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Environmental and Distributional Impacts of Conservation Targeting Strategies

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Author Info

  • Wu, JunJie
  • Zilberman, David
  • Babcock, Bruce A.

Abstract

Resource purchasing funds have become a major tool for environmental protection and resource conservation. These funds use various strategies to target resources for conservation, the choice of which may lead to striking differences in environmental performance. This paper develops an analytical framework to analyze the impact of alternative targeting strategies on different interest groups, including consumers, producers, labor, and environmentalists. We show that ignoring the output price effect of purchasing funds reduces environmental gain and in some cases may make a purchasing fund counterproductive, and we argue that the optimal design of targeting criteria must consider the price feedback effect.

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File URL: http://www.sciencedirect.com/science/article/B6WJ6-45817D9-Y/2/4dee773d75912f3648f2d8ab54cb4bca
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 41 (2001)
Issue (Month): 3 (May)
Pages: 333-350

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Handle: RePEc:eee:jeeman:v:41:y:2001:i:3:p:333-350

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Web page: http://www.elsevier.com/locate/inca/622870

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References

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  1. Babcock, Bruce A. & Lakshminarayan, P. G. & Wu, J. & Zilberman, David, 1997. "Targeting Tools for the Purchase of Environmental Amenities," Staff General Research Papers 5220, Iowa State University, Department of Economics.
  2. Peter Berck & William R. Bentley, 1997. "Hotelling's Theory, Enhancement, and the Taking of the Redwood National Park," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 287-298.
  3. Fullerton, Don, 1991. "Reconciling Recent Estimates of the Marginal Welfare Cost of Taxation," American Economic Review, American Economic Association, vol. 81(1), pages 302-08, March.
  4. Weitzman, Martin L, 1978. "Optimal Rewards for Economic Regulation," American Economic Review, American Economic Association, vol. 68(4), pages 683-91, September.
  5. David Zilberman, 1996. "The Economics of a Public Fund for Environmental Amenities: A Study of CRP Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 961-971.
  6. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-31, July.
  7. Hochman, Eithan & Zilberman, David, 1978. "Examination of Environmental Policies Using Production and Pollution Microparameter Distributions," Econometrica, Econometric Society, vol. 46(4), pages 739-60, July.
  8. Dasgupta, Partha & Hammond, Peter & Maskin, Eric, 1980. "On Imperfect Information and Optimal Pollution Control," Review of Economic Studies, Wiley Blackwell, vol. 47(5), pages 857-60, October.
  9. Just, Richard E & Antle, John M, 1990. "Interactions between Agricultural and Environmental Policies: A Conceptual Framework," American Economic Review, American Economic Association, vol. 80(2), pages 197-202, May.
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Citations

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Cited by:
  1. Thorsen, Bo Jellesmark & Bakkegaard, Riyong Kim & Palmer, Charles & Delacote, Philippe, 2014. "Unveiling information on opportunity costs in REDD: Who obtains the surplus when policy objectives differ?," Economics Papers from University Paris Dauphine 123456789/12951, Paris Dauphine University.
  2. Heng-Chi Lee & Bruce A. McCarl & Uwe A. Schneider & Chi-Chung Chen, 2003. "Leakage and Comparative Advantage Implications of Agricultural Participation in Greenhouse Gas Emission Mitigation," Working Papers FNU-18, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2003.
  3. Fuwa, Nobuhiko & Sajise, Asa, 2008. "Exploring Environmental Services Incentive Policies for the Philippine Rice Sector: The Case of Intra-Species Agro Biodiversity Conservation," MPRA Paper 23691, University Library of Munich, Germany.
  4. Rajagopal, Deepak & Zilberman, David, 2013. "On market-mediated emissions and regulations on life cycle emissions," Ecological Economics, Elsevier, vol. 90(C), pages 77-84.
  5. David Zilberman & Leslie Lipper & Nancy McCarthy, 2006. "Putting Payments for Environmental Services in the Context of Economic Development," Working Papers 06-15, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  6. Xu, Zhigang & Xu, Jintao & Deng, Xiangzheng & Huang, Jikun & Uchida, Emi & Rozelle, Scott, 2006. "Grain for Green versus Grain: Conflict between Food Security and Conservation Set-Aside in China," World Development, Elsevier, vol. 34(1), pages 130-148, January.
  7. James Shortle & Richard D. Horan, 2013. "Policy Instruments for Water Quality Protection," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 111-138, June.
  8. Jean-Sauveur Ay & Jean-Marc Brayer & Jean Cavailhès & Pierre Curmi & Mohamed Hilal & Marjorie Ubertosi, 2012. "La valeur des attributs naturels des terres agricoles de Côte-d'Or," INRA UMR CESAER Working Papers 2012/1, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.
  9. Claassen, Roger & Cattaneo, Andrea & Johansson, Robert, 2008. "Cost-effective design of agri-environmental payment programs: U.S. experience in theory and practice," Ecological Economics, Elsevier, vol. 65(4), pages 737-752, May.
  10. Alix-Garcia, Jennifer M. & Shapiro, Elizabeth N. & Sims, Katharine R. E., 2010. "Forest Conservation and Slippage: Evidence from Mexico's National Payments for Ecosystem Services Program," Staff Paper Series 548, University of Wisconsin, Agricultural and Applied Economics.
  11. Fredriksson, Per G. & Wang, Le & Mamun, Khawaja A., 2011. "Are politicians office or policy motivated? The case of U.S. governors' environmental policies," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 241-253, September.
  12. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute for the Study of Labor (IZA).
  13. Newburn, David A. & Berck, Peter & Merenlender, Adina, 2004. "Spatial Targeting Strategies For Land Conservation," 2004 Annual meeting, August 1-4, Denver, CO 20206, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. Kelly, Peter & Huo, Xuexi, 2013. "Do farmers or governments make better land conservation choices? Evidence from China's Sloping Land Conversion Program," Journal of Forest Economics, Elsevier, vol. 19(1), pages 32-60.
  15. Wu, Feng & Guan, Zhengfei & Yu, Fan & Myers, Robert J., 2013. "The spillover effects of biofuel policy on participation in the conservation reserve program," Journal of Economic Dynamics and Control, Elsevier, vol. 37(9), pages 1755-1770.

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