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Environmental Quality Incentives Program: Why Are So Many Contracts Being Cancelled?

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  • Cattaneo, Andrea

Abstract

This paper analyzes why USDA's Environmental Quality Incentives Program has a high rate of contract withdrawals. Using a logit model we examine whether withdrawals are linked to: (i)farmers bidding for payments that are too low, (ii)a learning phase about the program, (iii)the types of conservation practices included in a contract.

Suggested Citation

  • Cattaneo, Andrea, 2001. "Environmental Quality Incentives Program: Why Are So Many Contracts Being Cancelled?," 2001 Annual meeting, August 5-8, Chicago, IL 20597, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea01:20597
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    File URL: http://purl.umn.edu/20597
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    References listed on IDEAS

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    1. Runar Brännlund & Yangho Chung & Rolf Färe & Shawna Grosskopf, 1998. "Emissions Trading and Profitability: The Swedish Pulp and Paper Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(3), pages 345-356, October.
    2. Joseph C. Cooper & Russ W. Keim, 1996. "Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 54-64.
    3. Robert N. Stavins, 1998. "What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 69-88, Summer.
    4. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
    5. Richard Schmalensee & Paul L. Joskow & A. Denny Ellerman & Juan Pablo Montero & Elizabeth M. Bailey, 1998. "An Interim Evaluation of Sulfur Dioxide Emissions Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 53-68, Summer.
    6. Johnsen, Fred H, 1993. "Economic Analyses of Measures to Control Phosphorus Run-Off from Non-point Agricultural," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(4), pages 399-418.
    7. Reimund Schwarze & Peter Zapfel, 2000. "Sulfur Allowance Trading and the Regional Clean Air Incentives Market: A Comparative Design Analysis of two Major Cap-and-Trade Permit Programs?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(3), pages 279-298, November.
    8. Shoemaker, Robbin & Malik, Arun, 1993. "Optimal Cost-Sharing Programs to Reduce Agricultural Pollution," Technical Bulletins 157045, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Khanna, Madhu & Isik, Murat & Zilberman, David, 2002. "Cost-effectiveness of alternative green payment policies for conservation technology adoption with heterogeneous land quality," Agricultural Economics, Blackwell, vol. 27(2), pages 157-174, August.

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    Keywords

    Environmental Economics and Policy;

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