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Cost-Effective Targeting of Land Retirement to Improve Water Quality with Endogenous Sediment Deposition Coefficients

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  • Madhu Khanna
  • Wanhong Yang
  • Richard Farnsworth
  • Hayri Önal

Abstract

An integrated framework that combines spatial and biophysical attributes of land with a hydrological model and an economic model is developed to identify cropland for enrollment in the Conservation Reserve Enhancement Program. Sediment deposition coefficients are determined endogenously depending on the land-use decisions on other land parcels. Application of this framework to a watershed in Illinois demonstrates that highly sloping land adjacent to water bodies should be selected for retirement. A marginal value rental payment scheme can achieve program goals of 20% sediment abatement at 39% lower cost than a productivity-based rental scheme. Copyright 2003, Oxford University Press.

Suggested Citation

  • Madhu Khanna & Wanhong Yang & Richard Farnsworth & Hayri Önal, 2003. "Cost-Effective Targeting of Land Retirement to Improve Water Quality with Endogenous Sediment Deposition Coefficients," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 538-553.
  • Handle: RePEc:oup:ajagec:v:85:y:2003:i:3:p:538-553
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    File URL: http://hdl.handle.net/10.1111/1467-8276.t01-1-00454
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    1. Ancev, Tihomir & Odeh, Inakwu O.A., 2005. "Use of Spatially Referenced Data in Agricultural Economics Research," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137743, Australian Agricultural and Resource Economics Society.
    2. Ye, Fanglin & Paulson, Nicholas & Khanna, Madhu, 2014. "Technology uncertainty and learning by doing in the cellulosic biofuel investment," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169789, Agricultural and Applied Economics Association.
    3. Aaron De Laporte & Alfons Weersink & Wanhong Yang, 2010. "Ecological Goals and Wetland Preservation Choice," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 131-150, March.
    4. Roebeling, Peter C. & Smith, D. Mark & van Grieken, Martijn, 2006. "Exploring Environmental-Economic Benefits from Agri-Industrial Diversification in the Sugar Industry: An Integrated Land Use and Value Chain Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25755, International Association of Agricultural Economists.
    5. Feng, Hongli & Kurkalova, Lyubov A. & Kling, Catherine L. & Gassman, Philip W., 2006. "Environmental conservation in agriculture: Land retirement vs. changing practices on working land," Journal of Environmental Economics and Management, Elsevier, vol. 52(2), pages 600-614, September.
    6. Catherine L. Kling & Yiannis Panagopoulos & Adriana Valcu-Lisman & Philip W. Gassman & Sergey Rabotyagov & Todd Campbell & Mike White & Jeffrey G. Arnold & Raghavan Srinivasan & Manoj Jha & Jeff Richa, 2014. "Land Use Model Integrating Agriculture and the Environment (LUMINATE): Linkages between Agricultural Land Use, Local Water Quality and Hypoxic Concerns in the Gulf of Mexico Basin," Center for Agricultural and Rural Development (CARD) Publications 14-wp546, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    7. Catherine L. Kling, 2011. "Economic Incentives to Improve Water Quality in Agricultural Landscapes: Some New Variations on Old Ideas," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 297-309.
    8. Farnsworth, Richard L. & Engel, Bernard & McCloud, Susan & Choi, Jin-Yong & Lim, Kyoung Jae & Theller, Lawrence, 2004. "The EQIP GIS, Web-based Decision Program," 2004 Annual meeting, August 1-4, Denver, CO 20217, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Kuwayama, Yusuke & Brozović, Nicholas, 2013. "The regulation of a spatially heterogeneous externality: Tradable groundwater permits to protect streams," Journal of Environmental Economics and Management, Elsevier, vol. 66(2), pages 364-382.
    10. Apland, Jeffrey & Grainger, Corbett & Strock, Jeffrey, 2004. "Modeling Agricultural Production Considering Water Quality and Risk," Staff Papers 14240, University of Minnesota, Department of Applied Economics.
    11. Valcu, Adriana & Rabotyagov, Sergey S. & Kling, Catherine L., 2013. "Flexible Practice-Based Approaches For Controlling Multiple Agricultural Nonpoint-Source Water Pollution," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150450, Agricultural and Applied Economics Association.
    12. Chen, Chung-Ling & Qiu, Guo-Hao, 2014. "The long and bumpy journey: Taiwan׳s aquaculture development and management," Marine Policy, Elsevier, vol. 48(C), pages 152-161.
    13. Balana, Bedru Babulo & Vinten, Andy & Slee, Bill, 2011. "A review on cost-effectiveness analysis of agri-environmental measures related to the EU WFD: Key issues, methods, and applications," Ecological Economics, Elsevier, vol. 70(6), pages 1021-1031, April.
    14. Farnsworth, Richard L. & Austen, Douglas & White, Carolyn, 2003. "National "E-Extension" Programs: Feasibility And Structure," 2003 Annual meeting, July 27-30, Montreal, Canada 21936, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Yang, Wanhong & Khanna, Madhu & Farnsworth, Richard & Onal, Hayri, 2003. "Integrating economic, environmental and GIS modeling to target cost effective land retirement in multiple watersheds," Ecological Economics, Elsevier, vol. 46(2), pages 249-267, September.
    16. Lyubov Kurkalova & Catherine Kling & Jinhua Zhao, 2004. "Value of agricultural non-point source pollution measurement technology: assessment from a policy perspective," Applied Economics, Taylor & Francis Journals, vol. 36(20), pages 2287-2298.
    17. Feng, Hongli & Jha, Manoj K. & Gassman, Philip W., 2006. "Allocating Nutrient Load Reduction across a Watershed: Implications of Different Principles," 2006 Annual meeting, July 23-26, Long Beach, CA 21131, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Valcu, Adriana Mihaela, 2013. "Agricultural nonpoint source pollution and water quality trading: empirical analysis under imperfect cost information and measurement error," ISU General Staff Papers 201301010800004451, Iowa State University, Department of Economics.
    19. Talberth, John & Selman, Mindy & Walker, Sara & Gray, Erin, 2015. "Pay for Performance: Optimizing public investments in agricultural best management practices in the Chesapeake Bay Watershed," Ecological Economics, Elsevier, vol. 118(C), pages 252-261.

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