This study examines the impacts of two types of advertising content—healthy eating and anti-obesity advertising—on the demand for healthy and unhealthy food and beverage items. We show that differentiating consumers by weight is crucial in fully understanding the effects of advertising content on food and beverage demand. We find that among overweight individuals, anti-obesity advertisements are more effective than healthy eating advertisements at reducing the demand for unhealthy items and increasing the demand for healthy items. Furthermore, the magnitude of this effect increases with BMI. We discuss possible explanations and policy implications based on our results.

Climate change will likely impact the ecosystem services and biodiversity generated from conserved land. Land conservation can also play a significant role in achieving cost-effective mitigation of greenhouse gas emissions. In this special issue we feature seven papers from the 2017 NAREA Workshop, “Climate Change and Land Conservation and Restoration: Advances in Economics Methods and Policies for Adaptation and Mitigation.” The articles include papers furthering the methodological frontier; portfolio optimization, dynamic rangeland stocking, and global timber harvest models, and those highlighting innovative applications; climate smart agricultural practices in Nigeria and Vietnam, welfare impacts on birding, and carbon and albedo pricing.

This study explores factors affecting adoption of two stormwater management practices, rain gardens and rain barrels. Mail survey data from Columbia, Missouri indicate adoption rates of 3.12 percent (rain gardens) and 7.47 percent (rain barrels). This unique dataset enables us to distinguish among nonadopters using knowledge levels, and to investigate the effect of practice-specific barriers. Clustered multinomial logistic regressions reveal serious gardeners are more likely to adopt both practices. Specific barriers differ by practice and type of nonadopter. Adding practice-specific barriers increased pseudo R2 values from 0.12 to 0.22 for rain gardens and from 0.13 to 0.26 for rain barrels.

Environmental economics has made it possible to estimate prices for air pollution externalities. However, these values are rarely observed in emissions trading markets. Moreover, market outcomes show prices persistently remain below expectations and frequently fall over time. Low allowance prices may appear virtuous, but often reflect poor market design that does not anticipate interaction with other policies, and may undermine confidence in market-based approaches to environmental policy. This paper surveys emissions markets and factors influencing prices, and concludes with a discussion of how market design can anticipate and remedy the strong tendency for low prices.

Choice experiments addressing outcome uncertainty (OU) typically reframe continuous probability densities for each risky outcome into two discrete categories, each with a single probability of occurrence. The implications of this simplification for welfare estimation are unknown. This article evaluates the convergent validity of willingness-to-pay (WTP) estimates from a more accurate multiple-outcome treatment of OU, compared to the two-outcome approach. Results for a case study of coastal flood adaptation in Connecticut, United States, suggest that higher-resolution OU treatments increase choice complexity but can provide additional information on risk preferences and WTP. This tradeoff highlights challenges facing the valuation of uncertain outcomes.

In this paper we develop tools and intuition for portfolio optimization for multiple conservation objectives. We show it is more efficient to optimize a conservation portfolio for multiple goods jointly, allowing planners to exploit information about multiple dimensions of correlations between goods. We identified a new type of correlation that is important for optimal conservation planning of multiple objectives under uncertainty: scenario correlation between objectives in a given part of the landscape. The conservation planner faces a different kind of problem if the objectives at hand respond similarly rather than differently to climate shocks in subregions of the planning area.

Fruit producers in the Eastern United States face a wide range of weather-related risks that have the capacity to largely impact yields and profitability. This research examines the economic implications associated with responding to these risks for sweet cherry production in three different systems: high tunnels, revenue insurance, and weather insurance. The analysis considers a distribution of revenue flows and costs using detailed price, yield, and weather data between 1984 and 2013. Our results show that the high tunnel system generates the largest net return if significant price premiums exist for earlier and larger fruit.

Progressive salinization of water and soil will be increasingly severe in low-lying coastal areas as climate change proceeds. Thus, understanding the economic impacts of salinity intrusion will be essential for effective adaptation planning. This paper uses econometric analysis to predict the impact of climate-induced increases in soil salinity on high-yielding-variety rice production in coastal Bangladesh. Findings indicate an output decline of 15.6 percent in nine subdistricts where soil salinity will exceed 4 deciSiemens per meter before 2050. Without new adaptation strategies, the predicted changes will result in 7.7 and 5.6 percent losses in the Barisal and Chittagong regions, respectively.

We explore the optimal regulation of forest carbon and albedo for climate change mitigation. We develop a partial equilibrium market-level model with socially optimal carbon and albedo pricing and characterize optimal land allocation and harvests. We numerically assess the policy's market-level impacts on land allocation, harvests, and climate forcing, and evaluate how parameter choices (albedo strength, productivity of forest land, and carbon and albedo prices) affect the outcomes. Carbon pricing alone leads to an overprovision of climate benefits at the expense of food and timber production. Complementing the policy with albedo pricing reduces these welfare losses.

Conservation tillage offers economic and soil quality benefits, yet conventional tillage remains the prevailing system in some regions. The purpose of this study is to identify the effect of profitability factors, risk attitudes, crop rotations, and other farmer and farm characteristics on farmers’ choices to use no-till (NT), strip-till (ST) and reduced/conventional tillage (RCT) in producing dryland corn, wheat, and soybean in Kansas. The results show that factors such as crop yields, risk aversion, crop insurance, baling and grazing of crop residue, crop acreage, and farmers’ approach to adopting new technologies are significant factors in farmers’ choice of tillage practice.

This study explores how participation in direct and intermediated marketing channels and key operational factors influence agricultural producers’ financial performance. Accordingly, we divide the sample of local and regional food marketers into quartiles segmented by profitability performance as an initial exploration of how strong and weak performance may vary across scale, location, and choice of direct and intermediated channels. Moreover, other financial metrics that vary across types of producers and performance-based quartiles are analyzed. This paper provides initial evidence that participation in direct and intermediated markets may allow farms of any scale of sales volume to be financially viable.

The beverage sector plays an important role in consumers' daily diet. Recent declines in fruit beverage and soft drink consumption may be a reflection of changing consumers' lifestyles and perceptions. This study uses recent scanner data to develop a demand analysis to examine the competition of various beverages. To obtain reliable demand and elasticity estimates, we test for valid aggregations using the generalized composite commodity theorem. Results suggest that while consumers substitute refrigerated juice with low calorie drinks, a larger proportion of consumers substitute regular soft drinks with fruit drinks.

Organic food products, which have been sold traditionally at natural food stores, have become increasingly available through mass marketing channels. This study estimated an almost ideal demand system (AIDS) model using 2008–2010 retail scanner data to examine consumer demand for organic fluid milk products sold at conventional and natural marketing channels. Asymmetric cross-price elasticities were found suggesting relative stickiness in demand to switch from organic milk to conventional milk and from natural stores to food, drug, and mass merchandiser stores. More generally, demands shifting toward products with higher expenditure elasticities in a differentiated market can be explained by relative budget shares and expenditure elasticities.

We use a random utility model for birding destination choices based on the reports of Oregon and Washington State members of the Cornell University Laboratory of Ornithology eBird citizen science project. We estimate spatially differentiated welfare effects that birders may experience as a consequence of forecasted changes in land cover and climate. We predict per-trip welfare effects (equivalent variations) expected under a business-as-usual scenario using published forecasts for both land cover and species richness. We find significant county-level heterogeneity across eBirders in predicted average per-trip welfare effects. The results suggest discernible distributional consequences across active birders in different areas.

Design of government policies that seek greater adoption of anaerobic digesters can benefit from a greater understanding of the motivations for adoption. Using a nationwide survey of U.S. dairy and swine producers, this study seeks to determine how policies, peer group influences, environmental beliefs, and farm characteristics affect the decision to adopt a digester. Results suggest that neighborhood effects, farm type and size, and nonmarket benefits of anaerobic digestion are important for predicting whether or not a producer will consider this technology for manure management. However, the decision to actually adopt is more dependent on government policies and economic considerations.

The dairy industry is of much interest worldwide because it has been subject to heavy government intervention. Central to the analysis of any dairy policy is a quantitative empirical understanding of the economic relationships in the industry. This paper models and measures the input demand relationships—especially, derived demand for farm milk as a processing input—and the rate and biases of technical change in the U.S. dairy manufacturing industry. Our estimates indicate that the Marshallian own-price elasticity of demand for farm milk is between −0.43 and −1.20. Estimates also indicate that technical change has been capital using and labor saving.

Using a sample survey from Vietnam's M&RRD, this study examines both the factors affecting smallholder households’ perceptions of climate change, and the impact of climatic change on smallholders’ income and land allocation decisions. Results show a significant and negative impact of perception of climate change on income of smallholder households. Smallholders with perceived climate changes reduce land allocated to paddy crop. Farmers make strategic decision to counter the negative effects of climate change by increasing the amount of rented land for paddy crop production, while at the same time decreasing the amount of owned land allocated to paddy crop.

Climate change will increase variability in temperature and precipitation on rangelands, impacting ecosystem services including livestock grazing. Facing uncertainty about future climate, managers must know if current practices will maintain rangeland sustainability. Herein, the future density of an invasive species, broom snakeweed, is estimated using a long-term ecological dataset and climate projections. We find that livestock stocking rates determined using a current method result in lower forage production, allowable stocking rate, and grazing value than an economically efficient stocking rate. Results indicate that using ecology and adaptive methods in management are critical to the sustainability of rangelands.

Controlling for spatial heterogeneity and spatial dependence in farmland valuation models has gained substantial attention in recent literature. This paper proposes to derive the spatial structure of farmland values endogenously and semiparametrically based on the spatial competition theory. The paper assembles panel data of Pennsylvania county level farmland values between 1982 and 2012. A spatial autoregressive panel data model with spatial weights matrix endogenously incorporated is estimated. Out of sample predictions and non-nested statistical tests for model selection suggest that the fit and the predictability of hedonic farmland valuation models can be greatly improved.