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Regulatory Policy Design for Agroecosystem Management on Public Rangelands

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  • Tigran Melkonyan
  • Michael H. Taylor

Abstract

This paper develops a model to analyze regulatory design for agroecosystem management on public rangeland. We define and compare the efficiency of the most prominent regulatory instruments on public rangeland--input regulation, cost-sharing/taxation, and performance regulation. We show that given informational asymmetries between ranchers and regulators within federal land management agencies, performance regulation can achieve first-best outcomes when regulators can perfectly monitor ranch-level ecological conditions and do not face constraints due to budget limitations or restrictions on the level of penalties they can assess, but that under imperfect monitoring and/or budgetary/penalty constraints, input regulation and cost-sharing/taxation can dominate performance regulation. Copyright 2013, Oxford University Press.

Suggested Citation

  • Tigran Melkonyan & Michael H. Taylor, 2013. "Regulatory Policy Design for Agroecosystem Management on Public Rangelands," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(3), pages 606-627.
    • Handle: RePEc:oup:ajagec:v:95:y:2013:i:3:p:606-627
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    File URL: http://hdl.handle.net/10.1093/ajae/aas170
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    Cited by:

    1. Morello, Thiago & Anderson, Liana & Silva, Sonaira, 2022. "Innovative fire policy in the Amazon: A statistical Hicks-Kaldor analysis," Ecological Economics, Elsevier, vol. 191(C).
    2. Bartkowski, Bartosz & Droste, Nils & Ließ, Mareike & Sidemo-Holm, William & Weller, Ulrich & Brady, Mark V., 2021. "Payments by modelled results: A novel design for agri-environmental schemes," Land Use Policy, Elsevier, vol. 102(C).
    3. Ben White & Nick Hanley, 2016. "Should We Pay for Ecosystem Service Outputs, Inputs or Both?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 765-787, April.
    4. Thiago Morello, 2023. "An Agri-environmental Scheme for Reducing Inputs Subjected to Accidental Spillage: An Application to Agricultural Burnings by Smallholders," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 383-408, February.

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