Stephen R. Crutchfield

MEASURING CONSUMER BENEFITS OF FOOD SAFETY RISK REDUCTIONS

Microbial pathogens and pesticide residues in food pose a financial burden to society which can be reduced by incurring costs to reduce these food safety risks. We explore three valuation techniques that place a monetary value on food safety risk reductions, and we present a case study for each: a contingent valuation survey on pesticide residues, an experimental auction market for a chicken sandwich with reduced risk of Salmonella, and a cost-of-illness analysis for seven foodborne pathogens. Estimates from these techniques can be used in cost/benefit analyses for policies that reduce food safety risks.

Feasibility of point-nonpoint source trading for managing agricultural pollutant loadings to coastal waters

A recent focus of water quality policy discussions has been the trading of pollution abatement between point and nonpoint sources. Point-nonpoint trading would allow point sources to sponsor nonpoint source controls rather than install further controls of their own. If nonpoint source loadings are significant and the marginal costs of their control are lower than for additional point source controls, water quality goals could be met at lower cost with trading. We isolate difficulties particular to incentive policies such as point-nonpoint trading and then screen coastal watersheds for those satisfying conditions that play a major role in determining whether trading can improve water quality. We follow the recent Coastal Zone Act Reauthorization Amendments in emphasizing agriculture, the single largest cause of nonpoint source pollution. Our screening analysis provides an initial, empirical assessment of the feasibility of trading for managing agricultural land use to protect coastal water quality. We also illustrate the additional analysis required to quantify the potential for successful trading in those watersheds which meet our screening criteria.

Point/Nonpoint Source Trading for Controlling Pollutant Loadings to Coastal Waters: a Feasibility Study

Since federal control of point source discharges began in 1972, nonpoint sources have surpassed point sources as contributors to surface water quality impairments. Nonpoint source-related impairments such as sedimentation, nutrient enrichment, runoff from farmlands, and toxic contamination of fish tissue and sediments have become increasingly evident (USEPA, 1990). Regulators accordingly have shifted emphasis. The 1990 amendments to the Coastal Zone Management Act for the first time authorize federal land-use regulations for nonpoint-source management. Incentive-based policies are also receiving special consideration, and USEPA has made a public commitment to making greater use of such policies (USEPA, 1991).

Development and application of financial simulators for the fishing industry

Abstract This paper outlines the basic components of the vessel simulator for other trawlers and presents selective results illustrating its use for policy analysis. It has proven difficult to monitor economic status of commercial fisheries because of technical, bureaucratic and cost considerations associated with survey procedures and the difficulty of timely acquisition of biological and harvest data, the author has developed an alternative approach which combines information from various data bases, including periodic surveys, and integrates them in a budgeting or ‘economic engineering’ approach. The result of these adaptations is a tool useful for extension education as well as for research policy evaluation. As an example the simulation program is used to evaluate the economic performance of the New England otter trawl fishing fleet during the period after the 200-mile limit was imposed. Other applications are suggested for financial advisors and investors.