Theses for School of Management

Recent Submissions

  • McNeil River State Game Sanctuary permit lottery applicant preferences and marginal willingness to pay for permit application: a best-worst discrete choice experiment

    Young, Taylor B.; Little, Joseph; Baek, Jungho; Greenberg, Joshua (2019-08)
    This study applies data from a web-based survey administered to 2016-2018 McNeil River State Game Sanctuary permit lottery applicants to examine preferences and marginal willingness-to-pay (WTP) for an application contingent upon marginal interval increases among specific attributes of a bear viewing experience. A best-worst discrete choice experiment (BWDCE) was used to elicit respondent data, which consisted of eight individual choice tasks using a Balanced Incomplete Block Design (BIBD) in Sawtooth Software. Each choice task was comprised of five attributes: permit application price, odds of winning a permit, number of bears viewed daily during visit to the Sanctuary, cubs being present, and most common type of bear feeding activity viewed while at the Sanctuary. Each attribute was decomposed into two to four varying levels across choice tasks, depending on the attribute in question. The findings suggest that lottery permit applicants have a significant desire to view bears fishing for salmon, and to see cubs. These results imply a clear desire of applicants to visit the Sanctuary in high season. As expected, respondents also stand to obtain a positive effect on personal utility of increased odds of winning a permit, and to a lesser extent, view a larger number of bears while at the Sanctuary, and therefore have a positive mWTP to both of these characteristics as well. The price coefficient in both the preference parameter utility model and the mWTP model is negative, as expected, but not large in magnitude which may be attributed to the sample being wealthier than average and/or the forgone permit application price is viewed as a wildlife conservation donation. The main model used for analysis is the mixed (random parameters) logit (MXL), and the preference parameters estimated are then used to estimate mWTP in WTP-space using Stata. Results using a multinomial logit (MNL) and conditional logit (CL) are also presented for comparison and affirmation that MXL is better suited for the data in order to allow for preference heterogeneity and random parameters, rather than fixed parameters.
  • Alaska Native corporations, the long run

    Snigaroff, Robert G.; Baek, Jungho; Little, Joseph; Koskey, Michael; Williams, Maria; Zhou, Thomas (2019-08)
    Alaska Native Corporations as formed by the Alaska Native Claims Settlement Act (ANCSA) have existed for almost fifty years. As with all businesses, their results are mixed. Alaska Native Corporations (ANCs) are unique. After a brief overview of ANCs' results, I study several issues that pertain to them in a manuscript format with several chapters. Business stability and longevity are crucial for ANCs, and I discuss that, given a common mission of ANCs for cultural continuation. While most of the following is a positive analysis, I also make a normative strategy argument: ANCs should make larger portions of their economic activity in the form of endowment models. A separate matter is many ANCs have portfolios of diversified operating businesses. I review other investors' results in private equity investments opportunities. The average investor has done fairly poorly. This provides a cautionary warning to the pursuit of such strategies for ANCs and other institutional investors. Another business model alternative for ANCs are endowment models with marketable securities, hence, I study stock return characteristics. Interestingly, the way stocks can be broken out into their core return components allows study of an ANC issue. Alaska Native shareholders have made a trade-off between cultural continuation and higher monetary value realization if they did sell their shares. Of the approximately one hundred fifty ANCs, none has done so. Marketable security returns partly consist of a liquidity component. That has applicability to ANCs as they have willingly ceded the liquidity value of their shares for their goal of cultural continuation.
  • The effect of wildfires, spruce bark beetles, and prescribed burns on residential property values in Alaska's Kenai Peninsula

    Reinker, Paul C.; Little, Joseph; Baek, Jungho; Greenberg, Joshua (2019-08)
    This study estimates the effect that forest fires, spruce bark beetle outbreaks, and controlled burns performed by fire management agencies have on nearby residential property values. Using the hedonic pricing framework, and ten years of house sales from south-central Alaska's Kenai Peninsula, this study found little evidence that wildfires and spruce beetle outbreaks have a significant effect on the final sale price of surrounding homes, but found that the controlled burns contribute to a decrease in surrounding home values. As Alaska's climate becomes warmer and drier, these disturbances threaten to increase in frequency and severity. Understanding how homeowners perceive fire risk and forest damage is increasingly important to fire management policy, as the behavior of residents can help limit both the cost from and incidence of wildfires. The study's findings suggest that homeowners are either insulated from, or indifferent to fire risk, but targeted burns of high-risk areas by fire managers could increase awareness and sensitivity to fire risk.
  • Wildfire in Alaska: the economic role of fuel treatments and homeowner preferences in the wildland urban interface

    Molina, Allen Christopher; Little, Joseph; Drury, Stacy; Baeck, Jungho; Greenberg, Joshua (2019-08)
    The challenges of increased temperatures, drier fuels and more intense wildfires are having a detrimental effect on Alaskans, especially those who live in the wildland urban interface. This area is defined by open wildlands being directly adjacent to homeowners. Human safety and property are exposed to increasing risk from these wildfires as climate-based changes affect the state. The rising costs of suppressing wildfires necessitate exploring potential solutions to minimize the impact on the state population and budget. The purpose of this study is to analyze the feasibility of fuel treatments to reduce suppression costs and provide incentives to private homeowners to create safer property spaces. An electronic survey and choice experiment were administered to 388 Alaskan homeowners to measure willingness-to-pay for different attributes associated with wildfire risk reduction variables, including nearby fuel treatments and overall neighborhood participation. Expenditure data were collected for large Alaskan wildfires between 2007 and 2015. An econometric cost model was developed to estimate the effect of nearby fuel treatments on final wildfire suppression expenditures. In both scenarios, there was a limited effect from public land fuel treatments on homeowner preferences and total suppression costs. Homeowners had a strong preference for thinned fuel treatments but did not prefer clear-cut tracts of land, even when compared to doing nothing at all. The survey provided significant insight into the preferences of Alaskan homeowners, including altruistic behavior, free riding behavior, self-assessment of risk, and the amenity values of surrounding vegetation. The costs of large Alaskan wildfires in the data set was mainly driven by protection level and number of burn days, and not by the presence or potential utilization of fuel treatments.
  • Alaska's ice roads and investment decision in drilling: an empirical analysis

    Azmi Wendler, Sarah; Baek, Jungho; Reynolds, Douglas B.; Herrmann, Mark (2019-08)
    This thesis applies Autoregressive Distributed Lag modeling techniques to estimate the effects of ice road season lengths on exploration activities in Alaska within the North Slope. This analysis uses data on winter off-road travel from 2001-2018 in monthly intervals against exploration wells spudded. It is found that while ice roads do not affect overall drilling activities in the North Slope, the lengths of the season plays significant part in exploration of new fields. While this subject has become a popular subject due to variations in the ice road season, no similar statistical analysis has been conducted to date. Oil prices, production and Alaska's oil policy were also found to be important variables in characterizing exploration activity.
  • Tourism development and public policy: perceptions of the Chuukese community

    Perez, Gerald San Agustin; Baek, Jungho; Schumann, Fred; Caroll, Jennifer; Walter, Ansito (2019-05)
    Tourism is a widely used tool for economic development in small insular communities. This mixed methods study examines factors that influence residents' perceptions toward tourism development in Chuuk and the relevance of "complexity theory" in describing the island's stage of development. Empirical evidence and data triangulation corroborate general support for tourism development and sensitivity to cultural impacts, economic impacts, social impacts, environmental impacts, local control and sustainability. Economic and cultural impacts were the strongest factors influencing perceptions and are most significant to sustainable development and destination development. This reflects residents' beliefs that the island will benefit from tourism because of perceived improvements in the economy, infrastructure, tourist facilities and expanded social amenities. It also reflects residents' expectations for long term planning, managed growth, and laws to protect the environment. Some differences and similarities are noted between sampled residents living in Chuuk and Guam. This study is the first of its kind in an isolated region lacking scholarship literature on tourism. As such, basic information gathered is a wellspring, for further research into issues of social justice using a more sequential transformative framework.
  • Determinants of anglers willingness to pay to support the Recreational Quota Entity program

    Mitchell, McKenzie; Little, Joseph; Criddle, Keith; Greenberg, Joshua; Hermann, Mark (2019-05)
    This study applies data from a web-based survey administered to Alaska sport fish license holders in 2017 to examine the newly introduced Recreational Quota Entity (RQE) program in Alaska's guided halibut sport fishery and the possibility of increasing halibut available to sport anglers by funding this program through a state-endorsed halibut stamp. Two valuation questions were randomized amongst the survey sample. The questions were designed to elicit willingness to pay (WTP) for a halibut stamp in support of the RQE program under (1) status quo halibut fishing regulations (2) more relaxed charter halibut fishing regulations made possible through revenues from halibut stamp sales. The need for two valuation questions is in response to the many factors that would ultimately determine the degree to which charter fishing regulations could be relaxed and the time needed for regulatory change made possible through revenues from halibut stamp sales. The findings indicate that non-resident anglers and resident anglers have a very similar WTP for a state-endorsed halibut stamp and that anglers are willing to pay for a halibut stamp despite having little or no history of participation in the halibut fishery. The pairwise comparison among mean WTP estimates from both valuation questions indicates that differences in anglers' WTP are inconsequential. Findings suggest that the WTP for a state-endorsed halibut stamp reflects an interest in preserving access to the fishery or the value of reserving an option to participate in the halibut fishery. Respondent education level and employment status were found to be statistically significant determinants of anglers' willingness to pay for a state-endorsed halibut stamp to support the RQE program.
  • An exploration of own and cross-price elasticity of demand for residential heating in the Fairbanks North Star Borough

    Graham, Noelle J.; Little, Joseph; Baek, Jungho; Kennedy, Camilla (2019-05)
    The purpose of this study is to utilize community level household energy consumption data to determine the short-run own- and cross-price elasticity of heating oil and wood using the proportionally calibrated almost idea demand system model. Elasticity values can identify how residents of the Fairbanks North Star Borough will potentially alter home heating practices in response to a change in home heating oil price. Results indicate that values for own-price elasticity for oil is -0.259, with a 95% confidence interval of [-0.272, -0.246]. Based on predicted values a 1% increase in the price of heating oil is estimated to result in a reduction of 0.259% in the quantity of residential heating oil consumed by the average household. Cross-price elasticity estimates of wood with respect to a change in the price of oil is 0.198 with a 95% confidence interval of [0.171, 0.234]. Based on predicted values, a 1% increase in the price of oil is predicted to increase wood consumption by 0.198%. In addition, this study utilized a Monte Carlo Simulation with estimated elasticity parameters to predict the change in household level energy consumption of wood and heating oil given an increase in heating oil prices. Approximately 71% of households are predicted to decrease overall energy consumption. 83.5% of households are predicted to decrease oil consumption, and 57.3% of houses are predicted to increase wood consumption. Through evaluating household's energy consumption decisions in the face of changing prices, these results can inform effective air quality policies.
  • Institutional structure and the optimal level of lying

    Hiser, Rodney F.; Logan, Robert R. (1999)
    This study is an interdisciplinary comparative analysis of two institutional structures and their relation to lying. The author examines institutional structure through an institutional continuum with contrasting ideal-types at opposing ends. These ideal-types are the "private property order" and the "bureau." The author models lying as a benefit-cost analysis and examines lying through a two-person model of society called the "information relation." Using the information relation, he shows the problem of lying is an agency problem between the informer and the informee. In two separate analyses, the author evaluates the ideal-types' tendencies to either allow or hinder lying. In the first analysis, the author identifies seven protection-from-lying strategies and compares their necessary requirements to the institutional constraints of the ideal types. In the second analysis, the author examines six social phenomena, within the institutional context of each ideal type, that affect people's benefit-cost ratio of lying. The author concludes that there exists a positive correlation between the degree of central planning and the optimal level of lying, as seen from the point of view of each individual in society. The author argues that a movement on the continuum away from the private property order toward the bureau tends to (1) breakdown community relations, (2) provide incentive for society members to adopt value relativism, (3) change the nature of competition, (4) lower society's overall material standard of living, and (5) create a social environment of mutual self-deception. The author sees important implications in this study for the economics of information, theories of government regulation, and the sociology of science.
  • Impact of specific CSR activities, executive & board diversity on equity valuations

    Williams, David J.; Little, Joseph; Baek, Jungho; Greenberg, Joshua (2018-05)
    The objective of this study is to identify the impact of specific corporate social responsibility behaviors on equity prices. This study uses fixed effect parametric and nonparametric regressions to quantify the effect of specific corporate social responsibility activities on the equity price multiples of a number of US firms from 1999 to 2009. The results of these empirical models consistently show that CEO diversity, corporate charitable giving, and work-life balance benefit plans, are associated with lower equity price multiples compared against similar firms that lack these characteristics. Additionally, board diversity and support of the LBGTQ community is associated with a positive impact on equity price multiples. This study provides evidence that individual corporate social responsibility activities can have drastic impacts on equity prices, leading the way for future research testing whether the magnitudes of these impacts are rational and in-line with their expected impact on financial performance and risk, or a deviation from the efficient market hypothesis.
  • Market impacts and global implications of U.S. shale development and hydraulic fracturing: an economic, engineering, and environmental perspective

    Umweke, Maduabuchi Pascal; Baek, Jungho; Patil, Shirish; Perkins, Robert; Reynolds, Douglas (2018-05)
    The United States oil industry is experiencing a revolution because of significant oil production from tight oil plays since the mid-2000s. Advancements in horizontal well drilling and hydraulic fracturing are powering this new chapter in oil development. Increased oil production has brought billions of dollars of new revenue to oil companies involved in tight oil exploration and production, new jobs in the oil industry, and more tax revenue to oil regions around the U.S. However, tight oil resources do not only exist in the U.S. An understanding of the U.S. tight oil development experience could bring value to stakeholders within and outside the United States, and provide lessons and templates applicable in other tight oil regions. This research examines the U.S. tight oil experience and draws lessons for aspiring tight oil regions on the engineering, economic, and environmental fronts. On the economic front, I have examined an autoregressive distributed lag (ARDL) model on key oil industry macroeconomic data (West Texas Intermediate oil price, tight oil production, and rig count) from 2007 through 2016, and the impact of oil price on tight oil development for the Bakken, Eagle Ford, Niobrara, and Permian tight oil plays. The results show that oil companies in different plays react differently to oil price signals and do so in relation to oil field development characteristics. In addition, oil production and drilling intensity in the Eagle Ford play is found to be most responsive to oil price increases than the Permian, Bakken, or Niobrara oil plays. The Permian play was most resilient during the 2014 through 2016 oil price plunge. Oil production does not fall in response to a decrease in oil price, equally as it rises in response to oil price increase. Tight oil operators are quicker in bringing drilling rigs to service as prices rise than they take them away in response to falling oil prices, but do reduce drilling significantly in response to an oil price plunge. These results have significant ramifications for operators and assets in the respective oil plays or future plays with similar development characteristics. On the engineering front, I used petroleum engineering oil production forecasting Decline Curve Analysis techniques, the Drillinginfo Software, and historical development data of U.S. plays, to conduct oil production forecast for seven U.S. tight oil plays. Forecast results are shown to be comparable to forecasts by the Energy Information Administration (EIA). Building on previous EIA geologic studies on non-U.S. tight oil plays, and by selecting best analogues from within U.S. tight oil plays, I have completed an economic assessment and uncertainty analysis for 10 non-U.S. tight plays using a simple fiscal tax regime. The results indicate that the Eagle Ford play in Mexico, the Vaca Muerta play in Argentina, and the Qingshankou play in China rank highest among the plays studied. Of oil price, royalty rate, discount rate, well cost, extraction tax, and recovery factor parameters evaluated, results indicate that oil price and well cost are among the biggest drivers of profitability in these plays. On the environmental front, I conducted case studies on the busiest U.S. tight oil plays (Bakken and Eagle Ford) and examined the impact of tight oil development on the environment. Local solutions to environmental challenges alongside environmental regulations are discussed and presented as possible templates for other aspiring plays. Since securing freshwater sources alongside wastewater management emerge as major issues in tight oil development, a cost comparison is conducted for reused water disposal versus one-use water disposal options, for a hypothetical development. Results indicate that on a cost-per-well basis, the reduction in water disposal volume from subsurface frack flowback retention improves water reuse economics; the water reuse option is preferable to one-use water disposal for U.S. oil plays. This result points to potential cost savings for reused water disposal in regions such as the Bakken with few disposal wells.
  • Up in smoke: exploring the relationship between forest firefighting and subsistence harvest

    Rodrigues, Alyssa V. S.; Little, Joseph; Greenberg, Joshua; Trainor, Sarah; Brinkman, Todd J. (2018-05)
    Wildland firefighting in Alaska is changing due to the impact of climate change on the boreal forest. Changes to the wildland firefighting regime could have significant impacts on community participation during fall subsistence hunting and, consequentially, food security levels. Many rural Alaska communities have mixed cash-subsistence economies in which people have to balance their time between earning an income and harvesting subsistence foods. Cash income is necessary to pay for things such as housing, electricity, gasoline, gun, ammunition, and other capital necessary to engage in subsistence. This dissertation aims to better understand the current relationship between Type 2, or hand crew, wildland firefighting and subsistence, primarily fall subsistence hunting, through several methods. Surveys and interviews were conducted with Type 2 wildland firefighters followed by policy recommendations. Econometric modeling of the wildfire attributes, community attributes, and firefighting wages and dispatches was conducted. Lastly, a food production simulation was conducted. Utilizing these various methods gives a well-rounded understanding of the relationship between firefighting and subsistence. Firefighting wages currently contribute to subsistence harvest productivity. As climate change lengthens the fire season, rural Type 2 fire crews will continue to participate in firefighting and fall subsistence hunting. Only under the most extreme estimates of future wildland fires does time spent fighting fire reduce time spent on subsistence fall hunting by much so that rural communities are unable to meet their subsistence needs.
  • Analysis of energy consumption on the environmental Kuznets curve hypothesis in the United States: does renewable energy play a role?

    Ohnesorge, Michelle; Little, Joseph; Baek, Jungho; Greenberg, Joshua (2018-05)
    Using CO₂ emissions as a representation of environmental degradation an empirical econometric analysis is conducted to see if there is evidence of an Environmental Kuznets Curve in the United States and if renewable energy consumption plays a significant role in CO₂ emission mitigation. The renewable energy consumption variable was broken down further to isolate geothermal, hydroelectric, biomass, solar, and wind energy consumption and explore their role in the analysis. An Auto-Regressive Distributed Lag approach to cointegration with Pooled Mean Groups and Mean Groups estimations was used on U.S. state (including District of Columbia) specific data from 1987 to 2015 to calculate the long and short run results that would support an Environmental Kuznets Curve hypothesis. The panel of states was divided into low, medium, and high GDP brackets as disaggregate models and those were examined along with a model of the entire United States. Evidence for an Environmental Kuznets Curve for the United States could not be established in the aggregate model, however it was found that renewable energy consumption did have a negative coefficient, which indicates CO₂ emission mitigation through renewable energy consumption. Out of the individual renewable energy consumption variables tested, only wind energy consumption was found to be statistically significant while the model also exhibited evidence to support an Environmental Kuznets Curve hypothesis in this aggregate model. Looking at the different GDP state brackets, low GDP states were the only bracket that yielded evidence of an Environmental Kuznets Curve in the disaggregate models. For estimations with the low GDP states bracket looking at the individual renewable energy consumption variables, hydroelectric, biomass, solar, and wind energy consumption variables were statistically significant as well. The medium GDP bracket states aggregate model did not yield conclusive results, stemming from the lack of slope in the GDP variable for this model. Out of the individual renewable energy consumption variables tested in the subset, biomass was the only energy consumption to be statistically significant while the model exhibited evidence of an Environmental Kuznets Curve. The high GDP bracket aggregate model did not yield results showing evidence of an Environmental Kuznets Curve, while the individual renewable energy consumption variable subset models geothermal and wind energy consumption were statistically significant within models showing evidence of an Environmental Kuznets Curve. Breaking out these separate renewable energy consumption variables in an Environmental Kuznets Curve analysis can provide empirical support for policy and investment in specific renewable energy technology.
  • Hunters like skewness, not risk: evidence of gambling behaviors in the Alaska hunting permit lottery

    Lane, Brock; Little, Joseph; Greenberg, Joshua; Baek, Jungho (2018-05)
    In Alaska, hunting permits are distributed by traditional lottery. The absence of a preference point system means that applicants have little invested in their applications, and there are a variety of fallback hunting opportunities. Not unlike a jackpot-style state lottery, the cost to play is low relative to the potential prize winnings. These factors may cause risk-averse or risk-neutral individuals to exhibit a preference for positive skewness in their bets. Analysis in this paper is focused on four prevalent game species: moose, dall sheep, mountain goat, and bison. Pooled Ordinary Least Squares regression models were constructed to predict permit application levels as a function of various hunt characteristics, qualities, and restrictions. Permit descriptions are provided to applicants in a published document called the drawing supplement, which is the primary source of data for this study. Additional hunter-reported data is obtained from the Alaska Department of Fish and Game website. A comparison of calculated permit values and private ranch hunting opportunities validates many of the observations drawn from the models. Permit values are also used to fit a cubic model of bettor utility. Even when awarded prizes are not monetary, applicants exhibit a preference for positive skewness and aversion from risk that is typically associated with gambling.
  • On the willingness-to-pay for Elodea removal in the Fairbanks North Star Borough

    Kaczmarski, Jesse I.; Little, Joseph; Greenberg, Joshua; Fix, Peter (2018-05)
    The empirical research conducted herein addresses a public need for the funding of a project that would eradicate Elodea in the Fairbanks North Star Borough (FNSB). The eradication project has been outlined and approved by State and Federal agencies and has gathered funding to begin the eradication process. The study aims to develop a mean willingness-to-pay value for survey participants by shifting the funding burden to property tax payers. This body of work includes a primer on Elodea in the borough, an overview of contingent valuation, a parametric approach to willingness-to-pay, and results of the study conducted on Fairbanks property owners. The average willingness-to-pay per survey respondent is $50.32. In addition, 72% of survey respondents voted for the enactment of the program at their proposed cost level. These financial burdens took values of $10, $30, $60, or $120 per year for 4 years to fund the proposed program. A penalized maximum log-likelihood estimation found that the most significant predictors for the likelihood of a yes vote are the respondent's perceived risk to the ecosystem and recreational opportunities. Additionally, the respondents concern for the use of herbicides in the borough to treat the Elodea infestation is highly significant. The high level of prior knowledge throughout the survey indicates that respondents had established view on Elodea prior to the survey.
  • Alaska's Quality Schools Initiative: A Description And Analysis Of 51 Schools' Perceived Strengths And Weaknesses In Factors Associated With Organizational Change

    Mckinny, Betty Jean; Porter, David O. (2003)
    This descriptive study of 51 schools in Alaska examined how educational personnel are responding to the Alaskan Quality Schools Initiative. While research-identifying factors that accelerate or impede general change in organizations already exist, little research has been done in Alaska to assess personnel's attitudes and beliefs about standards-based education. Past school reforms have only experienced moderate success. This study shows that standards-based instruction is perceived by both rural and urban Alaskan educators to be a reform that could make improved achievement a reality. A questionnaire was designed and administered to educational personnel assessing present readiness to implement standards-based education and identifying factors which influenced past implementations of change. Profiles of schools, districts, and the state, reveal factors that may limit or expedite the implementation. Findings indicate that overall past educational change initiatives have been mismanaged. The state scores fall in the low moderate range 60.9 based on Implementation Management Associates Scale of 0--100. In regard to readiness to change the participating schools' scores fall in the moderate range (65.3). The majority of respondents believe that there is a high probability of successful implementation. They see a need and purpose for standards-based education. Personnel valued standards and believed that they were compatible with personal and organization values. Surveyed respondents were confident about the ability to change and were willing to focus on new approaches. The majority indicates the need for more resources and support. A predominant theme in the findings was that organizational stress is very high and personnel are concerned about the adverse effect this change may bring to their jobs. Past reform initiatives have not been aligned with the culture of the school or district. Ineffective communication coupled with low motivation and inadequate incentives has limited implementation efforts. Due to perceived lack of resources and expertise the majority of respondents question whether or not this initiative will be successful. Most rural schools, which have been characterized as widely resistant to change, were found to be more optimistic about change and had fewer barriers to overcome than urban schools.
  • The Economic Value Of Alaska'S Copper River Personal-Use And Subsistence Fisheries: An Application Of The Zonal Travel Cost Model

    Jones, Michelle Marie; Lee, Todd (1998)
    The salmon harvest on the Copper River, Alaska, is shared by commercial, sport, personal-use and subsistence fishers. An important and reoccurring issue is the allocation of salmon harvest among these user groups. Economic analyses, along with biological, legal, social and cultural considerations, have the potential to help policy makers appreciate the consequences of alternative allocations. Although economic analyses of the commercial and sport fisheries have been completed, no comparable studies exist for the personal-use and subsistence fisheries. The zonal travel cost method (TCM) is used to estimate the net economic value (consumer surplus) of the Copper River Basin personal-use and subsistence fisheries. The nature of the fishery and the data set is especially well suited for this purpose. <p>
  • Aligning electricity energy policies in Alaska: analysis of the power cost equalization and renewable energy fund programs

    Villalobos Meléndez, Alejandra; Little, Joseph; Huskey, Lee; Baek, Jungho (2012-05)
    Most rural Alaska communities are not road connected and must cope with challenging arctic environmental conditions. Due to their remoteness and sparse populations, these villages depend on isolated non-grid connected electric generation systems that operate on fuel oil. In Alaska, the Power Cost Equalization program is a 25 year long energy subsidy that targets rural residents to provide energy costs relief. A more recent state incentive program, the Renewable Energy Fund, was developed to expand the use of renewable resources and lower the cost of energy. Some rural communities have benefited from this program and have integrated renewable energy to their systems, particularly installing Wind-Diesel systems. Both programs have congruent goals of alleviating dependence on high cost fossil fuels to generate electricity as means to foster development and higher quality of life in rural Alaska communities. However, their incentive structure may conflict. This paper provides a review of these two energy subsidy policies with a particular focus on the Power Cost Equalization program and offers potential changes to its structure such that social cost impacts to rural residents are minimized while removing incentive barriers against energy efficiency and integration of renewable energy in rural Alaska communities.
  • Analyzing factors affecting Alaska's salmon permit values: evidence from Bristol Bay drift gillnet permits

    Wood, Mackenzie D.; Baek, Jungho; Little, Joseph; Greenberg, Joshua (2017-05)
    The effects of total earnings, total costs and mining exploration on permit prices in Alaska are investigated using an autoregressive distributed lag (ARDL) approach to cointegration. I take specific account of regional and gear specific salmon fisheries -- that is, Bristol Bay drift gillnet permits -- in our modelling. I find that there is a stable long-run relationship among permit prices, total earnings, and total costs. It is also found that, in both the short- and long-run, total earnings have a positive and significant relationship with permit prices, while total costs have a negative and significant relationship. Although the mining exploration in the region has a negative and significant effect on permit prices in the short-run, the effect does not seem to last in the long-run.

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