IDEAS home Printed from https://ideas.repec.org/a/bla/canjag/v58y2010i4p481-496.html
   My bibliography  Save this article

Cost‐Sharing Incentive Programs for Source Water Protection: The Grand River's Rural Water Quality Program

Author

Listed:
  • Diane P. Dupont

Abstract

Over the last few years, Canadian provinces have come to see watershed‐based source protection as a means of improving water quality that has been subject to upstream agricultural contamination. Cost‐sharing incentive programs—whereby farmers are reimbursed for some portion of out‐of‐pocket expenses when they voluntarily adopt Best Management Practices—have been identified as possible means of achieving the goal. This paper uses data from the first seven years of operation of Ontario's Rural Water Quality Program for the Grand River to examine the role of financial incentives in encouraging participation. Program data supplemented with Statistics Canada's Census of Agriculture data are used to estimate a Heckman two‐stage model of participation rates. Program‐specific cost‐sharing incentive factors, along with farm income and computer usage, are important determinants in the first‐stage discrete participation decision. The most significant factor in the second‐stage degree of participation decision is the maximum dollar value of grant that can be obtained by the farm; however, participation response elasticities are inelastic, ranging between 0.02 and 0.25. Au cours des dernières années, les provinces canadiennes en sont venues à considérer la protection des sources d’eau à l’échelle des bassins versants comme un moyen d’améliorer la qualité de l’eau susceptible d’être contaminée par les activités agricoles en amont. Les programmes d’incitatifs à frais partagés – dans le cadre desquels une partie des dépenses que les producteurs engagent leur sont remboursées lorsqu’ils adoptent volontairement de meilleures pratiques de gestion – sont perçus comme des moyens qui pourraient permettre d’atteindre l’objectif. Dans le présent article, nous avons utilisé les données des sept premières années d’application du Rural Water Quality Program, mis en place par l’Ontario pour la protection de la rivière Grand, afin d’examiner le rôle des incitatifs financiers dans l’encouragement à la participation. Nous avons utilisé les données de ce programme ainsi que des données tirées du Recensement de l’agriculture de Statistique Canada pour analyser les taux de participation à l’aide du modèle en deux étapes de Heckman. À la première étape, les incitatifs à frais partagés spécifiques à un programme, de même que le revenu agricole et l’utilisation d’un ordinateur, sont des facteurs importants dans le choix de participer ou non. À la deuxième étape, la valeur maximale de la subvention que peut obtenir une exploitation agricole représente le facteur le plus important. Toutefois, l’élasticité des réponses de participation est inélastique, et varie de 0,02 à 0,25.

Suggested Citation

  • Diane P. Dupont, 2010. "Cost‐Sharing Incentive Programs for Source Water Protection: The Grand River's Rural Water Quality Program," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(4), pages 481-496, December.
  • Handle: RePEc:bla:canjag:v:58:y:2010:i:4:p:481-496
    DOI: 10.1111/j.1744-7976.2010.01197.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1744-7976.2010.01197.x
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:canjag:v:58:y:2010:i:4:p:481-496. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: http://edirc.repec.org/data/caefmea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.