Cost-sharing Incentive Programs for Source Water Protection: The Grand Riverâ€™s Rural Water Quality Program
Canadian provinces have become increasingly concerned with possible contamination of water from upstream agricultural activities. Many see watershed-based source protection, so called â€œsource-to-tapâ€ programs, as a means of improving water quality. A key factor in the success of these programs is the extent to which they provide incentives to farmers to undertake actions that ultimately result in a reduction of non-point source pollution. One type of program is cost-sharing whereby farmers are reimbursed for out-of-pocket expenses relating to best management practices which are expected to reduce runoff into water courses. Given increasing reliance on these types of programs, it is necessary from a public policy perspective to identify design features leading to the greatest likelihood of farmer participation. This paper examines Ontarioâ€™s Rural Water Quality Program for the Grand River using data from the first seven years of its operation, along with data from Agricultural Canadaâ€™s Farm Census, to model and estimate participation rates. Significantly positive determinants include: the maximum grant available and performance incentives, although both with diminishing returns. Projects with a one-time capital subsidy alone are much less likely to encourage participation than projects that combine a subsidy with a performance incentive.
|Date of creation:||Jun 2009|
|Date of revision:||Jun 2009|
|Contact details of provider:|| Postal: 500 Glenridge Avenue, St. Catharines, Ontario, L2S 3A1|
Phone: (905) 688-5550 3325
Fax: (905) 988-9388
Web page: http://www.brocku.ca/economics/
More information through EDIRC
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.:
- Alfons Weersink & John Livernois, 1996. "The Use of Economic Instruments to Resolve Water Quality Problems from Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(4), pages 345-353, December.
- Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
- Cooper, Joseph C. & Keim, Russ, 1996.
"Incentive payments to encourage farmer adoption of water quality protection practices,"
24779, University Library of Munich, Germany.
- 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.
- Cooper, Joseph C., 1997. "Combining Actual And Contingent Behavior Data To Model Farmer Adoption Of Water Quality Protection Practices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(01), July.
- Lichtenberg, Erik, 2004. "Cost-Responsiveness of Conservation Practice Adoption: A Revealed Preference Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(03), December.
- Sunding, David & Zilberman, David, 2001. "The agricultural innovation process: Research and technology adoption in a changing agricultural sector," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 4, pages 207-261 Elsevier.
- Joseph Cooper & Giovanni Signorello, 2008. "Farmer Premiums for the Voluntary Adoption of Conservation Plans," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(1), pages 1-14.
- Cain, Zachary & Lovejoy, Stephen B., 2004. "History and Outlook for Farm Bill Conservation Programs," Choices, Agricultural and Applied Economics Association, vol. 19(4).
- Houston, Jack E. & Sun, Henglun, 1999. "Cost-Share Incentives And Best Management Practices In A Pilot Water Quality Program," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
- Kelly A. Davey & W. Hartley Furtan, 2008. "Factors That Affect the Adoption Decision of Conservation Tillage in the Prairie Region of Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(3), pages 257-275, 09.
- Ribaudo, Marc & Horan, Richard D. & Smith, Mark E., 1999. "Economics of Water Quality Protection from Nonpoint Sources: Theory and Practice," Agricultural Economics Reports 33913, United States Department of Agriculture, Economic Research Service.
- Lichtenberg, Erik & Strand, Ivar E. Jr. & Lessley, Billy V., 1991. "Subsidizing Agricultural Nonpoint-Source Pollution Control: Targeting Cost Sharing and Technical Assistance," Working Papers 197760, University of Maryland, Department of Agricultural and Resource Economics.
- Norris, Patricia E. & Batie, Sandra S., 1987. "Virginia Farmers' Soil Conservation Decisions: An Application Of Tobit Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(01), July.
- Lyubov Kurkalova & Catherine Kling & Jinhua Zhao, 2006.
"Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior,"
Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie,
Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(2), pages 247-267, 06.
- Kling, Catherine L. & Kurkalova, Lyubov A. & Zhao, Jinhua, 2006. "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior," Staff General Research Papers 12344, Iowa State University, Department of Economics.
- Alfons Weersink & John R. Livernois & Jason F. Shogren & James S. Shortle, 1998. "Economic Instruments and Environmental Policy in Agriculture," Canadian Public Policy, University of Toronto Press, vol. 24(3), pages 309-327, September.
When requesting a correction, please mention this item's handle: RePEc:brk:wpaper:0905. 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: (Jean-Francois Lamarche)
If references are entirely missing, you can add them using this form.