Carsten Lynge Jensen

A practical CBA-based screening procedure for identification of river basins where the costs of fulfilling the WFD requirements may be disproportionate – applied to the case of Denmark

The European Unions (EU) Water Framework Directive (WFD) is implemented as an instrument to obtain good ecological status in waterbodies of Europe. The directive recognises the need to accommodate social and economic considerations to obtain cost-effective implementation of the directive. In particular, EU member states can apply for various exemptions from the objectives if costs are considered disproportionate, e.g. compared to potential benefits. This paper addresses the costs and benefits of achieving good ecological status and demonstrates a methodology designed to investigate disproportionate costs at the national level. Specifically, we propose to use a screening procedure based on a relatively conservative cost–benefit analysis (CBA) as a first step towards identifying areas where costs could be disproportionate. We provide an empirical example by applying the proposed screening procedure to a total of 23 river basin areas in Denmark where costs and benefits are estimated for each of the areas. The results suggest that costs could be disproportionate in several Danish river basins. The sensitivity analysis further helps to pinpoint two or three basins where we suggest that much more detailed and elaborate CBAs should be targeted in order to properly ascertain whether costs are indeed disproportionate.

Explaining noncompliance in the Norwegian coastal cod fishery: an application of the multinomial logit

Establishing motive is central to the analysis of criminal behaviour. This article analyses the range of motives for noncompliant behaviour among coastal cod fishermen. A multinomial logit model is employed to analyse the reasons that underlie various motives. The four motives compared in this study are economic, technological and social and motives caused by bureaucracy and legitimacy problems. The economic motive is found to be most important for coastal fishermen. However, the cross-sectional data indicate that motives vary with fishing gear, vessel length and fishermens age. The results indicate that identifying motives for noncompliant behaviour is not straightforward but is important for reducing the extent of infringements of the regulations. Fishermen who use gill net, seine and long line, for example, are more often motivated to noncompliance by technical problems and bureaucracy than hand-jig fishers. The study suggests that in order to prevent noncompliance behaviour, the authorities’ management policy should be designed to address the problems encountered by different categories of fishers. For example, offences that are committed because of technical problems should be resolved by increasing the involvement of fishermen in the process of drawing up regulations, whereas offences motivated by economic factors should be reduced by increasing inspections.

Providing Free Autopoweroff Plugs: Measuring the Effect on Households' Electricity Consumption through a Field Experiment

Experimental evidence of the effect of providing households with cheap energy saving technology is sparse. We present results from a field experiment in which autopoweroff plugs were provided free of charge to randomly selected households. We use propensity score matching to find treatment effects on metered electricity consumption for different types of households. We find effects for single men and couples without children, while we find no effect for single women and households with children. We suggest that this could be because of differences in saving potential (e.g. some households do not have appliances where using a plug is relevant), differences in the skills relevant for installing the technology and differences in the willingness to spend time and effort on installation. We conclude that targeting interventions at more responsive households, and tailoring interventions to target groups, can increase the efficiency of programs.

Investment behaviour in individual nontransferable quota systems

This article studies the investment behaviour of the Danish demersal fishery in the North Sea. For the study period, this fishery is regulated by variants of individual nontransferable quotas. It is shown that interest rates and capital stocks are primary determinants of investments. Another conclusion is that an aggregated model based on the whole fleet gives identical results to models based on individual fleets (disaggregated models) for trawlers and Danish seiners. However, for netters and other vessels, the aggregated and disaggregated models yield different results. In addition, the variance of the estimated parameters is lower in the disaggregated models. This result arises because vessels in the disaggregated models are more homogeneous. Furthermore, investments in machinery, electronics and vessels are governed by one year lagged variables, while investment in gears is governed by present variables for the Danish demersal fishery in the North Sea.