We present a model that extends the replacement cost theory to cases where benefits are restored for multiple years. Our theoretical framework derives a functional relationship between investments expenditures and environmental benefits. By extending the investment framework, we model reservoir...

The potential size and distribution of benefits from transgenic tobacco as a source of human serum albumin are estimated using an economic surplus model with imperfect competition. The results demonstrate that new products from bio-pharming applications stand to generate significant social benefits.

As traditional methods of municipal solid waste management (MSWM) become increasingly expensive due to increased regulation, many local governments are considering cooperation as a waste management strategy. A theoretical model is used to specify a partial observability probability model in...

We develop a model of sorting and matching between borrowers and lenders across formal and informal credit markets in a developing country context. We highlight the role of risk both on credit access and sectoral choice. We examine how activity and sectoral choice vary across agents with...

Traditional measures of the benefits of technological change use producer prices. Consumer-oriented measures are more appropriate but they require knowledge of price impacts. They may diverge in the presence of distortions. This paper shows that in general equilibrium they are interrelated...

Drawing upon telephone survey data, a logit probability analysis was conducted to identify household characteristics as well as social and institutional factors associated with backyard composting of yard and food wastes. Highly significant predictors included household gardening, perception of...

APEC's "open regionalism" calls for free-trade in APEC but with benefits also accruing to non-APEC members. This study shows that "open regionalism" provides strong incentives for non-APEC economies to also liberalize their policies to maintain competitiveness. Inclusion of agriculture is...

An economic model illustrating a southern forest landowner's incentive to increase timber harvest in response to the risk of red-cockaded woodpecker colonization and subsequent regulation under the Endangered Species Act is developed. The empirical results show that industrial landownders...

A spatial-econometric hedonic housing price model is estimated for the Seoul metropolitan area to measure the marginal value of improved air quality. Results showed that the spatial lag model fits best for both owner and renter households. Marginal WTP for a 4% improvement in air quality is...

Failure of integrability is shown to cause path-dependence of willingness-to-pay measures of welfare change. Using the linear expenditure system, effects of failure of integrability are negligible (substantial) for estimating income (price) elasticities. For single price changes, Hausman's...