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The Crp Balancing Act: Trading Off Costs And Multiple Environmental Benefits

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  • Cattaneo, Andrea
  • Bucholtz, Shawn
  • Dewbre, Joe
  • Nickerson, Cynthia J.

Abstract

The Environmental Benefits Index (EBI) ranks Conservation Reserve Program (CRP) offers by weighing program costs for enrolling land in CRP against six environmental objectives. This paper uses Monte Carlo simulations to analyze the sensitivity of CRP enrollment outcome to the specification of the EBI. Results indicate that:(a)there is no major shift in average benefits throughout the U.S. when marginal changes in the weights occur, and (b) priority area weights, whether National or State, play a role in shifting CRP away from its traditional focus on highly erodible land, and (c) there is complementarity between the enduring benefits and the wildlife objectives and substitutability between the enduring benefits and the erosion reduction objectives;

Suggested Citation

  • Cattaneo, Andrea & Bucholtz, Shawn & Dewbre, Joe & Nickerson, Cynthia J., 2002. "The Crp Balancing Act: Trading Off Costs And Multiple Environmental Benefits," 2002 Annual meeting, July 28-31, Long Beach, CA 19810, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19810
    DOI: 10.22004/ag.econ.19810
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    References listed on IDEAS

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    1. Katherine Reichelderfer & William G. Boggess, 1988. "Government Decision Making and Program Performance: The Case of the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 1-11.
    2. David Zilberman, 1996. "The Economics of a Public Fund for Environmental Amenities: A Study of CRP Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 961-971.
    3. Brekke, Kjell Arne, 1997. "The numeraire matters in cost-benefit analysis," Journal of Public Economics, Elsevier, vol. 64(1), pages 117-123, April.
    4. Feather, Peter & Hellerstein, Daniel & Hansen, LeRoy T., 1999. "Economic Valuation of Environmental Benefits and the Targeting of Conservation Programs: The Case of the CRP," Agricultural Economic Reports 34027, United States Department of Agriculture, Economic Research Service.
    5. Bockstael, Nancy E. & Strand, Ivar E., Jr., 1985. "Distributional Issues And Nonmarket Benefit Measurement," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(2), pages 1-8, December.
    6. Babcock, Bruce A. & Lakshminarayan, P. G. & Wu, JunJie & Zilberman, David, 1996. "Economics of a Public Fund for Environmental Amenities (The)," Staff General Research Papers Archive 1065, Iowa State University, Department of Economics.
    7. Ogg, Clayton W. & Aillery, Marcel P. & Ribaudo, Marc O., 1989. "Implementing the Conservation Reserve Program: Analysis of Environmental Options," Agricultural Economic Reports 308077, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Brett Bryan & Jeffery Connor et al, 2005., 2005. "Catchment Care - Developing an Auction Process for Biodiversity and Water Quality Gains. Volume 1 - Report," Natural Resource Management Economics 05_004, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
    2. Cattaneo, Andrea, 2005. "Prescriptive use of Environmental Indices: A "How To" Guide for Conservation Programs," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24764, European Association of Agricultural Economists.

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