Discounting and relative prices

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Environmentalists are often upset at the effect of discounting costs of future environmental damage, e.g., due to climate change. An often-overlooked message is that we should discount costs but also take into account the increase in the relative price of the ecosystem service endangered.

Climate Change

Consumer willingness to pay for farm animal welfare - transportation of farm animals to slaughter versus the use of mobile abattoirs

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This study employed a choice experiment (CE) to ascertain consumer preferences and willingness to pay (WTP) for non-market food product quality attributes. Data were obtained from a large mail survey and estimated with a random parameter logit model.

Experiments

A net back valuation of irrigation water in the Hardap region in Namibia

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Namibia is currently in the process of phasing out water subsidies in its government-sponsored irrigation schemes. However, the financial effects on the affected farmers are frequently unclear, and so are the economic effects on society as a whole.

The net back method provides a framework for estimating rough values of irrigation water in situations such as those in Namibian agriculture, where farmers face a number of constraints which are difficult to model explicitly due to the dearth of reliable data.

Agriculture

An even Sterner Review, Introducing Relative Prices into the Discounting Debate

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The Stern Review (2006) has come to symbolize something of a dividing line in the evolution of the common appreciation of the climate problem. It is fair to say that during the last decade there has been a gradual but uneven increase in the perceived gravity of anthropogenic climate change, both among scientists and, with some time lag, the general public.

Climate Change

Indicators for an invasive species: Water Hyacinths in Lake Victoria

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The purpose of this paper is to create and discuss a measure of water hyacinth abundance in Lake Victoria. Water hyacinths have dramatic effects on other activities such as fisheries. However, understanding their spread and effects is hampered by the lack of reliable information.

Biodiversity

Have Countries with Lax Environmental Regulations a Comparative Advantage in Polluting Industries?

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We aim to study whether lax environmental regulations induce comparative advantages, causing the least-regulated countries to specialize in polluting industries.

Policy Design

Unobserved Diversity, Depletion and Irreversibility: The Importance of Subpopulations for Manangement of Cod Stocks

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EfD Authors:

Diversity is often associated with resilience but in this model, unobserved genetic or behavioral diversity can explain the collapse of supposedly regulated fish stocks such as cod. Recent studies have shown the existence of separate sub stocks of cod even at a very fine geographical scale.

Fisheries