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A Joint Framework for Analysis of Agri-Environmental Payment Programs

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  • Joseph C. Cooper

Abstract

This article presents an approach for simultaneously estimating farmers' decisions to accept incentive payments in return for adopting a bundle of environmentally benign best management practices. Using the results of a multinomial probit analysis of surveys of over 1,000 farmers facing five adoption decisions in a voluntary program, we show how the farmers' perceptions of the desirability of various bundles change with the offer amounts and with which practices are offered in the bundle. We also demonstrate an estimator for the mean minimum willingness to accept for the adoption of a practice conditional on the cost share offers for other practices. Copyright 2003, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/1467-8276.00501
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 85 (2003)
Issue (Month): 4 ()
Pages: 976-987

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Handle: RePEc:oup:ajagec:v:85:y:2003:i:4:p:976-987

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References

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  1. Madhu Khanna, 2001. "Sequential Adoption of Site-Specific Technologies and its Implications for Nitrogen Productivity: A Double Selectivity Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 35-51.
  2. Vassilis A. Hajivassiliou & Paul A. Ruud, 1993. "Classical Estimation Methods for LDV Models Using Simulation," Cowles Foundation Discussion Papers 1051, Cowles Foundation for Research in Economics, Yale University.
  3. Batie, Sandra S., 1999. "Green Payments As Foreshadowed By Eqip," Staff Papers 11750, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  4. Creel, M. & Loomis, J., 1995. "Semi-Nonparametric Distribution-Free Dichotomous Choice Contingent Valuation," UFAE and IAE Working Papers 273.94, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  5. Joseph C. Cooper & Russ W. Keim, 1996. "Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 54-64.
  6. Vassilis A. Hajivassiliou & Daniel L. McFadden & Paul Ruud, 1993. "Simulation of Multivariate Normal Rectangle Probabilities and their Derivatives: Theoretical and Computational Results," Working Papers _024, Yale University.
  7. Jeffrey H. Dorfman, 1996. "Modeling Multiple Adoption Decisions in a Joint Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 547-557.
  8. Cooper, Joseph C., 1997. "Combining Actual And Contingent Behavior Data To Model Farmer Adoption Of Water Quality Protection Practices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(01), July.
  9. Claassen, Roger & Hansen, LeRoy T. & Peters, Mark & Breneman, Vincent E. & Weinberg, Marca & Cattaneo, Andrea & Feather, Peter & Gadsby, Dwight M. & Hellerstein, Daniel & Hopkins, Jeffrey W. & Johnsto, 2001. "Agri-Environmental Policy at the Crossroads: Guideposts on a Changing Landscape," Agricultural Economics Reports 33983, United States Department of Agriculture, Economic Research Service.
  10. Lynch, Sarah & Smith, Katherine R., 1994. "Lean, Mean and Green ... Designing Farm Support Programs in a New Era," Policy Studies Program Reports, Henry A. Wallace Institute for Alternative Agriculture, number 134108.
  11. Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-28, July.
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Citations

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Cited by:
  1. Rahelizatovo, Noro C. & Gillespie, Jeffrey M., 2004. "The Adoption of Best-Management Practices by Louisiana Dairy Producers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), April.
  2. Kaczan, David & Swallow, Brent M. & Adamowicz, W.L. (Vic), 2013. "Designing a payments for ecosystem services (PES) program to reduce deforestation in Tanzania: An assessment of payment approaches," Ecological Economics, Elsevier, vol. 95(C), pages 20-30.
  3. Obubuafo, Joyce & Gillespie, Jeffrey M. & Paudel, Krishna P. & Kim, Seon-Ae, 2006. "Knowledge, Application and Adoption of Best Management Practices by Cattle Farmers under the Environmental Quality Incentives Program - A Sequential Analysis," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35307, Southern Agricultural Economics Association.
  4. Patrice Loisel & Bernard Elyakime, 2006. "Incentive Contract and Weather Risk," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 35(2), pages 99-108, October.
  5. Johansson, Robert C. & Kara, Erdal & Ribaudo, Marc, 2006. "On how environmental stringency influences BMP adoption," 2006 Annual meeting, July 23-26, Long Beach, CA 21207, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Rahelizatovo, Noro C. & Gillespie, Jeffrey M., 2002. "Factors Influencing The Implementation Of Best Management Practices In The Dairy Industry," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35241, Southern Agricultural Economics Association.
  7. Kim, Seon-Ae & Gillespie, Jeffrey M. & Paudel, Krishna P., 2008. "Rotational grazing adoption in cattle production under a cost-share agreement: does uncertainty have a role in conservation technology adoption?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), September.
  8. Cathal Buckley & Stephen Hynes & Tom van Rensburg & Edel Doherty, 2008. "Access to farmland for walking in the Republic of Ireland – The attitude of landowners," Working Papers 0814, Rural Economy and Development Programme,Teagasc.
  9. Andreas Kontoleon & Pauline Grosjean, 2007. "How Sustainable are Sustainable Development Programs? The Case of the Sloping Land Conversion Program in China," Environmental Economy and Policy Research Working Papers 26.2007, University of Cambridge, Department of Land Economics, revised 2007.
  10. Nordén, Anna, 2014. "Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners," Working Papers in Economics 591, University of Gothenburg, Department of Economics.
  11. Kim, Seon-Ae & Gillespie, Jeffrey M. & Paudel, Krishna P., 2004. "The Effect Of Contingent Valuation Format On Producers' Rotational Grazing Adoption Responses," 2004 Annual meeting, August 1-4, Denver, CO 20055, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Siikamäki, Juha & Layton, David F., 2006. "Potential Cost-Effectiveness of Incentive Payment Programs for Biological Conservation," Discussion Papers dp-06-27, Resources For the Future.
  13. Siikamäki, Juha & Layton, David, 2005. "Incentive Payment Programs for Environmental Protection: A Framework for Eliciting and Estimating Landowners' Willingness to Participate," Discussion Papers dp-05-57, Resources For the Future.
  14. Barreiro-Hurle, Jesus & Espinosa-Goded, Maria & Dupraz, Pierre, 2008. "Does Intensity Of Change Matter? Factors Affecting Adoption In Two Agri-Environmental Schemes," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6458, European Association of Agricultural Economists.
  15. Kim, Seon-Ae & Gillespie, Jeffrey M. & Paudel, Krishna P., 2004. "The Effect Of Economic Factors On The Apoption Of Best Management Practices In Beef Cattle Production," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34670, Southern Agricultural Economics Association.

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