Ramu Govindasamy

Limits to environmental bonds

Abstract Bonds have recently been promoted as an alternative tool to control environmental damages, particularly in those instances when the innovative activities of a firm have uncertain future impacts. Under this mechanism, a firm would post a bond ex ante, forfeiting all or a portion of the bond if its activities harmed environmental resources. While the benefits of bonds have been developed, there has been little systematic effort to explore their limitations. In contrast, the labor literature has extensively studied the limits of bonds as a mechanism to prevent worker shirking. Using insights from this parallel problem, this paper explores the limits to environmental bonds, focusing on the problems of moral hazard, liquidity constraints, and legal restrictions. Each limit offers a challenge to the success of environmental bonds. We explore the use of bonds in surface mining and agricultural nonpoint pollution as motivating examples. We also consider how other incentive schemes suggested by the labor literature might prove useful in the context of environmental management. We consider the labor mechanisms of efficiency wages, increasing wage profiles, trust funds, and rank-order tournaments.

PREDICTING WILLINGNESS-TO-PAY A PREMIUM FOR INTEGRATED PEST MANAGEMENT PRODUCE: A LOGISTIC APPROACH

Pesticide residue has repeatedly been documented as a leading source of food safety concern among consumers. While many studies have presented aggregate, descriptive illustrations of consumer response to Integrated Pest Management (IPM), consumer willingness-to-pay a premium for IPM produce and the factors that determine such willingness have received relatively little research attention. Such information is critical in the marketing of IPM produce. This study empirically evaluates the demographic characteristics that influence consumers to pay a premium for IPM grown produce. Results indicate that females, those with higher annual incomes, younger individuals, and those who frequently purchase organic produce are all more likely to pay a premium for IPM produce.

An Evaluation of Consumer Willingness to Pay for Organic Produce in the Northeastern U.S.

Abstract Many factors have been found to affect the willingness to pay for reduced pesticide produce and organic produce. In most cases, gender and income are among the most significant determinants. In contrast to existing research, this paper incorporates new explanatory variables into the logit framework and focuses on the northeastern U.S. The results indicate that those who read labels when purchasing food have heard about integrated pest management produce, say that quality of fresh produce affects where they shop and are more likely to pay a premium for organic produce.

The Influence of Consumer Demographic Characteristics on Nutritional Label Usage

Abstract The majority of consumers report making frequent use of nutritional labeling when purchasing food products. However, certain segments appear to place a greater emphasis on food product labels than others. This study empirically evaluates which demographic characteristics encourage consumers to be more likely to take nutritional labels into account when purchasing grocery products. The results indicate that females, older individuals, and those living in suburban and rural areas are the most likely to make use of nutritional labels. The results also indicate that larger households were less likely to use nutritional labeling.

THE FEASIBILITY OF POULTRY LITTER TRANSPORTATION FROM ENVIRONMENTALLY SENSITIVE AREAS TO DELTA ROW CROP PRODUCTION

Arkansas ranks first in broiler production in the USA with more than a billion broiler and 1.5 million tons of litter produced in 1993. Transporting litter from western to eastern Arkansas can accomplish two goals: 1) avoid potential threat to clean water in western Arkansas and 2) can increase productivity of graded lands in the Delta. This paper examines the feasibility of litter transport from areas of high poultry concentrations to the Delta for use as a soil amendment. We establish the conditions for economical litter transport from source to destinations and determine the optimal rates of litter applications. The results suggest that it is economical to transport significant portions of litter.

Consumer Analysis in Ethnic Live Seafood Markets in the Northeast Region of the United States

During September through November of 2006, in-store intercept surveys of consumers who buy live seafood in retail markets in New Jersey, New York, and Pennsylvania revealed that the average live seafood consumer makes 6.2 visits per month, spends

SUPPLY RESPONSE IN THE NORTHEASTERN FRESH TOMATO MARKET: COINTEGRATION AND ERROR CORRECTION ANALYSIS

14.80 per visit on live seafood, travels 7.8 miles mainly by car, and is purchasing for 3.7 people in his or her household. Consumers value physical appearance of the product over price, generally have no preference for either “Product of the USA” or imported, and generally have no preference for either wild-caught or farm-raised. Many had no preference whether their fish was alive or dead before leaving the store, but if the fish is to be slaughtered in-store, preferred to have their fish gutted or filleted. Consumers generally prefer to purchase live seafood during the winter months and on either a Friday or Saturday.

Integrated use of water resources in the Lower Bhavani Project in India

This paper reexamines supply response in the Northeastern fresh tomato market during the 1949-94 period by employing cointegration and error correction technique. It tests whether there has been a long-run equilibrium relationship between Northeastern production and a set of price and nonprice factors that influence it. Findings suggest that wage rate, imports from competing regions, and urban pressure have had significant negative impacts on regional production. The negative relationship between price and production may have resulted from the strong negative effects exerted by the nonprice factors.

Predicting consumer risk perceptions towards pesticide residue: a logistic analysis

Current irrigation water releases from the Lower Bhavani Project are largely governed by the rainfall and inflow pattern rather than by the periodic water needs of the crops grown. The groundwater potential in the command area is also ignored when water release schedules are planned. In this paper a quantitative analysis is carried out to assess the impact of optimizing water resources use with and without supplementary groundwater use. The results validate the role of groundwater in improving the performance of the irrigation project.

Implications of alternative environmental policies on phosphorus loading from poultry litter

The growing anxiety over residues in fresh produce could result in increased demand for low input agriculture with reduced pesticide residues or decreased demand for conventional fresh produce. The objective of this study was to empirically evaluate consumer concern about pesticide residues and analyse the effect of sociodemographic factors on pesticide residue concern. The results indicate that females, households with more children, and individuals over 35 years old are more likely to have high levels of risk aversion. The result also indicated that households with higher levels of income and education exhibited lower risk aversions towards pesticide residues.