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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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    References listed on IDEAS

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    1. Brent Hueth & Tigran Melkonyan, 2009. "Standards and the regulation of environmental risk," Journal of Regulatory Economics, Springer, vol. 36(3), pages 219-246, December.
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    Cited by:

    1. 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.

    More about this item

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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