Environment
A dynamic approach to PES pricing and finance for interlinked ecosystem services: Watershed conservation and groundwater management
A theory of payment for ecosystem services (PES) pricing consistent with dynamic efficiency and sustainable income requires optimized shadow prices. Since ecosystem services are generally interdependent, this requires joint optimization across multiple resource stocks. We develop such a theory in the context of watershed conservation and groundwater extraction. The optimal program can be implemented with a decentralized system of ecosystem […]
Read MoreFinancing Watershed Conservation without Shrinking the Economy
In his recent State-of-the-State address, Governor Abercrombie urged lawmakers to consider either an increase in the conveyance tax on high-priced real estate transactions or a 10-cent fee for single-use plastic checkout bags to finance his watershed protection initiative, “The Rain Follows the Forest,” The proposed taxes, however, have a downside. While they are expected to […]
Read MoreHawaii’s Proposed 400MW Wind Energy Project Explained
HOW WILL THE PROPOSED 400 MW WIND ENERGY PROJECT CONTRIBUTE TO THE STATE’S RENEWABLE ENERGY GOALS? Hawaii has one of the most stringent Renewable Portfolio Standard (RPS)* policies in the country as well as the highest electricity rates due to dependence on oil for electricity generation (Coffman et al., 2012). As such, renewable energy technologies […]
Read MoreUHERO Forum to Discuss Critical Issues on Economy, Environment and Society
Check out this video of UHERO Executive Director and Professor of Economics Carl Bonham discussing what is to be expected at the inaugural UHERO Forum, which will take place on Oct. 29, 2012. It will focusing on critical issues facing the state of Hawai’i and will welcome local researchers and business leaders, as well as experts from […]
Read MoreFinancing Watershed Conservation
In November 2011, Governor Abercrombie and State officials launched a watershed protection plan entitled, “The Rain Follows the Forest”. The initiative’s goal is to double the current level of watershed protection – approximately 10% of priority watershed areas throughout Hawai‘i are currently protected – over the next ten years at an estimated cost of $11 million […]
Read MoreFoundations for Hawai‘i’s Green Economy: Economic Trends in Hawai‘i Agriculture, Energy, and Natural Resource Management
This report provides the first comparison of standard economic indicators for three sectors that are key to future sustainability in Hawai‘i: renewable energy, agriculture, and natural resource management.
Read MoreSpecies Invasion as Catastrophe: The Case of the Brown Tree Snake
This paper develops a two-stage model for the optimal management of a potential invasive species. The arrival of an invasive species is modeled as an irreversible event with an uncertain arrival time. The model is solved in two stages, beginning with the post-invasion stage. Once the arrival occurs, the optimal path of species removal is […]
Read MoreStatewide Economy and Electricity-Sector Models for Assessment of Hawai‘i Energy Policies
This paper uses both a “top-down” and “bottom-up” economic model to asses the cost and greenhouse implications of various energy and environmental alternatives. The Hawai‘i Computable Generable Equilibrium Model (H-CGE) is a “top-down,” economy-wide model that captures the interaction between both producers and consumers, including full price effects between sectors. The Hawai‘i Electricity Model (HELM) […]
Read MoreThe Economics of Groundwater
We provide synthesis of the economics of groundwater with a focus on optimal management and the Pearce equation for renewable resources. General management principles developed through the solution of a single aquifer optimization problem are extended to the management of multiple resources including additional groundwater aquifers, surface water, recycled wastewater, and upland watersheds. Given an abundant (albeit expensive) substitute, […]
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