Source: UTAH STATE UNIVERSITY submitted to NRP
THE ECONOMICS OF SHARED NATURAL RESOURCES WITH EXTRACTION EXTERNALITIES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1011419
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 17, 2016
Project End Date
Jun 30, 2021
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UTAH STATE UNIVERSITY
(N/A)
LOGAN,UT 84322
Performing Department
Applied Economics
Non Technical Summary
Transboundary natural resources pose challenging economic, environmental and regulatory conundrums as they cover the territories of multiple jurisdictions. This makes them more vulnerable to over use, and the consumption more prone to property right disputes, as each state seeks to maximize its own welfare by exploiting the resource. The Colorado River, a critical source of water in the West to meet both agricultural and municipal water needs, well exemplifies the above situation. Not only resource extraction in this context leads to the depletion of the resource, but it can also give rise to different forms of environmental damage with local, regional, and international scope. Understanding the efficiency of different regulatory instruments for managing the use of the shared natural resource; the industry reaction to such environmental policies; and the effect of commerce, climate change, and property rights transfers on transboundary resource consumption, management and regional development remain one of the most important areas of inquiry for economists.
Animal Health Component
20%
Research Effort Categories
Basic
70%
Applied
20%
Developmental
10%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60502103010100%
Knowledge Area
605 - Natural Resource and Environmental Economics;

Subject Of Investigation
0210 - Water resources;

Field Of Science
3010 - Economics;
Goals / Objectives
Objective 1: Investigate the efficiency of different forms of regulatory instruments for managing the use of transboundary natural resources with bilateral extraction externalities;Objective 2: In the context of transboundary natural resources, examine the effect of environmental regulation on industry profits and determine the industry reaction to such regulation;Objective 3: Analyze the effect of commerce on management and appropriation of transboundary natural resources with bilateral extraction externalities;Objective 4: Study the effect of climate change on management and appropriation of transboundary water resources with bilateral extraction externalities;Objective 5: Quantify the impact of increased agriculture-urban water transfers on rural and urban development in the Western United States.
Project Methods
To accomplish the research objectives, the principal investigator intends to use combination of general equilibrium, game-theoretic, and econometric and statistical methods. In addition, to model dependencies between states more flexibly, the principal investigator intends to develop econometric methods based on copulas.

Progress 10/17/16 to 06/30/21

Outputs
Target Audience:Academia, professional researchers, policy makers Changes/Problems:None What opportunities for training and professional development has the project provided?Over the course of this UAES project, I have served as a major professor for one PhD student (completed) and two Master's students (both completed). One of my MS students, who I co-authored a paper related to OBJECTIVE 5, accepted a Lecturer position in the Department of Economics at Weber State University upon successful defense of her Master's degree. Another MS student was accepted to the PhD program in Agricultural and Resource Economics (ARE) at the University of California Berkeley. My PhD advisee has recently accepted a post-doctoral position at Haub School of of Environment and Natural Resources in the University of Wyoming. My collaborative work with my PhD advisee landed her an opportunity to attend the 2019 Berkeley/Sloan Summer School in Environmental and Energy Economics at the Haas School of Business at the University of California Berkeley--a highly competitive program for doctoral students nationwide. In addition, I have served in the dissertation or thesis committees of three other PhD students (two completed, one in progress) and six Master's students (all completed). Through my advising activities, I have completed thus far twelve academic papers with graduate students, having published seven in peer-reviewed academic journals and two with a revise and resubmit status at present. My graduate student co-authors have also presented eight professional presentations at national and international conferences. How have the results been disseminated to communities of interest?The results of my scholarly work have been disseminated to communities of interest (academia, professional researchers, and policy makers) by means of journal publications and conference presentations. See Accomplishments for journal publications. Over the course of this UAES project, the output of my scholarly endeavors has been presented at national and international professional conferences and departmental seminars. Specifically, I have presented 23 professional presentations (17 paper and five poster). My graduate student co-authors have delivered another eight professional presentations (five paper and three poster). In the form of a selected paper presentation, my research was included in the conference programs of American Economic Association/Allied Social Sciences Association (2020), Agricultural and Applied Economics Association (2016, 2018, 2019, 2020), Association of Environmental and Resource Economists (2019, 2020), European Association of Environmental and Resource Economists (2020), Australasian Agricultural and Resource Economics Society (2020), International Association for Energy Economics (2021), and Western Economic Association International (2016, 2017, 2019), among others. My scholarly endeavors have also drawn the interest of a broader audience through popular media sources. In particular, my work published in Land Economics and Journal of Environmental Economics and Management, where my co-author and I study the impacts of national monuments in the Western US (including Utah's Grand Staircase-Escalante National Monument) on regional economies, has appeared in the headlines of The Washington Post, The Salt Lake Tribune, Cache Valley Daily, and USU Today, and covered by Resources Radio of the Resources for the Future (RFF), among others. What do you plan to do during the next reporting period to accomplish the goals?This UAES project has been completed.

Impacts
What was accomplished under these goals? OBJECTIVES 1, 2, 3: The main output corresponding to these three objectives was published in Environmental and Resource Economics---the official, peer-reviewed journal of the European Association of Environmental and Resource Economists---under the title "Transboundary Natural Resources, Externalities, and Firm Preferences for Regulation". Moreover, the output of two additional projects related to OBJECTIVE 2 was published in two professional, peer-reviewed journals: one in The B.E. Journal of Economic Analysis and Policyunder the title "Can Polluting Firms Favor Regulation?"; and another in Strategic Behavior and the Environmentunder the title "Firm Preferences for Environmental Policy: Industry Uniform or Firm Specific?". Further, the output of two additional projects partly related to OBJECTIVE 3 was published in two professional, peer-reviewed journals: one in Land Economics under the title "Neither Boon nor Bane: The Economic Effects of a Landscape-Scale National Monument"; and another in Journal of Environmental Economics and Management under the title "The Antiquities Act, National Monuments, and the Regional Economy". Importantly, the paper published in Journal of Environmental Economics and Management(under the title "The Antiquities Act, National Monuments, and the Regional Economy") was awarded the Western Agricultural Economic Association's 2020 Outstanding Published Research award. OBJECTIVE 4: The main output corresponding to this objective was published in International Review of Economics and Finance---a professional, peer-reviewed journal---under the title "Fossil Fuel Share in the Energy Mix and Economic Growth". Moreover, the output of two additional projects partly related to this objective was published in two professional, peer-reviewed journals: one in Energy Economics under the title "Size Distribution of National CO2 Emissions"; and another in Physica A: Statistical Mechanics and its Applications under the title "Gibrat's Law for CO2 Emissions". OBJECTIVE 5: The main output corresponding to this objective was published as a CEnREP working paper, under the title "Left in the Dust? Environmental and Labor Effects of Rural-Urban Water Sales". This paper is currently under submission to a professional, peer-reviewed journal. The output of another project directly related to this objective was published as a working paper, under the title "Regional Water Transfer and Economic Growth: Evidence from the Largest Agriculture-to-Urban Water Transfer in the United States". This paper too is currently under submission to a professional, peer-reviewed journal. Moreover, the output of three additional projects partly related to this objective was published in three professional, peer-reviewed journals: one in American Journal of Agricultural Economics under the title "Irrigation Investment on an American Indian Reservation"; another in Regional Science and Urban Economics under the title "Measuring Heterogeneous Preferences for Residential Amenities"; and another in Journal of Applied Statistics under the title "The Power Law Distribution of Agricultural Land Size". Importantly, the paper published in American Journal of Agricultural Economics (under the title "Irrigation Investment on an American Indian Reservation") was awarded the Agricultural and Applied Economics Association's 2020 Quality of Research Discovery (Honorable Mention) award.

Publications

  • Type: Journal Articles Status: Published Year Published: 2017 Citation: Akhundjanov, S., Devadoss, S., & Luckstead, J. (2017, August). Size Distribution of National CO2 Emissions. Energy Economics, 66, 182-193.
  • Type: Journal Articles Status: Published Year Published: 2017 Citation: Akhundjanov, S., & Pascual, F. (2017, January). Exponentially Weighted Moving Average Charts for Correlated Multivariate Poisson Processes. Communications in Statistics  Theory and Methods, 46(10), 4977-5000.
  • Type: Journal Articles Status: Published Year Published: 2018 Citation: Jakus, P. M., & Akhundjanov, S. (2018, July). Neither Boon nor Bane: The Economic Effects of a Landscape-Scale National Monument. Land Economics, 94(3), 323-339
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Munoz-Garcia, F., & Akhundjanov, S. (2016). Can Polluting Firms Favor Regulation? To appear in The B.E. Journal of Economic Analysis and Policy, 16(4), 1-23.
  • Type: Journal Articles Status: Published Year Published: 2021 Citation: Pascual, F., & Akhundjanov, S. (2021, January). Monitoring a Bivariate INAR(1) Process with Application to Hepatitis A. Communications in Statistics  Theory and Methods, 50(5), 1036-1058.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2021 Citation: Presentations Wardle, A. R. (Author Only), Akhundjanov, S. (Presenter & Author), International Association for Energy Economics, "Industry Compliance Costs under the Renewable Fuel Standard: Evidence from Compliance Credits," International Association for Energy Economics (IAEE), Paris, France. (July 4, 2021 - July 7, 2021)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: Presentations Jakus, P. M., Akhundjanov, S., Seminar, "The Antiquities Act, Large National Monuments, and Regional Income," Goddard School of Business & Economics, Weber State University, Ogden, Utah. (November 2, 2018)
  • Type: Book Chapters Status: Published Year Published: 2018 Citation: Akhundjanov, S., Gallardo, R. K., McCluskey, J. J., & Rickard, B. J. (2018). Commercialization Mechanisms for New Plant Varieties. From Agriscience to Agribusiness. (pp. 379-390). Springer
  • Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: Presentations Jakus, P. M., Akhundjanov, S., Seminar, "The Antiquities Act, Large National Monuments, and Regional Income," Colorado State University, Fort Collins, CO. (September 5, 2018)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: Presentations Jakus, P. M. (Presenter & Author), Akhundjanov, S. (Author Only), Society for Benefit-Cost Analysis, "Neither Boon nor Bane: The Economic effects of a Landscape-Scale National Monument," Society for Benefit-Cost Analysis, Washington, DC. (March 14, 2018 - March 16, 2018)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Presentations Akhundjanov, S. (Presenter & Author), Jakus, P. M. (Presenter & Author), APEC Seminar Series, "Neither Boon nor Bane: The Economic Effects of a Landscape-Scale National Monument," APEC, Logan, Utah. (September 27, 2017)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Presentations Jakus, P. M., Akhundjanov, S., APEC Seminar Series, "Neither Boon nor Bane: The Economic Effects of Landscape-Scale National Monuments," APEC, AGRS 141. (September 27, 2017)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Presentations Akhundjanov, S. (Presenter & Author), Pozo, V. (Presenter & Author), Thomas, B. (Author Only), Agricultural and Applied Economics Association, "Firm Learning and Food Product Recalls: An Application of Recurrent Event Survival Analysis," Agricultural and Applied Economics Association, Chicago, IL. (August 2017)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Presentations Jakus, P. M., Akhundjanov, S., Seminar, "Preliminary analysis of the economic effects of Grand Staircase-Escalante National Monument," Colorado State University, Fort Collins, CO. (June 1, 2017)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Presentations Akhundjanov, S. (Presenter & Author), Gallardo, R. K. (Author Only), McCluskey, J. (Author Only), Rickard, B. (Author Only), American Economic Association/Allied Social Sciences Association meetings, "Innovator commercialization strategies and adopter willingness to pay: The case of new fruit varieties," American Economic Association, Chicago, Illinois. (January 6, 2017 - January 8, 2017)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2016 Citation: Presentations Akhundjanov, S. (Presenter & Author), Gallardo, R. K. (Presenter & Author), McCluskey, J. (Author Only), Rickard, B. (Author Only), Agricultural and Applied Economics Association, "Assessing innovator and adopter profit potential under different new plant variety commercialization strategies," Agricultural and Applied Economics Association, Boston, Massachusetts. (July 31, 2016 - August 2, 2016)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2016 Citation: Presentations Akhundjanov, S. (Presenter & Author), Agricultural and Applied Economics Association, "Multicountry appropriation of the commons, externalities and firm preferences for regulation," Agricultural and Applied Economics Association, Boston, Massachusetts. (July 31, 2016 - August 2, 2016)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2016 Citation: Presentations Akhundjanov, S. (Presenter & Author), Western Economic Association International, "Multicountry appropriation of the commons, externalities and firm preferences for regulation," Western Economic Association International, Portland, Oregon. (June 29, 2016 - July 3, 2016)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2018 Citation: Presentations Jakus, P. M., Akhundjanov, S., Seminar, "The Antiquities Act, Large National Monuments, and Regional Income," Howard H. Baker, Jr. Center for Public Policy, Knoxville, TN. (October 18, 2018)


Progress 10/01/19 to 09/30/20

Outputs
Target Audience:????Academia, professional researchers, policy makers Changes/Problems:None What opportunities for training and professional development has the project provided?In 2020, one graduate student that I was advising has successfully defended his thesis. In particular, William Douglas, whose committee I served as a member, successfully defended his MS Economics degree in the Spring of 2020. Currently, I am serving in the committees of four graduate students. In particular, as a chair: Wai Yan Siu (APEC PhD Econ); and as a member: Arpita Nehra (APEC PhD Econ), Janette Goodridge (APEC PhD Econ), and Jennifer Morales (MS Econ). Despite restrictions due to COVID-19, students are showing a steady progress in their research work. How have the results been disseminated to communities of interest?The results of my scholarly work have been disseminated to communities of interest (academia, professional researchers, and policy makers) by means of journal publications and conference presentations. In 2020, I have published or had accepted for publication 9 articles in peer-reviewed academic journals. Further, my research papers have been presented at five national/international professional conferences and one departmental seminar (University of Delaware, Applied Economics and Statistics). My scholarly endeavors have also drawn the interest of a broader audience through popular media sources. In particular, my work published in Land Economics and Journal of Environmental Economics and Management, where my co-author and I study the impacts of national monuments in the Western US (including Utah's Grand Staircase-Escalante National Monument) on regional economies, has appeared in the headlines of The Washington Post, The Salt Lake Tribune, Cache Valley Daily, and USU Today, and covered by Resources Radio of the Resources for the Future (RFF), among others. What do you plan to do during the next reporting period to accomplish the goals?1) Pursue publication of the completed papers listed for Objective 4 and Objective 5 in Accomplishments.

Impacts
What was accomplished under these goals? Objective 4: Completed the analysis of and prepared the draft for a research project co-authored with an APEC graduate student Wai Yan Siu (see, for details, Accomplishments/Objective 4 from previous year). This project, which explores the effect of extraction externalities from fracking activities, is currently under review at a peer-reviewed journal. Objective 5: In response to the 2020 American Economic Association/Allied Social Sciences Association conference participants' comments, revised a research project co-authored with my colleagues Dr. Edwards (North Carolina State University) and Dr. Oladi (Utah State University) and an APEC graduate student Muyang Ge (see, for details, Accomplishments/Objective 4 from previous year). This project, which studies the effect of increased agriculture-urban water transfers on rural and urban development in the Western United States, is currently undergoing final stages of revision before submission for a journal review (likely, early next year). Completed the analysis of and prepared the draft for a research project co-authored with my colleague Dr. Caplan (Utah State University) and an APEC graduate student Kristopher Toll. This project, using a choice experiment funded by the Utah Department of Transportation and Utah Transit Authority, investigates heterogeneous preferences for residential amenities among households in Utah's Wasatch Front region. Our quantitative estimates of these preferences provide urban and regional planners with precise monetary welfare measures for a sizable majority of the region's residents. This has important implications for urban development in the region, and consequently agriculture-urban water transfers. This project was peer-reviewed at an academic journal this year; and the revised version of the paper was recently resubmitted to the journal for a further review.

Publications

  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Ahundjanov, B., Akhundjanov, S., & Okhunjanov, B. (2020, July). Information Search and Financial Markets under COVID-19. Entropy, 22(7), 1-18.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Akhundjanov, S., & Toda, A. A. (2020, November). Is Gibrats Economic Inequality Lognormal? Empirical Economics, 59(5), 2071-2091.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Akhundjanov, S., Gallardo, R. K., McCluskey, J. J., & Rickard, B. J. (2020, March 02). Commercialization of a Demand-Enhancing Innovation: The Release of a New Apple Variety by a Public University. Economic Modelling, 86, 88-100.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Drugova, T., Curtis, K., & Akhundjanov, S. (2020, December). Are Multiple Labels on Food Products Beneficial or Simply Ignored? Canadian Journal of Agricultural Economics, 68(4), 411-427.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Drugova, T., Curtis, K., & Akhundjanov, S. (2020, June). Organic Wheat Products and Consumer Choice: A Market Segmentation Analysis. British Food Journal, 122(7), 2341-2358.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Ge, M., Edwards, E., & Akhundjanov, S. (2020, August). Irrigation Investment on an American Indian Reservation. American Journal of Agricultural Economics, 102(4), 1083-1104.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Kibria, A., Oladi, R., & Akhundjanov, S. (2020, April). Foreign Direct Investment and Civil Violence in Sub-Saharan Africa. The World Economy, 43(4), 948-981.
  • Type: Journal Articles Status: Published Year Published: 2020 Citation: Pascual, F., & Akhundjanov, S. (2020, March 03). Copula-Based Control Charts for Monitoring Multivariate Poisson Processes with Application to Hepatitis C Counts. Journal of Quality Technology, 52(2), 128-144.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2020 Citation: Presentations Akhundjanov, S. (Presenter & Author), Jakus, P. M. (Presenter & Author), University of Delaware Seminar, "Federal Public Land and Quality of Life in Urban Areas," University of Delaware Dept. of Applied Economics and Statistics, Newark, DE, via Zoom. (November 18, 2020)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2020 Citation: Presentations Drugova, T. (Author Only), Akhundjanov, S. (Presenter & Author), Agricultural and Applied Economics Association, "Growth Process of US Agricultural Land Size: Testing the Law of Proportionate Effect," Agricultural and Applied Economics Association, Virtual. (August 10, 2020 - August 11, 2020)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2020 Citation: Presentations Siu, W. Y. (Presenter & Author), Akhundjanov, S. (Author Only), Agricultural and Applied Economics Association, "Hydraulic Fracturing and Agricultural Productivity: Evidence from California," Virtual. (August 10, 2020 - August 11, 2020)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2020 Citation: Presentations Wardle, A. (Author Only), Akhundjanov, S. (Presenter & Author), European Association of Environmental and Resource Economists, "Industry Compliance Costs under the Renewable Fuel Standard: Evidence from Compliance Credits," European Association of Environmental and Resource Economists, Berlin, Germany - Virtual. (June 23, 2020 - July 3, 2020)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2020 Citation: Presentations Wardle, A. R. (Presenter & Author), Akhundjanov, S. (Author Only), Association of Environmental and Resource Economists, "Industry Compliance Costs under the Renewable Fuel Standard: Evidence from Compliance Credits," Association of Environmental and Resource Economists, Virtual. (June 2020)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2020 Citation: Presentations Akhundjanov, S., Jakus, P. M., USDA W-4133 Regional Research Project, "Public Land and Quality of Life in Urban Areas," USDA, Athens, GA. (February 14, 2020)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2020 Citation: Presentations Siu, W. Y. (Author Only), Akhundjanov, S. (Presenter & Author), Australasian Agricultural and Resource Economics Society, "Fracking Boom and Agricultural Doom? Evidence from Kern County, California," Australasian Agricultural and Resource Economics Society, Perth, Australia. (February 12, 2020 - February 14, 2020)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2020 Citation: Presentations Akhundjanov, S., Jakus, P. M., Area Sectoral Analysis Process Annual Conference, "Public Land and Quality of Life in Urban Areas," Las Vegas. (February 7, 2020)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2020 Citation: Presentations Akhundjanov, S. (Author Only), Edwards, E. C. (Presenter & Author), Ge, M. (Author Only), Oladi, R. (Author Only), American Economic Association/Allied Social Sciences Association, "Regional Water Trade in General Equilibrium: Theory and Evidence," American Economic Association/Allied Social Sciences Association, San Diego, California. (January 3, 2020 - January 5, 2020)


Progress 10/01/18 to 09/30/19

Outputs
Target Audience:Academia, professional researchers, policy makers Changes/Problems:Objective 4 from the original grant proposal was intended to: "Study the effect of climate change on management and appropriation of transboundary water resources with bilateral extraction externalities." In the past few years, I studied more fundamental research questions related to climate change to prepare a more solid (empirical/statistical) ground for tackling the main question in Objective 4. Specifically, in two recently published papers (2019), I study the growth process of carbon dioxide emissions (paper co-authored with Dr. Ahundjanov) and global energy consumption mix (paper co-authored with Dr. Oladi and an APEC graduate student Ahsan Kibria). These two papers are partly relevant to the research question in Objective 4. However, identifying an ideal quasi-natural experimental setting to empirically test the research question in Objective 4 has proven to be futile so far, due to either data limitation or the problem with confounding effects. Hence, I request Objective 4 to be changed to the following (related) research question. Having said that, if an ideal quasi-natural experimental setting to test the original research question in Objective 4 is found, it will be mentioned in the progress report for the following year. For Objective 4, the new research question (in addition to two completed/published papers, mentioned above) looks into the effects of unconventional oil and gas production (i.e., hydraulic fracturing) and climate variables on agricultural productivity in the state of California, which is the United States' leading agricultural as well as unconventional oil/gas mining county. Given both fracking and agriculture rely on water (i.e., appropriate scarce resource), this research question directly tests whether fracking, in conjunction with climate variables, has caused any negative externalities on agricultural production. In that sense, this new research question still captures some of the aspects of the original research question in Objective 4. What opportunities for training and professional development has the project provided?In 2019, four graduate students that I was either advising or collaborating with on research projects have successfully defended their dissertation/thesis. In particular, Arthur Wardle, whose committee I served as a co-chair, successfully defended his MS Economics degree in the Spring of 2019. Arthur's Master's thesis, undertaken under my supervision, has produced a research project which is in the process of submission to a professional peer-reviewed journal. Muyang Ge, who I collaborated with on two research projects, successfully defended her APEC PhD Econ degree in the Spring of 2019. The first paper I collaborated on with Muyang has been accepted in 2019 at a peer-reviewed economics journal, whereas the second paper is in the process of submission to a professional peer-reviewed journal. Kristopher Toll, whose committee I served as a member, successfully defended his APEC MS Econ/Stat degree in the Spring of 2019. Kristopher's thesis has produced has produced a research project which is in the process of submission to a professional peer-reviewed journal. Justin Perry, whose committee I served as a member, successfully defended his APEC MS Econ degree in the Spring of 2019. Currently, I am serving in the committees of four graduate students. In particular, as a chair: Wai Yan Siu (APEC PhD Econ); and as a member: Arpita Nehra (APEC PhD Econ), Nam Nguyen (APEC MS Econ/Stat), and William Douglas (Dept of Econ and Fin MS Econ). Students are showing a steady progress in their research work. How have the results been disseminated to communities of interest?The results of my scholarly work have been disseminated to communities of interest (academia, professional researchers, and policy makers) by means of journal publications and conference presentations. In 2019, I have published or had accepted 11 articles in peer-reviewed academic journals. Further, my research papers have been presented at four national/international professional conferences. What do you plan to do during the next reporting period to accomplish the goals?1) Pursue publication of the completed papers listed for Objective 4 and Objective 5 in Accomplishments. 2) Prepare drafts of the new research papers listed for Objective 4 and Objective 5 in Accomplishments for submission to a refereed journal.

Impacts
What was accomplished under these goals? Objective 4: The main results from two research papers (see, for details, Accomplishments/Objective 4 from previous year) that partly correspond to this objective have been accepted for publication in a professional peer-reviewed journal in 2019. Completed a research project (collaborated with an APEC graduate student Wai Yan Siu) that studies the effects of unconventional oil and gas production (i.e., hydraulic fracturing) and climate variables on agricultural productivity in the state of California, which is the United States' leading agricultural as well as unconventional oil/gas mining county. Our findings show that there is a negative, statistically significant effect of fracking activities on per acre county-level crop yield of multiple crops. This suggests that the fracking boom has caused a decline in crop yield measurable at county-level, and that there is significant externalities of oil and gas production on agricultural production. Objective 5: The main results from two research papers (see, for details, Accomplishments/Objective 5 from previous year--specifically, a paper coauthored with Dr. Jakus and another with Dr. Edwards and an APEC graduate student Muyang Ge) that partly correspond to this objective have been accepted for publication in a professional peer-reviewed journal in 2019. Completed a research project (collaborated with my colleagues Dr. Edwards and Dr. Oladi and an APEC graduate student Muyang Ge) that studies the effects of agriculture-to-urban water transfers under the Quantification Settlement Agreement (QSA) on environment and regional development in California's Imperial Irrigation District. Our theoretical and empirical analyses demonstrate that reduction of remaining water in the ecosystem increases the value of water in Imperial County, degrades the ecosystem health, and causes losses in labor employment and income in the region.

Publications

  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Ahundjanov, B., & Akhundjanov, S. (2019, July). Gibrat's Law for CO2 Emissions. To appear in Physica A: Statistical Mechanics and its Applications, 526, 1-15.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Akhundjanov, S., & Chamberlain, L. (2019, August). The Power Law Distribution of Agricultural Land Size. Journal of Applied Statistics, 46(16), 3044-3056.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Akhundjanov, S., & Munoz-Garcia, F. (2019, May 02). Transboundary Natural Resources, Externalities, and Firm Preferences for Regulation. Environmental and Resource Economics, 73(1), 333-352
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Jakus, P. M., & Akhundjanov, S. (2019, May). The Antiquities Act, National Monuments, and the Regional Economy. Journal of Environmental Economics and Management, 95, 102-117.
  • Type: Journal Articles Status: Published Year Published: 2019 Citation: Kibria, A., Akhundjanov, S., & Oladi, R. (2019, January). Fossil Fuel Share in the Energy Mix and Economic Growth. International Review of Economics and Finance, 59, 253-264.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Presentations Ahundjanov, B. (Author Only), Akhundjanov, S. (Presenter & Author), Agricultural and Applied Economics Association, "Gibrats Law for CO2 Emissions," Agricultural and Applied Economics Association, Atlanta, Georgia. (July 21, 2019 - July 23, 2019)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Presentations Akhundjanov, S. (Presenter & Author), Pozo, V. (Author Only), Thomas, B. (Author Only), Agricultural and Applied Economics Association, "Product Recalls and Firm Learning: Evidence from the Food Industry," Atlanta, Georgia. (July 21, 2019 - July 23, 2019)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Presentations Behzod, A. (Author Only), Akhundjanov, S. (Presenter & Author), Agricultural and Applied Economics Association, "The Power Law Distribution of Agricultural Land Size," Agricultural and Applied Economics Association, Atlanta, Georgia. (July 21, 2019 - July 23, 2019)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Presentations Siu, W. Y. (Presenter & Author), Akhundjanov, S. (Author Only), Western Economic Association International, "Hydraulic Fracturing and Agricultural Productivity: Evidence from California," Western Economic Association International, San Francisco, California. (June 28, 2019 - July 2, 2019)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Presentations Siu, W. Y. (Presenter & Author), Akhundjanov, S. (Author Only), Northeast Agricultural and Resource Economics Association, "Hydraulic Fracturing and Agricultural Productivity: Evidence from California," Northeast Agricultural and Resource Economics Association, Portsmouth, New Hapshire. (June 9, 2019 - June 12, 2019)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Presentations Siu, W. Y. (Presenter & Author), Akhundjanov, S. (Author Only), Association of Environmental and Resource Economists, "Hydraulic Fracturing and Agricultural Productivity: Evidence from California," Association of Environmental and Resource Economists, Tahoe, Nevada. (May 30, 2019 - May 31, 2019)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Presentations Edwards, E. (Presenter & Author), Ge, M. (Author Only), Akhundjanov, S. (Author Only), Association of Environmental and Resource Economists, "Land Tenure and Irrigation on an American Indian Reservation," Association of Environmental and Resource Economists, Tahoe, Nevada. (May 30, 2019 - May 31, 2019)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Presentations Sutherland, S. (Author Only), Edwards, E. (Presenter & Author), Akhundjanov, S., Nehra, A. (Author Only), Association of Environmental and Resource Economists, "Water Demand Response to Un-conservation Pricing," Association of Environmental and Resource Economists, Tahoe, Nevada. (May 30, 2019 - May 31, 2019)
  • Type: Conference Papers and Presentations Status: Other Year Published: 2019 Citation: Presentations Jakus, P. M., Akhundjanov, S., Seminar, "The Antiquities Act, Large National Monuments, and Regional Income," Oregon State University, Corvallis, OR. (May 17, 2019)


Progress 10/01/17 to 09/30/18

Outputs
Target Audience:Academia, professional researchers, policy makers Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?In 2018, three graduate students that I was either advising or collaborating with on research projects have successfully defended their dissertation/thesis. In particular, Lauren Chamberlain, whose committee I served as a chair, successfully defended her APEC MS Econ/Stat degree in the Fall of 2018. Lauren's Master's thesis, undertaken under my supervision, has produced a research project which is currently under review at a professional peer-reviewed journal. Tatiana Drugova, whose committee I served as a member, successfully defended her APEC PhD Econ degree in the Fall of 2018. Tatiana's dissertation has produced three essays, where my primary role was to advise her on econometric/statistical methods and analyses. Ahsan Kibria, who I collaborated with on two research projects, successfully defended his APEC PhD Econ degree in the Spring of 2018. The first paper I collaborated on with Ahsan has been accepted and eventually published in 2018 at a peer-reviewed economics journal, whereas the second paper is currently under review at a peer-reviewed journal. Currently, I am serving in the committees of five graduate students. In particular, as a (co-)chair: Wai Yan Siu (APEC PhD Econ) and Arthur Wardle (Dept of Econ and Fin MS Econ); and as a member: Kristopher Toll (APEC MS Econ/Stat), Nam Nguyen (APEC MS Econ/Stat), and William Douglas (Dept of Econ and Fin MS Econ). Students are showing a steady progress in their research work. I am also collaborating with an APEC PhD Econ student (Muyang Ge) on a research project, which is currently under review at a professional peer-reviewed journal. How have the results been disseminated to communities of interest?The results of my scholarly work have been disseminated to communities of interest (academia, professional researchers, and policy makers) by means of journal publications and conference presentations. In 2018, I have published or had accepted four articles in peer-reviewed academic journals and one article in a book chapter. Further, one of my research papers has been presented at a professional conference. What do you plan to do during the next reporting period to accomplish the goals?1) Pursue publication of submitted papers for Objective 4 and Objective 5 through revisions and resubmission; 2) Prepare drafts of the papers for Objective 5 in Accomplishments for submission to a refereed journal. 3) Pursue the publication of the project that examines past recall events (for meat and poultry products) and how they impact the time until the subsequent recall event. 4) Pursue the publication of the project that examines statistical distribution of U.S. county-level agricultural land size. 5) Pursue the publication of the project that evaluates commercialization of a demand-enhancing innovation by a public university. 6) Pursue the publication of the project that proposes a statistical surveillance system to monitor a bivariate Poisson (i.e., count) distributed process.

Impacts
What was accomplished under these goals? Objectives 1, 2, 3: The main results corresponding to these three objectives have been accepted for publication in a professional peer-reviewed journal in 2018. This research was approved as UAES journal paper number 9066. Objective 4: Following the suggestions of journal referees, extended the analysis of the growth process of national carbon dioxide emissions to the growth processes of carbon dioxide emissions per capita and carbon dioxide emissions per dollar of GDP. Our analyses demonstrate that the growth process of carbon dioxide emissions per capita also obeys Gibrat's law, meaning that Gibrat's law observed for carbon dioxide emissions from our previous analyses (Accomplishments in Objective 4 in 2017) is a genuine phenomenon, and not just an artifact of Gibrat's law in population. The analysis of carbon dioxide emission per dollar of GDP does not provide convincing evidence in support of Gibrat's law of proportional growth, suggesting that the growth rate of carbon dioxide emission per unit of GDP depends on the size of emission per unit of GDP. These results help to explain the emergence of Pareto-type distribution for carbon dioxide emissions observed in our previously published article (journal article approved as UAES journal paper number 9011). The results of our additional analyses have been resubmitted to the journal for a review. Published the empirical results for a project (collaborated with APEC PhD student Ahsan Kibria and my colleague Dr. Oladi from APEC) on global energy consumption mix in a peer-reviewed journal. Objective 5: Collected data on unconventional oil and gas production (i.e., hydraulic fracturing), agricultural production, climate, demographics and macroeconomic variables for the state of California. The collected data will be used to better understand the linage between agriculture and unconventional oil production (since both industries rely on water and trade water with each other), and to measure the impact of hydraulic fracturing on agricultural production and regional development. Completed a research project (collaborated with my colleague Dr. Edwards and an APEC graduate student Muyang Ge) that looks into the impact institutions governing land ownership play in agricultural land use, irrigation, and crop choice decisions in the Uintah-Ouray Indian Reservation in eastern Utah. This project is currently under review at a peer-reviewed journal. Completed a research project (collaborated with my colleague Dr. Jakus) that examines the effect of transboundary landscape-scale national monuments on regional economic development in the context of Grand-Staircase Escalante national monument in the state of Utah. This project is published in a peer-reviewed journal in 2018. We extended this project in 2018 by examining the economic effects of nine landscape-scale national monument designations on regional economic development. This project is currently under review at a peer-reviewed journal.

Publications


    Progress 10/17/16 to 09/30/17

    Outputs
    Target Audience:Academia, professional researchers, policy makers Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Advising (serving in the committees of) two PhD students: Tatiana Drugova and Ahsan Kibria. Students are showing a steady progress in their research work. How have the results been disseminated to communities of interest?The results of my scholarly work have been disseminated to communities of interest (academia and professional researchers) by means of journal publications and conference presentations. I have published three journal articles in peer-reviewed academic journals in 2016 (this is the updated information) and two in 2017. Furthermore, in 2016, I presented my research at the Agricultural and Applied Economics Association meeting (Boston, MA) and the Western Economic Association International conference (Portland, OR). In 2017, I presented my research at the American Economic Association/Allied Social Sciences Association conference (Chicago, IL), Agricultural and Applied Economics Association meeting (Chicago, IL) and the Western Economic Association International conference (San Diego, CA). What do you plan to do during the next reporting period to accomplish the goals?1) Perform comparative statics analysis for Objective 1 in Accomplishments to demonstrate the robustness of the results; Pursue publication of submitted papers for Objective 1, Objective 2, and Objective 4 through revisions and resubmission; 2) Prepare final draft of the paper for Objective 1 in Accomplishments for submission to a refereed journal; Prepare final draft of the paper for Objective 3 in Accomplishments for submission to a refereed journal. 3) Develop analysis for Objective 2; Study the effects of landscape-scale national monuments across the United States. 4) Pursue publication of submitted papers through revisions and resubmission. Study the effects of FDI on Violence both theoretically and empirically. 5) Finalize the analysis of past recall events (for meat and poultry products) and how they impact the time until the subsequent recall event. Pursue the submission of the research to a peer-reviewed journal. Finalize the analysis of optimal licensing mechanisms for releasing new plant varieties produced by public university breeding programs. Pursue the submission of the research to a peer-reviewed journal.

    Impacts
    What was accomplished under these goals? Obj. 1: Obtained theoretical results regarding the effect of different forms of regulatory policies (no regulation, non-cooperative regulation, and cooperative regulation) on industry production and resource extraction decisions. Identified optimal policies under cooperative and non-cooperative regulation (i.e., when states coordinate their environmental policies and when they choose not to). The theoretical predictions indicate that when a natural resource occupies the geographical territories of multiple states, with bilateral externalities in resource extraction, a cooperative policy leads to a stricter regulation than non-cooperative policy as the former internalizes the costs of transboundary externalities while the latter does not. Moreover, increase in the appropriation rate or the magnitude of the environmental damage lead to a stricter (cooperative and non-cooperative) policy. When the appropriation rate is high, a tax policy is optimal under both cooperative and non-cooperative regulation, with the former being stricter than the latter. In this context, firms produce the highest amount of output when regulation is absent, followed by non-cooperative regulation, and finally cooperative regulation. When the appropriation rate is moderate, a subsidy policy becomes optimal under non-cooperative policy, while a taxation remains optimal under cooperative policy. As a result, firms are able to produce the highest amount of output under non-cooperative setting (due to the incentives created by a subsidy), followed by unregulated setting, and finally the cooperative setting, where firms are still subject to a tax. Lastly, when the appropriation rate is relatively low, a subsidy becomes optimal under both cooperative and non-cooperative settings. In this case, firms still produce the highest amount of output with non-cooperative regulation, as such regulation entails a more generous subsidy than under cooperative regulation, followed by cooperative regulation, and finally no regulation. Performed comparative statics analysis for the main model to demonstrate the robustness of the main results discussed in Accomplishments for the year 2016 under Objective 1. I have completed an article which is currently under submission. Obj 2: Obtained theoretical results regarding the effect of different forms of regulatory policies (no regulation, non-cooperative regulation, and cooperative regulation) on firm profits, and subsequently, firm preferences for environmental regulation. Identified the effect of the extent of resource extraction externalities and market structure on firm preference towards the regulatory regime. The theoretical predictions indicate that environmental regulation imposes two opposing effects on firms' profits. On one hand, more stringent regulation increases firms' production costs, thus imposing a negative effect on profits. On the other hand, tighter regulation helps firms mitigate aggregate production and thereby increase market prices, yielding a positive effect on profits. The magnitude of these two effects depends on the extraction rate and the extent of environmental damage, and are more pronounced with a cooperative policy as it entails stricter regulation relative to a non-cooperative policy. Comparing the relative sizes of these effects, the findings suggest that when the appropriation rate is relatively high, both cooperative and non-cooperative policies entail stringent taxation, which imposes a negative effect on profits. However, such a strict taxation also helps firms substantially mitigate industry overproduction, thus increasing prices and ultimately producing a positive effect on profits that completely outweighs the negative effect of the regulation. Therefore, firms in this setting earn larger profits when the environmental regulation is present than when it is absent. Since cooperative policy is tighter than non-cooperative policy, the net effect of regulation is going to be larger under the former than the latter. As a consequence, firms support their state's or countries' participation in cooperative (i.e., inter-state or international) environmental agreements that coordinate environmental policies when such cooperation is needed (i.e., when bilateral externalities are high). In contrast, when the appropriation rate is moderate, regulation entails larger negative than positive effect on firm profits, as laxer policy instruments do not mitigate aggregate production substantially. Hence, profits are lower in the presence of any form of regulation, which incentivizes firms to oppose regulation. Finally, when the appropriation rate is relatively low, firms receive a subsidy under both cooperative and non-cooperative regulation, which produces a large positive effect on profits. As non-cooperative policy is less stringent than cooperative policy, firms receive more generous subsidies with the former than the latter. As a result, firms would actually favor non-cooperative policy (i.e., domestic regulation) in this setting. From a policy perspective, the theoretical predictions allow regulatory agencies to better anticipate the industry reaction to potentially new environmental policies. I have completed an article which is currently under submission. Obj 3: Developed a theoretical model to demonstrate how the main findings from Objective 1 and Objective 2 (i.e., the optimal environmental policy, equilibrium firm production, and firm preferences towards the environmental policy) are affected by the introduction of trade between states or countries sharing the transboundary resource. The theoretical analysis shows that the main findings and conclusions from Objective 1 and Objective 2 are qualitatively unaffected by the introduction of trade between jurisdictions sharing the resource, which underscores the robustness of the main findings in Objective 1 and Objective 2. Obj 4: Determined the form of parametric distribution that best approximates the size distribution of national carbon dioxide emissions - one of the key ingredients of global climate change. Knowledge about the statistical distribution of carbon dioxide emissions is crucial in the design of efficient and fair environmental policies. Information about the underlying probability distribution of carbon emissions can be used in the design of quantity based environmental policies or to recover the social costs of carbon emissions, which can also be used in policy design. Investigated the growth process of national carbon dioxide emissions by analyzing whether the stochastic growth rates of carbon dioxide emissions obey Gibrat's law. The results from nonparametric analysis indicate that the growth process of carbon dioxide emissions follow Gibrat's law, meaning carbon emissions grow proportionately in the long run, i.e., at a stochastic rate that is independent of emission size. Although growth rates vary substantially across different countries for individual periods, there is no systematic pattern with respect to emission size in the steady state, meaning the underlying stochastic process remains the same for all countries. The proportionate growth process of carbon dioxide emissions provides a reasonable explanation for why the Pareto and the composites of Pareto and lognormal distributions provide a remarkably good fit for the carbon dioxide emissions. Obtained empirical results for a project on global energy consumption mix. In this project, I collaborated with APEC PhD student Ahsan Kibria and my colleague Dr. Oladi from APEC. The results from parametric and nonparametric analysis suggest that there exists a polynomial relationship (an inverted U-shape) between fossil fuel share in the energy mix and income. This shape informs about the unique relationship between consumption of fossil fuels and various stages of economic development. We have completed an article and it is currently under submission. Obj 5: Nothing to report.

    Publications

    • Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Presentations Akhundjanov, S. (Presenter & Author), Devadoss, S. (Author Only), Luckstead, J. (Author Only), 92nd WEAI Annual Conference, "Size distribution of national CO2 emissions," Western Economic Association International, San Diego, California. (June 25, 2017 - June 29, 2017)
    • Type: Conference Papers and Presentations Status: Other Year Published: 2017 Citation: Presentations Akhundjanov, S. (Presenter & Author), Devadoss, S. (Author Only), Luckstead, J. (Author Only), APEC Seminar Series, "Do national CO2 emissions follow Gibrat's and Zipf's laws?," APEC, Logan, Utah. (April 5, 2017)