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Is Geographical Targeting Cost-Effective? The Case of the Conservation Reserve Enhancement Program in Illinois

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Author Info
Wanhong Yang
Madhu Khanna
Richard Farnsworth
Hayri Onal
Abstract

This paper uses economic, hydrologic, and GIS modeling to assess the effectiveness of the Illinois Conservation Reserve Enhancement Program in the Lower Sangamon watershed. Our results show that for a representative five-year storm event, the acres currently enrolled in the program result in a 12% reduction in sediment loading, which is below the program goal of 20% and four times the least-cost solution. We also analyze the design of alternative rental payment instruments for improving the cost-effectiveness of geographical targeting for land retirement. Policy implications for the characteristics of the land parcels that should be targeted for enrollment in the program are discussed. Copyright 2005 American Agricultural Economics Association

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Article provided by American Agricultural Economics Association in its journal Review of Agricultural Economics.

Volume (Year): 27 (2005)
Issue (Month): 1 (03)
Pages: 70-88
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Handle: RePEc:bla:ragrec:v:27:y:2005:i:1:p:70-88

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  1. Takumi Sakuyama, 2006. "Direct Payments for Environmental Services from Mountain Agriculture in Japan: Evaluating its Effectiveness and Drawing Lessons for Developing Countries," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 3(1), pages 27-57. [Downloadable!]
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