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Instrument Choice And Budget-Constrained Targeting

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  • Horan, Richard D.
  • Claassen, Roger
  • Agapoff, Jean
  • Zhang, Wei

Abstract

We analyze how choosing to use a particular type of instrument for agri-environmental payments, when these payments are constrained by the regulatory authority's budget, implies an underlying targeting criterion with respect to costs, benefits, participation, and income, and the tradeoffs among these targeting criteria. The results provide insight into current policy debates.

Suggested Citation

  • Horan, Richard D. & Claassen, Roger & Agapoff, Jean & Zhang, Wei, 2004. "Instrument Choice And Budget-Constrained Targeting," 2004 Annual meeting, August 1-4, Denver, CO 20387, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea04:20387
    DOI: 10.22004/ag.econ.20387
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    References listed on IDEAS

    as
    1. James Shortle & David Abler & Richard Horan, 1998. "Research Issues in Nonpoint Pollution Control," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 571-585, April.
    2. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-976, December.
    3. Zhang, Wei & Horan, Richard D. & Claassen, Roger, 2003. "The Economics Of Green Payments For Reducing Agricultural Nonpoint Source Pollution In The Corn Belt," 2003 Annual meeting, July 27-30, Montreal, Canada 21939, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Kawagoe, Toshihiko & Otsuka, Keijiro & Hayami, Yujiro, 1986. "Induced Bias of Technical Change in Agriculture: The United States and Japan, 1880-1980," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 523-544, June.
    5. Roger Claassen & Richard Horan, 2001. "Uniform and Non-Uniform Second-Best Input Taxes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(1), pages 1-22, May.
    6. Robin Boadway, "undated". "The Role of Second-Best Theory in Public Economics," EPRU Working Paper Series 95-06, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    7. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 24(1), pages 11-32.
    8. Roger Claassen & Ralph E. Heimlich & Robert M. House & Keith D. Wiebe, 1998. "Estimating the Effects of Relaxing Agricultural Land Use Restrictions: Wetland Delineation in the Swampbuster Program," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(2), pages 390-405.
    9. Babcock, Bruce A. & Lakshminarayan, P. G. & Wu, J. & Zilberman, David, 1997. "Targeting Tools for the Purchase of Environmental Amenities," Staff General Research Papers Archive 5220, Iowa State University, Department of Economics.
    10. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, January.
    11. Gloria E. Helfand & Brett W. House, 1995. "Regulating Nonpoint Source Pollution Under Heterogeneous Conditions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 1024-1032.
    12. Batie, Sandra S., 1999. "Green Payments As Foreshadowed By Eqip," Staff Paper Series 11750, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    13. Richard D. Horan & James S. Shortle & David G. Abler, 1999. "Green Payments for Nonpoint Pollution Control," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1210-1215.
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