Employee Incentive Programs: Recipient Behaviors in Points, Cash, and Gift Card Programs

Patents and other statutory types of market protections are used in the United States to promote scientific research and innovation. This incentive is especially important in research intensive fields such as the pharmaceutical industry. Unfortunately, these same protections often result in higher monopoly pricing once a successful product is brought to market. Usually this consequence is viewed as the necessary evil of an incentive system that encourages costly research and development by promising large rewards to the successful inventor. However, in the case of the AIDS drug Zidovudine (AZT), the high prices charged by the pharmaceutical company owning the drug have led to public outcry and a re-examination of government incentive systems.This Note traces the evolution of these incentive programs — the patent system, and, to a lesser extent, the orphan drug program — and details the conflicting interests involved in their development. It then demonstrates how the AZT problem brings the interest of providing inventors with incentives for risky innovative efforts into a sharp collision with the ultimate goal of such systems: ensuring that the public has access to the resulting products at a reasonable price. Finally, the Note describes how Congress and the courts have attempted to resolve these problems in the past, and how they might best try to solve the AZT problem in the near future.

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Assessing the Benefits and Economic Feasibility of Stand Improvement for Central Hardwood Forests

Forest Science ◽

10.1093/forsci/fxaa057 ◽

2021 ◽

Author(s):

Yangyang Wang ◽

Wu Ma ◽

Lenny D Farlee ◽

Elizabeth A Jackson ◽

Guofan Shao ◽

...

Keyword(s):

River Basin ◽

Environmental Quality ◽

Net Present Value ◽

Economic Feasibility ◽

Management Tool ◽

Study Region ◽

White River ◽

Incentive Programs ◽

Incentive Program ◽

Quality Incentive

Abstract Stand improvement (SI) has been widely accepted as an effective forest management tool. Yet most studies on its economic feasibility for nonindustrial private forest (NIPF) landowners are outdated and focus on the single stand level. The objective of this study was to conduct an economic assessment of SI’s effects and feasibility in hardwood stands for a case study in the White River Basin in Indiana. It is shown that SI could make these forests more productive and sustainable than the prevalent “hands-off” practice by enhancing the timber value of the residual stand (TV), generating regular timber income, and to some degree, reversing the decline in oak dominance. On average, a 25% increment in the TV could be achieved. Although costly for some NIPFs, once combined with voluntary financial incentive programs, SI could meet landowners’ demands for low-cost, high-return investment options. In particular, participation in the Environmental Quality Incentive Program could, on average, increase the net present value of timber income from thinning activities by nearly $1,600 per hectare over the course of 30 years. The spatial analysis revealed that there existed considerable spatial heterogeneity in SI benefits and impacts, suggesting that public incentive programs should be spatially targeted to achieve greater efficiency. Study Implications This study found that stand improvement (SI) could significantly improve the timber value of forestland in the central hardwood region. Participation in voluntary conservation programs, such as the Environmental Quality Incentive Program, could alleviate part of the SI cost thus making it an attractive investment opportunity for private landowners. For the study region, the White River Basin in Indiana, the results suggested that there existed substantial variations in SI’s effectiveness across space. This implied that program administrators of voluntary incentives could improve the efficiency of public funds allocation by considering this spatial variation when evaluating landowners’ applications for incentives.

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