Gary J. Wells

Confidence Intervals for Elasticities and Flexibilities from Linear Equations

Information regarding the precision of elasticity and flexibility estimates from equations linear in original variables is typically missing from empirical studies. A result due to Fieller which allows construction of exact confidence intervals for elasticities and flexibilities from such equations is demonstrated. Exact confidence intervals are not necessarily narrowest at mean levels nor are they symmetric about the point estimates of the elasticities and flexibilities. Empirical examples indicate that exact 95 percent confidence intervals for price flexibilities for food items can be quite wide.

Options for reducing greenhouse gas emissions in the Chinese industrial sector

The Global Environmental Facility (GEF) was established in 1992 to provide assistance to developing countries in addressing global environmental issues. One of the first projects initiated under the GEF was a study of options for reducing greenhouse gas emissions in China. This article provides an overview of the options considered for the Chinese industrial sector which along with power generation generates 75% of China’s total energy demand. The study involves 25 industrial case studies assessing technology options to reduce CO2 emissions. Individual cases are assessed based upon standard project appraisal techniques as well as on global and local environmental benefits associated with the project. It is found that the energy conservation projects considered here typically have high rates of return. Thirteen of the 24 cases for which environmental benefits were calculated had negative costs per ton of CO2 emission reduction. In addition, 19 of 24 cases had a positive net benefit per ton of CO2 emission reduction. The study suggests that targeted investments to reduce greenhouse gas emissions can produce a large number of no-regrets outcomes. It is concluded that institutional arrangements must be improved to facilitate the implementation of environmentally benign development technology.

A Second Generation of Genetically Modified Food

Abstract The aim of this research was a cross-cultural investigation of views regarding Genetically Modified Organisms, specifically food crops, to determine if there were significant differences in the views of French and American respondents. In addition, we sought to introduce the issue of possible consumer benefits of second generation GMOs into the research by examining differences in acceptance of value-enhanced GMOs compared with first generation GMOs for both French and American respondents. Both first and second generation GMOs are better accepted by American respondents than by French respondents, but respondents in both countries perceive a direct benefit from second generation GM foods with at least a less negative attitude toward them. In addition, respondents indicated factors which would make it more likely that they would purchase such enhanced GM foods.

Competition and lodging room rates

Abstract Though an important component of commerce and tourism, the accommodation industry has received little economic analysis, particularly in terms of predictive modeling. This paper develops an empirical model of pricing in the lodging industry based on traditional microeconomic price theory. Additionally, three questions are addressed: Do establishments with low occupancy rates tend to raise price to increase revenues, or lower price to increase business? Which approach should they choose? How much competition exists in the industry?