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  • Payment for Environmental Services: Hypotheses and Evidence.
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2013-06-01
    Lee J Alston,Krister Andersson,Steven M Smith

    The use of payment for environmental services (PES) is not a new type of contract, but PES programs have become more in vogue because of the potential for sequestering carbon by paying to prevent deforestation and degradation of forestlands. We provide a framework utilizing transaction costs to hypothesize which services are more likely to be provided effectively. We then interpret the literature on

  • Economics of Farm Input Subsidies in Africa
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Stein T. Holden

    Fertilizer and other input subsidies have been prominent components of agricultural policies in many Asian and African countries since the 1960s. Their economic and political rationale is scrutinized with emphasis on the second generation of targeted input subsidy programs that were scaled up in Sub-Saharan Africa after 2005. The extent to which they fulfill the goal of being market smart is assessed

  • Farmers’ Demand and the Traits and Diffusion of Agricultural Innovations in Developing Countries
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Karen Macours

    International agricultural research is often motivated by the potential benefits it could bring to smallholder farmers in developing countries. A recent experimental literature has emerged on why innovations resulting from such research, which often focuses on yield enhancement, fail to be adopted due to either external or internal constraints. This article reviews this literature, focusing on the

  • Migration Out of Rural Areas and Implications for Rural Livelihoods
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Alan de Brauw

    Despite the fact that migration out of agriculture has always been a part of the economic development process, policy makers have long feared that migration from rural areas reduces agricultural production. This article reviews the growing microeconomic literature with more credible statistical identification that evaluates the effects of migration on agricultural production and other outcomes among

  • Impacts of Hosting Forced Migrants in Poor Countries
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Jean-François Maystadt; Kalle Hirvonen; Athur Mabiso; Joachim Vandercasteelen

    Most of the world's displaced people are hosted in low-income countries. Focusing on evidence from poor countries, we review the literature on the economic consequences of hosting refugees or internally displaced people. In the short run, violence, environmental degradation, and disease propagation are major risks to the host populations. In the long run, infrastructure, trade, and labor markets are

  • Agglomeration: Economic and Environmental Impacts
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    JunJie Wu

    Urbanization is taking place at an unprecedented pace and scale in China, India, and many other emerging economies. This will have profound impacts on the world economy and environment. This review provides a critical assessment of the current understanding of the intertwined relationships between agglomeration, economic growth, and environmental quality. We start by providing a brief overview of the

  • The Role of Natural Disaster Insurance in Recovery and Risk Reduction
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Carolyn Kousky

    Natural disaster losses have been increasing worldwide. Insurance is thought to play a critical role in improving resilience to these events by both promoting recovery and providing incentives for investments in hazard mitigation. This review first examines the functioning of disaster insurance markets broadly and then turns to reviewing empirical studies on the role of natural disaster insurance in

  • Environmental Justice: Establishing Causal Relationships
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    H. Spencer Banzhaf; Lala Ma; Christopher Timmins

    The environmental justice literature has found that the poor and people of color are disproportionately exposed to pollution. This literature has sparked a broad activist movement and several policy reforms in the United States and internationally. In this article, we review the literature documenting correlations between pollution and demographics and the history of the related movement, focusing

  • The Economic Value of Biodiversity
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Nick Hanley; Charles Perrings

    Biodiversity is declining worldwide, and the costs of biodiversity losses are increasingly being recognized by economists. In this article, we first review the multiple meanings of biodiversity, moving from species richness and simple abundance-weighted species counts to more complex measures that take account of taxonomic distance and functionality. We then explain the ways in which protecting biodiversity

  • Private Land Conservation and Public Policy: Land Trusts, Land Owners, and Conservation Easements
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Dominic P. Parker; Walter N. Thurman

    We highlight the extraordinary growth in private conservation via land trusts and conservation easements and describe the problems arising from the interplay of public finance and private decisions. We offer a framework for understanding the popularity of easements and land trusts and for evaluating policy reforms aimed at improving their performance. The framework, grounded in institutional and organizational

  • Precision Farming at the Nexus of Agricultural Production and the Environment
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Robert Finger; Scott M. Swinton; Nadja El Benni; Achim Walter

    Precision farming enables agricultural management decisions to be tailored spatially and temporally. Site-specific sensing, sampling, and managing allow farmers to treat a field as a heterogeneous entity. Through targeted use of inputs, precision farming reduces waste, thereby cutting both private variable costs and the environmental costs such as those of agrichemical residuals. At present, large

  • Production Diseases Reduce the Efficiency of Dairy Production: A Review of the Results, Methods, and Approaches Regarding the Economics of Mastitis
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Henk Hogeveen; Wilma Steeneveld; Christopher A. Wolf

    Mastitis is the most important production disease in dairy farming, leading to considerable inefficiency in production. In 1992, an important paper describing a simple but very useful economic framework for production diseases in animal farming was published. In a systemic literature search, 77 articles were found on the economics of mastitis. Throughout the years, little progress has been made to

  • Health Impacts of Food Assistance: Evidence from the United States
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Marianne P. Bitler; Arian Seifoddini

    This review focuses on the health and nutrition impacts of food assistance programs. We focus particular attention on the United States, both because of the plethora of types of programs and associated variation and because spending on these programs is a large share of the nonmedical safety net there. We begin by reviewing the theoretical predictions concerning health and nutrition effects of these

  • Beyond Calories: The New Economics of Nutrition
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Amelia B. Finaret; William A. Masters

    The economics of human nutrition has changed greatly in recent years as researchers have moved beyond supply and demand of specific foods and total calories to functional aspects of diet quality, such as nutrient composition, sustainability, and a variety of credence attributes. New kinds of data and methods allow researchers to focus on beneficial or harmful attributes of dietary patterns and the

  • The Economics of the Naturalist Food Paradigm
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Gordon Rausser; Steven Sexton; David Zilberman

    Challenges to the conventional paradigm have isolated industrial agriculture from consumer segments exhibiting preferences for a growing array of credence attributes, including organic, locally produced, and raised using humane livestock and poultry practices. This review surveys the empirical evidence on the economic impact of the alternative to the conventional industrial agriculture paradigm that

  • The Relationship Between Fuel and Food Prices: Methods and Outcomes
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Karel Janda; Ladislav Krištoufek

    We review the fuel-food price linkage model—time-series, structural, and general or partial equilibrium models, with most attention devoted to the time-series literature. Our assessment is nested in both the discussion of general commodity prices comovement and the prediction of the most likely development of biofuel policies and production. We show that the introduction of significant biofuels policies

  • Ascertaining the Trajectory of Wood-Based Bioenergy Development in the United States Based on Current Economic, Social, and Environmental Constructs
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Md Farhad H. Masum; Kamalakanta Sahoo; Puneet Dwivedi

    Wood-based bioenergy development could play a vital role in attaining energy independence, reducing carbon emissions, and ensuring rural prosperity in the United States. An understanding of policies supporting wood-based bioenergy development coupled with the current status of production of various wood-based bioenergy products would better the prospects of wood-based bioenergy development in the United

  • Faster Than You Think: Renewable Energy and Developing Countries
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Channing Arndt; Doug Arent; Faaiqa Hartley; Bruno Merven; Alam Hossain Mondal

    Since 2007, large and unexpected declines in generation costs for renewable energy systems, particularly solar but also wind, combined with policy measures designed to limit greenhouse gas emissions, have created a paradigm shift in energy systems. Variable renewable energy now dominates total investment in electricity power generation systems. This dominance of variable renewable energy in investment

  • Dams: Effects of Hydrological Infrastructure on Development
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Andrew Dillon; Ram Fishman

    Hydrological investments, particularly irrigation dams, have multiple potential benefits for economic development. Dams also have financial, environmental, and distributional impacts that can affect their benefits and costs. This article reviews the evidence on the impact of dams on economic development, focusing on the levels and variability of agricultural productivity, and its effect on poverty

  • Economics of Aquaculture Policy and Regulation
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    James L. Anderson; Frank Asche; Taryn Garlock

    Since the Blue Revolution began in the late 1960s, global aquaculture production has grown rapidly. Aquaculture now accounts for over half of the world's fish for direct human consumption and is expected to approach two-thirds by 2030. With aquaculture's growth, a number of high-profile concerns have arisen, including pollution, feeding practices, disease management and antibiotic use, habitat use

  • Spatial Models, Legislative Gridlock, and Resource Policy Reform
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Nathan Chael; Christophe Crombez; Pieterjan Vangerven

    This review evaluates the use of spatial models for the analysis of policy making. First, we examine spatial theory and its applications in a variety of institutional settings. We discuss how the preferences of the actors involved in political processes, the steps in those processes, and the locations of the reversion policies affect the policies that emerge from the processes. To illustrate this and

  • Computational Methods in Environmental and Resource Economics
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Yongyang Cai

    Computational methods are required to solve problems without closed-form solutions in environmental and resource economics. Efficiency, stability, and accuracy are key elements for computational methods. This review discusses state-of-the-art computational methods applied in environmental and resource economics, including optimal control methods for deterministic models, advances in value function

  • Real Options and Environmental Policies: The Good, the Bad, and the Ugly
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Justus Wesseler; Jinhua Zhao

    The literature on real options shows that irreversibilities, uncertainties about future benefits and costs, and the flexibility in decision making generate benefits and costs of delaying immediate action. When applied to government policy making, real option models can lead to efficient policies that take full account of these trade-offs, but they can also cause strategic behavior that tries to delay

  • Contemporary Decision Methods for Agricultural, Environmental, and Resource Management and Policy
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    David R. Johnson; Nathan B. Geldner

    Traditional top-down methods for resource management ask first what future conditions will be, then identify the best action(s) to take in response to that prediction. Even when acknowledging uncertainty about the future, standard approaches (a) characterize uncertainties probabilistically, then optimize objectives in expectation, and/or (b) develop a small number of representative scenarios to explore

  • A Conversation with Maureen Cropper
    Annu. Rev. Resour. Econ. (IF 2.745) Pub Date : 2019-10-04
    Maureen L. Cropper; Catherine L. Kling; Fran Sussman

    This article presents an interview with environmental economist Maureen L. Cropper. Maureen completed her Ph.D. at Cornell University and subsequently held positions at the University of California, Riverside, and the University of Southern California. At Riverside, she moved from monetary economics to environmental economics. She then landed at the University of Maryland, where she is a still a professor

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