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Priorities In Cost Sharing For Soil And Water Conservation: A Revealed Preference Study

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  • Bastos, Guilherme S.
  • Lichtenberg, Erik

Abstract

A number of studies have questioned how successfully paid land diversion has been adapted to address broad environmental policy concerns. Similar evaluations of cost-sharing programs have not been performed. This paper uses a revealed preference approach to estimate the implicit decision criteria used to allocate federal cost-sharing funds in Maryland, during the fiscal years 1994 through 1996. Funds appear to have been awarded preferentially to projects that enhanced agricultural productivity and farm profitability. In contrast to findings regarding the CRP, however, our results do not indicate that cost share awards in Maryland were inconsistent with stated environmental quality priorities.
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Suggested Citation

  • Bastos, Guilherme S. & Lichtenberg, Erik, 2000. "Priorities In Cost Sharing For Soil And Water Conservation: A Revealed Preference Study," Working Papers 28604, University of Maryland, Department of Agricultural and Resource Economics.
  • Handle: RePEc:ags:umdrwp:28604
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    File URL: http://ageconsearch.umn.edu/record/28604/files/wp00-13.pdf
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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. Cropper, Maureen L. & William N. Evans & Stephen J. Berard & Maria M. Ducla-Soares & Paul R. Portney, 1992. "The Determinants of Pesticide Regulation: A Statistical Analysis of EPA Decision Making," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 175-197, February.
    4. Lacy Glenn Thomas, 1988. "Revealed Bureaucratic Preference: Priorities of the Consumer Product Safety Commission," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 102-113, Spring.
    5. 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.
    6. Daniel McFadden, 1976. "The Revealed Preferences of a Government Bureaucracy: Empirical Evidence," Bell Journal of Economics, The RAND Corporation, vol. 7(1), pages 55-72, Spring.
    7. Rodney B.W. Smith, 1995. "The Conservation Reserve Program as a Least-Cost Land Retirement Mechanism," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 93-105.
    8. Marc O. Ribaudo, 1989. "Targeting the Conservation Reserve Program to Maximize Water Quality Benefits," Land Economics, University of Wisconsin Press, vol. 65(4), pages 320-332.
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    Citations

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    Cited by:

    1. Lichtenberg, Erik & Smith-Ramirez, Ricardo, 2003. "Cost Sharing, Transaction Costs, And Conservation," 2003 Annual meeting, July 27-30, Montreal, Canada 22141, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. 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).
    3. Cattaneo, Andrea & Claassen, Roger & Johansson, Robert C. & Weinberg, Marca, 2005. "Flexible Conservation Measures on Working Land: What Challenges Lie Ahead?," Economic Research Report 7248, United States Department of Agriculture, Economic Research Service.
    4. Lichtenberg, Erik, 2004. "Some Hard Truths About Agriculture and the Environment," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), April.
    5. Ricardo Smith Ramírez, 2007. "Testing for information asymmetries in voluntary conservation contracts," Working papers DTE 402, CIDE, División de Economía.
    6. Ricardo Smith, 2006. "Measuring the Effects of Working-Land Conservation Programs on Adoption of Soil-Erosion Reducing Practices and Permanent Vegetative Cover," Working papers DTE 369, CIDE, División de Economía.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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