We started the Env-Econ Answer Desk with the intention of answering questions. Well, we've had a bunch of questions submitted over the past couple of months and between classes and other duties--you know from my PAYING job--I haven't answered very many. So, in the spirit of Mailbags everywhere, here are a bunch of the questions with very few answers...hopefully someone out there will be able to answer some of these.
Questions I Can (Try To) Answer:
Grant asks: While Federal law requires that [Habitat Conservation] plans be analyzed for their environmental impacts, I have yet to come across a comprehensive analysis of the economic impact of these conservation plans. Do you know of any economic analyses that have been prepared for habitat conservation plans?
A quick Google search (on the left of the screen) on the terms "Habitat Conservation Plan" and "economic analysis" returned 10,500 hits. Unfortunately most of the links are to planned and not completed analyses. I know the U.S. Fish and Wildlife Service posts draft economic analyses for comment but I couldn't find any specifics (www.fws.gov). Here's a link to an announcement for a draft economic analysis for the Lane Mountain Milk-vetch.
Palge Hutagaol writes: I'm very happy to know about this Environmental Economics Blog. I'm from Indonesia, a country where the linkage between environmental and economics is not fully understood. If you have a mailing list (perhaps [email protected]) can you please let me know about it, so I can enroll myself.
Sorry no mailing list. But there is a Resource Economics e-mail list. Unfortunately much of the discussion is Econospeak by Econogeeks--yes I am quite active on that list--ha, beat you to it.
J Ganther asks: From a statistical perspective, what is the best approach to derive a model to forecast Chicago Climate Exchange prices?
Well, if I knew the answer to this I'd be rich--and I wouldn't share. But, since I'm writing a free blog and driving a run down mini-van...
Giorgos K wants to know: What are the appropriate strategies for protecting the environment in developing countries?
Option 1: Chain yourself to a tree--Disclaimer: That was a JOKE! I don't advocate this...I repeat I don't advocate putting yourself in harms way for environmental protection.
Option 2: Sue the developed countries
UPDATE: The Inuits have filed suit against the U.S. for human rights violations due to global warming.
Prabha Choudhuri asks: What is the relation between Resource Economics and Environmental Economics?
and
Chamila Seetaram asks: It may sound silly but i would like to know what is environmental economics. I have an interview on Friday and someone told me they will question me on that. So please, can someone help me :)
Funny story. On my first job interview after graduating from the department of Agricultural and RESOURCE Economics at the University of Maryland, a labor economist asked me "What is the difference between Natural Resource and Environmental Economics". I looked at her as if it were the dumbest question I had ever heard and said "Um...I don't know." My answer now, ten years later? Resource Economics deals with the intertemporal allocation of depletable--or potentially renewable--natural resources across time. Environmental Economics deals with externalities and public goods generated by environmental goods. But environmental economics clearly has a resource component and resource economics clearly has an environmental component, so if asked the question again what would my answer be? "Um...I don't know."
Chrissy wants to know: How far can economists help us solve environmental problems?
About 100 miles depending on the price of gas and the income elasticity of demand--Sorry, economist humor.
Gopal asks: How is the discount rate determined for benefit cost analysis?
Adam writes:
A friend of mine opposes the gas tax on the grounds that it will make us less competitive with other nations (such as China).
Would a gas tax have much impact on production? How would you expect international trade to respond to a gas tax?
I'm lazy today. Try here or here or here or here or here or here or here or here or here. Thanks John for your gas tax mono-mania.
Kwesjun From a Grajuit of the Joshua Corning Skool of Spellng*
Jim Coomes writes: Senator Liberman and another were on Fox new Nov. 16, 2005. They stated that they had a new bipartisan energy bill that would reduce oil dependance. They stressed biofuels. They insinuated that biofuels would be economicaly competetive. One would infer that they are also refering to ethonal. I still think that ethonal can be produced at a competitive price to gasoline. Maybe not by using geneticaly enginered seeds but by using "historic" natural corn/soya seeds. Any comments?
1) Can you set up a link to that bill?
Not sure which bill you are referring to, so my next two answers will be sarcastic and/or sad attempts at humor.
2) What is your impression of it?
I'm standing here trying to look like a piece of paper. Trust me, it's much funnier if you see it.
3) What percentage of chance do you see of it passing?
Best guess...50%.
*Just kidding Joshua.
Questions from the 'We Did Enough Homework in Our Day' Department
Talise Warner asks: Government has decided to put a celing on the price of milk .what effect will this action have on tn demand for milk?
I could have put that one in the 'Kwesjun From a Grajuit of the Joshua Corning Skool of Spellng' category.
Kristen asks: Are you familiar with the Harvard case study about Champion International? It deals with logging in the pacific nw and the northern spotted owl. I need to do an econ analysis calculating Champion's IRR. I'm looking for online resources but not coming up with any, if you can help let me know.
Harvard? Are you kidding? Those people are really smart.
Feel Free to Discuss Amongst Yourselves:
Joanne wants to know: What is the relevance of environmental economics to caribbean economies?
Feel free to insert your own marijuana or hemp joke here.
Desi asks: Why would environmentalists say that nitrogen fertilizers harm the environment twice?
Not sure--I've never been accused of being an environmentalist. Say hi to Lucy for us.
And Our New Favorite Reader
From J. Peach: As a lifelong environmentalist but not an economist, I stumbled upon your discipline earlier this year. I was thinking "forget about environmental lawyers, they can only work within the existing laws - there should be environmental economists to tell us why protecting the environment makes economic sense. After all, in the US everything has to make dollar sense." I googled it and found you do exist! I joined AERE and get the JEEM (I have to hum through the math) and think it's great the research you're doing. My question is: have environmental economists had any real effect on changing policy in the US? If so, can you cite an example? Is it all at the federal (like EPA) level?
I'm trying to track down just the right person to answer this one. Look for a response soon. Surprise, you weren't expecting a serious response were you?
