AbstractDue to COVID-19, many households faced hardships in the spring of 2020 – unemployment, an uncertain economic future, forced separation, and more. At the same time, the number of people who participated in outdoor recreation in many areas increased, as it was one of the few activities still permitted. How these experiences affect the public's willingness to pay (WTP) for environmental public goods is unknown. During the early months of the pandemic, we conducted a stated preference survey to value statewide water quality improvements in Delaware. While a majority of participants report experiencing hardship of some sort (economic, emotional, etc.), mean household WTP declined by only 7 % by May 2020.
AbstractU.S. agriculture is vital to meeting a growing global population's demand for food, fiber, feed, and fuel. Smart technologies, big data, and improvements in crop genetics present producers with promising new opportunities for meeting these needs. However, a changing climate and an expanding global population impose challenges to increasing crop and livestock production while sustaining the natural resource base and protecting environmental quality. Sustainable agricultural development will call for systems approaches to allocate land among competing uses, coupled with the adoption of conservation technologies incentivized by cost‐effective policies that have been based on evidence from sound economic, behavioral, biological, and technological research. This paper suggests directions for future research in nine key dimensions that can fill important gaps in the existing literature and build on new research methods and policy needs, as well as inform strategies for sustainable growth of agriculture.
AbstractConsumers are increasingly exposed to labels communicating specific processing aspects of food production, and recent state and federal legislation in the United States has called for making some of these labels mandatory. This article reviews the literature in this area and identifies the positive and negative aspects of labeling food processes. The good parts are that, under appropriate third‐party or governmental oversight, process labels can effectively bridge the informational gap between producers and consumers, satisfy consumer demand for broader and more stringent quality assurance criteria, and ultimately create value for both consumers and producers. Despite the appeal of the "Consumer Right to Know" slogan, process labeling also can have serious unintentional consequences. The bad parts are that consumers can misinterpret these labels and thus misalign their personal preferences and their actual food purchases. The ugly parts are that these labels can stigmatize food produced with conventional processes even when there is no scientific evidence that they cause harm, or even that it is compositionally any different. Based on this review of the literature, we provide three policy recommendations: (i) mandatory labeling of food processes should occur only in situations in which the product has been scientifically demonstrated to harm human health; (ii) governments should not impose bans on process labels because this approach goes against the general desire of consumers to know about and have control over the food they are eating, and it can undermine consumer trust of the agricultural sector; and (iii) a prudent policy approach is to encourage voluntary process labeling, perhaps using smart phone technology similar to that proposed in 2016 federal legislation related to foods containing ingredients that were genetically engineered.
AbstractThis study provides the first revealed preference estimates of Israelis' willingness to pay for produce irrigated with alternative water. Results show that Israelis prefer produce irrigated with conventional water over any type of alternative water and that their preferences for alternative water varies by type. These results indicate that there may be long‐run limits to how high consumer demand for alternative water can rise. Policymakers should be cognizant of these findings and gradually expose the public to the unavoidable future of widespread alternative water use. Increased public awareness of water scarcity and alternative water technology will encourage adoption when it is possible and necessary.
AbstractTo develop evidence‐based agricultural policies, researchers increasingly use insights from economic field experiments. These insights are often limited by the challenges of recruiting large and representative samples of farmers. To improve the effectiveness and cost efficiency of farmer recruitment, researchers should apply the same experimental methods to the recruitment process that they apply to their main research questions. Here we experimentally evaluate ten recruiting strategies in two large‐scale, high stakes experiments. We find that monetary incentives and reminders are effective, but costly. Costless strategies, such as prominently citing a well‐known institution as the sponsor, had positive but small, effects on recruitment.
Abstract The standard altruism model within the family predicts that transfers will be inversely related to the recipient's income. Thus, parents will implicitly insure children against bad luck. This insurance may cause children to take undesirable risks. Anticipating this moral hazard, parents may alter their transfers. Using an artefactual field experiment, we show that parents use transfers to compensate for differences between their teenage children when incomes are independent of children's actions. However, when a potential incentive problem is introduced, parents generally move away from compensating transfers. In addition, we find that the teenage children are more likely to take unfair bets when their behavior is not detectable by their parents.
