IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v205y2023ics0921800922003287.html
   My bibliography  Save this article

Navigating farming-BMP-policy interplay through a dynamical model

Author

Listed:
  • Homayounfar, Mehran
  • Muneepeerakul, Rachata
  • Martinez, Christopher J.

Abstract

Growing nutrient fertilization has imperiled freshwater resources throughout the world. There is a conflict of interest between farmers and local environmental organizations who are concerning about nutrient pollution in waterbodies. Adoption of best management practices (BMPs) by agricultural producers, while having potential to improve the situation, is not always easy to achieve. Here we developed a dynamical system model to capture the interaction among farmers responding to BMPs. Specifically, we based our model on replicator dynamics and defined fine and compensation for BMP adoption as functions of the amount of applied nitrogen. The farmers could also adopt two alternative strategies: business as usual and leaving the system. The model allowed us to investigate how incentive and restrictive regulations affect the behavior of farmers and the stability of the coupled system. Importantly, the model resulted in conditions that led to different system-level outcomes (e.g., sustained, collapse, mixed strategy between adopting BMPs and business-as-usual) as clear functions of biophysical, economic, and policy parameters. The results suggested that under certain circumstances, incentive programs can be ineffective or inappropriate, and such policies can lead to out-migration. These results offer guidelines on how to design restrictive and incentive policies or their combinations to achieve certain goals.

Suggested Citation

  • Homayounfar, Mehran & Muneepeerakul, Rachata & Martinez, Christopher J., 2023. "Navigating farming-BMP-policy interplay through a dynamical model," Ecological Economics, Elsevier, vol. 205(C).
    • Handle: RePEc:eee:ecolec:v:205:y:2023:i:c:s0921800922003287
    DOI: 10.1016/j.ecolecon.2022.107667
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800922003287
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2022.107667?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Houston, Jack E. & Sun, Henglun, 1999. "Cost-Share Incentives And Best Management Practices In A Pilot Water Quality Program," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-14, July.
    2. Lapple, Doris & Hennessy, Thia, 2014. "Assessing The Impact Of Financial Incentives For Participation In Extension Programmes: Evidence From Ireland," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169737, Agricultural Economics Society.
    3. Ferrant, Sylvain & Durand, Patrick & Justes, Eric & Probst, Jean-Luc & Sanchez-Perez, José-Miguel, 2013. "Simulating the long term impact of nitrate mitigation scenarios in a pilot study basin," Agricultural Water Management, Elsevier, vol. 124(C), pages 85-96.
    4. ChaoQing Yu & Xiao Huang & Han Chen & H. Charles J. Godfray & Jonathon S. Wright & Jim W. Hall & Peng Gong & ShaoQiang Ni & ShengChao Qiao & GuoRui Huang & YuChen Xiao & Jie Zhang & Zhao Feng & XiaoTa, 2019. "Managing nitrogen to restore water quality in China," Nature, Nature, vol. 567(7749), pages 516-520, March.
    5. Joseph C. Cooper & Russ W. Keim, 1996. "Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 54-64.
    6. Ronald C. Griffin & Daniel W. Bromley, 1982. "Agricultural Runoff as a Nonpoint Externality: A Theoretical Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(3), pages 547-552.
    7. Douglas M. Larson & Gloria E. Helfand & Brett W. House, 1996. "Second-Best Tax Policies to Reduce Nonpoint Source Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1108-1117.
    8. Maharjan, Ganga Ram & Ruidisch, Marianne & Shope, Christopher L. & Choi, Kwanghun & Huwe, Bernd & Kim, Seong Joon & Tenhunen, John & Arnhold, Sebastian, 2016. "Assessing the effectiveness of split fertilization and cover crop cultivation in order to conserve soil and water resources and improve crop productivity," Agricultural Water Management, Elsevier, vol. 163(C), pages 305-318.
    9. Tingting Liu & Randall J. F. Bruins & Matthew T. Heberling, 2018. "Factors Influencing Farmers’ Adoption of Best Management Practices: A Review and Synthesis," Sustainability, MDPI, vol. 10(2), pages 1-26, February.
    10. Yehouenou, Lauriane S. & Grogan, Kelly A. & Bi, Xiang & Borisova, Tatiana, 2020. "Improving BMP Cost-Share Enrollment Rates: Insights from a Survey of Florida Farmers," Agricultural and Resource Economics Review, Cambridge University Press, vol. 49(2), pages 237-269, August.
    11. Satya Yadav & Willis Peterson & K. Easter, 1997. "Do farmers overuse nitrogen fertilizer to the detriment of the environment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(3), pages 323-340, April.
    12. Jayash Paudel & Christine L. Crago, 2021. "Environmental Externalities from Agriculture: Evidence from Water Quality in the United States," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 185-210, January.
    13. Kunrath, Taise Robinson & de Berranger, Christophe & Charrier, Xavier & Gastal, François & de Faccio Carvalho, Paulo César & Lemaire, Gilles & Emile, Jean-Claude & Durand, Jean-Louis, 2015. "How much do sod-based rotations reduce nitrate leaching in a cereal cropping system?," Agricultural Water Management, Elsevier, vol. 150(C), pages 46-56.
    14. Feather, Peter & Cooper, Joseph C., 1995. "Voluntary Incentives for Reducing Agricultural Nonpoint Source Water Pollution," Agricultural Information Bulletins 33619, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:bla:canjag:v:58:y:2010:i:s1:p:481-496 is not listed on IDEAS
    2. Diane P. Dupont, 2009. "Cost-sharing Incentive Programs for Source Water Protection: The Grand River’s Rural Water Quality Program," Working Papers 0905, Brock University, Department of Economics, revised Jun 2009.
    3. Qiu, Zeyuan & Prato, Anthony A., 1999. "Accounting For Spatial Characteristics Of Watersheds In Evaluating Water Pollution Abatement Policies," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(1), pages 1-15, April.
    4. Encarna Esteban & José Albiac, 2016. "Salinity Pollution Control in the Presence of Farm Heterogeneity — An Empirical Analysis," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 1-20, June.
    5. Howry, Sierra S. & Stoecker, Arthur L. & Storm, Daniel E. & White, Michael J., 2008. "Economic Analysis of Management Practices to Reduce Phosphorus Load to Lake Eucha and Spavinaw," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6793, Southern Agricultural Economics Association.
    6. Glenn Sheriff, 2005. "Efficient Waste? Why Farmers Over-Apply Nutrients and the Implications for Policy Design," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(4), pages 542-557.
    7. Helfand, Gloria E. & Berck, Peter & Maull, Tim, 2003. "The theory of pollution policy," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 6, pages 249-303, Elsevier.
    8. James Shortle & David Abler & Richard Horan, 1998. "Research Issues in Nonpoint Pollution Control," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 571-585, April.
    9. Jeffrey D. Connor & Darla Hatton MacDonald & Mark Morrison & Andrea Cast, 2009. "Evaluating policy options for managing diffuse source water quality in Lake Taupo, New Zealand," Environment Systems and Decisions, Springer, vol. 29(4), pages 348-359, December.
    10. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
    11. Kaplan, Jonathan D. & Howitt, Richard E., 1997. "Nonpoint Source Pollution, Incomplete Information and Learning : An Entropy Approach," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35777, Western Agricultural Economics Association.
    12. Ipe, Viju C. & DeVuyst, Eric A. & Braden, John B. & White, David C., 2001. "Simulation of a Group Incentive Program for Farmer Adoption of Best Management Practices," Agricultural and Resource Economics Review, Cambridge University Press, vol. 30(2), pages 139-150, October.
    13. Brady, Mark, 2003. "The relative cost-efficiency of arable nitrogen management in Sweden," Ecological Economics, Elsevier, vol. 47(1), pages 53-70, November.
    14. Gottshall, Bryan & Paudel, Krishna P., 2013. "Assessing the Efficiency of Alternative Best Management Practices to Reduce Nonpoint Source Pollution in the Broiler Production Region of Louisiana," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150463, Agricultural and Applied Economics Association.
    15. Wu, JunJie & Babcock, Bruce A., 1999. "The Relative Efficiency of Voluntary vs Mandatory Environmental Regulations," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 158-175, September.
    16. Hanna L. Breetz & Karen Fisher-Vanden & Hannah Jacobs & Claire Schary, 2005. "Trust and Communication: Mechanisms for Increasing Farmers’ Participation in Water Quality Trading," Land Economics, University of Wisconsin Press, vol. 81(2).
    17. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest, 2007. "Farmers' costs of environmental regulation: Reducing the consumption of nitrogen in citrus farming," Economic Modelling, Elsevier, vol. 24(2), pages 312-328, March.
    18. Sumelius, John & Grgic, Zoran & Mesic, Milan & Franic, Ramona, 2003. "Marginal Abatement Costs For Reducing Leaching Of Nitrates In Croatian Farming Systems," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25909, International Association of Agricultural Economists.
    19. Heng Liu & Caizhu Huang & Heng Lian & Xia Cui, 2023. "Hierarchical Spatially Varying Coefficient Process Regression for Modeling Net Anthropogenic Nitrogen Inputs (NANI) from the Watershed of the Yangtze River, China," Sustainability, MDPI, vol. 15(16), pages 1-15, August.
    20. Thomas Vendryes, 2014. "Peasants Against Private Property Rights: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 971-995, December.
    21. Chad Lawley & Erik Lichtenberg & Doug Parker, 2009. "Biases in Nutrient Management Planning," Land Economics, University of Wisconsin Press, vol. 85(1), pages 186-200.

    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:eee:ecolec:v:205:y:2023:i:c:s0921800922003287. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.