Abstract: We extend the theory of quality-adjusted expenditure indices to estimate benefits from public investment. In particular, we model the selection of new instruments (in the form of remote-sensing devices) to enhance the longest-operating U.S. satellite-based land-observing program, Landsat. We then apply the model to the use of Landsat in measuring global forest carbon sequestration. Improving measurement of the role of forests in storing carbon has become a prominent concern in climate policy. By characterizing the value of Landsat data in forest measurement, the expenditure function allows us tohelp inform public investment decisions in the satellite system. The expenditure function also makes explicit the sensitivity of the selection of instruments for the satellites to the value of Landsat information, thus linking instrument choice explicitly to policy design.

Abstract: We demonstrate the diffusion in use of Earth observations data in social science research. Our study is motivated by the continuing debate among policymakers over the value of the nation’s investment in Earth observations. We also consider the role of related factors including the spread of geographical information systems (GIS; a complementary tool for using Earth observations data) and the role of data prices. We first estimate a diffusion curve and then draw from standard bibliometric methods to evaluate further the extent to which the research field is growing. We realize that these aspects of the value of Earth observations are often part of policy debate, but we offer insights into how to substantiate and document these claims. We find evidence of increasingly widespread use of Earth observations in an ever-widening number of applications and geographic regions. GIS and data prices influence this diffusion. However, we see less evidence of a community of practice within the large social scienceliterature represented in our data. These findings have implications for steps to take to increase the benefits of Earth observations.

Abstract: This paper informs the discussion of carbon price policies by examining the potential for adverse impacts on domestic industries, with a focus on detailed sector-level analysis. The assumed policyscenario involves a unilateral economy-wide $10/ton CO2 charge without accompanying border tax adjustments or other complementary policies. Four modeling approaches are developed as a proxy for thedifferent time horizons over which firms can pass through added costs, change input mix, adopt new technologies, and reallocate capital. Overall, we find that a readily identifiable set of industries experience particularly adverse impacts as measured by reduced output and that the relative burdens on different industries are remarkably consistent across the four time horizons. Output rebounds considerably over longer time horizons, and the adverse impacts on profits diminish even more rapidly in most cases. Overthe short term employment losses mirror output declines, while gains in other industries fully offset the losses over the longer horizons. At the same time, leakage abroad is considerable in some sectors, particularly when reductions in exports are considered.

Abstract: Despite the growing importance of voluntary programs as tools for environmental management, they have been subject to quite limited evaluation. Program evaluation in the absence of randomized experiments is difficult because the decision to participate may not be random and, in particular, may be correlated with the outcomes. The present study is designed to overcome these problems by gauging the environmental effectiveness of two voluntary climate change programs—the U.S. Environmental Protection Agency’s Climate Wise program and the U.S. Department of Energy’s Voluntary Reporting of Greenhouse Gases Program, or 1605(b)—with particular attention to the participation decision and how various assumptions affect estimates of program outcomes. For both programs, the analysis focuses on manufacturing firms and uses confidential census data to create a comparison group and to measure outcomes (expenditures on fuel and electricity).Overall, we find that that the effects from Climate Wise and 1605(b) on fuel and electricity expenditures are no more than 10 percent and probably less than 5 percent. Virtually no evidence suggests a statistically significant effect of either Climate Wise or 1605(b) on fuel costs. Some evidence suggests that participation in Climate Wise led to a slight (3–5 percent) increase in electricity costs that vanished after two years. Stronger evidence suggests that participation in 1605(b) led to a slight (4–8 percent) decrease in electricity costs that persisted for at least three years.

Abstract: Governments investing in long-lead technology development programs face considerable uncertainty as to whether the investment eventually will “pay off” for the taxpayer. This paper offers a framework to inform long-lead technology investment. We extend the theory of quality-adjusted cost indices to develop a conceptually rigorous, but data parsimonious, means of estimating consumer benefits from a new technology. We apply this model to a possible future electricity generation technology, space solar power (SSP). The United States, Japan, and other governments have begun investing in SSP but lack the benefit of a relevant economic context for informed decisions. We frame and analyze the economic relationship between SSP and competing electricity generation technologies with respect to direct costs, environmental externalities, and reliability. We also explicitly incorporate uncertainty and consider differences in the resource endowments available to electricity markets by considering four distinct world geographic regions.

Abstract: The animal husbandry industry is a major emitter of methane, which is an important greenhouse gas. The industry is also a major emitter of ammonia, which is a precursor of fine particulate matter—arguably, the number-one environment-related public health threat facing the nation. We present an integrated process model of the engineering economics of technologies to reduce methane and ammonia emissions at dairy operations in California. Three policy options are explored: greenhouse gas offset credits for methane control, particulate matter offset credits for ammonia control, and expanded net metering policies to provide revenue for the sale of electricity generated from captured methane gas. Individually, any of these policies appears to be sufficient to provide the economic incentive for farm operators to reduce emissions. We report on initial steps to fully develop the integrated process model that will provide guidance for policymakers.