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• 201. [Article] Liability rules, transactions costs and optimum externality

  Economic theorists have proposed that the problems created by a Pareto-relevant externality may be solved by market transactions between the involved parties. These market transactions would allow realization ...

  Citation × Citation Citation Abstract Copy Title: Liability rules, transactions costs and optimum externality Author: Randall, Alan, 1944- Economic theorists have proposed that the problems created by a Pareto-relevant externality may be solved by market transactions between the involved parties. These market transactions would allow realization of the potential gains from trade which characterize a Pareto-relevant externality. After all potential gains from trade had been realized, a Pareto-efficient solution would, have been achieved. From the literature which has developed in the field, it is possible to distill two propositions which are here called the Weak and the Strong Coasian Hypotheses on Optimum Externality. These Hypotheses require certain assumptions: perfect competition in the markets for all factors and commodities; perfect information in a context of static certainty; secure and well defined property rights for all factors and commodities; and a well defined set of liability rules to serve as a starting point, or status quo point, for negotiations. The Weak Hypothesis states that "(m)arket transactions between individuals or firms involved in an externality situation will result in achievement of a Pareto-efficient solution, regardless of the initial liability rule." The Strong Hypothesis includes the Weak Hypothesis and adds that "(e)xactly the same equilibrium output of externality will be produced, regardless of the status quo liability rule." These Hypotheses are deductively tested, with the aid of simple mathematical models, for several different types of externality situations involving: producers only, consumers only and both producers and consumers; transactions costs equal to zero, and transactions costs greater than zero. For this deductive testing, the static perfect competition framework used in the original papers is retained. It is found that the Strong Hypothesis must be rejected for all cases except that where no consumers are involved, in the externality situation and variable transactions costs are zero. It is argued that situations meeting these criteria are most uncommon in practice, and so the Strong Hypothesis must be rejected for most practical situations. The Weak Hypothesis is not rejected, provided that all of the assumptions (including the crucial assumption of perfect competition in all relevant markets) are met. In situations where the Strong Hypothesis is rejected but the Weak Hypothesis is not, the equilibrium output of externality is different, under each different status quo liability rule. In this case, the selection of a status quo point can greatly affect the equilibrium output of externality, the distribution of income among involved parties and, if the status quo rule has wide application throughout the economy, the values of many other variables such as relative and absolute prices, aggregate consumption, production and investment and real income. Attention is drawn to the role of transactions costs in determining whether a solution can be obtained through market transactions between the involved parties. As the amount of variable transactions costs increases, the disparity between the solutions achieved under different status quo rules increases. Transactions costs are also likely to be greater than zero when some extra-market institutional framework is used to handle externality situations. It is argued that the size.and shape of the transactions cost curve under different institutions is an important variable to consider in institutional choice. Some directions for empirical research into the transactions cost curves are suggested. Title: Liability rules, transactions costs and optimum externality Author: Randall, Alan, 1944- Economic theorists have proposed that the problems created by a Pareto-relevant externality may be solved by market transactions between the involved parties. These market transactions would allow realization of the potential gains from trade which characterize a Pareto-relevant externality. After all potential gains from trade had been realized, a Pareto-efficient solution would, have been achieved. From the literature which has developed in the field, it is possible to distill two propositions which are here called the Weak and the Strong Coasian Hypotheses on Optimum Externality. These Hypotheses require certain assumptions: perfect competition in the markets for all factors and commodities; perfect information in a context of static certainty; secure and well defined property rights for all factors and commodities; and a well defined set of liability rules to serve as a starting point, or status quo point, for negotiations. The Weak Hypothesis states that "(m)arket transactions between individuals or firms involved in an externality situation will result in achievement of a Pareto-efficient solution, regardless of the initial liability rule." The Strong Hypothesis includes the Weak Hypothesis and adds that "(e)xactly the same equilibrium output of externality will be produced, regardless of the status quo liability rule." These Hypotheses are deductively tested, with the aid of simple mathematical models, for several different types of externality situations involving: producers only, consumers only and both producers and consumers; transactions costs equal to zero, and transactions costs greater than zero. For this deductive testing, the static perfect competition framework used in the original papers is retained. It is found that the Strong Hypothesis must be rejected for all cases except that where no consumers are involved, in the externality situation and variable transactions costs are zero. It is argued that situations meeting these criteria are most uncommon in practice, and so the Strong Hypothesis must be rejected for most practical situations. The Weak Hypothesis is not rejected, provided that all of the assumptions (including the crucial assumption of perfect competition in all relevant markets) are met. In situations where the Strong Hypothesis is rejected but the Weak Hypothesis is not, the equilibrium output of externality is different, under each different status quo liability rule. In this case, the selection of a status quo point can greatly affect the equilibrium output of externality, the distribution of income among involved parties and, if the status quo rule has wide application throughout the economy, the values of many other variables such as relative and absolute prices, aggregate consumption, production and investment and real income. Attention is drawn to the role of transactions costs in determining whether a solution can be obtained through market transactions between the involved parties. As the amount of variable transactions costs increases, the disparity between the solutions achieved under different status quo rules increases. Transactions costs are also likely to be greater than zero when some extra-market institutional framework is used to handle externality situations. It is argued that the size.and shape of the transactions cost curve under different institutions is an important variable to consider in institutional choice. Some directions for empirical research into the transactions cost curves are suggested. Close

• 202. [Article] An econometric structure for cost functions with application to municipal water

  In an effort to determine empirical cost functions for municipal water supplies in the United States, the writer found it necessary to specify an acceptable mathematical form to represent the cost equation. A ...

  Citation × Citation Citation Abstract Copy Title: An econometric structure for cost functions with application to municipal water Author: Dyke, Paul Thomas In an effort to determine empirical cost functions for municipal water supplies in the United States, the writer found it necessary to specify an acceptable mathematical form to represent the cost equation. A preliminary search yielded no theoretically consistent expression adaptable to the problem. The primary concern in the studstimay thus became one of identifying theoretically sound statistical etion procedures for interrelated long- and short-run cost functions. Criteria were established to recognize a mathematical form qualified to function as a generalized cost equation. The prescribed path wound its way through a traditional overview of economic production functions, cost theory literature, and curve estimation procedures; then it moved into a comprehensive review of empirical cost studies. This empirical section first identified studies of short-run cost relationships and gave examples of declining, constant, and increasing marginal costs. Theoretical literature, addressing possible reasons for these diverse shapes, was then cited. The same format was maintained for long-run studies reporting diverse shapes. Theoretical explanations followed. The last part of the literature review inspected the explicit model structure of those studies combining long- and short-run cost curves. When no econometric model was found in the literature which satisfied the pre-specified criteria for a generalized cost equation, the study assumed the task of developing such a framework. The resulting econometric structure exhibited the following properties: (1) The adopted equation generates both long- and short-run cost curves. (2) Two cost groups are retained in both the long- and short-run—costs which vary proportionately with output (i.e., operating costs), and costs which are independent of output (i.e., plant costs). (3) Plant capacity is strictly defined, and all short-run production of a plant is constrained to a quantity not to exceed that capacity. (4) Operating cost is a function of production and plant utilization while plant cost is a function of plant capacity. Once the general econometric structure was developed it was then adapted to an empirical study of the cost for supplying water to municipalities. A survey of operating data for water utilities, collected by the American Water Works Association for the year 1965, was used as the principal data source for the application. Other independent variables, considered potentially important in determining cost, were evaluated and added to or omitted from the model. These characteristics included alternative treatments, types of customers, sources of water, city density, etc.. The resulting regression equations indicated the following industry structure: (1) Although the major portion of the industry is facing economies-to- scale, the long-run cost curve turns distinctly upward for large water suppliers. (2) Over 95 per cent of the plants face downward sloping short-run average cost curves. (3) With the available data no statistical evidence could be found to indicate a plant's operating cost is affected by the level of plant utilization. The municipal water example was used to demonstrate the versatility of the generalized cost function in accommodating cost studies and hypothesis testing. The author therefore asserts that the econometric structure developed in this study is qualified to fulfill the pre-selected requirements of a theoretically sound statistical estimation procedure for interrelating long- and short-run cost functions. Title: An econometric structure for cost functions with application to municipal water Author: Dyke, Paul Thomas In an effort to determine empirical cost functions for municipal water supplies in the United States, the writer found it necessary to specify an acceptable mathematical form to represent the cost equation. A preliminary search yielded no theoretically consistent expression adaptable to the problem. The primary concern in the studstimay thus became one of identifying theoretically sound statistical etion procedures for interrelated long- and short-run cost functions. Criteria were established to recognize a mathematical form qualified to function as a generalized cost equation. The prescribed path wound its way through a traditional overview of economic production functions, cost theory literature, and curve estimation procedures; then it moved into a comprehensive review of empirical cost studies. This empirical section first identified studies of short-run cost relationships and gave examples of declining, constant, and increasing marginal costs. Theoretical literature, addressing possible reasons for these diverse shapes, was then cited. The same format was maintained for long-run studies reporting diverse shapes. Theoretical explanations followed. The last part of the literature review inspected the explicit model structure of those studies combining long- and short-run cost curves. When no econometric model was found in the literature which satisfied the pre-specified criteria for a generalized cost equation, the study assumed the task of developing such a framework. The resulting econometric structure exhibited the following properties: (1) The adopted equation generates both long- and short-run cost curves. (2) Two cost groups are retained in both the long- and short-run—costs which vary proportionately with output (i.e., operating costs), and costs which are independent of output (i.e., plant costs). (3) Plant capacity is strictly defined, and all short-run production of a plant is constrained to a quantity not to exceed that capacity. (4) Operating cost is a function of production and plant utilization while plant cost is a function of plant capacity. Once the general econometric structure was developed it was then adapted to an empirical study of the cost for supplying water to municipalities. A survey of operating data for water utilities, collected by the American Water Works Association for the year 1965, was used as the principal data source for the application. Other independent variables, considered potentially important in determining cost, were evaluated and added to or omitted from the model. These characteristics included alternative treatments, types of customers, sources of water, city density, etc.. The resulting regression equations indicated the following industry structure: (1) Although the major portion of the industry is facing economies-to- scale, the long-run cost curve turns distinctly upward for large water suppliers. (2) Over 95 per cent of the plants face downward sloping short-run average cost curves. (3) With the available data no statistical evidence could be found to indicate a plant's operating cost is affected by the level of plant utilization. The municipal water example was used to demonstrate the versatility of the generalized cost function in accommodating cost studies and hypothesis testing. The author therefore asserts that the econometric structure developed in this study is qualified to fulfill the pre-selected requirements of a theoretically sound statistical estimation procedure for interrelating long- and short-run cost functions. Close

• 203. [Article] Growing the natural foods industry in Lane County: a report for the Lane County sustainable business and jobs project

  36 p.

  Citation × Citation Citation Abstract Copy Title: Growing the natural foods industry in Lane County: a report for the Lane County sustainable business and jobs project Author: Shinabarger, Tim, University of Oregon. Program for Watershed and Community Health Year: 2006, 2003 36 p. Title: Growing the natural foods industry in Lane County: a report for the Lane County sustainable business and jobs project Author: Shinabarger, Tim, University of Oregon. Program for Watershed and Community Health Year: 2006, 2003 36 p. Close

• 204. [Article] Essays on technology, trade, and welfare

  Technology is a key determinant of comparative advantage among nations. As information technology improves and the nations of the world become economically integrated, concern arises over the dissipation ...

  Citation × Citation Citation Abstract Copy Title: Essays on technology, trade, and welfare Author: Ruan, Jun Technology is a key determinant of comparative advantage among nations. As information technology improves and the nations of the world become economically integrated, concern arises over the dissipation of high-income economies’ technological advantage. The three essays in this dissertation explore the trade and technology relationship, which is essential to economic growth in both high- and low-income nations. The first essay employs a monopolistic competition framework to investigate the effects – on each country’s relative wages, share of global markets, and welfare – of the productivity convergence between a technological leader and follower. Results indicate technological convergence improves the follower’s competitiveness at the expense of the leader’s. Nevertheless, the leader’s welfare improves unambiguously on account of the increase in its terms of trade, while the follower’s welfare changes in a direction depending on the relative strength of convergence’s income and terms-of-trade effects. We use data from 17 food industries in 30 countries, 1993-2001, to test these analytical predictions. Convergence has lifted followers’ income and global value-added share. Followers’ welfare has risen since convergence’s income improvement has outweighed its terms-of-trade deterioration. Simultaneously, leaders’ welfare has improved in response to their improved terms of trade. The second essay employs data from 35 countries in 128 ISIC 4-digit manufacturing industries, 1993 - 2001, to test the empirical validity of these same hypotheses for the international manufacturing sector. We find that, just as in the food sector, convergence improves followers’ welfare through its positive income effects. However, we do not find empirical evidence of convergence’s terms-of-trade effects. The third essay examines trade liberalization’s effects on the geographical distribution of productivity, and consequent cross-country resource and market-share allocations, of five processed food industries. We find that the mean and other quantiles of the global productivity distribution shift to the right as international trade liberalizes. The latter result implies that resources are reallocated toward countries with faster productivity growth. The three essays jointly highlight the important influence of global integration and technological convergence on nations’ economic growth and well-being. However, policies promoting integration and convergence should pay attention to the consequent intra-country redistribution of income between producers and consumers. Title: Essays on technology, trade, and welfare Author: Ruan, Jun Technology is a key determinant of comparative advantage among nations. As information technology improves and the nations of the world become economically integrated, concern arises over the dissipation of high-income economies’ technological advantage. The three essays in this dissertation explore the trade and technology relationship, which is essential to economic growth in both high- and low-income nations. The first essay employs a monopolistic competition framework to investigate the effects – on each country’s relative wages, share of global markets, and welfare – of the productivity convergence between a technological leader and follower. Results indicate technological convergence improves the follower’s competitiveness at the expense of the leader’s. Nevertheless, the leader’s welfare improves unambiguously on account of the increase in its terms of trade, while the follower’s welfare changes in a direction depending on the relative strength of convergence’s income and terms-of-trade effects. We use data from 17 food industries in 30 countries, 1993-2001, to test these analytical predictions. Convergence has lifted followers’ income and global value-added share. Followers’ welfare has risen since convergence’s income improvement has outweighed its terms-of-trade deterioration. Simultaneously, leaders’ welfare has improved in response to their improved terms of trade. The second essay employs data from 35 countries in 128 ISIC 4-digit manufacturing industries, 1993 - 2001, to test the empirical validity of these same hypotheses for the international manufacturing sector. We find that, just as in the food sector, convergence improves followers’ welfare through its positive income effects. However, we do not find empirical evidence of convergence’s terms-of-trade effects. The third essay examines trade liberalization’s effects on the geographical distribution of productivity, and consequent cross-country resource and market-share allocations, of five processed food industries. We find that the mean and other quantiles of the global productivity distribution shift to the right as international trade liberalizes. The latter result implies that resources are reallocated toward countries with faster productivity growth. The three essays jointly highlight the important influence of global integration and technological convergence on nations’ economic growth and well-being. However, policies promoting integration and convergence should pay attention to the consequent intra-country redistribution of income between producers and consumers. Close

• 205. [Article] International river basin management in the face of change : Syr Darya Basin case study

  The conflict over water resources exploitation and sharing in the Aral Sea Basin is one of the most pressing environmental issues yet to be resolved in Central Asia. The fall of the Soviet Union in 1991 ...

  Citation × Citation Citation Abstract Copy Title: International river basin management in the face of change : Syr Darya Basin case study Author: Pak, Mariya The conflict over water resources exploitation and sharing in the Aral Sea Basin is one of the most pressing environmental issues yet to be resolved in Central Asia. The fall of the Soviet Union in 1991 and establishment of the New Independent States (NIS) within the Aral Sea Bain led to conflicting interests vested in water resources with no mediator to solve these water issues. Presently, the Amu Darya and Syr Darya upstream states of Kyrgyzstan and Tajikistan desire to employ water resources for hydropower; while downstream Kazakhstan, Turkmenistan and Uzbekistan wish to continue practicing irrigated agriculture. This scarce and over-allocated resource, facing the needs of a growing population and climate change uncertainties, should be managed collaboratively and sustainably to be able to meet and withstand the upcoming challenges. This dissertation examines water management practices in the face of government regime change both in large and small river basins within Central Asia by analyzing international water agreements, correspondence between water managers, official reports, maps, and other archival documents. The analysis shows the inter-republican dynamics in water sector starting from 1950s up to early 2000s. The analysis of water relations within the Syr Darya Basin shows that there are different approaches to the change in political regime in both large and small basins. The results reveal that conflict over water resources in Central Asia existed long before the fall of the Soviet Union both in the large Syr Darya Basin, as well as within its small tributaries. The Soviet planned economy, along with the basin planning framework, set competition for water between the riparian states. Analysis of the infrastructure construction negotiations in these small shared tributaries showed that the former Soviet Republics used non-cooperative negotiation strategies to outcompete their rivals. This dissertation calls for regional cooperation in water management as it is shown that hydro-political competition in the basin may lead only to short term benefits, on the long run however, it is proven lead to heavy economic, social, political, and environmental costs. Title: International river basin management in the face of change : Syr Darya Basin case study Author: Pak, Mariya The conflict over water resources exploitation and sharing in the Aral Sea Basin is one of the most pressing environmental issues yet to be resolved in Central Asia. The fall of the Soviet Union in 1991 and establishment of the New Independent States (NIS) within the Aral Sea Bain led to conflicting interests vested in water resources with no mediator to solve these water issues. Presently, the Amu Darya and Syr Darya upstream states of Kyrgyzstan and Tajikistan desire to employ water resources for hydropower; while downstream Kazakhstan, Turkmenistan and Uzbekistan wish to continue practicing irrigated agriculture. This scarce and over-allocated resource, facing the needs of a growing population and climate change uncertainties, should be managed collaboratively and sustainably to be able to meet and withstand the upcoming challenges. This dissertation examines water management practices in the face of government regime change both in large and small river basins within Central Asia by analyzing international water agreements, correspondence between water managers, official reports, maps, and other archival documents. The analysis shows the inter-republican dynamics in water sector starting from 1950s up to early 2000s. The analysis of water relations within the Syr Darya Basin shows that there are different approaches to the change in political regime in both large and small basins. The results reveal that conflict over water resources in Central Asia existed long before the fall of the Soviet Union both in the large Syr Darya Basin, as well as within its small tributaries. The Soviet planned economy, along with the basin planning framework, set competition for water between the riparian states. Analysis of the infrastructure construction negotiations in these small shared tributaries showed that the former Soviet Republics used non-cooperative negotiation strategies to outcompete their rivals. This dissertation calls for regional cooperation in water management as it is shown that hydro-political competition in the basin may lead only to short term benefits, on the long run however, it is proven lead to heavy economic, social, political, and environmental costs. Close

• 206. [Article] Grant County, Oregon : impacts of changes in log flows on a timber-dependent community

  Competitive bid sales of U.S. Forest Service in the Pacific Northwest timber resources have significant effects on the economies of Oregon, Washington, and Idaho. These sales contribute to the economic vitality ...

  Citation × Citation Citation Abstract Copy Title: Grant County, Oregon : impacts of changes in log flows on a timber-dependent community Author: Miller, Lester F. Competitive bid sales of U.S. Forest Service in the Pacific Northwest timber resources have significant effects on the economies of Oregon, Washington, and Idaho. These sales contribute to the economic vitality of small regions or communities dependent upon timber as a primary resource input. Any changes in the price or quantity of these timber resources can, therefore, have effects on not only economic output of forest products firms, but the entire region as well. Grant County, Oregon, and the Malheur National Forest were selected as study areas for this analysis. This thesis attempts to show the impact on the region of selected price and quantity changes in local timber resources. During the summer months of 1978, sample data was collected on the gross sales and purchases of 109 Grant County businesses in 22 economic sectors. This information was used to construct a Leontief type input-output model for Grant County. Additional detailed information obtained from the U.S. Forest Service and local lumber and wood products processing firms was used in constructing a linear programming model. This modified transportation-type model optimizes the distribution of timber resources among wood products firms in Grant County based on each firm's total revenues and variable costs. These Costs apply to hauling, harvesting, processing, and inventory activities. In order to evaluate the effects of changes in price and quantity relationships at the local level, outputs from the linear program were entered into the input-output model as exogenous sales (exports). Three examples of changes in the price and quantity of local timber resources were evaluated: (1) a 20 percent increase in stumpage values; (2) a 20 percent decrease in 1977 stumpage quantities; and (3) a combination of both. The examples demonstrate business income, wage income, and employment impacts on the community from changes in both stumpage prices and quantities that exceed the direct impacts on forest products firms. Furthermore, the effects of changes in stumpage prices had a greater relative impact (measured by these indicators) than changes in available stumpage. In general, changes in both stumpage prices and quantities produced output, wage, and employment effects four times as large as changes in stumpage quantities and three times as large as changes in stumpage price alone. Title: Grant County, Oregon : impacts of changes in log flows on a timber-dependent community Author: Miller, Lester F. Competitive bid sales of U.S. Forest Service in the Pacific Northwest timber resources have significant effects on the economies of Oregon, Washington, and Idaho. These sales contribute to the economic vitality of small regions or communities dependent upon timber as a primary resource input. Any changes in the price or quantity of these timber resources can, therefore, have effects on not only economic output of forest products firms, but the entire region as well. Grant County, Oregon, and the Malheur National Forest were selected as study areas for this analysis. This thesis attempts to show the impact on the region of selected price and quantity changes in local timber resources. During the summer months of 1978, sample data was collected on the gross sales and purchases of 109 Grant County businesses in 22 economic sectors. This information was used to construct a Leontief type input-output model for Grant County. Additional detailed information obtained from the U.S. Forest Service and local lumber and wood products processing firms was used in constructing a linear programming model. This modified transportation-type model optimizes the distribution of timber resources among wood products firms in Grant County based on each firm's total revenues and variable costs. These Costs apply to hauling, harvesting, processing, and inventory activities. In order to evaluate the effects of changes in price and quantity relationships at the local level, outputs from the linear program were entered into the input-output model as exogenous sales (exports). Three examples of changes in the price and quantity of local timber resources were evaluated: (1) a 20 percent increase in stumpage values; (2) a 20 percent decrease in 1977 stumpage quantities; and (3) a combination of both. The examples demonstrate business income, wage income, and employment impacts on the community from changes in both stumpage prices and quantities that exceed the direct impacts on forest products firms. Furthermore, the effects of changes in stumpage prices had a greater relative impact (measured by these indicators) than changes in available stumpage. In general, changes in both stumpage prices and quantities produced output, wage, and employment effects four times as large as changes in stumpage quantities and three times as large as changes in stumpage price alone. Close

• 207. [Article] The phytosanitation of solid wood packaging materials using wood preservatives

  New species introductions have been associated with the movement of people for thousands of years. For instance, horses were introduced into North America by Spanish explorers, while pigs were introduced ...

  Citation × Citation Citation Abstract Copy Title: The phytosanitation of solid wood packaging materials using wood preservatives Author: Schauwecker, Christoph F. New species introductions have been associated with the movement of people for thousands of years. For instance, horses were introduced into North America by Spanish explorers, while pigs were introduced by the Polynesians into many Pacific islands long before the establishment of permanent European settlements. Both of these species introductions resulted in significant changes in both the biological and cultural composition of these places. However, during the past century, the amount of material transported by people has greatly increased due to the globalization of the economy and breakthroughs in material handling technology. These breakthroughs, such as the steel shipping container and the wooden pallet, allow goods to be moved rapidly in a protected environment. This protected environment prevents goods from being damaged while in transit, but it has also improved the ability of pests to survive transit and resulted in invasive species introductions. The volume of goods being transported has steadily increased during the past 50 years and, thus, the number of species introductions has increased as well, resulting in a number of high profile pest introductions. For instance, the introduction of the Asian long horned beetle into Chicago and New York cost millions of dollars to eradicate and resulted in the loss of hardwood trees that previously lined the streets of these cities. In response to the Asian long-horned beetle and the introduction of the pine wood nematode into Europe, the Food and Agriculture Organization of the United Nations drafted and approved International Standard for Phytosanitary Measures Number 15. This measure recognizes solid wood packaging materials as an invasive species pathway and recommends sanitization through heat treatment or fumigation with methyl bromide. However, heat treatment or fumigation are imperfect mitigation tools. Thus, researchers continue to search for alternative methods. Wood preservatives have long been formulated to prevent insect and fungal attack of wood products exposed to warm humid climates, but the ability of these chemicals to eliminate existing insect and fungal colonies has not been investigated. In this study, a number wood preservative systems were investigated to determine if these chemical formulations can be used for this application and to determine if wood preservatives, in general, are suited for use in phytosanitary applications. A method for detecting the presence of wood boring insects through acoustic emissions was investigated. It was thought that a system of microphones and accelerometers could be used to detect wood boring insect presence and activity within a particular wood sample. These assumptions were based on earlier work conducted with termites. This system was to be used to determine if a sample contained wood boring insects prior to using it in the main study. However, acoustic emissions were not useful for this application, since feeding of the wood boring insects was sporadic, unlike termites which feed constantly. Determining the feasibility of using wood preservatives in phytosanitary applications was addressed in three trials: the ability of preservatives to penetrate insect galleries, the ability of the insect larvae and pupae to penetrate a treated barrier and the ability of established wood boring insect populations to complete their life cycle under field conditions in wood pressure treated with preservatives Preservatives completely penetrated between 80-100% of all insect galleries in western redcedar treated with ammoniacal copper quaternary compound, disodium octaborate tetrahydrate, or imidacloprid. However, barriers containing any of these three chemicals failed to prevent larvae from exiting the treated material, even in instances where the barrier was more than 6mm thick. The wood boring insects were unable to complete their life cycle under field conditions in pressure treated wood, while a large number of new house borer adults emerged from the untreated controls. The wood preservatives investigated act more as insecticides than larvacides. However, vacuum pressure impregnation of solid wood packaging materials with the appropriate chemicals could provide lasting protection against invasive species introductions, allowing for the rapid, yet safe transportation of goods around the world. Title: The phytosanitation of solid wood packaging materials using wood preservatives Author: Schauwecker, Christoph F. New species introductions have been associated with the movement of people for thousands of years. For instance, horses were introduced into North America by Spanish explorers, while pigs were introduced by the Polynesians into many Pacific islands long before the establishment of permanent European settlements. Both of these species introductions resulted in significant changes in both the biological and cultural composition of these places. However, during the past century, the amount of material transported by people has greatly increased due to the globalization of the economy and breakthroughs in material handling technology. These breakthroughs, such as the steel shipping container and the wooden pallet, allow goods to be moved rapidly in a protected environment. This protected environment prevents goods from being damaged while in transit, but it has also improved the ability of pests to survive transit and resulted in invasive species introductions. The volume of goods being transported has steadily increased during the past 50 years and, thus, the number of species introductions has increased as well, resulting in a number of high profile pest introductions. For instance, the introduction of the Asian long horned beetle into Chicago and New York cost millions of dollars to eradicate and resulted in the loss of hardwood trees that previously lined the streets of these cities. In response to the Asian long-horned beetle and the introduction of the pine wood nematode into Europe, the Food and Agriculture Organization of the United Nations drafted and approved International Standard for Phytosanitary Measures Number 15. This measure recognizes solid wood packaging materials as an invasive species pathway and recommends sanitization through heat treatment or fumigation with methyl bromide. However, heat treatment or fumigation are imperfect mitigation tools. Thus, researchers continue to search for alternative methods. Wood preservatives have long been formulated to prevent insect and fungal attack of wood products exposed to warm humid climates, but the ability of these chemicals to eliminate existing insect and fungal colonies has not been investigated. In this study, a number wood preservative systems were investigated to determine if these chemical formulations can be used for this application and to determine if wood preservatives, in general, are suited for use in phytosanitary applications. A method for detecting the presence of wood boring insects through acoustic emissions was investigated. It was thought that a system of microphones and accelerometers could be used to detect wood boring insect presence and activity within a particular wood sample. These assumptions were based on earlier work conducted with termites. This system was to be used to determine if a sample contained wood boring insects prior to using it in the main study. However, acoustic emissions were not useful for this application, since feeding of the wood boring insects was sporadic, unlike termites which feed constantly. Determining the feasibility of using wood preservatives in phytosanitary applications was addressed in three trials: the ability of preservatives to penetrate insect galleries, the ability of the insect larvae and pupae to penetrate a treated barrier and the ability of established wood boring insect populations to complete their life cycle under field conditions in wood pressure treated with preservatives Preservatives completely penetrated between 80-100% of all insect galleries in western redcedar treated with ammoniacal copper quaternary compound, disodium octaborate tetrahydrate, or imidacloprid. However, barriers containing any of these three chemicals failed to prevent larvae from exiting the treated material, even in instances where the barrier was more than 6mm thick. The wood boring insects were unable to complete their life cycle under field conditions in pressure treated wood, while a large number of new house borer adults emerged from the untreated controls. The wood preservatives investigated act more as insecticides than larvacides. However, vacuum pressure impregnation of solid wood packaging materials with the appropriate chemicals could provide lasting protection against invasive species introductions, allowing for the rapid, yet safe transportation of goods around the world. Close