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Priorities In Cost Sharing For Soil And Water Conservation: A Revealed Preference Study

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  • Bastos, Guilherme S.
  • Lichtenberg, Erik

Abstract

A number of studies have questioned how successfully paid land diversion has been adapted to address broad environmental policy concerns. Similar evaluations of cost-sharing programs have not been performed. This paper uses a revealed preference approach to estimate the implicit decision criteria used to allocate federal cost-sharing funds in Maryland, during the fiscal years 1994 through 1996. Funds appear to have been awarded preferentially to projects that enhanced agricultural productivity and farm profitability. In contrast to findings regarding the CRP, however, our results do not indicate that cost share awards in Maryland were inconsistent with stated environmental quality priorities.

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Bibliographic Info

Paper provided by University of Maryland, Department of Agricultural and Resource Economics in its series Working Papers with number 28604.

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Date of creation: 2000
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Handle: RePEc:ags:umdrwp:28604

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Keywords: Resource /Energy Economics and Policy;

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References

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  1. Marc O. Ribaudo, 1989. "Targeting the Conservation Reserve Program to Maximize Water Quality Benefits," Land Economics, University of Wisconsin Press, vol. 65(4), pages 320-332.
  2. Babcock, Bruce A. & Lakshminarayan, P. G. & Wu, JunJie & Zilberman, David, 1996. "Economics of a Public Fund for Environmental Amenities (The)," Staff General Research Papers 1065, Iowa State University, Department of Economics.
  3. Daniel McFadden, 1976. "The Revealed Preferences of a Government Bureaucracy: Empirical Evidence," Bell Journal of Economics, The RAND Corporation, vol. 7(1), pages 55-72, Spring.
  4. Lacy Glenn Thomas, 1988. "Revealed Bureaucratic Preference: Priorities of the Consumer Product Safety Commission," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 102-113, Spring.
  5. David Zilberman, 1996. "The Economics of a Public Fund for Environmental Amenities: A Study of CRP Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 961-971.
  6. Cropper, Maureen L. & William N. Evans & Stephen J. Berard & Maria M. Ducla-Soares & Paul R. Portney, 1992. "The Determinants of Pesticide Regulation: A Statistical Analysis of EPA Decision Making," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 175-97, February.
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Cited by:
  1. Hanna L. Breetz & Karen Fisher-Vanden & Hannah Jacobs & Claire Schary, 2005. "Trust and Communication: Mechanisms for Increasing Farmers’ Participation in Water Quality Trading," Land Economics, University of Wisconsin Press, vol. 81(2).
  2. Lichtenberg, Erik & Smith-Ramirez, Ricardo, 2003. "Cost Sharing, Transaction Costs, And Conservation," 2003 Annual meeting, July 27-30, Montreal, Canada 22141, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Lichtenberg, Erik, 2004. "Some Hard Truths About Agriculture and the Environment," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), April.
  4. Cattaneo, Andrea & Claassen, Roger & Johansson, Robert C. & Weinberg, Marca, 2005. "Flexible Conservation Measures on Working Land: What Challenges Lie Ahead?," Economic Research Report 7248, United States Department of Agriculture, Economic Research Service.

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