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Policy Design and Conservation Compliance on Highly Erodible Lands

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  • Konstantinos Giannakas
  • Jonathan D. Kaplan
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    Abstract

    We develop a game-theoretic model of heterogeneous producers in order to identify the economic determinants of producer noncompliance with the conservation provisions of the United States Department of Agriculture (USDA) policy on highly erodible lands. We evaluate the policy effectiveness in inducing compliance and adoption of conservation practices. The current policy design creates economic incentives for all noncompliant producers to masquerade as adopters and to claim government payments for which they are not entitled. Both theoretical and empirical results indicate that the increased income transfers to agriculture enacted under the latest Farm Bill will increase producer compliance and conservation activity on highly erodible lands.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 81 (2005)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:uwp:landec:v:81:y:2005:i:1:p20-33

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    Web page: http://le.uwpress.org/

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    Cited by:
    1. 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, Elsevier, vol. 65(4), pages 737-752, May.
    2. Fulton, Murray E. & Mihal, Daniela, 2005. "The Economic Impact of Non-Compliance in the Carbon-Offset Market," 2005 Annual meeting, July 24-27, Providence, RI, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 19179, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Motta, Alberto & Burlando, Alfredo, 2007. "Self reporting reduces corruption in law enforcement," MPRA Paper 5332, University Library of Munich, Germany, revised 23 Jun 2007.
    4. Rousseau, Sandra, 2008. "Enforcement Aspects of Conservation Policies: Compensation Payments versus Reserves," 2008 International Congress, August 26-29, 2008, Ghent, Belgium, European Association of Agricultural Economists 44453, European Association of Agricultural Economists.
    5. Author-Name: Luca Di Corato & Cesare Dosi & Michele Moretto, 2014. "Bidding for Conservation Contracts," Working Papers, Fondazione Eni Enrico Mattei 2014.65, Fondazione Eni Enrico Mattei.
    6. Schleyer, Christian & Theesfeld, Insa & Hagedorn, Konrad & Aznar, Olivier & Callois, Jean-Marc & Verburg, Rene & Yelkouni, Martin & Olsson, Johanna Alkan, 2007. "Approach towards an operational tool to apply institutional analysis for the assessment of policy feasibility within SEAMLESS-IF," Reports, SEAMLESS: System for Environmental and Agricultural Modelling, Linking European Science and Society 9295, SEAMLESS: System for Environmental and Agricultural Modelling, Linking European Science and Society.

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