Center for Economic Research & Policy Analysis

 

Department of Economics at Appalachian State University

 

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ENVIRONMENTAL &

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ECONOMIC GROWTH

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Department of Economics
Appalachian State University
Boone, NC 28608-2051
828.262.2148 (ph)

828.262.6105 (fx)

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Recent Inquiries

 

Mountain Viewshed Protection

A current study is examining public preferences and economic values of mountain viewsheds in WNC.  The study was funded by an internal research grant to explore the individual preferences and economic impact of development that alters the view of mountains. A seminar is scheduled for December 2nd to present preliminary findings.  For more information, contact Pete Groothius.

 

WNC Index and Report - December Release

Economic activity was flat for December 2005, remaining unchanged from the previous month’s index of 119.5. The slowdown corresponded to similar trends at the national level, according to Todd Cherry, an economist at Appalachian State University.  "While regional economic activity slowed, the employment picture for the region continued to make gains in December," Cherry said. "The number of jobs increased, unemployment was lower, and initial claims for unemployment also are lower." Trends for the entire year also ended on a positive note. "Regional job growth for 2005 was just under 2 percent, which translated to about 10,500 new jobs," Cherry said. "There are about 3,500 fewer unemployed people in the WNC workforce than a year ago."

 

Carbon Dioxide Emissions and Global Warming Scenarios

Annual global CO2 emission forecasts at 2100 span 10 to 40 billion tonnes. Modeling work over the past decade has not narrowed this range nor provided much guidance about probabilities. We examine the time-series properties of historical per capita CO2 emissions and conclude that per capita global emissions are stationary without trend, and have a constant mean of 1.14 tonnes per person with standard deviation of 0.02.  Mark Strazicich, of the Department of Economics at ASU, was invited to present this work to leading policymakers at the Climate Policy Conference in Washington DC.  For more information contact Mark Strazicich.

 

Wind Energy in WNC

A recent study funded by the NC State Energy Office sheds light on the primary issues surrounding the potential development of utility-scale wind energy production in WNC.  The region has highly rated wind resources that could make wind energy a viable option for energy and development, but the region also presents many challenges for the future of wind generated energy in WNC.  This study explores the environmental and economic issues regarding wind energy development in WNC.  For more information, contact Todd Cherry.

 

Regional Income Growth and Convergence

This paper empirically tests if U.S. regional per capita incomes are stochastically converging. We advance the issue by employing a LM panel unit root test that allows for region-specific structural breaks in compensating differentials. Both the number and location of the breaks are endogenously determined for each region. The results provide compelling evidence that U.S. regional incomes are conditionally converging.  [more]

 

How to Induce Conservation of Common Resources in the Absence of Enforcement

Researchers have found that voting mechanisms can help increase voluntary contributions to public goods and conservation of common resources—provided enforcement through a third party.  Not all collective agreements, however, have guaranteed third-party enforcement (e.g., Kyoto).  We design an experiment to explore whether a voting rule with and without a punishment mechanism increases contributions to a public good.  Our results suggest that voting by itself does not increase cooperation, but if voters can punish violators, contributions increase significantly.  [more]

 

The Arts in Watauga County

We study the economic impact of arts in Watauga County and find people spent almost $6.2 million to attend arts events during a given year and that they spent an additional $4.9 million on indirect expenses such as restaurants and lodging.  It was also determined that sales revenue projections for the arts were more than $7.2 million per year while payroll expenses for all 355 arts organizations and artists was almost $7.5 million. The resident survey found that 55 percent of respondents were either interested or very interested in the arts while 34 percent we not interested at all.  The study concluded that the average amount county residents were willing to pay every year to continue the level of the arts was $15 per taxpayer for a total value of almost $540,000.  [more]

 

Integrated and Sustainable Ocean Observation Systems

The South East Atlantic Coastal Ocean Observing System (SEACOOS) collects, manages and disseminates coastal oceanic and atmospheric observation information along the Atlantic coast of the southeastern United States. This paper estimates the benefits of SEACOOS information in eleven benefit categories. Following a methodology used in similar studies of other U.S. coastal regions, we evaluate the impacts of conservative changes in economic activity in each sector. The annual economic benefit of SEACOOS information is $170 million (2003 $'s), an estimate that falls between annual benefits of $33 million for the Gulf of Maine region and $381 million for the Gulf of Mexico.

 

The Clean Air Act

We examine whether air quality regulation ignores important spatial considerations of transboundary air pollution. Is there a disconnect between who is punished and who is responsible for exceeding air quality limits?  Can air quality regulation be more effective by refocusing incentives to geographical areas that share the same air rather than arbitrary county delineations? [more]

 

Assortive Mating and The Marriage Wage Premium

We develop a model of intellectual labor augmentation to explain both the marriage wage premium and educational assortative mating. We suggest that husbands and wives are complementary factors of production where a spouse’s education and skills augment their partner’s productivity and earnings potential. This proposition is tested using data from the 2000 U.S. Census of Population and the 2003 Current Population Survey. Our results indicate that for working couples the marriage premium for husbands and wives is directly related to the education level of their spouses -- suggesting that positive assortative mating may be attributable to the labor market effects of intellectual augmentation of married households. [more]

 

Labels and Bans on GMO Foods

Applying an experiment on the choice of consumer goods we show that Swedish consumers do not regard GMO food as being equivalent to conventional food. A central argument by proponents of GMO is that the end products are identical to those where GMO has not been used. That respondents in our survey disagree with this argument is supported by two observations. First, a positive significant WTP is found for a mandatory labeling policy. This result confirms previous observations that GMO food can be a credence good causing a market failure. Second, consumers are also willing to pay a significantly higher product price to ensure a total ban on the use of GMO in animal fodder. Even if scientists and politicians argue that most of today’s GMO food is indistinguishable from GMO free food, the consumers disagree. [more]

 

MORE INQUIRIES

 

 

Highlights

 

Visit the Environmental Economics Blog

International Conference on Experimental Economics & Public Policy at ASU

ASU Economics Homepage

 

 

News & Events

 

News: Three faculty members are collaborating with faculty from the Univ. of Missouri and George Mason Univ. on a $1 million NSF proposal to study experimental instruction.

 

News: The WNC Economic Index and Report for December has been released.

 

Event: Mark Strazicich was invited to speak as an expert at the Second Annual Int. Climate Policy Conference in Washington DC, which was organized by the American Enterprise Institute and The Economist

 

Seminar : (12/2) “The Economic Value of Mountain Views: Some Preliminary Results" by Pete Groothuis, Appalachian State University

 

News: Whitehead named to Editorial Council of Journal of Environmental Economics and Management

 

Event: David Dickinson presented "The Effects of Beliefs versus Risk Preferences on Bargaining Outcomes" on Sept. 16, 2005 at the University of Calgary in Alberta, Canada. 

 

News: Todd Cherry is editing a volume entitled Experimental Methods, Environmental Economics (Routledge, UK)

 

 

Conference in Washington DC, which was organized by the American Enterprise Institute and The Economist