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Applying Optimization and the Analytic Hierarchy Process to Enhance Agricultural Preservation Strategies in the State of Delaware

Author

Listed:
  • Kent D. Messer

    () (Department of Economics and Department of Food and Resource Economcis,University of Delaware)

  • William Allen III

    (The Conservation Fund)

Abstract

Using agricultural preservation priorities derived from an analytical hierarchy process by 23 experts from 18 agencies in the State of Delaware, this research uses weighted suitability attributes to evaluate the historical success of the State of Delaware’s agricultural protection fund, which spent nearly $100 million in its first decade. This research demonstrates how these operation research techniques can be used on concert to address relevant conservation questions. Results suggest that the state’s sealed-bid-offer auction, which determines the yearly conservation selections, is superior to benefit targeting approaches frequently employed by conservation organizations but is inferior to the optimization technique of binary linear programming that could have provided additional benefits to the state, such as 12,000 additional acres worth an estimated $25 million.

Suggested Citation

  • Kent D. Messer & William Allen III, 2008. "Applying Optimization and the Analytic Hierarchy Process to Enhance Agricultural Preservation Strategies in the State of Delaware," Working Papers 08-18, University of Delaware, Department of Economics.
  • Handle: RePEc:dlw:wpaper:08-18.
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    File URL: http://graduate.lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2008/UDWP2008-18.pdf
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    References listed on IDEAS

    as
    1. Duke, Joshua M., 2004. "Participation in Agricultural Land Preservation Programs: Parcel Quality and a Complex Policy Environment," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(01), pages 34-49, April.
    2. Babcock, Bruce A. & Lakshminarayan, P. G. & Wu, J. & Zilberman, David, 1997. "Targeting Tools for the Purchase of Environmental Amenities," Staff General Research Papers Archive 5220, Iowa State University, Department of Economics.
    3. Kline, Jeffrey & Wichelns, Dennis, 1998. "Measuring heterogeneous preferences for preserving farmland and open space," Ecological Economics, Elsevier, vol. 26(2), pages 211-224, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Duke, Joshua M. & Dundas, Steven J. & Johnston, Robert J. & Messer, Kent D., 2014. "Prioritizing payment for environmental services: Using nonmarket benefits and costs for optimal selection," Ecological Economics, Elsevier, vol. 105(C), pages 319-329.
    2. Michael A. Arnold & Joshua M. Duke & Kent D. Messer, 2013. "Adverse Selection in Reverse Auctions for Ecosystem Services," Land Economics, University of Wisconsin Press, vol. 89(3), pages 387-412.
    3. John K. Horowitz & Lori Lynch & Andrew Stocking, 2009. "Competition-Based Environmental Policy: An Analysis of Farmland Preservation in Maryland," Land Economics, University of Wisconsin Press, vol. 85(4), pages 555-575.
    4. Fooks, Jacob R. & Messer, Kent D., 2012. "Maximizing conservation and in-kind cost share: Applying Goal Programming to forest protection," Journal of Forest Economics, Elsevier, vol. 18(3), pages 207-217.
    5. repec:eee:ecolec:v:143:y:2018:i:c:p:170-187 is not listed on IDEAS
    6. Jenna Toussaint & Shang Wu & Kent D. Messer, 2012. "Maximizing Benefits for Women: A Charitable Donation Allocation Problem," Working Papers 12-12, University of Delaware, Department of Economics.
    7. Jacob R. Fooks & Kent D. Messer & Joshua M. Duke, 2015. "Dynamic Entry, Reverse Auctions, and the Purchase of Environmental Services," Land Economics, University of Wisconsin Press, vol. 91(1), pages 57-75.
    8. Leah H. Palm-Forster & Scott M. Swinton & Frank Lupi & Robert S. Shupp, 2016. "Too Burdensome to Bid: Transaction Costs and Pay-for-Performance Conservation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1314-1333.
    9. Duke, Joshua M. & Borchers, Allison M. & Johnston, Robert J. & Absetz, Sarah, 2012. "Sustainable agricultural management contracts: Using choice experiments to estimate the benefits of land preservation and conservation practices," Ecological Economics, Elsevier, vol. 74(C), pages 95-103.
    10. Messer, Kent D. & Duke, Joshua M. & Lynch, Lori & Li, Tongzhe, 2017. "When Does Public Information Undermine the Efficiency of Reverse Auctions for the Purchase of Ecosystem Services?," Ecological Economics, Elsevier, vol. 134(C), pages 212-226.

    More about this item

    Keywords

    Conservation Optimization; Farmland Protection; Analytic Hierarchy Process;

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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