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Virtual Issue: Environmental Economics


In this virtual issue of the American Journal of Agricultural Economics, we highlight recent research on agri-environmental issues. Barely discussed in the literature twenty years ago, articles that focus on agri-environmental issues are now prominent in the agricultural economics research agenda.

A particularly important theme featured in this collection is the valuation of environmental amenities, including recreation, native vegetation, and, more generally, ecosystem services. A second dominant theme is water, including consumers' response to a bottled water tax, allocative efficiency with privatized water rights versus irrigation districts, and water availability as a determinant of agricultural land values. Another interesting topic that is featured in this collection due to rapidly growing public concern is invasive species and disease resistance.

The collection concludes with two papers on environmental regulation, one involving the costs of regulation for a typical U.S. dairy farm, and the second involving the impact of changing wolf pack locations on beef production. Issues involving climate change were intentionally not included in this collection because this broad and important topic is deserving of its own special issue.

Overall, the ten papers in this collection nicely reveal how innovative methods of theoretical modeling, survey design, and econometric modeling are used to analyze various types of environmentally-related market failures and to justify creative policy proposals.

James Vercammen
AJAE Editor

Amenity Value

Modeling Recreation Demand When the Access Point Is Unknown
Yongjie Ji, Joseph A. Herriges, and Catherine L. Kling
American Journal of Agricultural Economics 98 (3): 860-880.

Capitalized Amenity Value of Native Vegetation in a Multifunctional Rural Landscape
Maksym Polyakov, David J. Pannell, Ram Pandit, Sorada Tapsuwan, and Geoff Park
American Journal of Agricultural Economics 97 (1): 299-314.

Transaction Costs in Payment for Environmental Service Contracts 
Jeffrey M. Peterson, Craig M. Smith, John C. Leatherman, Nathan P. Hendricks, and John A. Fox 
American Journal of Agricultural Economics 97 (1): 219-238.


Measuring Consumer Responses to a Bottled Water Tax Policy 
Peter Berck, Jacob Moe-Lange, Andrew Stevens, and Sofia Villas-Boas 
American Journal of Agricultural Economics 98 (4): 981-996.

The Water Transfer Effects of Alternative Irrigation Institutions 
Narishwar Ghimire and Ronald C. Griffin 
American Journal of Agricultural Economics 96 (4): 970-990.

Land Markets and the Value of Water: Hedonic Analysis Using Repeat Sales of Farmland 
Steven Buck, Maximilian Auffhammer, and David Sunding 
American Journal of Agricultural Economics 96 (4): 953-969.

Invasive Species and Disease Resistance

Economics of Controlling Invasive Species: A Stochastic Optimization Model for a Spatial-dynamic Process 
Morteza Chalak, Maksym Polyakov, and David J. Pannell 
American Journal of Agricultural Economics (2016).

The Effects and Value of a Resistant Perennial Variety: An Application to Pudrición del Cogollo Disease 
Kelly A. Grogan and Mauricio Mosquera 
American Journal of Agricultural Economics 97 (1): 260-281.

Environmental Regulation

The Economic Costs of Environmental Regulation in U.S. Dairy Farming: A Directional Distance Function Approach 
Eric Njuki and Boris E. Bravo-Ureta 
American Journal of Agricultural Economics 97 (4): 1087-1106.

Crying Wolf? A Spatial Analysis of Wolf Location and Depredations on Calf Weight 
Joseph P. Ramler, Mark Hebblewhite, Derek Kellenberg, and Carolyn Sime 
American Journal of Agricultural Economics 96 (3): 631-656.

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