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Farmer Premiums for the Voluntary Adoption of Conservation Plans

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Author Info

  • Joseph Cooper
  • Giovanni Signorello

Abstract

Programs that reimburse farmers for the cost of implementing more environmentally benign management practices are becoming increasingly popular in both the US and the EU. Utilizing the random utility and random profit difference approaches, the paper develops a theoretical model that explains why farmers may require a premium in excess of the decrease in profits to adopt a conservation plan, and may even require a premium in the case where adoption of the plan is associated with a mean increase in profits. This premium is estimated using a survey of farmers in conjunction with predictions of changes in production costs.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09640560701712234
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Environmental Planning and Management.

Volume (Year): 51 (2008)
Issue (Month): 1 ()
Pages: 1-14

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Handle: RePEc:taf:jenpmg:v:51:y:2008:i:1:p:1-14

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Cited by:
  1. 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.
  2. Barreiro-Hurle, Jesus & Espinosa-Goded, Maria & Dupraz, Pierre, 2008. "Re-considering Agri-Environmental Schemes premiums: the impact of fixed costs in sign-up decisions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43606, European Association of Agricultural Economists.
  3. Bateman, Ian J. & Day, Brett H. & Dupont, Diane P. & Georgiou, Stavros, 2006. "Incentive compatibility and procedural invariance testing of the one-and-one-half-bound dichotomous choice elicitation method: distinguishing strategic behaviour from the anchoring heuristic," 2006 Annual meeting, July 23-26, Long Beach, CA 21104, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Maria Espinosa-Goded & Pierre Dupraz & Jesùs Barreiro-Hurlé, 2009. "Fixed costs involved in crop pattern changes and agri-environmental schemes," Working Papers SMART - LERECO 09-15, INRA UMR SMART.

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