Thesis (Ph. D.)--Ohio State University, 2009. / Title from first page of PDF file. Includes vita. Includes bibliographical references (p. 270-286).

Masters of Science / Department of Agricultural Economics / Hikaru H. Peterson / Concerns about environmental degradation due to agriculture have gained importance as it is associated with soil erosion, health hazards, and ground water pollution. Environment-friendly land use practices have been developed to gain a wide range of environmental benefits including reduced soil erosion, reduced nutrient runoff from crop and livestock facilities, increased biodiversity preservation efforts, and restoration of wetlands and other native ecosystems. No-till is one such practice where soil erosion, nutrient runoff and environmental degradation can be reduced to a certain extent. This study evaluated the factors affecting the adoption of tillage systems in Kansas. A survey was conducted with a total of 135 participants from four different locations in the state of Kansas between August 2006 and January 2007. The adoption process was modeled as a two-step econometric models consisting of perception and adoption equations to estimate the impacts of demographic variables and farmers’ familiarity with and participation in certain conservation programs. The results for the perception models showed that the farm operators’ perceptions regarding whether BPM installation and management is unfair to producers or not and whether environmental legislation is often unfair to producers do not vary systematically across farm size, producers’ familiarity and participation in conservation programs, or other demographics considered in the study. On the other hand, their perceptions regarding how polluted their water supplies varied by their thoughts on relative profitability across various tillage practices, their primary occupation, and their familiarity with conservation programs. Specifically, the results suggested that those who regarded no-till practices to be more profitable than other tillage practices or whose primary occupation was farming-related tended to believe that ground water was not polluted, and those who were less familiar with available conservation programs tended to believe that surface waters were not polluted. The adoption model results suggested that farmers with greater operating acreage, those who perceived that no-till was more profitable than other tillage systems, and those with greater familiarity with and participation in existing conservation programs were more likely to adopt more conservation tillage systems, all else equal. Further, perceptions of fairness of environmental regulations or the level of pollution did not impact the tillage choices.

The purpose of this study is to review existing literature of factors that influence farmers’ decision to participate in conservation programs. This study is also intended to collect county data and information on conservation programs and participation in the Kentucky River watershed region, which can be analyzed and used to draw differences in characteristics of the region that would suggest willingness to participate in a trading scheme for improvements in water quality. The results suggest that more participation in a trading scheme from some counties than others should be expected. Counties with more farms and larger farms will probably have higher rates of participation in conservation programs. The cost-share amounts being paid by current government programs must be considered as the minimum staring point to negotiate in a trading scheme. To target the impact of watersheds, such as the Kentucky River in the Mississippi system, that discharges significant amounts of pollutants into the Gulf of Mexico, policy makers and program administrators should be advising and stimulating the adoption of practices with the best abatement performance for such pollutants considering technical complementarity between practices.

This dissertation focuses on the economic and environmental benefits of planting switchgrass as a bioenergy feedstock. The first chapter presents a dynamic optimization model of fertilizer and land allocation between switchgrass and corn to estimate economic benefits. Subsequent chapters utilize Geographic Information System (GIS)-based Soil and Water Assessment Tool (SWAT) to be calibrated to evaluate the environmental (nutrient and sediment loading) effects of land use conversion to switchgrass production on water quality and analyze the Water Quality Trading (WQT) program with cost-effectiveness ratios ordered for abatements of nutrient loadings in an East Tennessee watershed.

This dissertation consists of three chapters that explore environmental policy. Chapter 1 empirically investigates the potential for incentives to encourage the adoption of low-emission alternatives to gasoline motorcycles. Hanoi, Vietnam, like many Asian cities, is experiencing rapid growth in the ownership of personal gasoline-powered motorcycles and scooters, and along with this heightened air quality issues. Electric scooters have the potential to reduce air pollution as an alternative to gasoline-powered motorcycles; however, electric scooters have yet to penetrate the Vietnamese and other large Asian markets. This study uses a choice experiment survey to elicit the demand for electric scooters, with focus on the effects that economic incentives and technology improvements have on adoption. Chapter 2 takes the first steps toward incorporating point sources into the theoretical discussion on nonpoint pollution ambient taxes. Previous investigations into the use of ambient taxes for nonpoint source pollution have not addressed the role of point sources, even though many watersheds have both source types. This paper examines the use of taxes for jointly regulating point and nonpoint sources. A model of point-nonpoint pollution is developed, and within this framework taxes are applied to achieve different regulatory objectives, including implementing optimal emissions reductions, as well as meeting exogenously specified environmental goals at least cost. Discussion centers on comparison of the point and nonpoint taxes in each scenario. Chapter 3 is an experimental economics examination of the design of markets for water quality trading. Water quality trading is endorsed by policymakers as a tool for reducing pollution in watersheds in a cost-effective manner, and many watersheds in the U.S. have established water quality trading programs. As a whole, these programs have not been successful. It is hypothesized that common features of these programs, such as the market institutions in place, may contribute to the limited success. As a first step in empirically investigating water quality trading markets, this study uses laboratory experiments to isolate how different institutions affect economic efficiency. In particular, we compare cap-and-trade, two forms of baseline-and-credit institution, and a tax/subsidy regulation, and examine the effect of introducing fixed technology costs with these four institutions.

This dissertation presents three chapters of contemporary research in environmental and development economics. Each chapter echoes a common theme, in that achievement of regional goals constitute 'Wicked Problems' and that the approaches that parties may take to address these specific regional goals may have complex interactions with other regional goals. Decision-making, cost analysis, and multipurpose efficacy of the approaches that regional parties may take to achieve goals are evaluated in environmental and development contexts and implications for program analysis and policy design are discussed. The first chapter of this dissertation seeks to understand how regulated parties, i.e. Municipal Separate Storm Sewer Systems (MS4s), choose from the strategies at their disposal to achieve compliance with their Chesapeake Bay Total Maximum Daily Load (TMDL) obligations. To address declining Chesapeake Bay water quality, the United States Environmental Protection Agency (EPA) set extensive nutrient and sediment reduction goals under the 2010 Chesapeake Bay TMDL. Virginia has responded by passing along explicit nutrient and sediment reduction requirements to its MS4s, which can choose from a variety of urban stormwater, land use change, source control, and restoration practices to achieve reductions toward these requirements. MS4s in Virginia have also been granted flexibility to achieve reduction requirements through purchase of nutrient and sediment credits toward requirements through trade. In spite of the cost-savings that these credits provide, MS4s' interest in trading for these credits has been low. MS4s instead generally engage in onsite nutrient and sediment reduction themselves, in spite of the high costs of doing so. In response to low interest in trade, case analysis of MS4s' Bay TMDL compliance behavior and semi-structured interviews are conducted to better understand the role of trade in compliance strategy and the reasons for its non-use. Findings reveal that the Virginia MS4s studied typically choose to implement onsite urban stormwater practices, source control practices, and restoration practices in order to generate long-lasting local benefits, like erosion control, flood risk reduction, and progress toward local TMDL obligations, alongside reductions toward the Bay TMDL. MS4s refrain from term credit purchases out of concern over future availability and refrain from perpetual credit purchases because they have been able to use funding sources to achieve reductions from long-lasting onsite practices at similar per-pound costs, while also receiving local benefits. Implications are that supply-side efforts to support trade markets may not generate the level of activity expected, given that would-be buyers have generally limited interest in trade as a compliance strategy. The second chapter studies the degree to which the practices used to meet local TMDL water quality obligations contribute to Bay TMDL compliance for the Loudoun County MS4. Linear programming is used to estimate the minimal cost of achieving Bay compliance in addition to local obligations through representative nutrient and sediment reduction strategies. The model estimates that Loudoun County MS4 faces substantial costs just to meet local water quality goals ($11 million/yr). Since many of the actions taken to meet local water quality goals also generate pollutant reductions to the Chesapeake Bay, adding Bay TMDL obligations adds 0.2%, 3%, and 32.9% to these costs, depending on the water quality trading used to reach Bay TMDL compliance. Findings shed additional light on Chapter 1's goal of investigating the role of trade by explaining low interest in trade as stemming from heavy local water quality needs. Implications are that the burden imposed by the Bay TMDL may not be as high as generally thought. The third chapter shifts focus to the Opioid Crisis to evaluate the efficacy of Syringe Exchange Programs, best known for their efforts to prevent bloodborne illness transmission, at achieving their secondary intervention goal of preventing opioid overdose. While research has established that Syringe Exchange Programs, or SEPs, are effective at preventing bloodborne illness, little focus has been given to their ability to prevent fatal overdose, which they aim to do by engaging in intervention practices like naloxone and fentanyl test strip distribution. In response for need for understanding of Syringe Exchange Programming's impact on overdose, fixed effects analysis is used to empirically study the impact of county-level SEP in North Carolina following the state's 2016 SEP legalization. Need-based programming complicates analysis and likely biases findings of the impact of SEP on overdose upward. Regardless, findings consistently fail to find that SEP has a significant effect on fatal overdose from four categories of opioids, which should reduce concerns in recent literature that they may increase overdose death. Implications are that, since SEPs have a richly documented history of saving lives through the prevention of bloodborne illness and do not appear to increase overdose, contrary to findings in other work, policy makers should continue to incorporate SEP into their portfolio of strategies used to address the Opioid Crisis. / Doctor of Philosophy / This dissertation presents three chapters of contemporary research in environmental and development economics. Each chapter echoes a common theme, in that achievement of regional goals constitute 'Wicked Problems' and that the approaches that parties may take to address these specific regional goals may have complex interactions with other regional goals. Decision-making, cost analysis, and multipurpose efficacy of the approaches that regional parties may take to achieve goals are evaluated in environmental and development contexts and implications for program analysis and policy design are discussed. The first chapter of this dissertation seeks to understand how regulated parties, i.e. Municipal Separate Storm Sewer Systems (MS4s), choose from the strategies at their disposal to achieve compliance with their Chesapeake Bay Total Maximum Daily Load (TMDL) obligations. To address declining Chesapeake Bay water quality, the United States Environmental Protection Agency (EPA) set extensive nutrient and sediment reduction goals under the 2010 Chesapeake Bay TMDL. Virginia has responded by passing along explicit nutrient and sediment reduction requirements to its MS4s, which can choose from a variety of urban stormwater, land use change, source control, and restoration practices to achieve reductions toward these requirements. MS4s in Virginia have also been granted flexibility to achieve reduction requirements through purchase of nutrient and sediment credits toward requirements through trade. In spite of the cost-savings that these credits provide, MS4s' interest in trading for these credits has been low. MS4s instead generally engage in onsite nutrient and sediment reduction themselves, in spite of the high costs of doing so. In response to low interest in trade, case analysis of MS4s' Bay TMDL compliance behavior and semi-structured interviews are conducted to better understand the role of trade in compliance strategy and the reasons for its non-use. Findings reveal that the Virginia MS4s studied typically choose to implement onsite urban stormwater practices, source control practices, and restoration practices in order to generate long-lasting local benefits, like erosion control, flood risk reduction, and progress toward local TMDL obligations, alongside reductions toward the Bay TMDL. MS4s refrain from term credit purchases out of concern over future availability and refrain from perpetual credit purchases because they have been able to use funding sources to achieve reductions from long-lasting onsite practices at similar per-pound costs, while also receiving local benefits. Implications are that supply-side efforts to support trade markets may not generate the level of activity expected, given that would-be buyers have generally limited interest in trade as a compliance strategy. The second chapter studies the degree to which the practices used to meet local TMDL water quality obligations contribute to Bay TMDL compliance for the Loudoun County MS4. Linear programming is used to estimate the minimal cost of achieving Bay compliance in addition to local obligations through representative nutrient and sediment reduction strategies. The model estimates that Loudoun County MS4 faces substantial costs just to meet local water quality goals ($11 million/yr). Since many of the actions taken to meet local water quality goals also generate pollutant reductions to the Chesapeake Bay, adding Bay TMDL obligations adds 0.2%, 3%, and 32.9% to these costs, depending on the water quality trading used to reach Bay TMDL compliance. Findings shed additional light on Chapter 1's goal of investigating the role of trade by explaining low interest in trade as stemming from heavy local water quality needs. Implications are that the burden imposed by the Bay TMDL may not be as high as generally thought. The third chapter shifts focus to the Opioid Crisis to evaluate the efficacy of Syringe Exchange Programs, best known for their efforts to prevent bloodborne illness transmission, at achieving their secondary intervention goal of preventing opioid overdose. While research has established that Syringe Exchange Programs, or SEPs, are effective at preventing bloodborne illness, little focus has been given to their ability to prevent fatal overdose, which they aim to do by engaging in intervention practices like naloxone and fentanyl test strip distribution. In response for need for understanding of Syringe Exchange Programming's impact on overdose, fixed effects analysis is used to empirically study the impact of county-level SEP in North Carolina following the state's 2016 SEP legalization. Need-based programming complicates analysis and likely biases findings of the impact of SEP on overdose upward. Regardless, findings consistently fail to find that SEP has a significant effect on fatal overdose from four categories of opioids, which should reduce concerns in recent literature that they may increase overdose death. Implications are that, since SEPs have a richly documented history of saving lives through the prevention of bloodborne illness and do not appear to increase overdose, contrary to findings in other work, policy makers should continue to incorporate SEP into their portfolio of strategies used to address the Opioid Crisis.

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Doctor of Philosophy / Department of Biological & Agricultural Engineering / Kyle R. Douglas-Mankin / Water quality trading (WQT) is a market-based approach to improve water quality. It is an innovative, voluntary program that connects point source (PS) dischargers who need to reduce their pollutant loads with land managers who could offset those loads with nonpoint source (NPS) reductions to economically achieve water quality improvements in a watershed. The potential issues impeding WQT are its inability to address trading risks and quantify the uncertainty of potential load reduction in trades between PS and NPS. Recent research has also shown that trading information level and transaction costs cause problems in implementing WQT. Therefore, the goals of this study were to quantify the uncertainties of pollutant load reduction and delivery effect for potential trades, to estimate their spatiotemporal variations, and to provide information for stakeholders to reduce intangible costs of WQT. This study simulated agricultural cropland with more than 225 alternative land management practices to identify trends among these scenarios. Both total nitrogen and total phosphorus loads were modeled with SWAT and EUTROMOD for 36 years to analyze the potential load reduction, in-field uncertainty ratio, in-stream delivery ratio, and overall trading ratio (TR) in Lower Kansas watershed, Kansas. The analyses of site-specific effects in both geospatial and temporal aspects were also applied on subbasin level. The variant loading patterns and time distributions of each subbasin showed strong site-specific phenomena. The ANOVA of in-field nutrient load showed significant differences among the design criteria of scenarios. The results also showed a significant delivery and lake effects within the subbasins. The overall TR ranged from 1 to 2.2 or more in different scenarios. The advanced cluster analysis presented a potential method to eliminate the problems involved in fixed TRs while keeping the method simpler than finer-resolution floating TR system. Based on WQT geospatial data model, a three-tier GIS-based web interface Water Quality Trading Information Platform System (WQTIPS) was then developed for WQT information and assessment. A case study demonstrated WQTIPS can provide systematic, spatially information for stakeholders to assess the potential environmental benefit changes from the land management shifts using a simple interface. This study demonstrated that it is possible to automate water-quality trades, use watershed models to minimize trading risk and maximize water-quality benefits, and prioritize among possible trades both spatially and by BMP.

As part of the EPA’s initiative to reduce the hypoxic zone in the Gulf of Mexico, a feasibility study for a potential water quality trading (WQT) program in the Kentucky River Watershed (KRW) was conducted. While theoretically, emission trading programs are among the most efficient means of reducing pollution, empirical evidence suggests low-trade volume as a primary concern for the long-term success of such programs. Some of the important reasons for the low volume of trade are due to lack of suitable market trading mechanism for point sources and lack of information on willingness to pay (WTP) for abatement credits. Our study aims to tackle these issues by gathering a profile of municipal sewage treatment plants as point source polluters in the KRW, while simultaneously analyzing their preferences for WQT market mechanisms and WTP using a survey based approach. The survey was conducted in 2012. Municipal sewage treatment plants’ ranked preferences are analyzed using an exploded logit model and WTP is analyzed using Ordinary Least Squares and Tobit models.