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Optimal Design of a Voluntary Green Payment Program Under Asymmetric Information

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Green payment programs, by which the government pays farmers directly for environmental benefits, have been proposed as an alternative to the current method of achieving environmental benefits by restricting farming practices in exchange for deficiency payments. This paper examines a green payment program applied to irrigated corn production in the Oklahoma Panhandle, where nitrogen fertilizer is a conjoint source of pollution.

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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 95-wp131.

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Date of creation: Feb 1995
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Handle: RePEc:ias:cpaper:95-wp131

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  1. Guesnerie Roger & Seade Jesus, 1981. "Nonlinear pricing in a finite economy," CEPREMAP Working Papers (Couverture Orange) 8118, CEPREMAP.
  2. Dasgupta, Partha S & Hammond, Peter J & Maskin, Eric S, 1979. "The Implementation of Social Choice Rules: Some General Results on Incentive Compatibility," Review of Economic Studies, Wiley Blackwell, vol. 46(2), pages 185-216, April.
  3. Weymark, John A, 1987. "Comparative Static Properties of Optimal Nonlinear Income Taxes," Econometrica, Econometric Society, vol. 55(5), pages 1165-85, September.
  4. Lewis, Tracy R. & Feenstra, Robert & Ware, Roger, 1989. "Eliminating price supports : A political economy perspective," Journal of Public Economics, Elsevier, vol. 40(2), pages 159-185, November.
  5. Guesnerie, Roger & Laffont, Jean-Jacques, 1984. "A complete solution to a class of principal-agent problems with an application to the control of a self-managed firm," Journal of Public Economics, Elsevier, vol. 25(3), pages 329-369, December.
  6. Wu, JunJie & Mapp, Harry P., Jr. & Bernardo, Daniel J., 1994. "A Dynamic Analysis Of The Impact Of Water Quality Policies On Irrigation Investment And Crop Choice Decisions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
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