Environmental Economics, Experimental Methods
By Todd L. Cherry, Stephan Kroll, Jason F. ShogrenThe experimental method is one commonly applied to issues of environmental economics; this book brings together 63 leading researchers in the area and their latest work exploring the behavioural underpinnings of experimental environmental economics.
The essays in this volume will be illuminating for both researchers and practitioners, specifically in relation to questions of environmental policy and how a proposed change in incentives or benefits might affect behaviour and consequently, the likely success of a policy. This book argues that the experimental evidence complements theoretic insights, field date and simulating models to improve our understanding of the underlying assumptions and incentives that drive behavioural responses to policy.
Covering topical areas of interest such as tradable permit markets, common property and public goods, regulation and compliance and valuation and preferences, the critical advantage of this volume is that each section concludes with discussion points written by economists who do not use experimental methods.
One blogging irritant: where is the image file at the Routledge website? The book has a nice royal blue (i.e., University of Kentucky) cover that I'd like to highlight.
One of the "leading researchers" is Tim Haab:
Haab, Timothy, and Brian Roe, "Preference reversal asymmetries in a static choice setting," Chapter 19, pp. 331-344.
I'll leave it to Tim to self-promote his chapter. One of the "economists who do not use experimental methods" is, ahem, John Whitehead:
Whitehead, John C., "Discussion: valuation and preferences," Chapter 27, pp. 466-476.
Part of my job was to read six chapters and offer some perspective. Here is what the editors say about what I say in their introduction:
Given their environmental policy backgrounds, the discussants wonder if this neutral-language doctrine can sometimes be relaxed ... All discussants, of course, recognize the fundamental tradeoff. John Whitehead points out that on the other end of the continuum "contingent valuation economists go overboard on supplying contextual information," which makes it difficult to extrapolate beyond the current situation.
...
In his witty essay ... John Whitehead ... states that despite their flaws due to the lack of context, economic experiments have done a reasonable job in getting contingent valuation economists "out of their orbin around a far off hypothetical planet." He sees laboratory experiments and stated preference surveys as complementary approaches, where one's strength can help to cover the other one's weaknesses. In particular, he calls for combining forces - research studies that include the laboratory and surveys simultaneously. Research into less-than-rational behavior of consumers and voters he calls interesting and productive "but not referenda on neoclassical theory."
It was fun, and the editors allowed my self-absorption to shine through. I'll post part of this embarrassing spectacle soon.
Here is what Vernon Smith has to say about it in the forward:
This exciting collection of research papers provides a compendium of practical earthy rule-governed examples - fisheries management, emissio abatement, water markets, salinity control, congestion control and related measurement and monitoring issues - all in the ancient problem solving spirit of the Alpine Swiss cheese makers and the entrepreneurs who believed lighthouses could be provided privately and did it. As Hayek, puts it, "Rules alone can unite and extend order."
Hayek? Too much time spent at George Mason?
There isn't much consumer surplus at $190, but encourage your library to purchase it. Also, I'm 17% sure that we might be able to arrange a freebie if anyone would like to provide a legitimate book review.