150
How much would the quantity they could sell change if their cost of production increased by 10% under an elasticity of −0.1 versus one of −10? Does this
mean FEW actions that expand the price they need to charge to cover the cost of
production can be implemented more safely if they face elastic demand (e < −1
(the −10 above)) or inelastic demand (e > −1 (the −0.1 above))? How does this
relate to the glycerol case described above?
References
Abbott, P., Hurt, C., & Tyner, W. E. (2011). What’s driving food prices in 2011? (Issue report). Oak
Brook, IL: Farm Foundation.
Adams, R. M., Rosenzweig, C., Peart, R. M., Ritchie, J. T., McCarl, B. A., Glyer, J. D., Curry,
R. B., Jones, J. W., Boote, K. J., & Allen, L. H., Jr. (1990). Global climate change and U.S.
agriculture. Nature, 345(6272), 219–224.
Barnett, J., & O’Neill, S. (2010). Maladaptation. Global Environmental Change, 20(2), 211–213.
Bazilian, M., Rogner, H., Howells, M., Hermann, S., Arent, D., Gielen, D., Steduto, P., Mueller,
A., Komor, P., & Tol, R. S. J. (2011). Considering the energy, water and food nexus: Towards
an integrated modelling approach. Energy Policy, 39, 7896–7906.
Brouwer, R. (2000). Environmental value transfer: State of the art and future prospects. Ecological
Economics, 32, 137–152.
Chambwera, M., Heal, G., Dubeux, C., Hallegatte, S., Leclerc, L., Markandya, A., McCarl, B. A.,
Mechler, R., & Neumann, J. E. (2014). Economics of adaptation. In Climate change 2014:
Impacts, adaptation, and vulnerability. Part A: Global and sectoral aspects. Contribution of
Working Group II to the Fifth Assessment Report of the Intergovernmental Panel on Climate
Change. Cambridge: Cambridge University Press. Chapter 17.
Ciriminna, R., Pina, C. D., Rossi, M., & Pagliaro, M. (2014). Understanding the glycerol market.
European Journal of Lipid Science and Technology, 116, 1432–1439.
Colby, B. G. (1989). Estimating the value of water in alternative uses. Natural Resources Journal,
29, 511.
Hanley, N., Shogren, J. F., & White, B. (2002). Environmental economics in theory and practice.
New York, NY: Palgrave Macmillan.
Hansen, L., & Ribaudo, M. (2008). Economic measures of soil conservation benefits (Technical
bulletin number 1922). Washington, DC: USDA Economic Research Service.
Hoff, H. (2011). Understanding the nexus: Background paper for the Bonn2011 Nexus Conference.
Stockholm: SEI.
Just, R. E., Hueth, D. L., & Schmitz, A. (2008). Applied welfare economics. Cheltenham: Edward
Elgar Publishing.
King, D. M., & Mazzotta M. (2000). Benefit transfer method. Ecosystem valuation. Retrieved from
http://www.ecosystemvaluation.org/benefit_transfer.htm#advant.
McCarl, B. A. (2015). Elaborations on climate adaptation in U.S. agriculture. Choices, 30, 1–5.
Moschini, G., & Hennessy, D. A. (2001). Uncertainty, risk aversion, and risk management for
agricultural producers. Handbook of Agricultural Economics, 1, 87–153.
Nordhaus, W. D. (2007). A review of the stern review on the economics of climate change. Journal
of Economic Literature, 45, 686–702.
Pfeiffer, L., & Lin, C. C. (2014). Does efficient irrigation technology lead to reduced groundwater
extraction? Empirical evidence. Journal of Environmental Economics and Management, 67,
189–208.
Stavins, R. N. (1995). Transaction costs and tradeable permits. Journal of Environmental
Economics and Management, 29, 133–148.
B. A. McCarl and Y. Yang
How much would the quantity they could sell change if their cost of production increased by 10% under an elasticity of −0.1 versus one of −10? Does this
mean FEW actions that expand the price they need to charge to cover the cost of
production can be implemented more safely if they face elastic demand (e < −1
(the −10 above)) or inelastic demand (e > −1 (the −0.1 above))? How does this
relate to the glycerol case described above?
References
Abbott, P., Hurt, C., & Tyner, W. E. (2011). What’s driving food prices in 2011? (Issue report). Oak
Brook, IL: Farm Foundation.
Adams, R. M., Rosenzweig, C., Peart, R. M., Ritchie, J. T., McCarl, B. A., Glyer, J. D., Curry,
R. B., Jones, J. W., Boote, K. J., & Allen, L. H., Jr. (1990). Global climate change and U.S.
agriculture. Nature, 345(6272), 219–224.
Barnett, J., & O’Neill, S. (2010). Maladaptation. Global Environmental Change, 20(2), 211–213.
Bazilian, M., Rogner, H., Howells, M., Hermann, S., Arent, D., Gielen, D., Steduto, P., Mueller,
A., Komor, P., & Tol, R. S. J. (2011). Considering the energy, water and food nexus: Towards
an integrated modelling approach. Energy Policy, 39, 7896–7906.
Brouwer, R. (2000). Environmental value transfer: State of the art and future prospects. Ecological
Economics, 32, 137–152.
Chambwera, M., Heal, G., Dubeux, C., Hallegatte, S., Leclerc, L., Markandya, A., McCarl, B. A.,
Mechler, R., & Neumann, J. E. (2014). Economics of adaptation. In Climate change 2014:
Impacts, adaptation, and vulnerability. Part A: Global and sectoral aspects. Contribution of
Working Group II to the Fifth Assessment Report of the Intergovernmental Panel on Climate
Change. Cambridge: Cambridge University Press. Chapter 17.
Ciriminna, R., Pina, C. D., Rossi, M., & Pagliaro, M. (2014). Understanding the glycerol market.
European Journal of Lipid Science and Technology, 116, 1432–1439.
Colby, B. G. (1989). Estimating the value of water in alternative uses. Natural Resources Journal,
29, 511.
Hanley, N., Shogren, J. F., & White, B. (2002). Environmental economics in theory and practice.
New York, NY: Palgrave Macmillan.
Hansen, L., & Ribaudo, M. (2008). Economic measures of soil conservation benefits (Technical
bulletin number 1922). Washington, DC: USDA Economic Research Service.
Hoff, H. (2011). Understanding the nexus: Background paper for the Bonn2011 Nexus Conference.
Stockholm: SEI.
Just, R. E., Hueth, D. L., & Schmitz, A. (2008). Applied welfare economics. Cheltenham: Edward
Elgar Publishing.
King, D. M., & Mazzotta M. (2000). Benefit transfer method. Ecosystem valuation. Retrieved from
http://www.ecosystemvaluation.org/benefit_transfer.htm#advant.
McCarl, B. A. (2015). Elaborations on climate adaptation in U.S. agriculture. Choices, 30, 1–5.
Moschini, G., & Hennessy, D. A. (2001). Uncertainty, risk aversion, and risk management for
agricultural producers. Handbook of Agricultural Economics, 1, 87–153.
Nordhaus, W. D. (2007). A review of the stern review on the economics of climate change. Journal
of Economic Literature, 45, 686–702.
Pfeiffer, L., & Lin, C. C. (2014). Does efficient irrigation technology lead to reduced groundwater
extraction? Empirical evidence. Journal of Environmental Economics and Management, 67,
189–208.
Stavins, R. N. (1995). Transaction costs and tradeable permits. Journal of Environmental
Economics and Management, 29, 133–148.
B. A. McCarl and Y. Yang