Papers by Michael Hanemann
The Review of Economics and Statistics, Nov 1, 2002
To reduce the potential for response bias on the follow-up bid in multiplebound discrete choice C... more To reduce the potential for response bias on the follow-up bid in multiplebound discrete choice CVM questions while maintaining much of the efficiency gains of the multiple-bound approach, we introduce the one-and-one-half-bound (OOHB) approach. Despite the fact that the OOHB model uses less information than the double-bound (DB) approach, efficiency gains in moving from singlebound to OOHB capture a large portion of the gain associated with moving from single-bound to DB. In an analysis of survey data, our OOHB estimates demonstrated higher consistency with respect to the follow-up data than the DB estimates and were more efficient as well.
Journal of Environmental Economics and Management, Sep 1, 2005
Among others who point to environmental variability and managerial uncertainty as causes of fishe... more Among others who point to environmental variability and managerial uncertainty as causes of fishery collapse, Roughgarden and Smith (1996) argue that three sources of uncertainty are important for fisheries management: variability in fish dynamics, inaccurate stock size estimates, and inaccurate implementation of harvest quotas. We develop a bioeconomic model with these three sources of uncertainty, and solve for optimal escapement based on measurements of fish stock in a discrete-time model. Among other results we find: (1) when uncertainties are high, we generally reject the constant-escapement rule advocated in much of the existing literature, (2) inaccurate stock estimation affects policy in a fundamentally different way than the other sources of uncertainty, and (3) the optimal policy leads to significantly higher commercial profits and lower extinction risk than the optimal constant-escapement policy (by 42% and 56%, respectively).
Department of Agricultural & Resource Economics, UCB, Nov 1, 1982
Oxford University Press eBooks, Nov 1, 2001
The American Economic Review, Dec 1, 2012
Agriculture is the sector of the economy most directly linked to climate and, thus, likely to be ... more Agriculture is the sector of the economy most directly linked to climate and, thus, likely to be affected by climate change. To date, however, there exists considerable disagreement about not only the magnitude of potential impacts but also the sign. A recent paper by Olivier Deschênes and Michael Greenstone (2007b), henceforth DG, criticizes the hedonic model, a cross-sectional approach that regresses farmland values on climate variables for the United States first introduced by Mendelsohn, Nordhaus, and Shaw (1994), and proposes to use random year-to-year weather fluctuations in a panel of US agricultural profits and yields. 1 DG find no statistically significant relationship between US agricultural profits and weather variables in the same years. DG also find no statistically significant relationship between corn and soybean yields (output per acre) and weather. They argue that if short-run weather fluctuations have no influence on agricultural profits or output, then in the long run, when adaptations are possible, climate change is likely to have no impact or even prove beneficial. They conclude that "the preferred estimates indicate that climate change will lead to a $1.3 billion (2002 US dollars), or 4.0 percent, increase in annual agricultural sector profits. (...) The basic finding of an economically and statistically small effect is robust to a wide variety of specification checks (...). Additionally, the analysis indicates that the predicted increases in temperature and precipitation will have virtually no effect on yields among the most important crops (i.e., corn for grain and soybeans) (...)." In this comment we revisit their paper in an attempt to reconcile their findings with others in the literature, which suggest a less optimistic outcome. 2 We present
American Journal of Agricultural Economics, Aug 1, 1984
Since the work of Bishop and Heberlein, a number of contingent valuation experiments have appeare... more Since the work of Bishop and Heberlein, a number of contingent valuation experiments have appeared involving discrete responses which are analyzed by logit or similar techniques. This paper addresses the issues of how the logit models should be formulated to be consistent with the hypothesis of utility maximization and how measures of compensating and equivalent surplus should be derived from the fitted models. Two distinct types of welfare measures are introduced and then estimated from Bishop and Heberlein's data.
RePEc: Research Papers in Economics, Nov 11, 2008
Although complex pricing schedules are increasingly common in utility billing, it is difficult to... more Although complex pricing schedules are increasingly common in utility billing, it is difficult to determine whether consumers respond to complicated marginal prices because price changes are often confounded with simultaneous demand shocks or non-price policies. To overcome this challenge, we exploit a natural experiment-the introduction of a third price block in an increasing block pricing schedule for water-in Santa Cruz, California. Using a regression discontinuity design, we find that consumers do respond to changes in marginal price. Doubling
RePEc: Research Papers in Economics, Aug 1, 2004
RePEc: Research Papers in Economics, Nov 1, 1980
RePEc: Research Papers in Economics, Mar 1, 1982
RePEc: Research Papers in Economics, Sep 1, 2002
c Differences in estimates of the impact of climate change on U.S. agriculture can be explained t... more c Differences in estimates of the impact of climate change on U.S. agriculture can be explained the failure to adequately allow for differences between rain-fed and irrigated agriculture as well as urban influences. We derive feasible GLS weights to obtain an efficient estimator and unbiased test statistics. A 1ayesian outlier analysis shows that irrigated and urban counties can not be pooled with dryland counties. When we limit the analysis to dryland and non-urban counties, the different damage estimators from previous studies overlap and the confidence intervals are cut by up to half. Dryland agriculture is unambiguously damaged under the CO2 doubling scenario. JEL Ql, Q2, C5) We gratefully acknowledge comments on an earlier draft by John
RePEc: Research Papers in Economics, Jul 1, 2005
RePEc: Research Papers in Economics, Mar 1, 1994
This paper reviews the achievements of Middle East environmental diplomacy under the multilateral... more This paper reviews the achievements of Middle East environmental diplomacy under the multilateral track and lays out a feasible program to build on these achievements. It argues that negotiations should be informed by three lessons from the history of international water diplomacy. These are: 1) unequal partners may unequally share the costs and benefits of cooperation; 2) third-party mediation is most successful if accompanied by “carrot and stick” policies; and 3) cooperation should proceed as a series of modest steps, rather than as a grand regional plan. The paper analyzes three issues in urgent need of multicountry cooperation. These are: 1) food for water trades to enhance food and water security in the region; 2) a transition to integrated pest management to halt the pollution of groundwater from agricultural runoff; and 3) the treatment and reuse of urban wastewater for health and water conservation. In addition, the countries of the region should, jointly and individually, ...
eScholarship provides open access, scholarly publishing services to the University of California ... more eScholarship provides open access, scholarly publishing services to the University of California and delivers a dynamic research platform to scholars worldwide.
Edward Elgar eBooks, 2002
La valoracion contingente es una de las metodologias mas utilizadas para asignar un valor monetar... more La valoracion contingente es una de las metodologias mas utilizadas para asignar un valor monetario a los recursos ambientales que el mercado no puede traducir directamente en precios. Este metodo utiliza encuestas para conocer dichas valoraciones. En este articulo se destacan algunos elementos y caracteristicas que deben tener las encuestas para que los resultados sean mas confiables, tambien se discuten las objeciones que algunos economistas han realizado respecto al uso de las encuestas y se examina la compatibilidad entre valoracion contingente y la teoria economica
Health Economics, 2020
Many aspects of asthma—in particular the relationship between beliefs, averting behaviors, and sy... more Many aspects of asthma—in particular the relationship between beliefs, averting behaviors, and symptoms—are not directly observable from market data. An approach that combines observable market data with nonmarket valuation to gather data on unobservable aspects of the illness can improve efforts to quantify the burden of asthma if it accounts for the endogeneity in the system. Such approaches are used in the valuation of recreation but have not been widely used to value the burden of a chronic illness. We estimate parents' willingness to pay (WTP) to reduce their child's asthma symptoms using a three‐equation model that combines revealed preference, contingent valuation, and burden of asthma, increasing the efficiency of estimation and correcting for endogeneity. WTP for a device that reduces a child's asthma symptoms by 50% is $125/month (s.d. $20). Parents' valuations are driven by beliefs about asthma and by their degree of worry about asthma between episodes. Th...
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Papers by Michael Hanemann