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A Joint Framework for Analysis of Agri-Environmental Payment Programs

  • Joseph C. Cooper

This article presents an approach for simultaneously estimating farmers' decisions to accept incentive payments in return for adopting a bundle of environmentally benign best management practices. Using the results of a multinomial probit analysis of surveys of over 1,000 farmers facing five adoption decisions in a voluntary program, we show how the farmers' perceptions of the desirability of various bundles change with the offer amounts and with which practices are offered in the bundle. We also demonstrate an estimator for the mean minimum willingness to accept for the adoption of a practice conditional on the cost share offers for other practices. Copyright 2003, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/1467-8276.00501
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Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 85 (2003)
Issue (Month): 4 ()
Pages: 976-987

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Handle: RePEc:oup:ajagec:v:85:y:2003:i:4:p:976-987
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  1. Batie, Sandra S., 1999. "Green Payments As Foreshadowed By Eqip," Staff Papers 11750, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Vassilis A. Hajivassiliou & Paul A. Ruud, 1993. "Classical Estimation Methods for LDV Models Using Simulation," Cowles Foundation Discussion Papers 1051, Cowles Foundation for Research in Economics, Yale University.
  3. Lynch, Sarah & Smith, Katherine R., 1994. "Lean, Mean and Green ... Designing Farm Support Programs in a New Era," Policy Studies Program Reports, Henry A. Wallace Institute for Alternative Agriculture, number 134108.
  4. Claassen, Roger & Hansen, LeRoy T. & Peters, Mark & Breneman, Vincent E. & Weinberg, Marca & Cattaneo, Andrea & Feather, Peter & Gadsby, Dwight M. & Hellerstein, Daniel & Hopkins, Jeffrey W. & Johnsto, 2001. "Agri-Environmental Policy at the Crossroads: Guideposts on a Changing Landscape," Agricultural Economics Reports 33983, United States Department of Agriculture, Economic Research Service.
  5. Khanna, Madhu, 1999. "Sequential Adoption Of Site-Specific Technologies And Its Implications For Nitrogen Productivity: A Double Selectivity Model," 1999 Annual meeting, August 8-11, Nashville, TN 21599, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Hajivassiliou, Vassilis & McFadden, Daniel & Ruud, Paul, 1996. "Simulation of multivariate normal rectangle probabilities and their derivatives theoretical and computational results," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 85-134.
  7. Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-28, July.
  8. Cooper, Joseph C. & Keim, Russ, 1996. "Incentive payments to encourage farmer adoption of water quality protection practices," MPRA Paper 24779, University Library of Munich, Germany.
  9. Cooper, Joseph C., 1997. "Combining Actual And Contingent Behavior Data To Model Farmer Adoption Of Water Quality Protection Practices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(01), July.
  10. Creel, M. & Loomis, J., 1995. "Semi-Nonparametric Distribution-Free Dichotomous Choice Contingent Valuation," UFAE and IAE Working Papers 273.94, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  11. Jeffrey H. Dorfman, 1996. "Modeling Multiple Adoption Decisions in a Joint Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 547-557.
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