Green, Gareth P.

By: Green, Gareth P.; Richards, Timothy J.
Understanding individual discounting behavior of future costs and benefits is critical for designing environmental policy. Although there is some empirical evidence of hyperbolic discounting, others have found that exponential discounting is more accurate when behavioral factors are properly considered. Further, there is little research on how environmental discount rates differ from monetary rates. We use experimental methods to determine how individuals discount monetary and environmental goods. Our findings suggest that individual discounting behavior is approximately exponential, environmental goods are discounted at lower rates than monetary goods, and discount rates vary widely across environmental goods when accounting for appropriate behavioral factors.
By: Green, Gareth P.; Sunding, David L.
Economists have long argued that increasing the price of agricultural water will encourage the adoption of efficient irrigation technologies. This article considers the choice of irrigation systems conditional on prior land allocation decisions. Adoption functions for gravity and low-pressure irrigation technologies are estimated for citrus and vineyards crops using a field-level data set from California's Central Valley. Results show that the influence of land quality and water price on low-pressure technology adoption is greater for citrus than for vineyard crops. Consequently, the response of growers to changes in policy will be conditional and land allocation.