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Additionality in Payment for Ecosystem Services Programs: Agricultural Conservation Subsidies in Maryland

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  • Erik Lichtenberg

Abstract

Some payment for ecosystem services (PES) programs peg subsidy levels to the complexity of conservation projects. We investigate the additionality of conservation subsidies on project complexity using data from Maryland, which has used PES programs aggressively to reduce agricultural nutrient emissions into the Chesapeake Bay. A reduced-form linear model indicates modest overall average additionality. A structural approach using counterfactuals constructed from count data models yields the same overall average but finds that additionality varies with the number of practices subsidized. These results suggest that projections of agriculture’s potential to lower costs of meeting water quality goals may be overly optimistic.

Suggested Citation

  • Erik Lichtenberg, 2021. "Additionality in Payment for Ecosystem Services Programs: Agricultural Conservation Subsidies in Maryland," Land Economics, University of Wisconsin Press, vol. 97(2), pages 305-320.
    • Handle: RePEc:uwp:landec:v:97:y:2021:i:2:p:305-320
    Note: DOI: 10.3368/le.97.2.305
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    Cited by:

    1. Gregory Howard & Wendong Zhang & Adriana Valcu‐Lisman & Philip W. Gassman, 2024. "Evaluating the tradeoff between cost effectiveness and participation in agricultural conservation programs," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 712-738, March.
    2. Kim, Youngho, 2023. "Payments for Ecosystem Services Programs and Climate Change Adaptation in Agriculture," 2023 Annual Meeting, July 23-25, Washington D.C. 335971, Agricultural and Applied Economics Association.
    3. Gerling, Charlotte & Drechsler, Martin & Keuler, Klaus & Sturm, Astrid & Wätzold, Frank, 2022. "Time to consider the timing of conservation measures: designing cost-effective agri-environment schemes under climate change," MPRA Paper 113877, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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