This article presents the newly reconstructed daily gold price from 1919 to 1968 for the world's primary gold market during the London Gold Fixing auction, when gold was the cornerstone of the world's monetary system. We assess whether this market conformed to the Efficient Markets Hypothesis, which posits that prices are unpredictable, or the Adaptive Markets Hypothesis, which posits that a market efficiency will evolve based on changes in the market structure. We find that the Gold Fixing price was inefficient in periods when prices were market-based from 1919 to 1925 and again in the 1930s when private hoarders began to have a significant impact on the market. We find the Gold Fixing was also inefficient during gold standard periods when central bank interventions limited gold's ability to react to new information, despite two episodes where prices rose above the official ceiling.

While negative local item dependence (LID) has been discussed in numerous articles, its occurrence and effects often go unrecognized. This is due in part to confusion over what unidimensional latent trait is being utilized in evaluating the LID of multidimensional testing data. This article addresses this confusion by using an appropriately chosen latent variable to condition on. It then provides a proof that negative LID must occur when unidimensional ability estimates (such as number right score) are obtained from data which follow a very general class of multidimensional item response theory models. The importance of specifying what unidimensional latent trait is used, and its effect on the sign of the LIDs are shown to have implications in regard to a variety of foundational theoretical arguments, to the simulation of LID data sets, and to the use of testlet scoring for removing LID.

This paper investigates the factors that drive farmers’ simultaneous adoption of six water conservation practices (WCPs) and the intensity of their adoption. We estimate farmers’ adoption of these WCPs with a multivariate probit model, and for the intensity of their adoption, an ordered probit model is estimated. Our results show that gender, age, education, and farm size (among other factors) influence the probability and extent of adoption of WCPs. Furthermore, combinations like drip and/or sprinkler irrigations and cover cropping, drip and/or sprinkler irrigations and intercropping (among others) are complements, suggesting the bundling of these WCPs.

Globally, fisheries and forestry have been characterised by substantial ecological and economic problems. Both sectors have become notorious for depleting the stocks on which they depend, eroding the value of harvested natural resources over time and having significant negative ‘by-catch’ impacts on non-target natural resources. Problems of resource overuse and potential ecosystem collapse inherently derive from poor decisions influenced by those with undue or excessive economic, political and labour market power. Solutions to problems of unsustainability of resource management will need to engage with these economic drivers and beneficiaries, and require strategies including better and more independent assessments of the status and condition of resources. Deep-seated problems caused by resource over-commitment need more robust approaches to resource assessment that (1) better account for uncertainty (including uncertainty resulting from stock losses due to disturbance), (2) avoid ratchet effects and (3) provide appropriate ecological parameters for resource harvest. The United Nations framework for environmental and economic accounting methods can help assess the economic and other contributions of different resource-based industries and inform decisions about trade-offs between competing interests. Finally, there is value in examining successful and unsuccessful industry restructuring, in which decisions to transition away from demonstrably unsustainable resource industries have been made.

The starting point for this article is the excellent article by Professor Marglin on the dangers of climate change. He outlines a broad remedial prescription, a new economics based on ecological concerns and a broadly based cultural revolution to change people’s thinking. We agree with Marglin that the prevailing neoclassical analysis is fundamentally flawed because inter alia it adheres to individuals’ independent (rather than inter-dependent) utility functions. It is argued that ultimately the problem of the ecosystem, and indeed violent threats of mass destruction that we constantly face cannot be solved without the insights that community and spiritual thinking bring us.

This special issue contains a selection of six articles in the field of environmental and resource economics, which were presented in INFER workshops and supported events over the last two years. The topics include the effects of income inequality and freedom of the press on environmental stringency; the trade-environment nexus in China; the behavior of cross-country growth rates with respect to resource abundance and dependence; a stochastic frontier analysis to show that technological change is biased more towards energy rather than labor; how recycling and environmental taxes can affect the imbalances between the availability of and the demand for rare earth elements; and the interaction between demographic features and environmental constraints in Caribbean small island developing states. The papers include three empirical contributions and three methodological approaches, which help to improve our understanding of these topics.

This paper contributes to the literature on the determinants of environmental standards by studying the role of income inequality and freedom of the press. Given that evidence of the environmental Kuznets curve has only been found for some countries, it is thus crucial to investigate whether other factors besides income per capita levels may be affecting countries' decisions to pass environmentally-friendly legislation. We investigate the effects that inequality and freedom of the press have on environmental stringency for a sample of OECD and BRIICS countries and a global sample of 82 countries using data over the period 1994–2015. We hypothesize that the more unequal a society is, and the greater the oppression of the press is, the less stringent environmental policies are. The results partially confirm our hypothesis. In particular, lack of press freedom is negatively correlated with environmental stringency, whereas inequality shows a non-linear effect only for non-high-income countries.

Researchers and citizens alike question the long-term impacts of the shale oil boom on local communities. Studies have considered the boom’s effects on employment, income, mobility, and human capital acquisition. This research specifically builds on research considering shale effects on secondary schooling. Using county-level data from Texas, we investigate two questions: (1) Has the latest oil boom led to a reduction in local high school graduation? (2) Is this effect different for immigrants, a group potentially vulnerable to local wage effects? Findings indicate insignificant overall effects; however, local oil drilling increases immigrant high school dropout rates.

Unconventional resources of crude oil and natural gas – shale energy – increased significantly in the US in the early 2000s, triggered by the strong rise in the price of crude oil and technical advances in production. The US is a clear forerunner in the production of shale energy, due to its existing knowledge and infrastructure. The rest of the world is following, although negative environmental effects and other factors have obstructed the diffusion of new extraction methods. In Europe, Polish production is expected to start in the next few years, although environmental concerns are delaying the onset. The rise in the importance of shale energy will increase global oil and gas production markedly. The rising global supplies will improve global energy security in the long run and help to stabilise the large international price differences for natural gas.