Jim Opaluch | University of Rhode Island (original) (raw)

Papers by Jim Opaluch

Aquaculture Economics & Management

Abstract While there in general appears to be public support for shellfish aquaculture operations... more Abstract While there in general appears to be public support for shellfish aquaculture operations, the construction of oyster farms often meets opposition where an important argument is devaluation of housing property. This makes it important to study the effect of construction of oyster farms on property value. In this paper house sales data from Rhode Island between 2000 and 2013 is analyzed to evaluate the effect of oyster farm construction on property values using a difference-in-difference (DiD) approach within a hedonic price model (HPM). Given the use of sales data this study focuses on the perceptions of people in the housing market. We found that the impacts are more nuanced and complex: overall on average the construction of oyster farms increased the value of the houses located closer to the farm. When the houses are grouped by their value category, however, our results show that the value of luxury houses decreased significantly.

Nova Science Publishers, Inc., Dec 1, 2012

Ecological Economics, 2018

Innovative market mechanisms are being increasingly recognized as effective decision-making insti... more Innovative market mechanisms are being increasingly recognized as effective decision-making institutions to incorporate the value of ecosystem services into the economy. We present a field experiment that integrates an economic auction and a biophysical water flux model to develop a local market process consisting of both the supply and demand sides. On the supply side, we operate an auction with small-scale livestock owners who bid for contracts to implement site-specific manure management practices that reduce phosphorus loadings to a major reservoir. On the demand side, we implement a real money, multi-unit public good auction for these contracts with residents who potentially benefit from reduced water quality risks. The experiments allow us to construct supply and demand curves to find an equilibrium price for water quality improvement. The field experiments provide a proof-of-concept for practical implementation of a local market for environmental improvements, even for the challenging context of nonpoint pollution.

International journal of maritime economics, 2000

Pollution from shipping is a major issue in the Straits of Malacca (SOM). 'Unless appropriate mea... more Pollution from shipping is a major issue in the Straits of Malacca (SOM). 'Unless appropriate measures are taken, pollution may increase as traffic through the SOM grows. This paper examines alternative mechanisms to finance straits-wide, trans boundary measures to prevent or control pollution from shipping in the SOM. Cooperative programs and various user charges for cost of services are examined, and issues and options for financing these services presented. The implications of financing alternatives are assessed in general terms using the criteria of economic efficiency, fairness, transaction costs, impact on behaviour, and political feasibility.

Marine pollution bulletin, Jan 15, 2017

Sixteen oil spills occurred in Korea between 1995 and 2010, including the Hebei Spirit oil spill ... more Sixteen oil spills occurred in Korea between 1995 and 2010, including the Hebei Spirit oil spill (HSOS) in 2007, the largest (77,857 barrels) in Korean history. Yet compensation for environmental damages has never been claimed under the International Oil Pollution Compensation Fund for any of these accidents, because there is no adequate natural resource damage assessment (NRDA) procedure and there are no internationally-admissible economic quantification methods established in Korea. The objective of this study is to propose a methodology to overcome these shortcomings. We propose the use of Habitat Equivalency Analysis, which has dominated the US NRDA process for oil spills, and apply it to the HSOS as a case study. A Base Case analysis estimates the compensatory costs of fishery habitat damages (34,703.5ha) with a 10-year recovery rate at $119.4 million. We also conduct sensitivity analyses under several alternative assumptions.

Transportation Research Record: Journal of the Transportation Research Board, 2001

The economic assessment of potential external costs due to port development is considered. The im... more The economic assessment of potential external costs due to port development is considered. The importance of environmental cost estimates in making decisions about port development is outlined. A case study in Rhode Island is used to illustrate quantification of one important environmental issue—the economic cost to commercial and recreational fisheries resulting from marine disposal of dredged material. The bioeconomic framework, data, and assumptions used are described. Key results are summarized for seven potential disposal sites for 5.1 million cubic yards of clean dredge sediment, three in Narragansett Bay and four in Rhode Island Sound. To reflect the many sources of uncertainty in the analysis, an overstated cost approach is used and several sensitivity analyses are presented. Results suggest that costs of sediment disposal for bay sites are higher than for Rhode Island Sound sites and support including long-term and ecological effects, and recreational as well as commercial ...

Large Marine Ecosystems, 2005

Disposal is an economic and environmental concern. Marine disposal can cause losses species throu... more Disposal is an economic and environmental concern. Marine disposal can cause losses species through physical smothering, adverse effects of sediment plumes etc. Both direct losses (smothering) and indirect losses through the food web could occur. This chapter examines how governance decisions concerning marine disposal might be enhanced using economic information concerning the costs to fisheries because of marine disposal. The costs to fisheries at alternative marine disposal sites are examined, using dredging scheduled for the Providence River and Harbor as a case study. Costs to commercial and recreational fisheries using the methods and data are presented in the chapter. The chapter estimates the incremental costs to commercial and recreational fisheries in the Northeast large marine ecosystem (LME) from marine disposal of sediments from dredging of the Providence River and Harbor. The losses considered are the lost annual value (economic rent) in commercial fisheries and the lost annual user benefits (consumer surplus) to recreational anglers. The annual losses are measured over the period from mortality because of disposal through the time to recovery of the harmed resources. Specific incremental costs of marine disposal to commercial and recreational fisheries considered in the chapter are those because of short-term, long-term, and indirect effects. A cohort-type, bio-economic model is used. To implement the model, data is drawn from several sources. There are details on the concepts and methods—economic value, measurement of changes in value of fisheries because of dredged material disposal—overview of bioeconomic model and data—sources and abundance. Using the model, data, and assumptions outlined, estimates of the annual lost commercial and recreational catch for each potential site are derived. These results are considered the “base case.” The chapter provides a conceptual framework for estimating losses to fisheries and a case study, information that can contribute to selecting between different marine sites for disposal.

Oil and Chemical Pollution, 1989

This paper describes a preliminary effort to validate the Natural Resource Dam age Assess men t M... more This paper describes a preliminary effort to validate the Natural Resource Dam age Assess men t Model fo r Co asta 1 a n d Ma rin e En viro n men ts (NR DAM/ CME). After describing the general requirements that the model should meet, the problems inherent in validating the NRDAM/CME by a retrospective comparison with the results of field studies are reviewed. Due to these problems, an order-of-magnitude standard of accuracy is argued to be appropriate. Comparisons of the model results with those of selected field studies suggest that the NRDAM/CME provides reasonable results given this standard. In light of the fact that this preliminary validation effort is based on the use of only readily available information for a few studies, additional efforts are in order to validate the model and refine it, as appropriate.

Springer Series on Environmental Management, 2009

The Study Group was asked to review the available literature and information, especially that dev... more The Study Group was asked to review the available literature and information, especially that developed since 2000, that would allow them to assess any changes and improvements in the understanding of nutrient sources and flux estimates within the Mississippi and Atchafalaya River basins (MARB) (see Fig. Fig 1.2) and the current ability to use watershed models to route and predict

Springer Series on Environmental Management, 2009

Adaptive management offers a way to address the pressing need to take steps to manage for factors... more Adaptive management offers a way to address the pressing need to take steps to manage for factors affecting hypoxia in the NGOM in the face of uncertainties. The authors of a recent study undertaken by the National Research Council of the National Academy of Sciences identified six elements of adaptive management that are directly relevant to goal setting and research

Maritime Economics & Logistics, 2009

A b s t ra c t As global trade increases the interdependence of major world economies, the leadin... more A b s t ra c t As global trade increases the interdependence of major world economies, the leading container ports of the United States are growing in importance as gateways from overseas production to domestic consumption markets. With this increased economic importance comes increased dependence of domestic and foreign economies on port practices and procedures, policy actions governing ports, and disasters (natural and otherwise) affecting port operations. Port practices, policy actions and events can affect the time it takes a ship to be serviced at a port, the price of using a port and interject schedule uncertainty at a port. These factors, in turn, affect cargo routers' choice of port, and the economic benefit (welfare) they receive from their chosen port. In this paper, we estimate a nested logit model, using over 470 000 import shipment routing choices to determine how cost, time and schedule reliability at the top 10 US ports affect cargo routers' port choices. From the estimated demand function, we calculate demand elasticities for actions and events affecting all ports, as well as each port individually, and 'willingness to pay' welfare measures to avoid increases in cost or time and decreases in reliability at top ports.

Land Economics, 1995

... The authors are, respectively, Ph.D. candidate and professor in the Department of Resource Ec... more ... The authors are, respectively, Ph.D. candidate and professor in the Department of Resource Economics, University of Rhode Island. We greatly appreciate the assistance of Penporn Janekarnkif and Piyali Talukdar with the debriefing experiment. ...

Land Economics, 1992

Policymakers anticipate strong local opposition to undesirable land-uses, such as large-scale lan... more Policymakers anticipate strong local opposition to undesirable land-uses, such as large-scale landfills, and therefore seek new methods for selecting sites. This paper develops an approach that integrates the technical, economic, and political concerns relevant to siting decisions, beginning with identification of alternative sites and extending through selection of the final site. The approach uses utility theory to structure crucial public input for use in a centralized process. However, the site selection stage remains compatible with decentralized approaches which emphasize local acceptance and compensation. The paper also identifies the role of public concerns regarding resources of regional importance.

Land Economics, 1985

ABSTRACT An assessment of the use of economic incentives for pollution control first evaluates a ... more ABSTRACT An assessment of the use of economic incentives for pollution control first evaluates a strategy that allows flexible response by firms in terms of efficiency benefits, then examines the distribution of cost savings among types of firms in order to determine the political pressure industry will exert in response to proposals for marketable permit schemes. The case of a Rhode Island jewelry industry supports the concept of cost savings through flexible response. However, industry will likely oppose a scheme with no initial allocation of permits because larger firms have already invested in pollution control technology to meet existing standards. It may be necessary to modify the permit system to gain industry support. 12 references, 6 tables.

Journal of Environmental Economics and Management, 2001

Recent environmental regulations raise the importance of accurate, survey-based methods to estima... more Recent environmental regulations raise the importance of accurate, survey-based methods to estimate environmental values, while interviewing costs stimulate research to improve dichotomous choice survey methods. This paper proposes using strength-of-preference indicators along with dichotomous contingent response data. We model strength-of-preference indicators as quasi-cardinal measures using an ordered-response model. We find that strength-of-preference indicators provide substantial efficiency gains while increasing respondents'

Benefits Transfer: Procedures, Problems, and …, 1992

In this paper, we address three pertinent questions for benefit transfer. Can we reliably measure... more In this paper, we address three pertinent questions for benefit transfer. Can we reliably measure benefits within the original study context? To what extent can benefit measures that are reliable within the study context be transferred to provide reliable estimates for the policy site? How can we improve benefit transfers to make them more reliable under a wider set of conditions? Researchers must establish that the benefits estimates they are transferring are defensible themselves. Researchers should also test the adequacy of benefit transfers. by quantifying their accuracy. Finally, we need to improve our methods of transferring benefit estimates, perhaps by developing a wider range of calibration variables.

American Journal of Agricultural Economics, 1988

Aquaculture Economics & Management

Abstract While there in general appears to be public support for shellfish aquaculture operations... more Abstract While there in general appears to be public support for shellfish aquaculture operations, the construction of oyster farms often meets opposition where an important argument is devaluation of housing property. This makes it important to study the effect of construction of oyster farms on property value. In this paper house sales data from Rhode Island between 2000 and 2013 is analyzed to evaluate the effect of oyster farm construction on property values using a difference-in-difference (DiD) approach within a hedonic price model (HPM). Given the use of sales data this study focuses on the perceptions of people in the housing market. We found that the impacts are more nuanced and complex: overall on average the construction of oyster farms increased the value of the houses located closer to the farm. When the houses are grouped by their value category, however, our results show that the value of luxury houses decreased significantly.

Nova Science Publishers, Inc., Dec 1, 2012

Ecological Economics, 2018

Innovative market mechanisms are being increasingly recognized as effective decision-making insti... more Innovative market mechanisms are being increasingly recognized as effective decision-making institutions to incorporate the value of ecosystem services into the economy. We present a field experiment that integrates an economic auction and a biophysical water flux model to develop a local market process consisting of both the supply and demand sides. On the supply side, we operate an auction with small-scale livestock owners who bid for contracts to implement site-specific manure management practices that reduce phosphorus loadings to a major reservoir. On the demand side, we implement a real money, multi-unit public good auction for these contracts with residents who potentially benefit from reduced water quality risks. The experiments allow us to construct supply and demand curves to find an equilibrium price for water quality improvement. The field experiments provide a proof-of-concept for practical implementation of a local market for environmental improvements, even for the challenging context of nonpoint pollution.

International journal of maritime economics, 2000

Pollution from shipping is a major issue in the Straits of Malacca (SOM). 'Unless appropriate mea... more Pollution from shipping is a major issue in the Straits of Malacca (SOM). 'Unless appropriate measures are taken, pollution may increase as traffic through the SOM grows. This paper examines alternative mechanisms to finance straits-wide, trans boundary measures to prevent or control pollution from shipping in the SOM. Cooperative programs and various user charges for cost of services are examined, and issues and options for financing these services presented. The implications of financing alternatives are assessed in general terms using the criteria of economic efficiency, fairness, transaction costs, impact on behaviour, and political feasibility.

Marine pollution bulletin, Jan 15, 2017

Sixteen oil spills occurred in Korea between 1995 and 2010, including the Hebei Spirit oil spill ... more Sixteen oil spills occurred in Korea between 1995 and 2010, including the Hebei Spirit oil spill (HSOS) in 2007, the largest (77,857 barrels) in Korean history. Yet compensation for environmental damages has never been claimed under the International Oil Pollution Compensation Fund for any of these accidents, because there is no adequate natural resource damage assessment (NRDA) procedure and there are no internationally-admissible economic quantification methods established in Korea. The objective of this study is to propose a methodology to overcome these shortcomings. We propose the use of Habitat Equivalency Analysis, which has dominated the US NRDA process for oil spills, and apply it to the HSOS as a case study. A Base Case analysis estimates the compensatory costs of fishery habitat damages (34,703.5ha) with a 10-year recovery rate at $119.4 million. We also conduct sensitivity analyses under several alternative assumptions.

Transportation Research Record: Journal of the Transportation Research Board, 2001

The economic assessment of potential external costs due to port development is considered. The im... more The economic assessment of potential external costs due to port development is considered. The importance of environmental cost estimates in making decisions about port development is outlined. A case study in Rhode Island is used to illustrate quantification of one important environmental issue—the economic cost to commercial and recreational fisheries resulting from marine disposal of dredged material. The bioeconomic framework, data, and assumptions used are described. Key results are summarized for seven potential disposal sites for 5.1 million cubic yards of clean dredge sediment, three in Narragansett Bay and four in Rhode Island Sound. To reflect the many sources of uncertainty in the analysis, an overstated cost approach is used and several sensitivity analyses are presented. Results suggest that costs of sediment disposal for bay sites are higher than for Rhode Island Sound sites and support including long-term and ecological effects, and recreational as well as commercial ...

Large Marine Ecosystems, 2005

Disposal is an economic and environmental concern. Marine disposal can cause losses species throu... more Disposal is an economic and environmental concern. Marine disposal can cause losses species through physical smothering, adverse effects of sediment plumes etc. Both direct losses (smothering) and indirect losses through the food web could occur. This chapter examines how governance decisions concerning marine disposal might be enhanced using economic information concerning the costs to fisheries because of marine disposal. The costs to fisheries at alternative marine disposal sites are examined, using dredging scheduled for the Providence River and Harbor as a case study. Costs to commercial and recreational fisheries using the methods and data are presented in the chapter. The chapter estimates the incremental costs to commercial and recreational fisheries in the Northeast large marine ecosystem (LME) from marine disposal of sediments from dredging of the Providence River and Harbor. The losses considered are the lost annual value (economic rent) in commercial fisheries and the lost annual user benefits (consumer surplus) to recreational anglers. The annual losses are measured over the period from mortality because of disposal through the time to recovery of the harmed resources. Specific incremental costs of marine disposal to commercial and recreational fisheries considered in the chapter are those because of short-term, long-term, and indirect effects. A cohort-type, bio-economic model is used. To implement the model, data is drawn from several sources. There are details on the concepts and methods—economic value, measurement of changes in value of fisheries because of dredged material disposal—overview of bioeconomic model and data—sources and abundance. Using the model, data, and assumptions outlined, estimates of the annual lost commercial and recreational catch for each potential site are derived. These results are considered the “base case.” The chapter provides a conceptual framework for estimating losses to fisheries and a case study, information that can contribute to selecting between different marine sites for disposal.

Oil and Chemical Pollution, 1989

This paper describes a preliminary effort to validate the Natural Resource Dam age Assess men t M... more This paper describes a preliminary effort to validate the Natural Resource Dam age Assess men t Model fo r Co asta 1 a n d Ma rin e En viro n men ts (NR DAM/ CME). After describing the general requirements that the model should meet, the problems inherent in validating the NRDAM/CME by a retrospective comparison with the results of field studies are reviewed. Due to these problems, an order-of-magnitude standard of accuracy is argued to be appropriate. Comparisons of the model results with those of selected field studies suggest that the NRDAM/CME provides reasonable results given this standard. In light of the fact that this preliminary validation effort is based on the use of only readily available information for a few studies, additional efforts are in order to validate the model and refine it, as appropriate.

Springer Series on Environmental Management, 2009

The Study Group was asked to review the available literature and information, especially that dev... more The Study Group was asked to review the available literature and information, especially that developed since 2000, that would allow them to assess any changes and improvements in the understanding of nutrient sources and flux estimates within the Mississippi and Atchafalaya River basins (MARB) (see Fig. Fig 1.2) and the current ability to use watershed models to route and predict

Springer Series on Environmental Management, 2009

Adaptive management offers a way to address the pressing need to take steps to manage for factors... more Adaptive management offers a way to address the pressing need to take steps to manage for factors affecting hypoxia in the NGOM in the face of uncertainties. The authors of a recent study undertaken by the National Research Council of the National Academy of Sciences identified six elements of adaptive management that are directly relevant to goal setting and research

Maritime Economics & Logistics, 2009

A b s t ra c t As global trade increases the interdependence of major world economies, the leadin... more A b s t ra c t As global trade increases the interdependence of major world economies, the leading container ports of the United States are growing in importance as gateways from overseas production to domestic consumption markets. With this increased economic importance comes increased dependence of domestic and foreign economies on port practices and procedures, policy actions governing ports, and disasters (natural and otherwise) affecting port operations. Port practices, policy actions and events can affect the time it takes a ship to be serviced at a port, the price of using a port and interject schedule uncertainty at a port. These factors, in turn, affect cargo routers' choice of port, and the economic benefit (welfare) they receive from their chosen port. In this paper, we estimate a nested logit model, using over 470 000 import shipment routing choices to determine how cost, time and schedule reliability at the top 10 US ports affect cargo routers' port choices. From the estimated demand function, we calculate demand elasticities for actions and events affecting all ports, as well as each port individually, and 'willingness to pay' welfare measures to avoid increases in cost or time and decreases in reliability at top ports.

Land Economics, 1995

... The authors are, respectively, Ph.D. candidate and professor in the Department of Resource Ec... more ... The authors are, respectively, Ph.D. candidate and professor in the Department of Resource Economics, University of Rhode Island. We greatly appreciate the assistance of Penporn Janekarnkif and Piyali Talukdar with the debriefing experiment. ...

Land Economics, 1992

Policymakers anticipate strong local opposition to undesirable land-uses, such as large-scale lan... more Policymakers anticipate strong local opposition to undesirable land-uses, such as large-scale landfills, and therefore seek new methods for selecting sites. This paper develops an approach that integrates the technical, economic, and political concerns relevant to siting decisions, beginning with identification of alternative sites and extending through selection of the final site. The approach uses utility theory to structure crucial public input for use in a centralized process. However, the site selection stage remains compatible with decentralized approaches which emphasize local acceptance and compensation. The paper also identifies the role of public concerns regarding resources of regional importance.

Land Economics, 1985

ABSTRACT An assessment of the use of economic incentives for pollution control first evaluates a ... more ABSTRACT An assessment of the use of economic incentives for pollution control first evaluates a strategy that allows flexible response by firms in terms of efficiency benefits, then examines the distribution of cost savings among types of firms in order to determine the political pressure industry will exert in response to proposals for marketable permit schemes. The case of a Rhode Island jewelry industry supports the concept of cost savings through flexible response. However, industry will likely oppose a scheme with no initial allocation of permits because larger firms have already invested in pollution control technology to meet existing standards. It may be necessary to modify the permit system to gain industry support. 12 references, 6 tables.

Journal of Environmental Economics and Management, 2001

Recent environmental regulations raise the importance of accurate, survey-based methods to estima... more Recent environmental regulations raise the importance of accurate, survey-based methods to estimate environmental values, while interviewing costs stimulate research to improve dichotomous choice survey methods. This paper proposes using strength-of-preference indicators along with dichotomous contingent response data. We model strength-of-preference indicators as quasi-cardinal measures using an ordered-response model. We find that strength-of-preference indicators provide substantial efficiency gains while increasing respondents'

Benefits Transfer: Procedures, Problems, and …, 1992

In this paper, we address three pertinent questions for benefit transfer. Can we reliably measure... more In this paper, we address three pertinent questions for benefit transfer. Can we reliably measure benefits within the original study context? To what extent can benefit measures that are reliable within the study context be transferred to provide reliable estimates for the policy site? How can we improve benefit transfers to make them more reliable under a wider set of conditions? Researchers must establish that the benefits estimates they are transferring are defensible themselves. Researchers should also test the adequacy of benefit transfers. by quantifying their accuracy. Finally, we need to improve our methods of transferring benefit estimates, perhaps by developing a wider range of calibration variables.

American Journal of Agricultural Economics, 1988