the Field into the Lab
Authors: Knapp Gunnar , Murphy James J.
Published: September 2016

This paper describes a novel experiment designed to examine how rent dissipation may occur in fisheries in which the right to participate is limited and fishermen compete amongst themselves for shares of an exogenous total allowable catch. We demonstrate that rent dissipation may occur through multiple mechanisms, and that the heterogeneity of fishermen has important implications for how rent dissipation occurs and the extent to which different individuals may benefit from the implementation of rights-based management. We apply this approach to investigate the concept of voluntary rights-based management under which managers divide the total allowable catch between two separate fisheries, and fishermen may choose between fishing for a guaranteed individual harvest quota and competing for a share of the total catch in a competitive fishery.
Ambient-Based Policy Instruments: The Role of Recommendations and Presentation
Authors: Spraggon John , J. Oxoby Robert
Published: September 2016

We explore the effects of recommended play and the presentation of payoff information on behavior in an ambient-based policy instrument experiment. Specifically, we test the effects of recommended play (via a description of marginal decision making) and a payoff table on the behavior of individuals facing an ambient-based policy instrument. We find that recommended play and the presentation of a payoff table increases the use of the socially optimal strategy, thereby increasing efficiency. These results suggest that providing decision makers with a richer description of the decision making environment significantly reduces decision error, significantly improving the efficiency of ambient-based policy instruments.
Confounded by the Field: Bidding in Food Auctions When Field Prices Are Increasing
Authors: Bernard John C. , He Na
Published: September 2016

Auction experiments are commonly used to determine consumers’ willingness to pay for various food items. While their non-hypothetical nature is a positive, market substitutes create a probable confounding of bids by field prices. This study examines the influence of field prices on bids for four foods in two versions by conducting auctions before and after large price increases in 2007. Results show that bids were capped at given field prices and were significantly higher in sessions conducted after store prices increased. Percentage premiums, however, were not significantly different across sessions, suggesting that effects of field prices could be reduced. Overall, researchers must be conscious of how field prices affect bids.
Economic Consequences of Pollinator Declines: A Synthesis
Authors: Bauer Dana Marie , Wing Ian Sue
Published: September 2016

This paper surveys the literature on pollinator declines and related concerns regarding global food security. Methods for valuing the economic risks associated with pollinator declines are also reviewed. A computable general equilibrium (CGE) approach is introduced to assess the effects of a global catastrophic loss of pollinators. There appears to be evidence supporting a trend towards future pollinator shortages in the United States and other regions of the world. Results from the CGE model show economic risks to both direct crop sectors and indirect noncrop sectors in the economy, with some amount of regional heterogeneity.
Organic Agriculture: An Agrarian or Industrial Revolution?
Authors: Dimitri Carolyn
Published: September 2016

The notion of industrialized agriculture has been a dominant theme in the applied economics literature. More recently, the debate has entered the realm of organic agriculture, with some suggesting that the organic sector has strayed from its agrarian roots. The terms “industrial” and “agrarian” are widely used, yet few have given precise definitions of what the terms mean. This paper puts forth testable hypotheses for agrarian and industrial agriculture. Then, using census data from the 2008 Organic Production Survey, we examine the evidence to assess whether the organic farm sector fits an agrarian or industrial model. Overall the evidence is mixed, yet suggests that the organic sector is less agrarian than expected.
Ensuring a Sustainable, Enduring Agriculture
Authors: Horne James E.
Published: September 2016

During the farm crisis of the 1980s we began to better understand the inherent faults of an industrialized food system. Despite large gains in productivity, efficiency, and economies of size, thousands of farms were in foreclosure. Many farmers were overly extended in debt. Others were in trouble because of a combination of factors such as drought, low crop prices, high input prices, and the lack of competition in the marketplace. The end result was the loss of thousands of farmers and a subsequent decline in many rural communities.

At the same time, a new vision of an enduring agriculture emerged. It was called sustainable agriculture. This new paradigm became attractive because it focused on solutions to the problems of the day. Sustainable agriculture offered hope to farmers that were willing to differentiate their product and add value to it, deal with ecological costs by using sustainable best management practices, and work to create equity in food system employment. Forming new links with consumers is enabling farmers to set their prices, and consumers are willing to pay to know more about their food.
Are Travelers Willing to Pay a Premium to Stay at a “Green” Hotel? Evidence from an Internal Meta-Analysis of Hedonic Price Premia
Authors: Kuminoff Nicolai V. , Zhang Congwen , Rudi Jeta
Published: September 2016

A growing number of hotels provide “green” lodging for travelers with strong environmental preferences. Twelve states have developed certification programs to regulate these claims. After describing the new market for green lodging, we use data on prices and amenities of “green” and “brown” hotels in Virginia to estimate a hedonic model of hotel room pricing. We find that travelers can expect to pay a significant premium for a standard room in a green hotel. An internal meta-analysis is used to evaluate the robustness of this result to subjective econometric modeling decisions. Our results indicate a premium between $9 and $26.
Valuing Rural Recreation Amenities: Hedonic Prices for Vacation Rental Houses at Deep Creek Lake, Maryland
Authors: Nelson Jon P.
Published: September 2016

Hedonic prices are estimated for summer and winter rentals for vacation houses located near a lake and ski-golf resort in rural western Maryland. Regressions for weekly rents are conditioned on house size, quality, and recreation features including lakefront proximity and ski-slope access. Percentage effects and marginal implicit prices indicate that access to recreation is reflected importantly in rental offers. Evaluated at the means, lakefront locations command a premium of $1,100–1,200 per week, and the premium for ski-slope access is $500–600 per week. Unit recreation values are about $18 per person per day for a lakefront location with a private dock and $7 per person per day for a ski-slope location. There are small differences in the unit values for three real estate management agencies. Although there is evidence of spatial correlation in ordinary least squares residuals, estimation of spatial-lag and spatial-error models does not yield substantial changes in the empirical results.
The Revenue Program Option in the 2008 U.S. Farm Bill: Evaluating Performance Characteristics of the ACRE Program
Authors: Zulauf Carl , Orden David
Published: September 2016

Had only a farm program like the new ACRE state revenue program existed instead of the authorized 1996–2008 programs for com, soybeans, and wheat, farm support expenditures would have occurred earlier but totaled less. In contrast, at the higher prices forecast for the three crops over the 2009–2012 crop years, spending per acre is expected to be higher for acres enrolled in the ACRE program than for acres enrolled in the traditional programs. These results reflect the different design features of the two programs: revenue versus price assistance and assistance levels that adjust with lagged market revenue versus fixed nominal support triggers. The design issues and policy questions raised for both domestic policy considerations and WTO compliance are discussed.
Stated Preferences for Intermediate versus Final Ecosystem Services: Disentangling Willingness to Pay for Omitted Outcomes
Authors: Johnston Robert J. , Schultz Eric T. , Segerson Kathleen , Besedin Elena Y. , Ramachandran Mahesh
Published: September 2016

Stated preference scenarios often provide information on intermediate biophysical processes but omit information on the resulting final services that provide utility. This may cause respondents to speculate about the effects of intermediate outcomes on their welfare, leading to biased welfare estimates. This work clarifies distinctions between intermediate and final ecosystem services within stated preference valuation and develops a structural model by which to infer respondents’ speculations when a final ecosystem service is omitted. The model also derives implications for welfare estimates. Methods and results are illustrated using an application of choice experiments to fish restoration in Rhode Island's Pawtuxet watershed.
Tradeoffs among Ecosystem Services, Performance Certainty, and Cost-efficiency in Implementation of the Chesapeake Bay Total Maximum Daily Load
Authors: Wainger Lisa A. , Van Houtven George , Loomis Ross , Messer Jay , Beach Robert , Deerhake Marion
Published: September 2016

The cost-effectiveness of total maximum daily load (TMDL) programs depends heavily on program design. We develop an optimization framework to evaluate design choices for the TMDL for the Potomac River, a Chesapeake Bay sub-basin. Scenario results suggest that policies inhibiting nutrient trading or offsets between point and nonpoint sources increase compliance costs markedly and reduce ecosystem service co-benefits relative to a least-cost solution. Key decision tradeoffs highlighted by the analysis include whether agricultural production should be exchanged for low-cost pollution abatement and other environmental benefits and whether lower compliance costs and higher co-benefits provide adequate compensation for lower certainty of water-quality outcomes.
Travel Cost Models of the Demand for Rock Climbing
Authors: Shaw W. Douglass , Jakus Paul
Published: September 2016

In this paper we estimate the demand for rock climbing and calculate welfare measures for changing access to a number of climbs at a climbing area. In addition to the novel recreation application, we extend the travel cost methodology by combining the double hurdle count data model (DH) with a multinomial logit model of site-choice. The combined model allows us simultaneously to explain the decision to participate and to allocate trips among sites. The application is to climbers who visit one of the premiere rock-climbing areas in the northeastern United States and its important substitute sites. We also estimate a conventional welfare measure, which is the maximum WTP to avoid loss of access to the climbing site.
Estimating the Economic Impact of Telemedicine in a Rural Community
Authors: Whitacre Brian E.
Published: September 2016

One commonly discussed benefit of broadband access in rural America is the potential for telemedicine visits that allow rural residents to take advantage of urbanized medical services. While the primary benefit of telemedicine is often viewed as improved health care access, the availability of these services also offers significant economic contributions to the local community. Site visits to 24 rural hospitals of varying size over a four-state area in the Midwest provide information to develop a methodology for estimating telemedicine's economic impact. Using this technique, telemedicine services contribute between $20,000 and $1.3M annually to these local economies, with an average of $522,000.
Do Supervisors Affect the Valuation of Public Goods?
Authors: Franceschi Dina , Vásquez William F.
Published: September 2016

Systematic supervision procedures have been proposed to improve contingent valuation surveying, particularly in developing countries. Surprisingly, the CV literature does not say much about the potential effects of supervision even though there is evidence of interviewer effects and social desirability issues that can bias results. This paper investigates the effects of interview supervision on the valuation of public services, using split-sample treatments to include a test of scope of a nested good and to assess the effect of interview supervision on reported WTP. Results suggest that supervisors can be used to improve quality with no effect on WTP estimates.
Off-Farm Employment Effects on Adoption of Nutrient Management Practices
Authors: Gedikoglu Haluk , McCann Laura , Artz Georgeanne
Published: September 2016

Off-farm income as a share of total farm household income has been increasing. Previous studies found inconsistent results regarding the impact of off-farm income on adoption of conservation practices. We test the hypothesis that off-farm employment has a positive impact on adoption of capital incentive practices and a negative impact on adoption of labor-intensive practices. The results confirm that adoption of injecting manure into the soil, a capitalintensive practice, is positively and significantly impacted by off-farm employment of the operator. However, off-farm employment variables had no effect on adoption of record keeping.
Factors Influencing the Selection of Precision Farming Information Sources by Cotton Producers
Authors: Jenkins Amanda , Velandia Margarita , Lambert Dayton M. , Roberts Roland K. , Larson James A. , English Burton C. , Martin Steven W.
Published: September 2016

Precision farming information demanded by cotton producers is provided by various suppliers, including consultants, farm input dealerships, University Extension systems, and media sources. Factors associated with the decisions to select among information sources to search for precision farming information are analyzed using a multivariate probit regression accounting for correlation among the different selection decisions. Factors influencing these decisions are age, education, and income. These findings should be valuable to precision farming information providers who may be able to better meet their target clientele needs.
Farmland Preservation and Residential Density: Can Development Rights Markets Affect Land Use?
Authors: McConnell Virginia , Kopits Elizabeth , Walls Margaret
Published: September 2016

This paper examines transferable development rights (TDRs) policies as a way to preserve farmland and change the density of development. Characteristics of TDR markets are described, including why they might promote efficiency, and the difficulties that arise in implementing them. Evidence from an established TDR program in Calvert County, Maryland, is used to assess the potential for TDRs to influence subdivision density, and to achieve local land preservation goals. The Calvert program has succeeded in creating an active and stable TDR market, and has therefore preserved a large amount of farmland in the region. But we find that the demand for additional density permitted with TDRs occurs mostly in rural areas and not in the higher density town centers and residential areas.
Importance of Cost Offsets for Dairy Farms Meeting a Nutrient Application Standard
Authors: Ribaudo Marc , Agapoff Jean
Published: September 2016

The U.S. Environmental Protection Agency requires concentrated animal feeding operations to develop and implement a comprehensive nutrient management plan. Changes in manure management to meet nutrient application standards will generally increase production costs. Some of these costs can be offset by savings from replacing commercial fertilizer with manure nutrients, and through financial assistance programs such as the U.S. Department of Agriculture's Environmental Quality Incentives Program (EQIP). A manure application cost model was used to examine the costs to confined dairy farms of meeting nutrient application standards, and the ability of fertilizer offsets and EQIP to reduce these costs.
Consumer Preferences for Locally Made Specialty Food Products Across Northern New England
Authors: Giraud Kelly L. , Bond Craig A. , Bond Jennifer J.
Published: September 2016

Does willingness to pay a premium for local specialty food products differ between consumers in Maine, New Hampshire, and Vermont? Two food categories are investigated: low-end ($5) and high-end ($20) products. Premia estimates are compared across states and across base prices within states using dichotomous choice contingent valuation methods. Results suggest that the three states of northern New England have many similarities, including comparable price premia for the lower-priced good. However, there is some evidence that the premium for the higher-priced good is greater for the pooled Vermont and Maine treatment than for the New Hampshire treatment. Vermont and New Hampshire residents are willing to pay a higher premium for a $20 than for a $5 food item, while the evidence suggests that Maine residents are not.