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Alternative Green Payment Policies When Multiple Benefits Matter

Author

Listed:
  • Zhao, Jinhua
  • Kurkalova, Lyubov A.
  • Kling, Catherine L.

Abstract

This study investigates the environmental impacts of several forms of policies that offer farmers subsides in return for the adoption of conservation tillage. The policies differ as to whether the tillage practice or one of several environmental benefits is targeted. We develop an Environmental Lorenz Curve which fully represents the performance of the targeting policies, and show that this curve can be directly used to help select the optimal targeting strategy for special classes of social welfare functions. The model is applied to the state of Iowa.

Suggested Citation

  • Zhao, Jinhua & Kurkalova, Lyubov A. & Kling, Catherine L., 2004. "Alternative Green Payment Policies When Multiple Benefits Matter," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(01), pages 1-11, April.
    • Handle: RePEc:ags:arerjl:31378
    DOI: 10.22004/ag.econ.31378
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    Cited by:

    1. AJ A. Bostian & Moriah B. Bostian & Marita Laukkanen & Antti Simola, 2020. "Assessing the productivity consequences of agri-environmental practices when adoption is endogenous," Journal of Productivity Analysis, Springer, vol. 53(2), pages 141-162, April.
    2. Feng, Hongli & Kurkalova, Lyubov A. & Kling, Catherine L. & Gassman, Philip W., 2005. "Transfers and Environmental Co-Benefits of Carbon Sequestration in Agricultural Soils: Retiring Agricultural Land in the Upper Mississippi River Basin," Staff General Research Papers Archive 12439, Iowa State University, Department of Economics.
    3. Billen, Norbert & Röder, Clara & Gaiser, Thomas & Stahr, Karl, 2009. "Carbon sequestration in soils of SW-Germany as affected by agricultural management—Calibration of the EPIC model for regional simulations," Ecological Modelling, Elsevier, vol. 220(1), pages 71-80.
    4. Seong-Hoon Cho & Bijay P. Sharma, 2020. "Optimal spatial budget distribution of forest carbon payments that balances the returns and risks associated with conservation costs," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7239-7267, December.

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