Maik Kecinski

Multiple-Knapsack Optimization in Land Conservation: Results from the First Cost-effective Conservation Program in the United States

Conservation groups often piece together their parcel selections by combining funds from multiple sources. When applying multiple-knapsack optimization, substantial increases in conservation benefits, acreage, and number of parcels preserved can be achieved. Specifically, we show that multiple-knapsack optimization substantially outperforms benefit targeting, cost-effectiveness analysis, and sequential binary integer programming. This study uses data from the first known cost-effective land conservation program in the United States—in Baltimore County, Maryland—and shows that multiple-knapsack optimization can deliver additional benefits. (JEL D61, Q24)

Consumer Preferences for Oyster Attributes: Field Experiments on Brand, Locality, and Growing Method

Oyster aquaculture has experienced tremendous growth in the United States over the past decade, but little is known about consumer preferences for oysters. This study analyzed preferences for oysters with varied combinations of brands, production locations, and production methods (aquaculture vs. wild-caught) using dichotomous choice, revealed preference economic field experiments. Results suggest significant and distinct differences in behavior between first-time and regular oyster consumers. While infrequent oyster consumers were drawn to oysters labeled as wild-caught, experienced oyster consumers preferred oysters raised via aquaculture. These findings will be valuable for growers and policymakers who invest in aquaculture to improve surrounding ecosystems.

Heterogeneous Preferences for Oysters: Evidence from Field Experiments

This study uses field experiments to investigate consumer preferences for oysters. In total, 486 adult participants completed a series of revealed-preference dichotomous-choice tasks and a demographic survey. Using a random effects logit model, we investigate factors that influence participants’ decisions to purchase oysters. As expected, price had a significant negative effect, while income had a positive effect. Older individuals and those who were relatively selective regarding shell color or smell are less likely to buy oysters, but consumers who valued size, oyster species, and harvest location were willing to pay more.

Military Readiness and Environmental Protection through Cost-effective Land Conservation

Harboring a high density of threatened and endangered species on its bases leaves the U.S. Department of Defense (DoD) with a critical responsibility: establishing sound environmental policies while also continuing training and ensuring military readiness. This dual objective is the goal of the Readiness and Environmental Protection Integration program, a large conservation fund for military installations that is mandated to be cost-effective. Analyzing a unique DoD data set, we show that use of optimization models generates a 21% increase in military readiness and environmental protection or achieves the same benefits as benefit targeting at a cost saving of 37%. (JEL Q57, Q58)

Behavioral Responses to Science-based Eco-labeling: Gold, Silver, or Bronze

ABSTRACT This study uses unique data collected from field experiments to investigate consumer willingness to pay (WTP) for otherwise homogeneous commodities that provide different levels of environmental services. On average, individuals are willing to pay more for products that provide a higher level of ecosystem services. This effect is larger when the label contains symbols that explicitly differentiate the levels. The effect magnitude is further amplified when it contains brief information on the scientific basis for the levels. However, our results also suggest that the WTP premium for the superior product is smaller than the discount in WTP for the inferior product.