The economics of climate change

This paper focuses on several key economic issues relevant to climate change. Given the fact that changes in climate are projections using the best available data, it examines the economic principles of uncertainty and the precautionary approach, and then continues to address the key drivers of climate change. Climate change is expected to result in negative impacts and, in this regard, the consequences of anticipated rising temperatures and sea levels as well as changes in precipitation that may result in flooding and/or drought are addressed. However, the situation is not all negative and, as such, the opportunities that are likely to arise through adaptation and mitigation are discussed especially with respect to the Caribbean. In this regard and recognizing that it would be useful to Caribbean policymakers to utilize these opportunities and to address the negative impacts, the Economic Commission for Latin America and the Caribbean (ECLAC), through its subregional headquarters for the Caribbean, is spearheading a review of the economics of climate change in the Caribbean with a view to providing quantitative information to stakeholders in dealing with climate change. The paper makes recommendations for the Caribbean to address climate change at the national level. These include macroplanning; promotion of energy efficiency; creation of incentives to obtain support for implementation of alternative energy technologies; maintaining the will among stakeholders on a sustained basis for addressing climate change; and the conduct of relevant research into varieties of plants and animals that could adapt to changing climatic conditions. Finally, it must be recognized that to successfully combat climate change, the threats and opportunities must be properly assessed as part of an ongoing region-wide system of risk management, which should not be incidental, but integral, to national and regional planning and forecasting for the future.

Agricultural transformation and Gender considerations in Caribbean Economics

The aim of this paper is to provide an overview of the gender and social disparities existing in the agricultural and rural sector in Caribbean economies. In this context, agricultural transformation as occasioned by the dismantling of preferential trading arrangements is analysed to identify the most relevant gender discriminatory measures in the current agricultural development policy and programmes. The analysis seeks to provide the basis for enhancing understanding among policy makers, planners and rural development practitioners of the gender and social dimension involved in the formulation of agricultural policy and more specifically in relation to the new policy and institutional arrangements for agriculture in the region. The paper also provides insights regarding what changes should take place to create an enabling environment for more gender-based approaches to policy-making and strategic planning in agricultural development and trade in the Caribbean. The methodology centred on the review of secondary sources that provide references on the new challenges, opportunities and constraints faced by the agricultural sector, in particular small farmers, in the context of globalization and agriculture transformation. Much of the literature for this assignment was obtained from FAO Headquarters in Rome and the FAO Subregional Office in Barbados, as well as the OECS Secretariat in St. Lucia. In the process of the review exercise, due consideration was given to changes in agricultural production patterns, resources allocation and rural livelihoods. Efforts to examine the most relevant policy measures and mechanisms in-place in support to agricultural development in the region were constrained, in the main, by the absence of gender disaggregated data. Documentation as regards the situation of women and men in relation to agricultural labour, rural income and food security situation in regions were limited. The use of the internet served to bridge the communication gap between countries and institutions. The preliminary draft of the paper was presented and discussed at the FAO/ECLAC/UNIFEM regional workshop on mainstreaming gender analysis in agriculture and trade policies, for Caribbean countries, in November 2003. The second draft of the paper was informed by comments from the workshop and additional information acquired through field visits to Barbados, St. Kitts and St. Vincent in March 2004. The three day visits to each of these three countries entailed a review/appreciation of the resource, constraints and institutional capacities for gender mainstreaming within the agricultural sector at the national level. This included visits to some of the major agricultural projects and interviews with farmers (where feasible) in respect of their perspective of the current situation of the agricultural sector and the viability of their farm enterprises. As well, meetings were held with relevant/available officials within the respective ministries of agriculture to discern the gender consideration as regards agricultural policy and planning at the country level. The internet was invaluable to the task of sourcing supplementary information to satisfy the aim of the paper; in respect of the identification of concrete policy measures and actions to formulate and develop more gender/social-responsive agricultural development policies. The final revision, though thwart with resource and communication constraints, was ultimately completed in compliance with the structure and approach proposed in the terms of references for this FAO/ECLAC assignment.

The Economics of Climate Change in Central America: Summary 2012

This report was published with the goal of discussing, disseminating and using the results of this initiative in the formulation of national and regional strategies and have been presented at national and regional events with civil servants, representatives of non-governmental organizations, trade unions, the private sector, universities and research centers. The results have served as inputs in the training of national committees on climate change and negotiating teams, as well as in the preparation of the Regional Climate Change Strategy, several international financing projects and various national policies. The results have been presented in coordination with the Ministries of Environment at the last three Conferences of the Parties of the United Nations Framework Convention on Climate Change.

South Carolina Home Economics Association Records - Accession 22

This collection is a valuable source on home economics history in South Carolina during the twentieth century. While there is information on the SCHEA from its beginning in 1914 to 1980, the actual records do not start until 1920. An outline of what the South Carolina Home Economics Association was doing from 1914 to 1920, is provided in the “historical file” (see Box 1, folders 1 to 4). The inclusive dates for a particular series may vary and, for most series, the records are incomplete. The collection contains all the records normally created by an organization, including constitutions, correspondence, minutes, reports, handbooks, etc. A wide variety of research topics could be developed from the records, including the SCHEA’s impact on the legislative process in South Carolina (e.g. the passage of the bill for the enrichment of cornmeal and grits in 1943), its cooperation and relationship with relief agencies in the state and its role in improving child health during the 1930s.

The Economics of Managing Wildlife Disease

The spread of infectious disease among and between wild and domesticated animals has become a major problem worldwide. Upon analyzing the dynamics of wildlife growth and infection when the diseased animals cannot be identified separately from healthy wildlife prior to the kill, we find that harvest-based strategies alone have no impact on disease transmission. Other controls that directly influence disease transmission and/or mortality are required. Next, we analyze the socially optimal management of infectious wildlife. The model is applied to the problem of bovine tuberculosis among Michigan white-tailed deer, with non-selective harvests and supplemental feeding being the control variables. Using a two-state linear control model, we find a two-dimensional singular path is optimal (as opposed to a more conventional bang-bang solution) as part of a cycle that results in the disease remaining endemic in the wildlife. This result follows from non-selective harvesting and intermittent wildlife productivity gains from supplemental feeding.

Essays on Industrial Organization and Environmental Economics

This dissertation studies environmental regulation issues in the hog production industry as well as forces behind the reorganization of the industry during the past two decades. Federal and State-level environmental regulations imposed on U.S. hog production during the year 2003 are examined in Chapter 1. Based on the number of regulations passed by the Federal government and states, the 2003 regulatory index is constructed. The regulatory stringency index suggests that state-level regulations vary across states and have increased over the years. In addition, state-level regulations are more stringent than federal regulations. Chapter 2 develops an empirically implementable theoretical model which allows us to investigate the long-run effects of environmental regulations on the U.S. hog industry. Hog feeding operations (HFOs) are divided into large feeding operations (LHFOs) and small feeding operations (SHFOs). The impact of the presence of a large number of LHFOs on the entry and exit of CHFOs is also examined. Results of this study suggest that: Increased state-level regulation stringency significantly lowers the output of SHFOs; increased state-level regulation stringency significantly lowers the output of LHFOs; increased state-level regulation stringency significantly lowers the number of SHFOs; SHFO output rises significantly in states that have a greater number of LHFOs; LHFO output rises significantly in states that have a greater number of LHFOs; the number of SHFOs significantly increases in states that have a greater numbers of LHFOs; regulation increases the average SHFO size; and regulation decreases the average LHFO size. Chapter 3 examines the importance of input availability, market attractiveness, agglomeration economies and environmental regulations on the reorganization of U.S. hog production for a panel of 22 U.S. hog producing states which include, Northern states, Southern states and Midwest states for the period 1994-2006. Results from this study suggest that: Hog production in a state is positively affected by hog production in a nearby state, confirming the presence of agglomeration economies; Environmental regulations and high corn price have negative effects on state-level U.S. hog production; High hog prices, and favorable labor cost, and land values attract hog production; and transportation cost has no effect on hog production. Advisors: Azzeddine Azzam and Karina Schoengold

The Economics of Threatened Species Conservation: A Review and Analysis

Stabilizing human population size and reducing human-caused impacts on the environment are keys to conserving threatened species (TS). Earth's human population is ~ 7 billion and increasing by ~ 76 million per year. This equates to a human birth-death ratio of 2.35 annually. The 2007 Red List prepared by the International Union for Conservation of Nature and Natural Resources (IUCN) categorized 16,306 species of vertebrates, invertebrates, plants, and other organisms (e.g., lichens, algae) as TS. This is ~ 1 percent of the 1,589,161 species described by IUCN or ~ 0.0033 percent of the believed 5,000,000 total species. Of the IUCN’s described species, vertebrates comprised relatively the most TS listings within respective taxonomic categories (5,742 of 59,811), while invertebrates (2,108 of 1,203,175), plants (8,447 of 297,326), and other species (9 of 28,849) accounted for minor class percentages. Conservation economics comprises microeconomic and macroeconomic principles involving interactions among ecological, environmental, and natural resource economics. A sustainable-growth (steady-state) economy has been posited as instrumental to preserving biological diversity and slowing extinctions in the wild, but few nations endorse this approach. Expanding growth principles characterize most nations' economic policies. To date, statutory fine, captive breeding cost, contingent valuation analysis, hedonic pricing, and travel cost methods are used to value TS in economic research and models. Improved valuation methods of TS are needed for benefit-cost analysis (BCA) of conservation plans. This Chapter provides a review and analysis of: (1) the IUCN status of species, (2) economic principles inherent to sustainable versus growth economies, and (3) methodological issues which hinder effective BCAs of TS conservation.

Agricultural Economics: The Year In Review

Undergraduate programs continue to be a mainstay for the Department of Agricultural Economics. In an ongoing effort to match our offerings with the market demands for our graduates, we have implemented four new options in the Natural Resources and Environmental Economics major. This, combined with the options in the Agribusiness and Agricultural Economics majors allows students to customize their program to meet particular career goals. As a result of diligent efforts by faculty and staff, student enrollment for fall semester 2008 increased by 13.2 percent over the 2007 fall semester. This increase was greater than the College average.

Using Economics Experiments to Understand Patent Licensing Behavior

To successfully compete in today’s globalized economy, agribusiness firms need to innovate. Innovation enables firms to produce new and/or differentiated products/services that satisfy specialized consumer demands, and enables firms to generate cost reducing processes to out-compete rivals in domestic and international food markets. Firms will engage in innovative activities if they are able to recoup research and development (R&D) costs and capture innovation rents, so it is critical that they are able to identify the optimal strategies of protecting and profiting from their innovations.

Essays on Personnel Economics and Gender Issues

This thesis consists of four self-contained essays in economics. Tournaments and unfair treatment. This paper introduces the negative feelings associated with the perception of being unfairly treated into a tournament model and examines the impact of these perceptions on workers’ efforts and their willingness to work overtime. The effect of unfair treatment on workers’ behavior is ambiguous in the model in that two countervailing effects arise: a negative impulsive effect and a positive strategic effect. The impulsive effect implies that workers react to the perception of being unfairly treated by reducing their level of effort. The strategic effect implies that workers raise this level in order to improve their career opportunities and thereby avoid feeling even more unfairly treated in the future. An empirical test of the model using survey data from a Swedish municipal utility shows that the overall effect is negative. This suggests that employers should consider the negative impulsive effect of unfair treatment on effort and overtime in designing contracts and determining on promotions. Late careers in Sweden between 1970 and 2000. In this essay Swedish workers’ late careers between 1970 and 2000 are studied. The aim is to examine older workers’ career patterns and whether they have changed during this period. For example, is there a difference in career mobility or labor market exiting between cohorts? What affects the late career, and does this differ between cohorts? The analysis shows that between 1970 and 2000 the late careers of Swedish workers comprised of few job changes and consisted more of “trying to keep the job you had in your mid-fifties” than of climbing up the promotion ladder. There are no cohort differences in this pattern. Also a large fraction of the older workers exited the labor market before the normal retirement age of 65. During the 1970s and first part of the 1980s, 56 percent of the older workers made an early exit and the average drop-out age was 63. During the late 1980s and the 1990s the share of old workers who made an early exit had risen to 76 percent and the average drop-out age had dropped to 61.5. Different factors have affected the probabilities of an early exit between 1970 and 2000. For example, skills did affect the risk of exiting the labor market during the 1970s and up to the mid-1980s, but not in the late 1980s or the 1990s. During the first period old workers in the lowest occupations or with the lowest level of education were more likely to exit the labor market than more highly skilled workers. In the second period old workers at all levels of skill had the same probability of leaving the labor market. The growth and survival of establishments: does gender segregation matter? We empirically examine the employment dynamics that arise in Becker’s (1957) model of labor market discrimination. According to the model, firms that employ a large fraction of women will be relatively more profitable due to lower wage costs, and thus enjoy a greater probability of surviving and growing by underselling other firms in the competitive product market. In order to test these implications, we use a unique Swedish matched employer-employee data set. We find that female-dominated establishments do not enjoy any greater probability of surviving and do not grow faster than other establishments. Additionally, we find that integrated establishments, in terms of gender, age and education levels, are more successful than other establishments. Thus, attempts by legislators to integrate firms along all dimensions of diversity may have positive effects on the growth and survival of firms. Risk and overconfidence – Gender differences in financial decision-making as revealed in the TV game-show Jeopardy. We have used unique data from the Swedish version of the TV-show Jeopardy to uncover gender differences in financial decision-making by looking at the contestants’ final wagering strategies. After ruling out empirical best-responses, which do appear in Jeopardy in the US, a simple model is derived to show that risk preferences, the subjective and objective probabilities of answering correctly (individual and group competence), determine wagering strategies. The empirical model shows that, on average, women adopt more conservative and diversified strategies, while men’s strategies aim for the greatest gains. Further, women’s strategies are more responsive to the competence measures, which suggests that they are less overconfident. Together these traits make women more successful players. These results are in line with earlier findings on gender and financial trading.