IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/30875.html
   My bibliography  Save this article

Federal Grazing Reform And Avoidable Risk

Author

Listed:
  • McCluskey, Jill J.
  • Rausser, Gordon C.

Abstract

Recent rangeland reform attempts have increased ranchers' uncertainty of retaining grazing permits on federal land. This uncertainty is analyzed with a model of grazing on federal land. Ranchers facing this uncertainty will behave differently than if they were guaranteed the renewal of grazing permits at constant real grazing fees. It is shown that the socially optimal outcome may be achieved by adding avoidable risk through targeted rangeland reform. Rangeland reform attempts that create unavoidable risk can make both ranchers and environmental groups worse off.

Suggested Citation

  • McCluskey, Jill J. & Rausser, Gordon C., 1999. "Federal Grazing Reform And Avoidable Risk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-15, July.
    • Handle: RePEc:ags:jlaare:30875
    DOI: 10.22004/ag.econ.30875
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/30875/files/24010140.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.30875?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gardner, B. Delworth, 1997. "The Political Economy Of Public Land Use," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(1), pages 1-18, July.
    2. Jeffrey T. LaFrance & Myles J. Watts, 1995. "Public Grazing in the West and "Rangeland Reform '94"," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 447-461.
    3. Lorraine M. Egan & Myles J. Watts, 1998. "Some Costs of Incomplete Property Rights with Regard to Federal Grazing Permits," Land Economics, University of Wisconsin Press, vol. 74(2), pages 171-185.
    4. Grossman, Sanford J & Hart, Oliver D, 1983. "An Analysis of the Principal-Agent Problem," Econometrica, Econometric Society, vol. 51(1), pages 7-45, January.
    5. Arunava Bhattacharyya & Rangesan Narayanan & Thomas R. MacDiarmid & Thomas R. Harris & William O. Champney, 1996. "Demand for Grazing on Public Lands: A Disequilibrium Approach," Land Economics, University of Wisconsin Press, vol. 72(4), pages 483-499.
    6. Johnson, Ronald N. & Watts, Myles J., 1989. "Contractual stipulations, resource use, and interest groups: Implications from federal grazing contracts," Journal of Environmental Economics and Management, Elsevier, vol. 16(1), pages 87-96, January.
    7. Morton I. Kamien & Nancy L. Schwartz, 1971. "Optimal Maintenance and Sale Age for a Machine Subject to Failure," Management Science, INFORMS, vol. 17(8), pages 495-504, April.
    8. Ray G. Huffaker & James E. Wilen & B. Delworth Gardner, 1989. "Multiple Use Benefits on Public Rangelands: An Incentive-Based Fee System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 670-678.
    9. Myles J. Watts & Jeffrey T. LaFrance, 1994. "Cows, Cowboys, and Controversy: The Grazing Fee Issue," Monash Economics Working Papers archive-24, Monash University, Department of Economics.
    10. Clarke, Harry R. & Reed, William J., 1994. "Consumption/pollution tradeoffs in an environment vulnerable to pollution-related catastrophic collapse," Journal of Economic Dynamics and Control, Elsevier, vol. 18(5), pages 991-1010, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Batabyal, Amitrajeet A. & Biswas, Basudeb & Godfrey, E. Bruce, 2003. "A Dynamic And Stochastic Perspective On The Role Of Time In Range Management," 2003 Annual meeting, July 27-30, Montreal, Canada 22149, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Costello, Christopher J. & Kaffine, Daniel, 2008. "Natural resource use with limited-tenure property rights," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 20-36, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frederick van der Ploeg, 2018. "Breakthrough Renewables and the Green Paradox," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 74(1), pages 52-70, March.
    2. de Zeeuw, Aart & Zemel, Amos, 2012. "Regime shifts and uncertainty in pollution control," Journal of Economic Dynamics and Control, Elsevier, vol. 36(7), pages 939-950.
    3. Steinar Strøm & Jon Vislie, 2019. "Wealth Management and Uncertain Tipping Points," CESifo Working Paper Series 7487, CESifo.
    4. van der Ploeg, Frederick, 2018. "Political economy of dynamic resource wars," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 765-782.
    5. Polasky, Stephen & de Zeeuw, Aart & Wagener, Florian, 2011. "Optimal management with potential regime shifts," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 229-240, September.
    6. Frederick van der Ploeg, 2017. "Rapacious Oil Exploration in face of Regime Switches: Breakthrough Renewable Energy and Dynamic Resource Wars," Development Working Papers 415, Centro Studi Luca d'Agliano, University of Milano.
    7. Berry, Kevin & Finnoff, David & Horan, Richard D. & Shogren, Jason F., 2015. "Managing the endogenous risk of disease outbreaks with non-constant background risk," Journal of Economic Dynamics and Control, Elsevier, vol. 51(C), pages 166-179.
    8. Carbone, Jared C. & Kverndokk, Snorre & Rogeberg, Ole Jorgen, 2005. "Smoking, health, risk, and perception," Journal of Health Economics, Elsevier, vol. 24(4), pages 631-653, July.
    9. Mason, Robin, 2004. "Dividends, safety and liquidation when liabilities are long-term and stochastic," European Economic Review, Elsevier, vol. 48(6), pages 1179-1210, December.
    10. Ngo Van Long, 2019. "Managing, Inducing, and Preventing Regime Shifts: A Review of the Literature," CESifo Working Paper Series 7749, CESifo.
    11. Caliendo, Frank N. & Gorry, Aspen & Slavov, Sita, 2019. "The cost of uncertainty about the timing of Social Security reform," European Economic Review, Elsevier, vol. 118(C), pages 101-125.
    12. Aart Zeeuw & Chuan-Zhong Li, 2016. "The Economics of Tipping Points," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(3), pages 513-517, November.
    13. Carbone, Jared & Kverndokk, Snorre & Røgeberg, Ole-Jørgen, 2009. "Smoking and Health Investments: Impacts of Health Adaptation and Damage Reversibility," HERO Online Working Paper Series 2003:12, University of Oslo, Health Economics Research Programme.
    14. Zemel, Amos, 2012. "Precaution under mixed uncertainty: Implications for environmental management," Resource and Energy Economics, Elsevier, vol. 34(2), pages 188-197.
    15. Gjerde, Jon & Grepperud, Sverre & Kverndokk, Snorre, 1999. "Optimal climate policy under the possibility of a catastrophe," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 289-317, August.
    16. Lambert, David K. & Shonkwiler, John Scott, 1995. "Property Rights, Grazing Permits, And Rancher Welfare," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-19, July.
    17. Jon Gjerde & Sverre Grepperud & Snorre Kverndokk, 2005. "On adaptation and the demand for health," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1283-1301.
    18. Nævdal, Eric & Vislie, Jon, 2013. "Resource Depletion and Capital Accumulation under Catastrophic Risk: Policy Actions against Stochastic Thresholds and Stock Pollution," Memorandum 24/2013, Oslo University, Department of Economics.
    19. Watts, Myles J. & Shimshack, Jay P. & LaFrance, Jeffrey T., 2006. "Grazing Fees versus Stewardship on Federal Lands," CUDARE Working Papers 7151, University of California, Berkeley, Department of Agricultural and Resource Economics.
    20. Nævdal, Erik & Vislie, Jon, 2012. "Resource Depletion and Capital Accumulation under Catastrophic Risk: The Role of Stochastic Thresholds and Stock Pollution," Memorandum 24/2012, Oslo University, Department of Economics.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:30875. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.