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Trust and Communication: Mechanisms for Increasing Farmers’ Participation in Water Quality Trading

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Listed:
  • Hanna L. Breetz
  • Karen Fisher-Vanden
  • Hannah Jacobs
  • Claire Schary

Abstract

Trust and communication barriers have contributed significantly to the lethargic performance of many point-nonpoint source water quality trading programs—farmers are often reluctant to participate despite direct financial incentives— yet the literature lacks a comprehensive investigation of how the social context affects trading outcomes.We draw on social embeddedness theory to analyze three mechanisms of communicating with farmers and conduct a case study analysis of 12 water quality trading programs. We find that employing trustworthy third parties or embedded ties may reduce farmers’ reluctance to participate, although the most effective mechanism ultimately depends on local conditions and program objectives.

Suggested Citation

  • Hanna L. Breetz & Karen Fisher-Vanden & Hannah Jacobs & Claire Schary, 2005. "Trust and Communication: Mechanisms for Increasing Farmers’ Participation in Water Quality Trading," Land Economics, University of Wisconsin Press, vol. 81(2).
  • Handle: RePEc:uwp:landec:v:81:y:2005:i:2:p170-190
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    References listed on IDEAS

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    1. Guilherme S. Bastos & Erik Lichtenberg, 2001. "Priorities in Cost Sharing for Soil and Water Conservation: A Revealed Preference Study," Land Economics, University of Wisconsin Press, vol. 77(4), pages 533-547.
    2. Anderson, Jock R., 1982. "Agricultural Economics, Interdependence And Uncertainty," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(02), August.
    3. Amador, Francisco & Sumpsi, Jose Maria & Romero, Carlos, 1998. "A Non-interactive Methodology to Assess Farmers' Utility Functions: An Application to Large Farms in Andalusia, Spain," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(1), pages 92-109.
    4. Aaron Hatcher & Shabbar Jaffry & Olivier Thébaud & Elizabeth Bennett, 2000. "Normative and Social Influences Affecting Compliance with Fishery Regulations," Land Economics, University of Wisconsin Press, vol. 76(3), pages 448-461.
    5. Leonard Shabman & Kurt Stephenson & William Shobe, 2002. "Trading Programs for Environmental Management: Reflections on the Air and Water Experiences," Working Papers 2002-01, Center for Economic and Policy Studies.
    6. Joyce Willock & Ian J. Deary & Gareth Edwards-Jones & Gavin J. Gibson & Murray J. McGregor & Alistair Sutherland & J. Barry Dent & Oliver Morgan & Robert Grieve, 1999. "The Role of Attitudes and Objectives in Farmer Decision Making: Business and Environmentally-Oriented Behaviour in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 286-303.
    7. Laura M. J. McCann & K. William Easter, 1999. "Differences between Farmer and Agency Attitudes Regarding Policies to Reduce Phosphorus Pollution in the Minnesota River Basin," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 189-207.
    8. William T. McSweeny & Randall A. Kramer, 1986. "The Integration of Farm Programs for Achieving Soil Conservation and Nonpoint Pollution Control Objectives," Land Economics, University of Wisconsin Press, vol. 62(2), pages 159-173.
    9. Kurt Stephenson & Patricia Norris & Leonard Shabman, 1998. "Watershed-Based Effluent Trading: The Nonpoint Source Challenge," Contemporary Economic Policy, Western Economic Association International, vol. 16(4), pages 412-421, October.
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    Citations

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    Cited by:

    1. Asai, Masayasu & Langer, Vibeke & Frederiksen, Pia & Jacobsen, Brian H., 2014. "Livestock farmer perceptions of successful collaborative arrangements for manure exchange: A study in Denmark," Agricultural Systems, Elsevier, vol. 128(C), pages 55-65.
    2. Arthur J. Caplan & Yuya Sasaki, 2009. "Sharing the Surplus Generated from Noncooperative Cost Sharing: The Case of Nonpoint Associations and Water Quality Trading," Working Papers 2009-09, Utah State University, Department of Economics.
    3. Khatri-Chhetri, Arun & Collins, Alan R, 2013. "Reducing Phosphorus Impairments with Nutrient Trading," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149686, Agricultural and Applied Economics Association.
    4. Hugh McDonald & Suzi Kerr, 2011. "Trading Efficiency in Water Quality Trading Markets: An Assessment of Trade-Offs," Working Papers 11_15, Motu Economic and Public Policy Research.
    5. Emtage, Nicholas & Herbohn, John, 2012. "Assessing rural landholders diversity in the Wet Tropics region of Queensland, Australia in relation to natural resource management programs: A market segmentation approach," Agricultural Systems, Elsevier, vol. 110(C), pages 107-118.
    6. Sheila M. Olmstead, 2010. "The Economics of Water Quality," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 44-62, Winter.
    7. Sinner, Jim & Fenemor, Andrew & Anastasiadis, Simon, 2012. "Mixed bag: Simulating market-based instruments for water quality and quantity in the Upper Waikato," 2012 Conference, August 31, 2012, Nelson, New Zealand 160054, New Zealand Agricultural and Resource Economics Society.
    8. Motallebi, Marzieh & Ali, Tasdighi & Hoag, Dana & Arabi, Mazdak, 2016. "Role of Weather on Design of a Water Quality Trading Program Baseline: A Case Study of the Jordan Lake Watershed, North Carolina," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235688, Agricultural and Applied Economics Association.
    9. Shortle, James, 2013. "Economics and Environmental Markets: Lessons from Water-Quality Trading," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), April.
    10. O'Hara, Jeffrey K. & Walsh, Michael J. & Marchetti, Paul K., 2012. "Establishing a Clearinghouse to Reduce Impediments to Water Quality Trading," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 42(2).
    11. Mark Morrison & Eddie Oczkowski & Jenni Greig, 2011. "The primacy of human capital and social capital in influencing landholders’ participation in programmes designed to improve environmental outcomes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), pages 560-578, October.
    12. Karen Fisher-Vanden & Sheila Olmstead, 2013. "Moving Pollution Trading from Air to Water: Potential, Problems, and Prognosis," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 147-172, Winter.
    13. Andrew Manale & Cynthia Morgan & Glenn Sheriff & David Simpson, 2011. "Offset markets for nutrient and sediment discharges in the Chesapeake Bay Watershed: Policy tradeoffs and potential steps forward," NCEE Working Paper Series 201105, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Aug 2011.
    14. Collins, Alan R. & Maille, Peter, 2008. "Farmers as Producers of Clean Water: Getting Incentive Payments Right and Encouraging Farmer Participation," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6342, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. repec:bla:ecanth:v:4:y:2017:i:2:p:225-238 is not listed on IDEAS
    16. James Shortle & Richard D. Horan, 2013. "Policy Instruments for Water Quality Protection," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 111-138, June.

    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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