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Stand-up economist: Grading Economics Textbooks on Climate Change

Yoram Bauman:  This is the fifth such review I’ve been involved in and it is almost certainly the last review I’ll be doing, for the simple reason that the vast majority of textbooks now have excellent content on climate change! (If desired you can skip directly to the report card, or read on for some […]

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Teaching environmental and resource economics: A bibliography

Alden, Dave. “Experience with scripted role play in environmental economics.” The Journal of Economic Education 30, no. 2 (1999): 127-132. Anderson, Soren T., and Michael D. Bates. “Hedonic prices and equilibrium sorting in housing markets: A classroom simulation.” National Tax Journal 70, no. 1 (2017): 171-183. Anderson, Lisa R., and Sarah L. Stafford. “Choosing winners […]

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Here is Episode 1 of Anything but Dismal (aka, “The Pilot”)

Here is the website: http://anythingbutdismal.com Episode 1: Sports Reporter: John Whitehead Release date: July 15, 2020 9:00 pm ET In this episode, we look at how the pandemic has impacted sports and sporting events and how we can open the pro sports season again. Reporter John Whitehead speaks with sports economists Pam Wicker and Brad […]

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My comment on the Desvousges, Mathews and Train (2015) adding-up test article has been published at Ecological Economics

I first wrote about this in September 2016. I then submitted the comment to Land Economics. The editor sent me the results of an internal review and I revised it accordingly. Then he sent it out for external review and it received a favorable review in February 2017. But, the referee took issue with the […]

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Reply to “Reply to Whitehead” by Desvousges, Mathews and Train (an introduction)

Desvousges, Mathews and Train (Land Economics, 2015) use the contingent valuation method (CVM) to conduct an adding-up test (i.e., does WTPA + WTPB = WTPA+B?). They use the nonparametric Turnbull estimator and find that the data do not pass the adding-up test. This suggests that the CVM lacks internal validity. In September 2016 I began […]

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The Information Value of Pigouvian Pricing

I recently read an article in the journal Economics and Philosophy, written by Lisa Herzog, which has nothing whatsoever to do with environmental economics but nonetheless I think has interesting implications for it and for Pigouvian pricing in particular.   In case you are unfamiliar with it, the journal Economics and Philosophy is a scholarly journal […]

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Reply to “Reply to Whitehead” by Desvousges, Mathews and Train (the correction)

As described in the introduction of my (draft) “Reply to ‘Reply to Whitehead’”, I suspect that I have used the incorrect confidence intervals when analyzing the Desvousges, Mathews and Train (2015) data. Park, Loomis and Creel (1991) introduced the Krinsky-Robb approach for estimating confidence intervals for willingness to pay estimates from dichotomous choice contingent valuation […]

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Reply to “Reply to Whitehead” by Desvousges, Mathews and Train: (1) Is the log-linear model meaningless?

When dichotomous choice CVM data has a negative WTP problem, one of the standard corrections is to estimate a log-linear model and present the median WTP. With many estimated log-linear models the mean WTP is undefined. This is because the log-linear model flattens the estimated survival curve and, in contrast to a linear model, the […]

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Reply to “Reply to Whitehead” by Desvousges, Mathews and Train: (6) Are the DMT (2015) data problems typical in other CVM studies?

In Whitehead (2020) I describe the problems in the DMT (2015) data. It is full of non-monotonicities, flat portions of bid curves and fat tails. A non-monotonicity is when the percentage of respondents in favor of a policy increases when the cost increases. In other words, for a pair of cost amounts it appears that […]

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Reply to “Reply to Whitehead” by Desvousges, Mathews and Train: (2) What is the effect of negative WTP?

When dichotomous choice CVM data is of low quality, the measure of central tendancy is sensitive to assumptions. As I showed in a paper presented earlier this year (Landry and Whitehed 2020), with the highest quality data it makes no difference the WTP estimator that is used. The Turnbull, Kristrom, linear logit (under both zero […]