[Federal Register Volume 63, Number 87 (Wednesday, May 6, 1998)]
[Notices]
[Pages 25031-25032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12035]


=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[FRL-6010-1]


Agency Information Collection Activities: Proposed Collection; 
Comment Request; Postponing Consumption: An Examination of Individual 
and Household Preferences

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In compliance with the Paperwork Reduction Act (44 U.S.C. 3501 
et seq.), this document announces that EPA is planning to submit the 
following proposed Information Collection Request (ICR) to the Office 
of Management and Budget (OMB): Postponing Consumption: An Examination 
of Individual and Household Preferences.
    Before submitting the ICR to OMB for review and approval, EPA is 
soliciting comments on specific aspects of the proposed information 
collection as described below.

DATES: Comments must be submitted on or before July 6, 1998.

ADDRESSES: Melonie Williams (2172) Office of Policy, Planning and 
Evaluation, US EPA, 401 M St. SW, Washington, DC 20460. Interested 
persons may obtain a copy of the ICR without charge by calling Melonie 
Williams at 202-260-7978 or via e-mail at 
[email protected].

FOR FURTHER INFORMATION CONTACT: Melonie Williams at 202-260-7978 or 
via e-mail at [email protected].

SUPPLEMENTARY INFORMATION:
    Affected entities: Entities potentially affected by this action are 
(i) those individuals who are contacted and asked to participate in the 
study and (ii) those who voluntarily agree to participate in the study. 
Residents in the Atlanta, GA area will be contacted by telephone 
(random-digit dialing), students at an as-yet-undetermined university 
will be contacted by e-mail (via group mailing lists) and posted 
announcements.
    Title: Postponing Consumption: An Examination of Individual and 
Household Preferences.
    Abstract: This information collection exercise is a pilot study 
designed to examine individual and household discount rates and 
individual preferences over intergenerational distributions of wealth.
    Currently, market interest rates are used as proxies for individual 
and social discount rates in economic analyses of EPA programs. 
Considerable evidence indicates, however, that these discount rates may 
bear no relationship to market rates. Instead, individual discount 
rates appear to vary with respect to time horizon, socio-demographic 
characteristics, and the nature of the good being traded across time.
    This study will use the experimental laboratory to examine 
individual and household discount rates. Experiment participants will 
be asked to make intertemporal trade-offs and discount rates will be 
inferred from their choices. Participants will also be asked to provide 
information on their socio-demographic characteristics and financial 
market activities. Ultimately, these data will be used to (i) generate 
individual and household discount rates for use in economic models 
involving intertemporal components and (ii) examine the appropriateness 
of using market interest rates as social discount rates in economic 
analyses of public programs.
    Moreover, the choice of a particular discount rate to be used in 
economic analyses of EPA programs is likely to have consequences for 
the intergenerational distribution of wealth. Thus, equity issues may 
influence individual preferences over the discount rate used to 
evaluate EPA programs.
    This study will use the experimental laboratory to examine 
individual preferences over income distributions. Laboratory incentives 
will be designed to create alternative social decision mechanisms under 
which subjects choose among different income distributions that 
determine subject payments. The characteristics defining these 
alternative social decision mechanisms correspond to equity issues 
similar to those arising from EPA policies. By observing individual 
preferences over income distributions under alternative decision rules, 
we can provide EPA policymakers with evidence on public preferences 
over intergenerational distributions of wealth.
    Laboratory incentives will involve real (as opposed to 
hypothetical) economic commitments. Participation in these experiments 
will be informed and voluntary. Participants will be able to terminate 
participation at any time without penalty. Well-established procedures 
will be in place to ensure the participants' anonymity and the 
confidentiality of their responses. An agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless it displays a currently valid OMB control number. 
The OMB control numbers for EPA's regulations are listed in 40 CFR part 
9 and 48 CFR Chapter 15.
    The EPA would like to solicit comments to:
    (i) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (ii) Evaluate the accuracy of the agency's estimate of the burden 
of the proposed collection of information, including the validity of 
the methodology and assumptions used;
    (iii) enhance the quality, utility, and clarity of the information 
to be collected; and
    (iv) minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.
    Burden Statement: 330 subjects will participate in those 
experiments examining discount rates. Subjects will convene in groups 
at an Atlanta conference center. Each subject will participate in one 
experimental session and each experimental session will last 
approximately 1.5 hours inclusive of time to sign informed-consent 
forms, answer questionnaires, read experimental instructions and record 
decisions. Subjects will incur an estimated average of 45 minutes 
travel time. Assuming a 75% show-up rate, Haigler-Bailly, who is likely 
to conduct the experiments, has estimated that 440 subjects should be 
recruited to obtain a final sample size of 330. Recruiting is by 
telephone and Haigler-Bailly estimates that 2000 completed contacts are 
necessary to obtain 440 recruits. The phone calls will last from 2 
minutes (for those who refuse to participate) to 4 minutes (for those 
who agree to participate). Hence, the estimated burden for these 
experiments is 824 hours.
    260 subjects will participate in those experiments examining 
preferences over income distributions. Subjects will convene in groups 
on a university campus. Each subject will participate in

[[Page 25032]]

one experimental session and each experimental session will last 
approximately 1.25 hours inclusive of time to sign informed-consent 
forms, answer questionnaires, read experimental instructions and record 
decisions. Since subjects are located at the site, travel time will be 
negligible. Moreover, the recruitment burden will be negligible, so no 
separate burden estimate is calculated. Hence, the estimated burden for 
these experiments is 325 hours. Total burden for the pilot study is 
thus 1149 hours. Labor costs were estimated based on the Bureau of 
Labor Statistics April 18, 1997 release of weekly earnings of wage and 
salary workers. Using median earnings ($504/wk), the total burden cost 
is estimated at $14,477.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.

    Dated: April 30, 1998.
Melonie B. Williams,
Economist.
[FR Doc. 98-12035 Filed 5-5-98; 8:45 am]
BILLING CODE 6560-50-U