Significant difference between response to real and hypothetical valuation questions is often referred to as hypothetical bias. Some economists have had success with using "cheap talk" (which entails reading a script that explicitly highlights the hypothetical bias problem before participants...

Every year, federal, state, and local governments in the U. S. spend tens of billions of dollars to build and maintain roads, enforce traffic laws, put out motor-vehicle fires, lock up motor-vehicle criminals, control motor-vehicle pollution, research new motor fuels and motor-vehicle...

Various studies (e.g. Becker, 1962; Ariely et al., 2003) have noted anomalies concerning the relationship between observed demand and the preferences presumed to motivate it. We re-examine these findings using experimental choice data. After separating our subjects' choices into rational and...

The detrimental effects of ambient ozone on crops, even at relatively low concentrations, are well-established (Thompson et al., 1976; Heck and Brandt, 1977; Heck et al., 1982; Environmental Protection Agency, 1984; California Air Resources Board, 1987; Olszyk et al., 1988a, 1988b; Heagle et al., 1986; McCool et al., 1986,...

Particles and gases in the atmosphere scatter and absorb light, and thereby reduce visibility (Watson and Chow, 1994; Richards et al., 1990; Ozkaynak et al., 1985). Although natural sources of particles, such as volcanoes, can significantly degrade visibility, it generally is true that “when...

There has been considerable discussion about the extent to which motor-vehicle use in the US is “subsidized,†making petroleum-based motor vehicle use more attractive than other transportation modes. Estimates of these subsidies vary widely, and in many cases can be criticized on...

In this Report, we seek to answer the question: “If the U.S. highway transportation sector did not use oil, how much would the U.S. Federal government reduce its military commitment in the Persian Gulf?†The analysis goes in four parts. First, we explain that the U.S. protects its...

Over the past five years, analysts and policy makers have become increasingly interested in the full social cost of motor-vehicle use. Researchers have performed social-cost analyses for a variety reasons, and have used them in a variety of ways, to support a wide range of policy positions. Some...

The U.S. spends a considerable amount of money protecting what it feels are its interests in the Persian Gulf. The exact amount is difficult to estimate, because the Defense budget is itemized not by region or mission, but rather, as shown in Table 15-4, by general function or cost area, such as...

Abstract Air pollution from motor vehicles, electricity-generating plants, industry, and other sources can harm human health, injure crops and forests, damage building materials, and impair visibility. Economists sometimes analyze the social cost of these impacts, in order to illuminate...