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Articles 1 - 8 of 8
Full-Text Articles in Other Economics
A Laboratory Investigation Of Compliance Behavior Under Tradable Emissions Rights: Implications For Targeted Enforcement, James J. Murphy, John Stranlund
A Laboratory Investigation Of Compliance Behavior Under Tradable Emissions Rights: Implications For Targeted Enforcement, James J. Murphy, John Stranlund
PERI Working Papers
This paper uses laboratory experiments to test the theoretical observations that both the violations of competitive risk-neutral firms and the marginal effectiveness of increased enforcement across firms are independent of differences in their abatement costs and their initial allocations of permits. This conclusion has important implications for enforcing emissions trading programs because it suggests that regulators have no justification for targeting their enforcement effort based on firm-level characteristics. Consistent with the theory, we find that subjects’ violations were independent of parametric differences in their abatement costs. However, those subjects that were predicted to buy permits tended to have higher violation …
What Motivates Common Pool Resource Users? Experimental Evidence From The Field, Maria Alejandra Vélez, John K. Stranlund, James J. Murphy
What Motivates Common Pool Resource Users? Experimental Evidence From The Field, Maria Alejandra Vélez, John K. Stranlund, James J. Murphy
PERI Working Papers
This paper develops and tests several models of pure Nash strategies of individuals who extract from a common pool resource when they are motivated by a combination of self-interest and other motivations such as altruism, reciprocity, inequity aversion and conformism. We test whether an econometric summary of subjects’ strategies is consistent with one of these motivations using data from a series of common pool resource experiments conducted in three regions of Colombia. As expected, average extraction levels are less than that predicted by a model of pure self-interest, but are nevertheless sub-optimal. Moreover, we find that a model of conformism …
Landowner Driven Sustainable Forest Management And Value-Added Processing, David T. Damery
Landowner Driven Sustainable Forest Management And Value-Added Processing, David T. Damery
PERI Working Papers
The Massachusetts Woodlands Cooperative, LLC (MWC) is working to help members conduct sustainable forestry of the highest standards while increasing financial returns from harvest activities. The forests of Massachusetts, the 3rd most densely populated of the United States, are threatened. Decades of high grading and the threat of conversion to alternative use present challenges for maintaining a forested landscape. Despite being 60% forested Massachusetts imports approximately 98% of the wood fiber that its citizens consume. MWC is a forest management, processing and marketing cooperative organized by and on behalf of forest landowners in western Massachusetts. The cooperative was envisioned in …
Heterogeneity And Common Pool Resources: Collective Management Of Forests In Himachal Pradesh, India, Sirisha C. Naidu
Heterogeneity And Common Pool Resources: Collective Management Of Forests In Himachal Pradesh, India, Sirisha C. Naidu
PERI Working Papers
In the past two decades, theoretical and empirical evidence suggests that communities of resource users are capable of overcoming social dilemmas, and are capable of creating and sustaining institutions designed to prevent degradation of common pool natural resources. However, there is incomplete understanding of what motivates this group-level behavior and why some communities are better adept at solving collective action problems than others. This paper specifically explores the role of group heterogeneity in collective action among forest communities in the northwestern Himalayas. Heterogeneity can have important social and ecological consequences and understanding both its nature and effects can help in …
An Investigation Of Voluntary Discovery And Disclosure Of Environmental Violations Using Laboratory Experiments, James J. Murphy, John K. Stranlund
An Investigation Of Voluntary Discovery And Disclosure Of Environmental Violations Using Laboratory Experiments, James J. Murphy, John K. Stranlund
PERI Working Papers
This paper uses laboratory experiments to test individual responses to policies that seek to encourage firms to voluntarily discover and disclose violations of environmental standards. We find that while it is possible to motivate a significant number of voluntary disclosures without adversely affecting environmental quality, this result is sensitive to both the fine for disclosed violations and the assumption that firms know their compliance status without cost. When firms have to expend resources to determine their compliance status, motivating a significant number of violation disclosures yields worse environmental quality. Finally, relative to conventional enforcement, disclosure polices will result in more …
Interaction Between Food Attributes In Markets: The Case Of Environmental Labeling, Gilles Grolleau, Julie A. Caswell
Interaction Between Food Attributes In Markets: The Case Of Environmental Labeling, Gilles Grolleau, Julie A. Caswell
PERI Working Papers
Some consumers derive utility from using products produced with specific processes, such as environmentally friendly practices. Means of verifying these credence attributes, such as certification, are necessary for the market to function effectively. A substitute or complementary solution may exist when consumers perceive a relationship between a process attribute and other verifiable product attributes. We present a model where the level of search and experience attributes influences the likelihood of production of eco-friendly products. Our results suggest that the market success of ecofriendly food products requires a mix of environmental and other verifiable attributes that together signal credibility.
Inspections To Avert Terrorism: Robustness Under Severe Uncertainty, L. Joe Moffitt, John K. Stranlund, Barry C. Field
Inspections To Avert Terrorism: Robustness Under Severe Uncertainty, L. Joe Moffitt, John K. Stranlund, Barry C. Field
PERI Working Papers
Protecting against terrorist attacks requires making decisions in a world in which attack probabilities are largely unknown. The potential for very large losses encourages a conservative perspective, in particular toward decisions that are robust. But robustness, in the sense of assurance against extreme outcomes, ordinarily is not the only desideratum in uncertain environments. We adopt Yakov Ben-Haim’s (2001b) model of information gap decision making to investigate the problem of inspecting a number of similar targets when one of the targets may be attacked, but with unknown probability. We apply this to a problem of inspecting a sample of incoming shipping …
Market Power In Direct Marketing Of Fresh Produce: Community Supported Agriculture Farms, Daniel A. Lass, Nathalie Lavoie, T. Robert Fetter
Market Power In Direct Marketing Of Fresh Produce: Community Supported Agriculture Farms, Daniel A. Lass, Nathalie Lavoie, T. Robert Fetter
PERI Working Papers
CSA farms establish a loyal customer base and, potentially, market power. A new empirical industrial organization (NEIO) approach and survey data from Northeast CSA farms are used to determine whether CSA farms have market power and the extent to which they exercise their market power. Results suggest CSA farms exert about two percent of their potential monopoly power.