Changes In Economic Value Research Articles

Bioeconomics of Florida Recreational Fisheries to Estimate Willingness to Pay for Bag and Size Limits of Spotted Seatrout

This research focuses on the economic component of a bioeconomic model for spotted seatrout in the recreational fisheries on Florida’s west coast. A survey was designed to assess how anglers, who caught or targeted spotted seatrout on Florida’s west coast, valued combined changes in the existing bag limit and size limit. The biological component of the stated preference model deemed such change necessary to ensure a sustainable stock. The biological model provides an economic constraint and results in the treatment of the bag and size limits as a composite good in which separate utilities cannot be measured for each component of the composite good. The stated preference choice method (SPCM) was used to estimate the change in economic value by boat mode of access (e.g., charter boat and private boat). The models also controlled for length of trip (full day versus half-day) for charter boat trips and for type of day (weekend or weekday) for both boat modes of access. Since those who accessed the fishery by private boat had a lower probability of achieving the bag limit/size limit, a model was run to predict the probability of achieving the bag limit/size limit and the probability was interacted with the bag limit/size limit choice. This yielded a positive willingness to pay for the bag limit/size limit combination that was sustainable. Estimated values per person per day for changing the bag limit/size limits to a sustainable level were USD 20.24 for the charter boat mode and USD 32.54 for the private boat mode. Aggregating this to a total value change using a five-year annual average (2012–2016) of total days of fishing for spotted seatrout on Florida’s West Coast yielded an estimate of USD 147.9 million per year for charter boat anglers. The total annual value was about USD 3.4 million, while for private boat anglers the annual value was about USD 144.5 million.

A material flow analysis of the UK clothing economy

Historically, clothing accounted for a significant proportion of annual income for most UK citizens, so items were carefully preserved and often passed down through generations. In the 21st century, however, just 40 min of work at minimum wage is sufficient to purchase a dress, shirt, or pair of trousers that may be discarded after a handful of uses. UK per-capita clothing consumption is 2–3 times the global average, reliant on international supply chains associated with many environmental and social issues. Steering the clothing system towards ecological sustainability requires wide-ranging strategies, but the lack of data on flows of clothing makes it difficult to quantify the impacts of current production and consumption, let alone design and evaluate sustainability interventions. Here we use material flow analysis to track clothing flows through the UK economy as a prelude to considering embodied carbon and changes in economic value across the system. Our results show the system is characterised by relatively high rates of reuse but very low rates of recycling. More clothing is destroyed (via landfill and incineration) than is reused and recycled. Consequently, reducing consumption of new clothing by just ∼4% would be as effective for reducing waste as doubling current recycling activity. The UK also imports eight times more clothing than it produces, but offshores over half of the associated textile waste. In our carbon analysis, uncertainty is the key theme – estimates put the cradle-to-consumer emissions associated with 2018 UK clothing consumption anywhere from 9 Mt.CO2e to over 30 Mt.CO2e. Our economic analysis shows substantial, but unsurprising losses in economic value of clothing as it flows through the economy, with some unexpected nuances. Improving the accuracy of current flow and impact data is critical for understanding how the clothing system can be most effectively moved towards circularity.

Fixing diluted earnings per share: Recognising the dilutive effects of employee stock options

AbstractThis paper proposes changes to the calculation of diluted earnings per share (DEPS). The existing IAS 33 approach is flawed as it ignores the time value of options and treats equity‐settled options differently to cash‐settled options. We derive an alternative method and then compare this with the IAS 33 calculation using examples based on a simple firm as well as a small sample of ASX companies. Our method best describes the change in economic value of the current shareholders and provides a similar result at a DEPS level for both cash‐ and equity‐settled options. It is superior to the existing IAS 33 method and can easily be extended to deal with other dilutive instruments.

Valuasi Ekonomi Konversi Lahan Pertanian Di Kawasan Aerotropolis Kulon Progo

The construction of the Yogyakarta International Airport (YIA) in Temon District, Kulon Progo Regency has various impacts, one of which is the growth of the aerotropolis area which causes changes in land use. The conversion of land use, causing any difference in economic valuation. The purpose of this research is to determine the impact of agricultural land conversion through economic value of the Kulon Progo aerotropolis area, with case studies in Palihan, Sindutan, Jangkaran, Kebonrejo and Glagah village. This research uses a non-empirical study method while research approach uses a mixed quantitative and qualitative approach. The analysis used in the form of land use change by digitizing the image (CSTR) of land and geo-referencing overlay in ArcGis, as well as economic valuation analysis. The result shows that changes in economic value have decreased for the use of agricultural and pond fields, while for settlements, the economic value after the construction of YIA has increased.

Differential Impact of Climate Change on the Hydropower Economics of Two River Basins in High Mountain Asia

Water stored in the form of snow and glaciers in the High Mountain Asia (HMA) region regulates the water supply, and resultant water-based economies, that support the livelihoods of about 1.4 billion people. Trends in the seasonal and long-term melting of snow and glaciers, governed by initial ice reserves, meteorological factors and geographic features, vary across sub-basins in the HKH region. We examined the economic impacts of climate-led changes in river flow in two drainage basins, one each from the Karakoram and Central Himalaya region. We used an integrated assessment framework to estimate the changes in economic value of the hydropower generation from hydropower plants on rivers fed by snow and glacier melt in the two sub-basins. The framework, developed under a NASA High Mountain Asia project, coupled biophysical models (a suite of climate models, snow/glacier-hydrology, and hydropower models) with economic analysis. We compared the differences in estimated river flow over historic and future time using the water balance model in sixteen scenarios (eight climate models and two emissions scenarios) for rivers upstream of hydropower plants in each sub-basin. Using the hydropower model, we estimated the changes in hydropower generation at the Naltar IV hydropower plant, with an 18 MW capacity, located in Hunza, Karakoram, and the Trishuli hydropower plant, with a 19.6 MW capacity, in Trishuli, Central Himalaya. When compared to their baselines, the estimated impact of climate change and temporal variability were higher for the Naltar plant than for the Trishuli plant. Our sensitivity analysis shows that hydropower plants with water storage facilities help reduce the impact of changes, but the estimated impacts are higher for the higher capacity plants. This study provides an example of the differential impacts of climate change on hydropower plants located in rivers fed by varying amounts of snow and glacier melt at different decades in this century. This type of integrated assessment of climate change impact will support the scientific understanding of hydrologic flow and its impacts on a hydropower economy under various climate scenarios, as well as generate information about water resource management in a changing climate.

Change in economic value of forest ecosystem services caused by landslides in the upstream region of the lower northern Thailand

Change in economic value of forest ecosystem services caused by landslides in the upstream region of the lower northern Thailand

The Impact of Climate Change on Marine Recreational Fishing with Implications for the Social Cost of Carbon

We estimate the effects of temperature and precipitation on marine recreational fishing days over a 20 year time period. The data are from the National Survey of Fishing, Hunting and Wildlife-Associated Recreation. Our results suggest that temperature and precipitation have positive effects on marine recreational fishing days in the United States. To determine changes in economic value we simulate the effects of climate change on fishing days with changes in U.S. average temperature and precipitation developed from climate models. We use benefit transfer to estimate the value of fishing days. Considering a 4.5F temperature change and a 7% precipitation change, we find that marine recreational fishing days will increase by 27% and the welfare change is $2.5 billion. This suggests that impacts of climate change on marine recreational fishing could have implications for accurate estimation of the social cost of carbon.

Sand dunes management: a comparative analysis of ecological versus economic valuations applied to the Coastal region in Israel

Mobile coastal dunes are of significant ecological importance both globally and locally. Yet a large portion of these dunes are disappearing due to encroachment of local shrubs and exotic plants, resulting in changes of floristic and faunal composition, and an overall decrease in biodiversity of coastal systems. Active management is therefore required to maintain mobile dune presence. This study focuses on economic valuation of coastal dunes in Israel, based on public and professional ecological perspectives. This comparison allows reflection on the suitability of a contingent valuation method (CVM) to assess ecological restoration and conservation projects. The CVM was applied in Nizzanim LTER nature reserve in Israel, and concurrently, data of plant species composition on stabilized and mobile dunes were used to calculate the ecological value index (EVI) of the different dune states. The EVI was then transformed into monetary terms by combining the public valuation and the relative proportion of the various species to the total coverage. The monetary values derived from the general public and the ecological assessment were then compared and used to estimate the expected change in economic value resulting from a state shift from mobile to stabilized dunes. According to the CVM, the total value of the Nizzanim coastal dunes would drop from 344 to 197 million Israeli Shekels (NIS) (1 Shekel = $0.39) if active management does not take place, a reduction of 42 % in value. However, results from the EVI indicate only a 33 % decrease in ecological value (in monetary terms) in the absence of active management. We suggest that in this case, general public perception is strong enough to justify conservation decisions, even though they are not professional ecologists. However, we still recommend the use of both measures for land use decision making.

Changes in the economic value of wind energy and flexible resources at increasing penetration levels in the Rocky Mountain Power Area

ABSTRACTWe use a consistent economic framework to estimate the long‐run economic value of wind while including operational constraints for conventional generation and hourly variation in wind and load. Day‐ahead forecast errors in wind are corrected in the real‐time, after commitment decisions for many thermal generators have already been made. The framework is used to estimate the change in the marginal economic value of wind with increasing penetration in the Rocky Mountain Power Area of the USA. We also evaluate the marginal economic benefit to wind energy of implementing several strategies to manage wind energy variability and uncertainty: more flexible conventional generation, real‐time pricing, low cost bulk energy storage, and increased geographic diversity of wind plant siting. Without mitigation, the marginal economic value of wind is found to decrease by $21 MWh (37% of the marginal value of wind at 0% penetration) as wind penetration increases from 0% to 30%. The decline is largely because of the hourly profile of wind output and day‐ahead wind energy forecast errors; factors whose impact is reduced by the mitigation strategies. With mitigation, the marginal value of wind at the 30% penetration level is $6‐$11 MWh greater than the value without the measures (17‐31% increase in value). Although the marginal value of wind energy decreases with increasing penetration in this region, several different types of mitigation strategies are available and should be investigated in more detail. Copyright © 2013 John Wiley & Sons, Ltd.

Evaluating breeding objectives for sow productivity and production traits in Large White Pigs

the objective of the study was to develop and evaluate different breeding objectives for sow productivity and for production traits, using economic selection indices. Genetic parameters were generated using a repeated records model for sow productivity traits and a maternal effects model for production traits, in ASREML. Stochastic simulation models based on a hypothetical 100-sow model were performed for each line, i.e., a dam line and a terminal sire line, respectively, to derive economic values. The traits included in the study were number born alive (NBA), 21-day litter size (D21LS), 21-day litter weight (D21LWT), average daily gain (ADG), feed conversion ratio (FCR), age at slaughter (AGES), dressing percentage (DRESS), lean content (LEAN) and backfat thickness (BFAT). The economic values for LEAN and BFAT were derived using the partial differentiation of the profit function, while those for the other traits were derived using the partial budget approach. An economic value of a trait was the change in profit per unit genetic change in that trait. Breeding objectives were developed with a corresponding selection index, for improvement of that objective. Three combinations of breeding objectives and selection indices were developed for sow productivity traits, while there were 15 combinations for production traits. Responses to selection and economic return were computed for each combination to determine the most appropriate combination for the improvement of the breeding objective traits. The most appropriate index to improve sow productivity consisted of NBA and D21LWT. For production traits, the combination that consisted of a selection index with AGES, DRESS and BFAT, and the breeding objective ADG, DRESS, FCR and LEAN, was considered the most appropriate. Age at slaughter and BFAT were, respectively, included as indicator traits for ADG and LEAN. The recommended breeding objectives were sensitive to changes in economic values, indicating that economic values for breeding goal traits should be updated periodically to ensure proper weighting of traits, hence maximization of economic return.

Value Creation and Appropriation in Firms: Conceptual Review and a Method for Measurement

The notion of value creation by firms is central to strategy. Despite its importance, value creation has been defined in many different ways, often with a narrow focus on shareholders, which can lead to confusion about the notion. In this paper, we clarify some commonly used concepts of value creation. We then discuss one particular concept: economic gain, or the change in economic value created from one period to the next. We elaborate on how such value is created by the firm and distributed among a set of stakeholders, including shareholders, managers, employees, suppliers and customers. We conclude by introducing a method for quantifying this gain and its distribution among stakeholders of the firm.

Kontribusi Private Investment Dan Belanja Modal Pemerintah Terhadap Nilai Tambah Ekonomi Dan Penyerapan Tenaga Kerja Kab/Kota Hight Economic Di Provinsi Jawa Timur (Kota Surabaya, Kota Kediri, Kab.Sidoarjo, Kab.Gresik)

AbstractThe accumulation of capital in one of the determinants of economic growth factors in addition to the economic potential and population. Private investment and government capital expenditure is the implementation of capital accumulation then spent again to enlarge the production capacity and increase asset value. This study gives an overview of how the contribution of private investment and government capital expenditure of district/city economic hight on economic value added and employment in the province of East Java. District/city Surabaya, Kediri, Sidoarjo and Gresik selected from 38 districts/cities in East Java Province. The method of research used samples expost Pacto and purposive sampling techniques. Data obtained from the Central Bureau of Statistics, the Investment Coordinating Board and the Finance Bureau of East Java Governor's Office for five years from 2002 to 2006. Data processing is done manually assisted with Excel and SPSS software program. The results showed that the change in private investment and government capital spending districts / cities have contributed to the change in economic value added and the employment / town in East Java. Private investment and government capital expenditure is very important to increase economic activities in the region. Economic growth districts / cities that use capital-intensive approach (capital intensive) will not be able to absorb labor and expansion of new jobs as experienced Kediri, unless economic growth with labor-intensive approaches (labor intensive).

Study on change in value of ecosystem service function of Tarim River

The characteristic of change in value of Tarim River ecosystem service function and its causes are discussed by combining the remote-sensing images with social statistical data related to the change in land utilization of Tarim River Main stream area during 1973–2005 and applying correlation analysis, regressional analysis and principal component analysis methods. The results show a right ascension state in the value of Tarim River ecosystem service function over the past 30 years. Of which, the Cropland ecosystem service function is of the largest increment in the economic value, which is far in excess of other ecosystem systems; the capacity of forest, grassland and wetland in service supply and value attribution show a downward tendency relatively; the area of Cropland and unused land ecosystems increase while that of forest, grassland and wetland ecosystems decrease, which indicates that the integral capacity and balance of the ecosystem in the region investigated has been affected severely and the ecosystem deteriorated; the economic activity of human is the key factor to regulate the change in economic value of Tarim River ecosystem service function and its trend in development.

Forests and water: The value of native temperate forests in supplying water for human consumption

Temperate forests in the Southern Hemisphere provide ecosystem services of local and global importance such as internal nutrient cycling, soil protection, biodiversity conservation, climate regulation, and water supply. Under a scenario of global climatic change, water supply represents one of the most relevant of these forest environmental services. In this paper we estimated the economic value of Chilean temperate forests as they contribute to maintain fresh water supply, which in turn supports the production of drinkable water for cities. The study was carried out in the Valdivian Rainforest Ecoregion, in Llancahue watershed, which supplies fresh water to one of the main cities in Southern Chile. Using monthly time series from January 1995 to December 2003, we applied the change in productivity method to derive economic value estimates per cubic meter of water, per household, and per hectare accounting for changes in economic value during summer versus the rest of the year. The economic values per cubic meter were USD 0.066 and USD 0.025 for summer and rest of the year, respectively. The values per household equaled USD 15.4 in the summer and USD 5.8 for the rest of the year. The economic benefits per hectare of native forests were equal to USD 162.4 for summer period and USD 61.2 for the rest of the year.

Economic values for production and non-production traits in nordic dairy cattle populations calculated by stochastic simulation

The objective of this paper was to calculate and compare economic values for dairy cattle traits across the Nordic countries. The stochastic model used was dynamic, and it simulated production, reproduction and health in a dairy herd. Finland and Norway had the highest economic values for milk production, whereas Denmark and Sweden had lower values, assuming a fixed number of cows. Norway had the highest absolute economic values for stillbirth, retained placenta, laminitis, feed intake capacity, milking speed and daily gain. Denmark had the highest absolute economic value for milk fever and calving ease. Finland had the highest economic value for conception rate. Sweden had the lowest economic value for body weight but the highest for temperament. In most cases the differences in economic values were less than two-fold, with greater than two-fold differences for stillbirth (Sweden vs. Finland and Norway), retained placenta (Sweden vs. Norway), laminitis (Sweden vs. Denmark and Norway) and days from calving to first heat (Sweden vs. Finland). The consideration of milk quota, for most traits, caused minor (less than two-fold) changes in economic values. The differences in economic values, for most of the traits, were slight and do not seem to be a hindrance towards a closer cooperation within a joint breeding programme for the Nordic countries.

ECONOMIC VALUATION OF ECOSYSTEM SERVICES: DISCUSSION AND APPLICATION

ABSTRACTEcosystems provide a wide range of services that improve human welfare. Changes in ecosystems imply potential changes in the generation of these ecosystem services and thus changes in welfare. In the lingo of economists, these welfare changes are measured as changes in economic values—increases in welfare being benefits and decreases in welfare being costs. For instance, individuals may benefit from, and thus value, reductions in risks to endangered species. Yet values for many changes in ecosystem services are not captured in market transactions, and thus measuring these values requires nonmarket valuation methods. This paper discusses ecosystem services and values from the viewpoint of an economist, explains what is meant by the valuation of ecosystems, and provides an overview of methods for valuation of ecosystem services. An example is presented from a recent natural resource damage assessment—the Green Bay total value equivalency study. Resources in the Lower Fox River and Green Bay in Wisconsin have been injured by polychlorinated biphenyl contamination from numerous paper mills along the river over several decades. The Green Bay study examines individuals' preferences and values for reducing ecosystem risks and improving ecosystem services and how these values are related to individuals' awareness of and use of ecosystem services in the area. The study uses methods from nonmarket valuation to scale potential restoration projects.

Economic losses from marine pollution: a handbook for assessment

Marine pollution causes significant damage to fisheries and other economically productive uses of the ocean. The value of that damage can be quantified by economists, but the meanings of those valuations and how they are derived are often obscure to non-economists. Economic Losses from Marine Pollution brings a fuller understanding of the variety and extent of marine losses and how they are assessed to scientists, lawyers and environmentalists by systematically identifying and classifying marine losses and relating them to models and methods of economic valuation. The authors use a step-by-step approach to show how economists have used these methods and how they approach the problem of assessing economic damage. The book begins by describing the importance of economic valuation of marine damages, the history of concern over marine pollution, and the development of economic methodologies to assess damages from it. Following that, the book: considers types of marine pollution and their effects on organisms, ecosystems and humans, and the corresponding economic effects of those biological impacts; introduces the economic principles and methods needed to understand and to assess economic damages; expresses losses from water quality impairments in terms of economic value; introduces the basic economic techniques that have been developed and used to measure changes in economic value; discusses how to apply those economic techniques, and presents a variety of practical examples; and explores limitations and problems that can arise in such applied work. Economic Losses from Marine Pollution includes all of the relevant economic theory together with specific examples of how that theory has been and can be applied. It offers environmental professionals with little of no background in economics the basic economic tools needed to understand economic valuations of environmental damage, and represents a unique handbook for environmental and marine scientists, lawyers, economists, policy professionals and anyone interested in issues of marine water quality.

Multi-trait selection indexes for sustainable UK hill sheep production

AbstractThree selection indexes for the UK hill sheep sector are derived to suit the extremes of hill production systems. These are: (i) intensive, where all surplus lambs not required for breeding are finished for slaughter, (ii) extensive, where all surplus ‘store’ lambs are sold to other farmers for finishing, and (iii) semi-intensive, which is intermediate between the two extremes, i.e. farms finish some lambs for slaughter and sell others as store lambs. Parameters for 12 breeding goal and index traits were estimated using a total of 3962 lamb records and 5944 ewe lambing records from Scottish Blackface sheep on two Scottish Agricultural College experimental hill farms. The breeding goal comprised carcass, maternal and survival traits. The evaluation of these indexes showed that improvements in maternal traits are possible, along with more modest improvements in carcass quality traits. Responses to selection are expected to be lower for the extensive farm in general, compared with the intensive farm. Evaluations of alternative indexes show that an index using measurements of fat and muscle on ewes rather than on lambs may be more cost-effective to implement in practice, compared with the original index, although this change results in a higher (i.e. undesirable) gain in mature size. Sensitivity analyses showed that in general, the indexes are robust to changes in economic values and to changes in heritability estimates.

Resident tradeoffs: A choice modeling approach

The perceived impacts of tourism on host communities, and associated resident attitudes toward tourism, is an important research issue. This study uses choice modeling to identify the tradeoffs residents are willing to make with respect to tourism's impacts. This allows estimation of the probability that residents will support a tourism project or development path that generates specified impacts, as well as estimation of the changes in economic value associated with such impacts. Application in the municipality of Allinge-Gudhjem in Denmark generated a mean economic value estimate of 343 kroner for a sample development scenario involving 30 new jobs, 100 additional cars on the road, a 10% increase in rubbish, and a tax reduction of 2,000 kroner.

褐毛和種の枝肉形質に関する経済的価値の年次変化

肉牛の育種改良を行なう場合,改良の対象となる形質の経済的価値に関する情報は必要不可欠である.しかし,一般に経済的価値の推定に用いられる枝肉価格は景気の動向や周辺の事情により不安定に推移している.そこで牛肉の輸入自由化や価格変動によって,枝肉形質に関する経済的価値がいかに変化しているかを検討した.材料は1988年から1992年までの5年間に出荷された褐毛和種去勢肥育牛8,107頭のフイールド記録を用いた.評価項目として想定した1日当り増加額,単価,売上価格,利益を従属変数とし,枝肉重量,脂肪交雑,ロース芯面積,ばら厚,皮下脂肪厚の5形質を独立変数とする重回帰分析を年および月別に行ない,各形質に関する通常の経済的重み付け値(偏回帰係数)および標準化経済的重み付け値(標準偏回帰係数)を計測した.その結果,枝肉重量に関する経済的重み付け値および標準化経済的重み付け値は,8ケースのうち6ケースで年次効果が有意で,しかも,年次に伴って低下する傾向が認められた.脂肪交雑に関する経済的重み付け値は,従属変数にかかわらず年次と月の効果が有意となり,年次に伴って向上し,月別では年末に大きくなる傾向が認められた.標準化経済的重み付け値は,単価を除く従属変数に関して年次効果が有意で,年次に伴って大きくなる傾向にあった.ロース芯面積に関する経済的重み付け値は,1日当り増加額,利益について年次効果が認められ,標準化経済的重み付け値は,全ての従属変数について年次効果が有意であった.ばら厚と皮下脂肪厚に関しては,経済的重み付け値および標準化経済的重み付け値のいずれも年次や月の効果に有意差が認められなかった.以上の結果より,褐毛和種の枝肉形質に関する経済的価値は,牛肉の輸入自由化前後の5年間で大きく変化し,脂肪交雑の経済的価値が顕著に高くなり,逆に品種の特性である発育形質に関する経済的価値が低下していることが示された.