This paper builds a model determining optimal capacities of diversion dams or water transfer projects. The model incorporates stochastic inflows to the dams and the role of the dam capacity in reducing overflows, and gives a closed-form expression of the marginal benefit of capacities....

This paper examines the impact of transgenic technology adoption on varietal diversity. Transgenic pest-resistant varieties are hypothesized to reduce farmers’ demand for on-farm diversity through an act of substitution, as both serve as production risk reducing instruments. This adverse...

Current day large animal facilities generate more manure than they need on their own feed production areas. Excessive nutrient applications deteriorate groundwater (nitrogen) and surface water quality (nitrogen and/or phosphorus). Due to differences in environmental and economic characteristics,...

We develop a model of regulation of environmental risks in a heterogeneousindustry when policy makers are sensitive to uncertainties about the processes generating the risks. Optimal source reduction capacity is shown to vary according to site suitability. Optimal source reduction capacity and...

Both the goal of energy independence and the desire to lower greenhouse gas emission have triggered the search for alternate energy sources. For second generation biofuel production, a key question is which form of industrial organization should be adopted in order to stimulate stable feedstock...

The cost-effectiveness of alternative green payment policies designed to achieve a targeted level of abatement by heterogeneous microunits is analyzed. Abatement costs and implications for production and government payments are compared using a simulation model for controlling drainage from...

The objective of this research is to determine the contribution of recent agricultural policy reforms in the E.U. on the use of crop protection products. Specifically, we concentrate on the 1992 CAP reforms. Our theoretical model adopts the multi-output generalization of the...