Environmental Economics

Now that's more like it

Yesterday, I tried to make the point that the environment takes a back seat to other concerns in bad economic times, even if the environmental issues haven't changed.  John eagerly pointed out that I can always go to enn.com to fine environmental news.  So here's a sampling of today's top stories:

Was Hotelling right?

The world can expect energy prices to continue their generally upward spiral in the years ahead if global energy policies remain the same, the International Energy Agency (IEA) reported this week.

OPEC still has some market power...but not as much as the U.S. stock market?

Oil rose by almost a dollar a barrel on Monday as investors considered the prospect of a further  PEC supply cut and as stock market rallied following the U.S. government rescue of U.S. bank Citigroup.

Harvard recommends inefficient economic policies.

Rich nations should make the first cuts in greenhouse gases while developing countries carry on business-as-usual for the time being, according to a report published on Monday by Harvard University.

Too many deer ...

... in Kentucky:

Even as national numbers rise, the number of deer accidents on Kentucky roads has been dropping, on average, since at least 2000, when there were 3,333 reported incidents, according to state police records.

Has anyone else noticed...

...that in times of bad economicity*, environmental news seems to become nonexistent?  How am I supposed to maintain my reputation for cutting edge analysis with a soft-and-humorous touch without Drudge or CNN or, well, anyone spouting stupidity about the environment.  All I see is the economy this, and the president-elect that (did you see he skipped church yesterday to workout?  The horror.).  Whatever happened to catastrophic climate change? 

*I made up that word because I got an announcement from higher-ups at OSU the other day that they are renewing their efforts to encourage 'interdisciplinarity' at the University. 8 syllables to say 'joint work.'

AERE-sponsored sessions at the SEA meetings

For the first time ever, AERE-sponsored sessions at the SEA meetings ran concurrently -- two sessions during each of the first 6 time slots. I attended each of the six in the valuation/natural resources track (the other track focused mostly on environmental policy) and recorded maximum attendance:

1. Friday 8 am -- 6 (everyone seemed to still be arriving, explaining the low number, I think)
2. Friday 10 am -- 21
3. Friday 1 pm -- 10
4. Friday 3 pm -- 16
5. Saturday 8 am -- 18
6. Saturday 10 am -- 16

I think attendance ran about the same in the environmental policy track. These are actually pretty good numbers, but still, in the future I'd rather have sessions that don't run concurrently. I always felt like I was missing something.

More important than attendance, session quality was excellent. Many thanks to everyone who showed up and chair, presented, discussed and rounded out the audience.

The call for papers for the 2009 SEA meetings can be found in the November 2008 AERE Newsletter.

Note: I also attended two sessions on Sunday morning and tried to burn the candle at both ends. I'm more than a bit brain dead today. 

Meta-analysis

If I ever was inclined to conduct a meta-analysis, and I hope I never am, I'd be sure to read this paper first (presented at the Southern Economic Association Meetings):

The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment [PDF]

Jon P. Nelson*, a and Peter E. Kennedy

Abstract
Motivated by the 2006 report of a Work Group appointed by the Environmental Protection Agency (EPA), this paper examines the present state of meta-analysis in environmental economics and offers recommendations for its future use. To this end we summarize and assess 130 meta-analyses from 115 published and unpublished studies, covering seventeen topical categories in environmental and resource economics. First, we provide several generic meta-analysis models as reference points and discuss major estimation issues. Five econometric issues are identified as part of a complete analysis: (1) sample selection criteria; (2) basic data summary; (3) primary data heterogeneity; (4) heteroskedasticity; and (5) non-independence of multiple observations from primary studies. Second, a tabular summary is presented for the 130 meta-analyses with respect to estimation methods. Third, a narrative summary is presented for 19 meta-analyses, including the three value-of-statistical-life studies examined by the EPA Work Group and one analysis from each of sixteen other categories. Fourth, we offer a set of “best practice” guidelines for future meta-analyses in this and other areas of economics. Last, the paper comments on the use of meta-analytic methods for benefit transfers of environmental values.

"Appendix to Meta-Analysis Survey: 115 Environmental Studies"

A missed opportunity

From Common Tragedies:

Well, we managed to pretty well screw up the unofficial AERE social at the SEA meetings.  Turns out the Big Hunt doesn’t open until 5 pm on Saturdays (despite what their website says).  I don’t know whether to be encouraged that I don’t actually know what time the bars open on Saturday afternoons, or be discouraged that Evan, Rich, and I are now likely banned from the SEA AERE for life.

And if anyone out there is still looking for us we are down the street at Lucky Bar.

Tim and I showed up at 4 and hung around until we got too cold. We both were a bit under the weather ... we must have caught a cold at the hotel sports bar ... maybe pushed us back towards the metro a few minutes early.

Sorry we missed the Common Tragedies guys!

 

Green jobs

In response to an email asking about climate policy and green jobs:

I know of no mainstream economist who thinks that green jobs will lead us out of recession (or reduce the unemployment rate during periods of economic growth). I think many of us agree that a greener economy is a good thing in terms of improved health and environmental quality. A greener economy will result is more green jobs and fewer brown jobs but it is hard to imagine how government policy that constrains business firms will result in improved macroeconomic performance.

The only avenue for the latter is if improved local air quality improves health to such an extent that labor productivity improves. This transmission would occur only in the long run ... not in time to lead us out of recession. On the other hand, much of the health benefits of improved local air quality have occurred since the passage of the Clean Air Act. I think that diminishing returns set in awhile ago.

I'm happy to be wrong about my first sentence (or any of it for that matter). Any suggestions?

Friday Beer Post

It's 9:40 PM on a Friday night.  I'm sitting in a hotel room alone.  I spent the last 1/2 an hour trying to get my new laptop to connect to the wireless network (VISTA!!!!).  $14.99 for a day. And it's ssslllloooowww. Sheesh.  Today, I spent the day in Baltimore with my parents.  They want to know why I'm not doing anything to fix the economy (no really, they think I have magical super-economic powers).  I need a drink.

I'm headed to the hotel bar to meet John for a beer.  Just one.  OK, maybe two.  But that's it.  Two.  Or three.  That's my limit.

Tomorrow morning, 8:00 AM, John and I will be wowwing (is that how you spell that?) the Southern Economics Association with our charm and wit.  If you're lucky, I'll keep a running diary of the frivolity.  I'll bet you can't wait.

My SEA weekend

Here is my schedule at the SEA meetings this weekend:

1. Friday 1:00 - 2:45, Session 16C, Fisheries (session chair)
2. Friday 3:00 - 4:45, Session 15D, Evaluating Environmental Impacts (faithful co-author)
3. Saturday 8:00 - 9:45, Session 16G, Stated Preferences (faithful co-author)
4. Saturday 10:00 - 11:45, Session 16H, Environmental Management (discussant)
5. Sunday, 8:00 - 9:45, Economic Impact of Sports Events (faithful co-author and presenter)
6. Sunday 10:00- 11:45, Natural Hazards and Weather II (discussant)
7. Sunday 5:00 - 6:45, Natural Hazards and Weather I (presenter) ... my plane leaves at 3 pm

I'll also be attending a few other sessions, a couple of socials, and ... a couple of other socials.

See you at the Southern Economic Association meetings

Here is the link for the AERE sessions at the Southern Economic Association meetings in Washington, DC at the Grand Hyatt Hotel, November 21-23.

And don't forget the unofficial AERE social:

Per previous arrangements, we'll see everyone for the #2 ranked social event of the Southern Economic Association meetings (ranked right behind the UK cocktail party):

Where: The Big Hunt
When: Saturday, November 22
Time: +/- 4 pm (OSU vs UM runs to 3:30 or so) to +/- 6 pm (UK cocktail party begins at 6 pm)