Conservation subsidies may be awarded for otherwise profitable projects, in which case they do not improve environmental quality. We show that transaction costs involved in such subsidy programs may induce farmers to reduce the size and scope of conservation projects. An empirical study shows that cost sharing in Maryland has resulted in simpler projects that provide no greater environmental protection. Water quality does not appear to be a goal of cost sharing; farm productivity and political considerations do.
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number
22141.
Length: Date of creation: 2003 Date of revision: Handle: RePEc:ags:aaea03:22141
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Lichtenberg, Erik, 2000.
"Agriculture And The Environment,"
Working Papers
28567, University of Maryland, Department of Agricultural and Resource Economics.
[Downloadable!]
Other versions:
Lichtenberg, Erik, 2002.
"Agriculture and the environment,"
Handbook of Agricultural Economics,
in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313
Elsevier.
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Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)