Showing 1 - 5 of 5 Items

Date: 2013-08-01

Creator: Stephen Polasky, David Lewis, Andrew Plantinga, Erik Nelson

Access: Open access

Many ecosystem services are public goods whose provision depends on the spatial pattern of land use. The pattern of land use is often determined by the decisions of multiple private landowners. Increasing the provision of ecosystem services, while beneficial for society as a whole, may be costly to private landowners. A regulator interested in providing incentives to landowners for increased provision of ecosystem services often lacks complete information on landowners’ costs. The combination of spatially-dependent benefits and asymmetric cost information means that the optimal provision of ecosystem services cannot be achieved using standard regulatory or payment for ecosystem services (PES) approaches. Here we show that an auction that pays a landowner for the increased value of ecosystem services generated by the landowner’s actions provides incentives for landowners to truthfully reveal cost information, and allows the regulator to implement the optimal provision of ecosystem services, even in the case with spatially-dependent benefits and asymmetric information.

Date: 2016-09-01

Creator: Erik Nelson, Clare Bates Congdon

Access: Open access

We identify the agricultural inputs that drove the growth in global and regional crop yields from 1975 to the mid-2000s. We find that improvements in agricultural technology, increased fertilizer use, and changes in crop mix around the world explained most of the gain in global crop yields, although impacts varied across the latitude gradient. Climate change over this time period caused yields to be only slightly lower than they would have been otherwise. In some cases cropland extensification had as much of a negative impact on global and regional yields as climate change. To maintain the momentum in yield growth across the globe 1) use of agricultural chemicals and investment in agricultural technology in the tropics must increase rapidly and 2) international trade in agricultural products must expand significantly.

Date: 2016-05-01

Creator: John L Anderson

Access: Open access

This study specifies the types of consumers that participate in the U.S. organic market and investigates their revealed preferences. I propose three theoretical consumer types – indifferent consumers, informed organic food lovers, and uninformed organic food lovers – and conduct cross-sectional and time-trend analyses utilizing organic fruit purchase data compiled by The Neilsen Company. The cross-sectional analysis is estimated with a two-stage Heckman selection model, while the time-trend analysis uses simple descriptive statistics and a differenced OLS regression technique. Households are most likely to participate in the organic fruit market if they have a well-educated white or Asian head, are located in a metropolitan area on the West coast, have higher income, have young children, are married, and are making decisions in the spring, summer, or fall. However, households are estimated to purchase more organic fruit, conditional on participating, if they live in a rural area in regions other than the West coast. Having a higher income, being married, having a child less than six years old, being college-educated, and living in a metropolitan area on the West coast are all associated with more dedication to the organic fruit market over time. Households who increased their organic expenditures from 2011 to 2012 likely lived in metropolitan areas on the West coast. Average per-household contribution to the nationwide increase in organic fruit expenditures from 2011 to 2012 on the extensive and intensive margins is estimated to have been about $7 and $14, respectively. I posit relationships between empirical results and the theoretical consumer types.

Date: 2014-10-01

Creator: Erik Nelson, John C. Withey, Derric Pennington, Joshua J. Lawler

Access: Open access

We determine the effect of the US Endangered Species Act’s Critical Habitat designation on land use change from 1992 to 2011. We find that the rate of change in developed land (constructed material) and agricultural land is not significantly affected by Critical Habitat designation. Therefore, Sections 7 and 9 of the Endangered Species Act do not appear to be more heavily applied in lands designated as Critical Habitat areas versus lands within listed species’ ranges, but without critical habitat designation. Further, there does not appear to be any extraordinary conservation activity in critical habitat areas; for example, environmental non-profits and land trusts do not appear to be concentrating activity in these areas. Before we conclude that the opportunity cost of Critical Habitat designation is negligible we need to examine the land management impacts of designation.

Date: 2017-08-31

Creator: Erik Nelson, John M Fitzgerald, Nathan Tefft, John L. Anderson

Access: Open access

We estimate US household monthly elasticities of demand for some of the more popular organic fruits. To our knowledge, this is the first US-wide, multi-year analysis of price and income elasticities for various organic fruits. We calculate elasticities of demand for low-income, middle class, and rich income bracket households using three estimation techniques: two econometric methods and one machine learning method (least absolute shrinkage and selection operator (LASSO)). Demand estimates are based on Nielsen scanner data from approximately 60,000 households collected from 2011 to 2013. Generally, we find that own-price conditional and unconditional elasticities of demand for organic fruits are negative. Unconditional elasticity magnitudes tend to be largest in the representative middle-class household. Income elasticities of demand measurements are inconsistent and often statistically insignificant. This finding is consistent with the survey literature finding that many consumers buy organic food for mostly moral or ethical reasons. We run two policy experiments: a 10% subsidy of organic fruits, and a 10% tax on conventional fruits. Our hypothetical policies engender a stronger reaction among the general public than habitual buyers of organic fruit; unconditional purchase and expenditure elasticities are generally larger than conditional purchase and expenditure elasticities. Finally, we find that elasticities measured with the LASSO technique are not radically different than those measured with econometric methods. The most noticeable difference between the two analytical techniques is that LASSO is more likely to find price and income elasticities of demand that indistinguishable from zero, both substantively and statistically.