PROGRAM Julie Armstrong AERE EAERE2002 2ND WORLD CONGRESS OF ENVIRONMENTAL AND RESOURCE ECONOMISTS Monterey, CA USA June 24-27, 2002 AERE EAERE2002 2ND WORLD CONGRESS OF ENVIRONMENTAL AND RESOURCE ECONOMISTS Monterey, CA USA June 24-27, 2002 PROGRAM The photograph on the cover of the Program Book shows the Big Sur coastline. The photograph on the cover of the Book of Abstracts shows the Carmel Mission. The tree shown on the title page is an artist’s rendition of the Lone Cypress, viewed from the 17 Mile Drive in Pebble Beach. CONTENTS Welcome to the 2nd World Congress …………………………… 2 Welcome to Monterey …………………………………………… 3 Congress Sponsors .……………………………………………… 4 Acknowledgments ………………………………………………. 5 Congress Committees …………………………………………… 6 Map of Monterey Area …………………………………………. 10 Congress Information Location …………………………………………………. 11 Public Parking …………………………………………… 11 Registration ……………………………………………… 11 Congress Secretariat …………………………………….. 12 Information Desk ……………………………………….. 12 Message Board …………………………………………. 12 Identification Badges …………………………………… 12 Location of Sessions ……………………………………. 12 Exhibits …………………………………………………. 12 Map with Location of Meeting Rooms ………………… 13 Coffee Breaks …………………………………………. 14 Lunch ………………………………………………….. 14 Internet Access ………………………………………… 14 Photocopying ………………………………………….. 14 Banks/Post Office ……………………………………… 14 Social Activities Gala Dinner ……………………………………………. 15 Eating and Drinking …………………………………… 16 Local Activities ………………………………………… 16 Side Trips and Other Travel …………………………… 16 Congress Program Schedule of Activities …………………………………. 19 Summary of Program Sessions ………………………... 21 List of Papers by Session …………………………….… 25 Index of Participants ………………………………………….. 61 Advertisements………………………………………………... 80 Cambridge University Press Earthscan Edward Elgar Resources for the Future WELCOME TO THE 2nd WORLD CONGRESS! As Presidents of the Association of Environmental and Resource Economists (AERE) and the European Association of Environmental Economists (EAERE), it gives us great pleasure to welcome you to the 2nd World Congress of Environmental and Resource Economists being held in Monterey CA, USA, June 24-27, 2002. The 1st World Congress, organized by EAERE, was held in Venice in June, 1998. Now AERE is organizing the Congress, and it is being held in North America. The 1st World Congress lasted for three days and had 105 paper and panel sessions; the 2nd World Congress will last for four days and has 150 paper and panel sessions. The increase reflects both the growth in the membership of our two associations over the past four years and also our desire to make this Congress more truly a worldwide event. We are delighted that participants from more than 40 countries will be attending this Congress, including representatives of regional networks of environmental and resource economists from Latin America and the Caribbean, Africa, South Asia, Southeast Asia, and the Middle East and Central Asia. We hope that the personal ties and intellectual associations developed in Monterey will last long into the future, and will become a permanent legacy of this World Congress. We thank the members of the Organizing and Program Committees and their Chairs, Michael Hanemann and Richard Carson, for their tremendous effort to ensure the success of this Congress. Charles Kolstad President, AERE Klaus Conrad President, EAERE - 2 - WELCOME TO MONTEREY! I am pleased that the Department of Agricultural & Resource Economics at UC Berkeley was selected to host the 2nd World Congress of Environmental and Resource Economists, and I am delighted to welcome you to Monterey. I hope that this Congress will be a memorable experience for everyone who participates. Richard Carson and his colleagues have assembled an outstanding program of invited paper sessions, contributed paper sessions, and panels. I hope you will also find time to enjoy some of the many sights of the Monterey Peninsula. In December 1602, a Spanish expedition landed in Monterey Bay, but left after a few weeks. In May 1770, the Spanish returned to Monterey under the leadership of Gaspa de Portola. The next month, a mission was founded near what is now Carmel, named in honor of San Carlos Borromeo de Carmelo, an Italian cardinal of the Medici family, and a town square was laid out in what is now downtown Monterey. Monterey was the capital of Alta California under Spanish and then Mexican rule, and it served as the first capital of California as a US territory. The Presidio of Monterey and the Monterey State Historic Park are immediately adjacent to where the Congress is being held. The Monterey area also has many natural attractions. The Monterey Bay National Marine Sanctuary is the largest marine sanctuary in the United States. In Pacific Grove, at the northwestern edge of the Monterey Peninsula, there is a famous Monarch Butterfly Sanctuary. Along the Bay to the north are the Elkhorn Slough National Estuarine Reserve, and the Salinas River National Wildlife Refuge. A few miles south of Carmel is the dramatic Big Sur coastline, with many beautiful state parks and beaches. The Seventeen Mile Drive in Pebble Beach, running from Pacific Grove to Carmel, affords spectacular views of the coastline, forests and golf courses. The drive passes by a Monterey cypress grove. The Monterey cypress grows wild in indigenous groves only along this stretch of roadway and at Point Lobos. One of the oldest and most photogenic of these trees is the Lone Cypress, which is featured in our logo for the Congress. Some of my own personal favorite places to visit are the Carmel Mission, Point Lobos State Park, Big Sur, the National Steinbeck Center in Salinas, and the wineries of the Salinas Valley. But whatever your tastes, I am confident you will find much to enjoy if you can tear yourself away from the organized sessions of the Congress! Michael Hanemann Chair, Organizing Committee - 3 - CONGRESS SPONSORS The 2nd World Congress of Environmental and Resource Economists is sponsored by the Giannini Foundation of Agricultural Economics at the University of California (UC) Berkeley, Davis and Riverside and the Department of Agricultural & Resource Economics at UC Berkeley, together with the Donald Bren School of Environmental Science and Management at UC Santa Barbara, the Economics Department at UC San Diego and the University of California’s Institute on Global Conflict and Cooperation. We gratefully acknowledge their financial support for this Congress. The Hewlett Foundation and the National Oceanographic and Atmospheric Administration (NOAA) provided support for sessions at the Congress, which is very gratefully acknowledged. The governments of Sweden and Ireland, the World Bank, the Asian Development Bank, the Giannini Foundation, and the Hewlett Foundation provided funds, which made it possible to provide travel grants to more than 60 Congress participants from the developing countries and emerging economies. - 4 - ACKNOWLEDGEMENTS For their invaluable assistance in organizing the Congress and its program, we are deeply grateful to Teresa Brown, Courtney Barrett, Michael Chui, Dana Longhurst, Diana Lazo, Barbara Halperin, Chris Busch, and Marilyn Voigt. We are deeply grateful to Maximilian Auffhammer for his outstanding service as the Congress Program Coordinator. We thank Julia Carson for arranging the side events and baby-sitting for the Congress. We thank our distinguished keynote speakers for honoring us with their presence. We thank Jordan Louviere and Ken Train for generously agreeing to conduct tutorial sessions. We thank Vic Adamowicz, Scott Barrett, Antonio Bento, David Brookshire, Matthew Clark, Frank Convery, Ariel Dinar, John Dixon, Wayne Gray, Zulma Guzman, Geoffrey Heal, Sandy Hoffman, Bill Jaeger, Charlie Kolstad, Raymond Kopp, John List, Jordan Louviere, Katrin Millock, Richard Norgaard, Linwood Pendleton, Stef Proost, Shanti Rabindran, Kenneth Richards, Art Small, Michael Toman, Jeff Vincent and Steve Vosti for their work in organizing invited paper and panel sessions. We thank V. Kerry Smith for organizing the four Tuesday afternoon sessions on RFF’s seminal contributions to Environmental Economics over 50 years. We thank all the participants in the paper sessions and panels for their contribution to the Congress program. Michael Hanemann Chair, Organizing Committee Richard Carson Chair, Program Committee - 5 - CONGRESS COMMITTEES ORGANIZING COMMITTEE Michael Hanemann University of California, Berkeley (Chair) Richard Carson University of California, San Diego Maria Cunha-e-Sa Universidade Nova de Lisboa Charles Kolstad University of California, Santa Barbara Thomas Sterner University of Gothenburg Alistair Ulph University of Southampton COMMITTEE TO PROMOTE DEVELOPING COUNTRY PARTICIPATION Thomas Sterner University of Gothenburg (Chair) Jeffrey Vincent University of California, San Diego (Vice Chair) Richard Carson University of California, San Diego Frank Convery University College, Dublin John Dixon World Bank Michael Hanemann University of California, Berkeley Karl-Goran Maler Beijer Institute Charles Perrings University of York Kazuhiro Ueta University of Kyoto - 6 - PROGRAM COMMITTEE Richard Carson University of California, San Diego (Chair) Thomas Sterner University of Gothenburg (Vice Chair) Jeffrey Vincent University of California, San Diego (Vice Chair) Maximilian Auffhammer University of California, San Diego (Coordinator) Vic Adamowicz University of Alberta Richard Adams Oregon State University Mahfuzuddin Ahmed ICLARM Anna Alberini University of Maryland