Monetary contributions might not be an appropriate welfare measure in Contingent Valuation (CV) when household incomes are very low. In such cases, willingness to pay (WTP) is restricted by household's ability to reduce the consumption of other goods in order to pay for the environmental good under valuation. Beneficiaries, however, may be willing to contribute their time to work on the project instead of paying money.
Municipal water managers confront the challenge of anticipating when available water supplies may be insufficient to meet water demands and thus implement conservation policies, often in the form of drought plans. Drought plans are typically based on command-and-control (CAC) approaches like rationing and use restrictions, and are formulated to meet specific measures of performance. It is perceived that if customers are made aware of the required level of demand curtailment, and if the anticipated levels are achieved, no further service reductions will occur.
The effect of social capital on the economic performance of artisanal fishermen organizations that work under a Territorial Use Rights in Fisheries (TURF) system was tested using the social networks approach. The application was based on a sample of artisanal fishers organizations that extract the locally named “loco” (Concholepas concholepas) in Central-Southern Chile. Social networks were measured through organizations’ structural properties and their bonding, linking, and bridging relationships. Economic performance was measured through per capita income.
Estudiamos, a través de un experimento económico de campo contextualizado, los efectos de cambios exógenos en los niveles de abundancia de un recurso natural renovable en las decisiones de cumplimiento individual de usuarios operando bajo un régimen de propiedad común y un sistema de derechos de uso territorial pesqueros (DUTPs), que considera cuotas de extracción y fiscalización externa para detectar y sancionar transgresiones.
We study the design of an economic incentive based program – a subsidy – to induce adoption of more efficient technology in a pollution reduction program in southern Chile. Stated preferences methods, contingent valuation (CV), and choice experiment (CE) are used to estimate the probability of adoption and the willingness to share the cost of a new technology by a household. The cost-effectiveness property of different subsidy schemes is explored numerically for different regulatory objectives.
We analyze the performance of the Federal Industrial Inspection Program operated by the Federal Attorney for Environmental Protection (PROFEPA) in Mexico City. We seek to answer three questions: What drives the inspections? What determines non-compliance? And what drives imposition of fines?
The project has the goal of providing more comprehensive and reliable information to climate scientists and politicians who must make decisions about climate actions. It will rely on collecting existing knowledge from databases and will generate new knowledge where gaps are identified.
Implementation and management of an ITQ fishery involves significant and costly administrative activities. These activities include formulating and implementing policy rules, monitoring and enforcement to deter illegal behavior, and economic and marine research. In this article we construct a model of a competitive ITQ system to analyze how the distribution of administrative costs between the public and a fishing industry can affect the equilibrium in the quota market, including equilibrium level of administrative costs, and derive results about the optimal distribution of these costs.
The general objective is to estimate, from an interdisciplinary perspective, the economic and social impact of changes in water availability due to climate change. This objective involves quantifying the relationship between changes in water availability due to climate change, and population growth, land use changes, carbon sequestration and other social and environmental stressors that affect the quality of life of people relaying on water provision in a geographical region.
All environmental policies involve costs of implementation and management that are distinct from pollution sources’ abatement costs. In practice, regulators and sources usually share these administrative costs. We examine theoretically an optimal policy consisting of an emissions tax and the distribution of administrative costs between the government and regulated sources of pollution. Our focus is on the optimal distribution of administrative costs between polluters and the government and the optimal level of the emissions tax in relation to marginal pollution damage.
We study the effect of a household subsidy to induce the adoption of more efficient and less polluting wood combustion technologies. We compare, through numerical simulations, several subsidy designs with respect to the impact on aggregate emissions, costs, and cost-effectiveness indicators. Two variables that turn out to be important for the performance of a subsidy program are the remaining time that an existing equipment can be used and the access of the households to credit to fund the co-payment of the equipment.
El Departamento de Análisis Sectorial (DAS) de la Subsecretaría de Pesca, Gobierno de Chile, licitó un estudio con el propósito de evaluar, desde un punto de vista socioeconómico, los efectos de la aplicación de medidas de administración sobre la pesquería de peces pequeños pelágicos de la Zona Centro – Sur. Este proyecto fue adjudicado por la Universidad de Concepción.
In this paper we tested if social networks at the origin, measured by religious affiliation, can affect the out-migration decision. For this purpose, we estimated a conditional logit model and a mixed logit model for the decision to migrate to one of 13 destinations, or to stay at the original location. In general, the results were as expected, given theoretical considerations, and were robust to model specification and estimation procedures. Moreover, the results support the hypothesis that religious attachment affects migration decisions.
Illegal hunting is a threat to wildlife conservation. The motivations for poaching and its possible effects are variable and have not been extensively studied. Applying an economic theoretical-conceptual frame, we analyze the different factors that may determine illegal hunting and discuss some policy implications.
In this study, we analyse effort optimisation in common rights-based joint-stock artisanal fisheries when several objectives are pursued by the authorities and the fleets are heterogeneous. The purpose is to discuss policy options available to the authorities and their implications in terms of trade-offs between goals. We apply a multi-objective programming model to the sardine and anchovy artisanal fisheries in central southern Chile. The results suggest that the regulatory system generates inefficient solutions for profit and employment maximisation goals.
We estimated a hazard function for the duration of micro-enterprises after they had been subject to a public seed financing programme in southern Chile.
We propose a new approach for estimating a “hybrid” New Keynesian Phillips Curve (NKPC) that includes demand pressures coming from disequilibrium relations in three different markets: (1) monetary and financial, (2) international, and (3) labour. Econometric tests indicate that this specification is superior to the traditional NKPC, which includes a single variable to account for demand pressures.
Objectives: We use a contingent valuation (CV) study of childhood asthma to discuss a central issue in designing CV studies of chronic illness—the need for a detailed, realistic scenario that minimizes confounding factors—and show how to address this issue. We apply our methodology to estimate households’ willingness to pay (WTP) for reductions in asthma morbidity.
Investment in natural capital restoration is rapidly increasing as a response to the widespread ecological degradation of dryland areas in Latin America. Nonetheless, few attempts have been made to evaluate the costs and benefits of restoration initiatives in dryland ecosystems. By combining ecological and economic information, we assessed the benefits and costs of restoring ecosystem services in a dryland forest landscape in the Colliguay Valley, in central Chile. An active restoration program was evaluated by comparing its benefits and costs over a twenty five-year period.
We study the cost effectiveness property of different control strategies for improving environmental quality. Our prospective analysis considers the application of Transferable Emissions Permit System (TEPS), Transferable Ambient Permit System (TAPS) and Standards (STD) applied on fix sources in Bogota-Colombia. A numerical simulation model allowed us to obtain costs of each regulatory system, which were compared with associated urban environmental quality. The results show that the most cost effective regulation for any environmental quality goal is TEPS, followed by TAPS and finally STD.
This paper presents a contingent valuation study concerning landscape impact generated by the construction of one dam (Baker 1) of the HIDROAYSEN hydropower project located in the Chilean Patagonia. A survey was used to collect information about citizens' opinion towards the hydropower project in four major cities in Chile. Specifically, a One-and-One-Half-bound (OOHB) willingness to pay eliciting format was applied to capture citizens’ WTP.
Climate change will affect the supply of many resources that households consume, including electricity, and natural gas. Although price is considered an effective tool for controlling demand for many resources that households consume, including electricity and natural gas, its impact is poorly understood. Part of the problem is that demand is confounded by block pricing and the interrelated consumption of electricity and natural gas, which prevent easy estimation of price impacts.
We study the cost-effectiveness of inducing compliance in a program that caps aggregate emissions of a given pollutant from a set of heterogeneous firms based on emissions standards and the relative cost-effectiveness of such a program with respect to an optimally designed program based on tradable discharge permits. Our analysis considers abatement, monitoring and sanctioning costs, as well as perfect and imperfect information on the part of the regulator with regard to the polluters’ abatement costs.
We examine the control of air pollution caused by households burning wood for heating and cooking in the developing world. Since the problem is one of controlling emissions from nonpoint sources, regulations are likely to be directed at household choices of wood consumption and combustion technologies. Moreover, these choices are subtractions from, or contributions to, the pure public good of air quality. Consequently, the efficient policy design is not independent of the distribution of household income.
CINTERA is designed to improve knowledge of ecosystem response to eutrophication and management of eutrophication in different marine fjord ecosystems and zones in Norway and Chile. The outcome of the field studies will be the determination of the most pronounced chemical and bioindicators of eutrophication in different conditions; this knowledge will give us the ability to improve monitoring activities in the future for early detection and management of the eutrophication problem.
We estimate the implicit prices of crime rates and airborne pollution in Chile, using spatially compensating price differentials in the housing and labor markets. We evaluate empirically the impact of different estimation strategies for the wage and rent equations, on the economic value of these two amenities. The results show that increments in the crime rate or air pollution have a negative impact on welfare and that the estimated welfare measures and their variance are sensitive to selection bias, endogenous amenities, and clustering effects.
This paper examines the effect of the 2010 earthquake on the labour market in the Bío Bío region in Chile and suggests various public policies that could be considered for the future that would better equip the country for dealing with emergency situations in the areas of social and labour policy. The before the earthquake, the labour market of the Bío Bío region was underperforming compared to the rest of the country. The data gathered immediately after the earthquake show that its main form of adjustment to the crisis was the retreat of workers into inactivity.
We evaluate the factors that influence the reported level of pollution and those referred to the compliance with the payment of discharge fees from sources regulated under the Colombia’s Discharge Fee Program. The analysis uses a data set that contains information at plant level and considers individual sources operating under the jurisdiction of the Regional Autonomous Corporation of the Chivor (Corpochivor), for period 2001-2006.
In this article, we assess the effect that two different fishery management regimes have on the duration of the fishing trip. A basic theoretical model predicts that trip duration should increase with temporal closures and decrease with an individual quota system. Therefore, we propose and apply an empirical trip duration model.
Although failures and successes in fisheries management are related to decision making processes, these are rarely analyzed in detail and even less often following quantitative or semi-quantitative approaches. Herein, we study the decision making process for Chile's most important fisheries using a binary decision model. This model evaluates the probability that an annual total allowable catch (TAC) will or will not be modified by the National Fisheries Council (NFC) based on biological, economic, and social factors.
We estimate the technical efficiency gains of introducing individual quotas (IQs) in fisheries. Our estimates are based on two samples of vessels, considering a potential self-selection bias and controlling for quality changes in landings induced by the IQ system.
We study the economic performance of Benthic Resource Management Areas (BRMAs) in central-southern Chile. The analysis considers 26 managed areas with Agreements of Use declaring Chilean abalone (Concholepas concholepas) to be the main exploited benthic resource from 2001 to 2003.
In contrast with what we perceive is the conventional wisdom about setting a second-best emissions tax to control a uniformly mixed pollutant under uncertainty, we demonstrate that setting a uniform tax equal to expected marginal damage is not generally efficient under incomplete information about firms’ abatement costs and damages from pollution.
Implementation and management of an ITQ fishery involves significant and costly administrative activities. These activities include formulating and implementing policy rules, monitoring and enforcement to deter illegal behavior, and economic and marine research. In this project we construct a model of a competitive ITQ system to analyze how the distribution of administrative costs between the public and a fishing industry can affect the equilibrium in the quota market, including equilibrium level of administrative costs, and derive results about the optimal distribution of these
A task team of international and local fisheries experts, including an EfD researcher, recently assisted the Chilean government with an extensive review of a new fisheries law, in a bid to help the administration address public concerns that an important amendment to this law was tainted with corruption.
Air pollution caused by wood-burning in homes for cooking and heating purposes is one of the most important environmental problems in Chile, affecting thousands of families and causing early mortality. EfD Chile researchers study families’ and producers’ economic behavior, and advise the government to incorporate effective economic incentives to design better pollution control policies.
“We make the connection between the fishers’ living conditions and the fish stock’s status.” The newest EfD Center is not a newcomer to influencing fisheries policy. The Research Nucleus on Environmental and Natural Resource Economics at the Universidad de Concepcion has been active for several years in bringing an economics perspective into fisheries management in Chile.