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Combining Actual And Contingent Behavior Data To Model Farmer Adoption Of Water Quality Protection Practices

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Author Info
Cooper, Joseph C.

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Abstract

Using farmer responses to contingent valuation method (CVM) survey data in combination with actual market data from four watershed regions in the United States, this study estimates the minimum incentives payments a farmer would accept in order to adopt more environmentally friendly “"best management practices"” (BMPs). Combining actual market data with the CVM data adds information to the analysis, thereby most likely increasing the reliability of the results compared to analyzing the contingent behavior survey response data only. Given the decision to adopt, the article also presents a pooled model for the number of acres enrolled in the BMPs as a function of the incentive payments. Adoption rates predicted with the combination data model are significantly higher over a wide range of offers than those predicted using the traditional discrete choice analysis with the hypothetical data only. Hence, using the traditional CVM analysis results to determine payments to attain a given level of adoption may result in overpayment.

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File URL: http://purl.umn.edu/31003
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Publisher Info
Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 22 (1997)
Issue (Month): 01 (July)
Pages:
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Handle: RePEc:ags:jlaare:31003

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Related research
Keywords: Environmental Economics and Policy;

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  1. Lyubov A. Kurkalova & Catherine L. Kling & Jinhua Zhao, 2003. "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior (Revised)," Center for Agricultural and Rural Development (CARD) Publications 01-wp286, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
  2. John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, . "Combining Revealed and Stated Preference Data to Estimate the Nonmarket Value of Ecological Services: An Assessment of the State of the Science," Working Papers 05-19, Department of Economics, Appalachian State University. [Downloadable!]
    Other versions:
  3. Florkowski, Wojciech J., 2006. "Planning an Expansion of Blueberry Production by Southern Growers," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35329, Southern Agricultural Economics Association. [Downloadable!]
  4. Hand, Michael S. & Nickerson, Cynthia, 2009. "The Role of Cost-Share Rates and Prices on the Size of Conservation Investments in EQIP," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49257, Agricultural and Applied Economics Association. [Downloadable!]
  5. Qaim, Matin & de Janvry, Alain, 2002. "Bt Cotton In Argentina: Analyzing Adoption And Farmers' Willingness To Pay," 2002 Annual meeting, July 28-31, Long Beach, CA 19710, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  6. Kurkalova, Lyubov & Kling, Catherine & Zhao, Jinhua, 2001. "The Subsidy For Adopting Conservation Tillage: Estimation From Observed Behavior," 2001 Annual meeting, August 5-8, Chicago, IL 20542, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Paudel, Krishna P. & Gauthier, Wayne M. & Westra, John V. & Hall, Larry M., 2008. "Factors Influencing and Steps Leading to the Adoption of Best Management Practices by Louisiana Dairy Farmers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(01), April. [Downloadable!]
  8. Kurkalova, Lyubov A. & Kling, Catherine L. & Zhao, Jinhua, 2001. "Subsidy for Adopting Conservation Tillage: Estimation from Observed Behavior (The)," Staff General Research Papers 2007, Iowa State University, Department of Economics. [Downloadable!]
  9. Mathews, Leah Greden, 1999. "Estimating Water Quality Benefits By Combining Revealed And Stated Preference Methods: An Application In The Minnesota River," 1999 Annual meeting, August 8-11, Nashville, TN 21621, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  10. Diane P. Dupont, 2009. "Cost-sharing Incentive Programs for Source Water Protection: The Grand River’s Rural Water Quality Program," Working Papers 0905, Brock University, Department of Economics, revised Jun 2009. [Downloadable!]
  11. Lichtenberg, Erik & Smith-Ramirez, Ricardo, 2003. "Cost Sharing, Transaction Costs, And Conservation," 2003 Annual meeting, July 27-30, Montreal, Canada 22141, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  12. Hubbell, B.J. & Marra, M.C. & Carlson, G.A., 2000. "Estimating The Demand For A New Technology: Bt Cotton And Insecticide Policies In The Southeast," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26016, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance. [Downloadable!]
  13. Kurkalova, Lyubov & Kling, Catherine L. & Zhao, Jinhua, 2003. "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior," Staff General Research Papers 10354, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  14. Matuschke, Ira & Qaim, Matin, 2006. "Adoption and Impact of Hybrid Wheat in India," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25678, International Association of Agricultural Economists. [Downloadable!]
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