Daniel Hellerstein

A Theoretical Foundation for Count Data Models

The paper develops a theoretical foundation for using count data models in travel cost analysis. Two micro models are developed: a restricted choice model and a repeated discrete choice model. We show that both models lead to identical welfare measures.

Using Count Data Models in Travel Cost Analysis with Aggregate Data

In order to control for censoring and the integer nature of trip demand, the use of count ata models in travel cost analysis is attractive. Two such models, the Poisson and negative binomial, are discussed. Robust estimation techniques that loosen potentially stringent distributional assumptions are also reviewed. For illustrative purposes, several ount data models are used to estimate a county-level travel cost model using permit ata from the Boundary Waters Canoe Area.

Measuring Hazardous Waste Damages with Panel Models

This study extends the use of panel data to analyze the damage associated with proximity to a hazardous waste site. Panel data can control for property specific factors which affect sale values, allowing the analysis to focus upon both the spatial and intertemporal factors associated with pollution. We contrast alternative econometric approaches which are applicable to panel data sets and discuss an important application which has led to sizeable natural resource damages actually being paid.

The Use of Markets to Increase Private Investment in Environmental Stewardship

U.S. farmers and ranchers produce a wide variety of commodities for food, fuel, and fiber in response to market signals. Farms also contain significant amounts of natural resources that can provide a host of environmental services, including cleaner air and water, flood control, and improved wildlife habitat. Environmental services are often valued by society, but because they are a public good—that is, people can obtain them without paying for them—farmers and ranchers may not benefit financially from producing them. As a result, farmers and ranchers under-provide these services. This report explores the use of market mechanisms, such as emissions trading and eco-labels, to increase private investment in environmental stewardship. Such investments could complement or even replace public investments in traditional conservation programs. The report also defines roles for government in the creation and function of markets for environmental services.

Welfare Estimation Using Aggregate and Individual-Observation Models: A Comparison Using Monte Carlo Techniques

Due to the weak behavioral foundations of aggregate demand models, zonal travel cost models have been largely abandoned in favor of models based on individual observations. However, sample selection difficulties in individual-observation models often require the use of distribution-sensitive limited-dependent variables estimators. In this paper I use Monte-Carlo simulations to investigate whether the bias from aggregation is worse than possible bias from these narrowly specified estimators. Somewhat surprisingly, the results indicate that zonal models often outperform the individual-observation models, especially when using an aggregate model that incorporates intrazonal variance of the explanatory variables.

Protecting Rural Amenities Through Farmland Preservation Programs

We investigate what farmland preservation programs reveal about the importance of protecting different rural amenities. An extensive content analysis of the enabling legislation of various farmland protection programs suggests wide variation exists in the protection of amenities. An analysis of 27 individual Purchase of Development Rights (PDR) programs’ selection criteria suggests these programs favor preserving amenities that are jointly provided by cropland and livestock operations. These PDR selection criteria also reveal unique preferences regarding the spatial patterns of preserved agricultural lands. Variation in relative weights given to protecting most parcel characteristics in PDR programs is not easily explained by factors that characterize areas experiencing farmland losses.

Balancing the Multiple Objectives of Conservation Programs

Many of the Nation’s conservation programs seek to achieve multiple environmental objectives. Implementing a multi-objective program efficiently requires program managers to balance different environmental and cost objectives. A number of conservation programs use an index approach to prioritize objectives and rank program applications. This approach keeps program objectives distinct and enables program managers to use weights to determine the relative importance of each objective. This report provides empirical evidence on the environmental and cost tradeoffs of different index weighting schemes in USDA’s Conservation Reserve Program (CRP). The analyses take into account both land characteristics and how changes to an index affect producer decisions to voluntarily apply. While small changes in index weights do not markedly affect the outcomes of the CRP, larger changes can have a moderate effect. Opportunities for obtaining multiple environmental benefits simultaneously by increasing the index weight on one objective appear limited, and increasing an objective’s index weight by at least 20 percent can trigger losses of benefits related to other objectives. Weight changes in smaller incremental program enrollments also result in more tradeoffs than in very large program enrollments.

The Value of the Reservoir Services Gained with Soil Conservation

To evaluate the impact of soil conservation on reservoir services, we extend replacement cost theory to cases where reservoir benefits are restored or preserved for multiple years. The framework is used to value the effect that a marginal change in soil erosion has on current and future reservoir benefits. Results show that, across the 2,111 U.S watersheds, a one-ton reduction in soil erosion provides benefits ranging from zero to

Modeling Discrete Choice with Uncertain Data: An Augmented Mnl Estimator

1.38. Furthermore, in a policy application, the lower soil erosion level in 1997, relative to 1982, was shown to have conserved

Cash or Credit? Tax Credits and Conservation Outcomes

154 million in reservoir benefits. (JEL Q26, Q51)