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Policy Design and Conservation Compliance on Highly Erodible Lands

  • Konstantinos Giannakas
  • Jonathan D. Kaplan
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    We develop a game-theoretic model of heterogeneous producers in order to identify the economic determinants of producer noncompliance with the conservation provisions of the United States Department of Agriculture (USDA) policy on highly erodible lands. We evaluate the policy effectiveness in inducing compliance and adoption of conservation practices. The current policy design creates economic incentives for all noncompliant producers to masquerade as adopters and to claim government payments for which they are not entitled. Both theoretical and empirical results indicate that the increased income transfers to agriculture enacted under the latest Farm Bill will increase producer compliance and conservation activity on highly erodible lands.

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    File URL: http://le.uwpress.org/cgi/reprint/81/1/20
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    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 81 (2005)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:uwp:landec:v:81:y:2005:i:1:p20-33
    Contact details of provider: Web page: http://le.uwpress.org/

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    1. Garvie, Devon & Keeler, Andrew, 1994. "Incomplete enforcement with endogenous regulatory choice," Journal of Public Economics, Elsevier, vol. 55(1), pages 141-162, September.
    2. Chongwoo Choe & Iain Fraser, 1999. "Compliance Monitoring and Agri-Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 468-487.
    3. Giannakas, Konstantinos & Fulton, Murray, 2000. "The economics of coupled farm subsidies under costly and imperfect enforcement," Agricultural Economics, Blackwell, vol. 22(1), pages 75-90, January.
    4. Giannakas, Konstantinos, 2003. "Economics of export subsidies under costly and imperfect enforcement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), December.
    5. Konstantinos Giannakas, 2003. "Economics of export subsidies under costly and imperfect enforcement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 541-562, December.
    6. Innes, Robert, 1999. "Remediation and self-reporting in optimal law enforcement," Journal of Public Economics, Elsevier, vol. 72(3), pages 379-393, June.
    7. Harford, Jon D., 2000. "Initial and Continuing Compliance and the Trade-Off between Monitoring and Control Cost," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 151-163, September.
    8. Kaplow, Louis & Shavell, Steven, 1994. "Optimal Law Enforcement with Self-Reporting of Behavior," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 583-606, June.
    9. Amacher, Gregory S. & Malik, Arun S., 1996. "Bargaining in Environmental Regulation and the Ideal Regulator," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 233-253, March.
    10. Alm, James & Bahl, Roy & Murray, Matthew N., 1993. "Audit selection and income tax underreporting in the tax compliance game," Journal of Development Economics, Elsevier, vol. 42(1), pages 1-33, October.
    11. Reiss, Peter C, 1996. "Empirical Models of Discrete Strategic Choices," American Economic Review, American Economic Association, vol. 86(2), pages 421-26, May.
    12. Toivanen, Otto & Waterson, Michael, 2000. "Empirical research on discrete choice game theory models of entry: An illustration," European Economic Review, Elsevier, vol. 44(4-6), pages 985-992, May.
    13. Giannakas, Konstantinos & Fulton, Murray, 2000. "The economics of coupled farm subsidies under costly and imperfect enforcement," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 22(1), January.
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