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Economics of a Public Fund for Environmental Amenities (The)

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Author Info

  • Babcock, Bruce A.
  • Lakshminarayan, P. G.
  • Wu, JunJie
  • Zilberman, David

Abstract

The problem of targeting CRP purchases to buy environmental amenities under productivity and environmental heterogeneity is considered. Gini coefficients and Lorenz curves are used to measure the effectiveness of spending under alternative targeting criteria. The environmental benefits considered are water erosion, wind erosion, surface water quality, and wildlife habitat. The three alternative targeting criteria examined include purchasing land according to (i) the benefit-to-cost ratio, (ii) the level of benefits, and (iii) the level of cost. Results indicate that the degree of variability and correlation determine the extent to which suboptimal targeting achieves a significant portion of available environmental benefits.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 1065.

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Date of creation: 01 Nov 1996
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Publication status: Published in American Journal of Agricultural Economics, November 1996, vol. 78 no. 4, pp. 961-971
Handle: RePEc:isu:genres:1065

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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