Farmer Response to Nutrient Credit Trading Opportunities in the Coastal Plain of Virginia
The purpose of this study is to evaluate agricultural producer response to opportunities to generate nutrient credits under Virginia’s water quality trading program. In 2005 the Virginia legislature passed legislation authorizing trade of nutrient reduction credits from nonpoint to new/expanding point source dischargers. A mathematical programming model of a typical commercial cash grain farm operation in the coastal plains of Virginia is constructed to model farmer credit supply response under the trading program. A corn, barley, and soybean crop rotation with the implementation of a no-tillage Best Management Practice (BMP), was the BMP used to maximize profits and generate nutrient credits for the model farm. Contrary to common assumptions that agricultural nonpoint source credits will be a low cost compliance option, the results show that the supply of credits is limited at modest credit prices and high nutrient credit prices will be necessary to induce additional farm level reductions.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ribaudo, Marc O. & Heimlich, Ralph & Peters, Mark, 2005. "Nitrogen sources and Gulf hypoxia: potential for environmental credit trading," Ecological Economics, Elsevier, vol. 52(2), pages 159-168, January.
- Hanson, James C. & McConnell, Kenneth E., 2008. "Simulated Trading for Maryland's Nitrogen Loadings in the Chesapeake Bay," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), October.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:150414. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.