News

• Department economists receive prestigious AAEA policy and analysis prize

  The prestigious Bruce Gardner Memorial Prize for Applied Policy Analysis will be awarded to three Iowa State Department of Economics faculty for their work on water quality preservation and restoration at the upcoming Agriculture & Applied Economics Association (AAEA) annual meeting.
  
  Department of Economics faculty Joe Herriges, Cathy Kling, and Dan Otto, are joined by Kevin Egan (former ISU economics grad student now at University of Toledo), and John Downing (ISU department of EEOB) for their collective work on "Assessing the Value of Water Quality Preservation and Restoration: The Iowa Lakes and Rivers Projects."
  
  “I was delighted that our research was chosen to receive the Bruce Gardner Policy Award. Professor Gardner was a true inspiration—he continuously demonstrated that excellence in economic research could effectively improve policy analysis, making a real difference in both policy outcomes and human lives,” Kling said.
  
  Their research was in response to the diminishing water quality of Iowa's lakes and rivers, and assessed the economic value of those waterways in terms of their attraction as a source of recreation. The study surveyed Iowans’ perceived value for and recreational use of 132 of Iowa's lakes and 73 of the state’s river segments.
  
  “This was an exciting foray into the interface between research and policy,” Kling said of the multi-year research project. “We leveraged resources from the Iowa Department of Natural Resources and the U.S. Environmental Protection Agency to collect a unique, multi-year data set on how Iowa households use these environmental resources.”
  
  The results showed a sizable economic impact on Iowa's communities, drawing more than 6,350 jobs, $824 million in sales, and $130 million in personal income from the use of rivers alone. The Lakes Valuation project, which stretches as far back as 2002, found that 12 of the 132 lakes generate spending of over $40 million annually. Overall, Iowans spent just over $9 million on direct spending on average per lake.
  
  Lake visitation increased 33 percent from 2002–2009, the years in which lake usage surveys were sent out. Of the four lakes with the largest increase in usage, three had undergone major restoration efforts. “The findings indicate that Iowans value improved water quality, and (the study) provides a means for economically ranking water quality improvement projects at the state level,” Kling said.
  
  Results from the lakes and rivers surveys can be viewed at the following:
  
  http://www.card.iastate.edu/lakes/
  
  http://www.card.iastate.edu/environment/nonmarket_valuation/iowa_rivers/
  
  The AAEA, formerly the American Agricultural Economics Association, is the main professional association serving the interests of members working in agricultural and broadly related fields of applied economics. Their annual meeting will be held August 12-14 in Seattle, Washington. Learn more about the AAEA by clicking on the icon above, or go to: http://www.aaea.org/
• Hart and Schulz comment on drought's impact on corn and livestock production

  Some of the key safety nets that benefit crop farmers dealing with this year’s scorching drought won’t help livestock producers who have been saddled with high feed costs and growing uncertainty, according to ISU Department of Economics Chad Hart and Lee Schulz. Crop insurance doesn’t help cattle or swine producers while high corn prices make it more expensive for farmers to feed their herds. The resulting higher feed prices have pushed producers to cull more dairy cows than in previous years. Read the full ISU News Service article by Fred Love at: http://www.news.iastate.edu/news/2012/08/08/livestockdrought

  
  

  View additional newsclips of Hart commenting on the drought's impact at the following:
  http://s3.amazonaws.com/TVEyesMediaCenter/UserContent/119761/1138748.1437/RFD_08-04-2012_04.07.01.mp4
  
  http://s3.amazonaws.com/TVEyesMediaCenter/UserContent/119761/1138773.4073/KCCI_08-06-2012_17.04.55.mp4

  
  
• Prescott, department retail specialist, assesses "Hot 100 Retailers" list

  Ron Prescott, retail and small business specialist with Iowa State's Extension and Outreach Community and Economic Development and Department of Economics, provided his analysis of the "Hot 100 Retailers" list published in the August issue of the National Retail Federation's Stores Magazine. Read the news release at: http://www.news.iastate.edu/news/2012/08/06/hotretailers
• New report by Eathington/Swenson explores impacts of drought on Iowa’s economy

  With all of Iowa's counties considered to be in severe drought and a third suffering exceptional drought conditions, what are the anticipated impacts on Iowa's economy? Dave Swenson, associate scientist with the Department of Economics, and Liesel Eathington, director of Iowa Community Indicators Program (ICIP), have prepared a brief through Iowa State University Extension and Outreach designed to address the potential outcomes. To learn more click on the image left, or go to: http://www.econ.iastate.edu/sites/default/files/publications/papers/p152...
• Research project in biofuel alternatives adds new research dimension for graduate students

  Could perennial grasses be the next viable biomass crop in the production of biofuels?
  
  Several ISU Department of Economics faculty are exploring the possibility through CenUSA Bioenergy, a five-year collaborative project supported by a USDA Agriculture and Food Research Initiative competitive grant from the National Institute of Food and Agriculture (AFRI NIFA). The project brings research partners together from a wide range of land grant universities and disciplines to assess the practical conditions under which the system and associated markets of this bioenergy system are sustainable and feasible in the US.
  
  ISU Department of Economics faculty involved in the project include Mike Duffy, Chad Hart, Dermot Hayes, Keri Jacobs, and Cathy Kling.
  
  Jacobs adds that the project also poses "valuable research experience" for graduate students. "Students can generate interesting research ideas from grant-related work to complement their coursework, and they may have access to interesting data and analyses as a result of working with other researchers and scientists," she says.
  
  "If our graduate students are interested in agricultural, energy, environmental, or natural resource economics – or the intersection of any of those fields – this project may be something from which they can benefit tremendously."
  
  In addition to advanced biofuel production, the project is also intended to assess whether the perennial grass system can improve the sustainability of existing cropping systems by reducing agricultural runoff of nutrients and soil and increasing carbon sequestration.
  
  To learn more about the work of CenUSA Bioenergy, contact Jacobs at kljacobs@iastate.edu, or go to: http://www.cenusa.iastate.edu.
• Weekly Media Connections for the Department of Economics

  Ron Prescott  spoke with WHO radio and the Omaha World Herald on the top 100 retailers for 2011.

  Dave Swenson spoke with Dick Lehman on the feasibility of local foods in light of a USA Today story that casts significant doubt about the environmental benefits of local foods. Additional contacts:

  • Joan Murphy, USA Today, on the consequences of the drought on households.
  • Donnelle Eller, DMR, on gains in real GDP relative to overall income gains in Iowa.