van Kooten, G. Cornelis

By: Withey, Patrick; van Kooten, G. Cornelis
We develop a positive mathematical programming model to investigate the impact of climate change on land use in the prairie pothole region of western Canada, with particular focus on wetlands retention. We examine the effect of climate change and biofuel policies that are implemented to mitigate climate change on wetlands retention. Simulation results indicate that a drier climate could decrease wetlands by as much as 38% if the externality benefits of wetlands are considered, but by nearly 80% if they are not. Reductions in wetlands are most pronounced in the south-central areas of the region.
By: Wong, Linda; van Kooten, G. Cornelis; Clarke, Judith A.
Because there are potential externality benefits, it is important to specify an appropriate statistical model when analyzing the conflict between agriculture and migratory waterfowl in Canada’s pothole region. Unlike non-spatial panel models, our use of a spatial autoregressive panel model identifies indirect impacts of agricultural activities on wetlands and waterfowl. In particular, we find that programs to restore wetlands in one location will result in enhanced duck productivity of wetlands and habitat in other locations within the study region. Even so, costs of protecting ducks could range from $107 to $204 per bird.
By: Moeltner, Klaus; van Kooten, G. Cornelis
There is an increasing tendency for forest product firms worldwide to adopt sound environmental management practices by voluntarily agreeing to have their forest practices certified by third parties. Using a simple model of profit maximization, we illustrate that the puzzling emergence of this non-state, self-imposed governance structure is compatible with firms' profit motives. An empirical model using firm data from three countries shows firm location and export destinations play a key role in firms' decisions to seek certification, while the nature of forestland ownership has no significant impact on certification decisions.
By: van Kooten, G. Cornelis; van Kooten, R.E.; Brown, G.L.
A method is suggested for modeling uncertainty when there is a lack of information concerning the effect of forest management decisions on tree growth. Dynamic programming is used to investigate the optimality of alternative management strategies. The model is illustrated with an empirical example for a boreal forest region of western Canada. Three tentative conclusions follow: (a) silvicultural strategies to reduce uncertainty or to increase stand growth may not be worth pursuing, at least in northern forests; (b) the discounted cost of ignoring uncertainty may be substantial if taken over the entire forest; and (c) given uncertain forest growth, flexible harvest policies are preferred to a fixed harvest age.