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Alternative Green Payment Policies under Heterogeneity When Multiple Benefits Matter

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Author Info
Jinhua Zhao
Catherine L. Kling () (Center for Agricultural and Rural Development (CARD))
Lyubov A. Kurkalova

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Abstract

We investigate the environmental impacts of several forms of policies that offer farmers subsides in return for adoption of conservation tillage. The policies differ on whether the tillage practice or one of the environmental benefits is targeted. We develop an environmental Lorenz curve that fully represents the performance of the targeting policies, and we show that these curves can be used directly to help select the optimal targeting strategy for special classes of social welfare functions. We apply the model to the state of Iowa.

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File URL: http://www.card.iastate.edu/publications/DBS/PDFFiles/03wp341.pdf
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Publisher Info
Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 03-wp341.

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Date of creation: Jul 2003
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Handle: RePEc:ias:cpaper:03-wp341

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Related research
Keywords: environmental Lorenz curve; multiple benefits of conservation tillage; targeting subsidy policy.;

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References listed on IDEAS
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  1. Babcock, Bruce A. & Lakshminarayan, P. G. & Wu, JunJie & Zilberman, David, 1997. "Economics of a Public Fund for Environmental Amenities (The)," Staff General Research Papers 1065, Iowa State University, Department of Economics.
  2. Andrew J. Plantinga & JunJie Wu, 2003. "Co-Benefits from Carbon Sequestration in Forests: Evaluating Reductions in Agricultural Externalities from an Afforestation Policy in Wisconsin," Land Economics, University of Wisconsin Press, vol. 79(1), pages 74-85. [Downloadable!] (restricted)
  3. Kurkalova, Lyubov & Kling, Catherine L. & Zhao, Jinhua, 2003. "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior," Staff General Research Papers 10354, Iowa State University, Department of Economics. [Downloadable!]
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  1. Feng, Hong-Li & Kurkalova, Lyubov & Kling, Catherine L. & Gassman, Philip W., 2005. "Economic and Environmental Co-benefits of Carbon Sequestration in Agricultural Soils: Retiring Agricultural Land in the Upper Mississippi River Basin," Staff General Research Papers 12253, Iowa State University, Department of Economics. [Downloadable!]
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