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Alternative Green Payment Policies under Heterogeneity When Multiple Benefits Matter

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  • Jinhua Zhao
  • Catherine L. Kling
  • Lyubov A. Kurkalova

Abstract

We investigate the environmental impacts of several forms of policies that offer farmers subsides in return for adoption of conservation tillage. The policies differ on whether the tillage practice or one of the environmental benefits is targeted. We develop an environmental Lorenz curve that fully represents the performance of the targeting policies, and we show that these curves can be used directly to help select the optimal targeting strategy for special classes of social welfare functions. We apply the model to the state of Iowa.

Suggested Citation

  • Jinhua Zhao & Catherine L. Kling & Lyubov A. Kurkalova, 2003. "Alternative Green Payment Policies under Heterogeneity When Multiple Benefits Matter," Center for Agricultural and Rural Development (CARD) Publications 03-wp341, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:03-wp341
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    References listed on IDEAS

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    1. 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, June.
    2. Babcock, Bruce A. & Campbell, Todd & Gassman, Philip W. & Hurley, Terrance M. & Mitchell, Paul D. & Otake, Toshitsugu & Siemers, Mark & Wu, JunJie, 1998. "RAPS 1997: Agricultural and Environmental Outlook," Staff General Research Papers Archive 1158, Iowa State University, Department of Economics.
    3. Andrew J. Plantinga & JunJie Wu, 2003. "Co-Benefits from Carbon Sequestration in Forests: Evaluating Reductions in Agricultural Externalities from an Afforestation Policy in Wisconsin," Land Economics, University of Wisconsin Press, vol. 79(1), pages 74-85.
    4. 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.
    5. 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.
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    Cited by:

    1. Cho, Seong-Hoon & Lee, Juhee & Roberts, Roland & Yu, Edward T. & Armsworth, Paul R., 2018. "Impact of market conditions on the effectiveness of payments for forest-based carbon sequestration," Forest Policy and Economics, Elsevier, vol. 92(C), pages 33-42.
    2. Soh, Moonwon & Cho, Seong-Hoon & Yu, Edward & Boyer, Christopher & English, Burton, 2018. "Targeting Payments for Ecosystem Services Given Ecological and Economic Objectives," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266502, Southern Agricultural Economics Association.
    3. Sengupta, Sanchita, 2010. "Three Essays in Environmental and Agricultural Issues," ISU General Staff Papers 201001010800002848, Iowa State University, Department of Economics.
    4. Lee, Juhee & Cho, Seong-Hoon & Kim, Taeyoung & Yu, Tun-Hsiang & Armsworth, Paul Robert, 2015. "Exploring tax-based payment approach for forest carbon sequestration," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196873, Southern Agricultural Economics Association.
    5. Cho, Seong-Hoon & Soh, Moonwon & English, Burton C. & Yu, T. Edward & Boyer, Christopher N., 2019. "Targeting payments for forest carbon sequestration given ecological and economic objectives," Forest Policy and Economics, Elsevier, vol. 100(C), pages 214-226.
    6. Ervola, Asta & Lankoski, Jussi E. & Ollikainen, Markku, 2010. "Mitigation options and policies in agricultural sector: a theoretical model and application," 120th Seminar, September 2-4, 2010, Chania, Crete 109320, European Association of Agricultural Economists.
    7. Ervola, Asta & Lankoski, Jussi E. & Ollikainen, Markku, 2011. "Agriculture and Climate Change: Socially Optimal Production and Land Use," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114339, European Association of Agricultural Economists.
    8. Feng, Hongli & Kurkalova, Lyubov A. & Kling, Catherine L. & Gassman, Philip W., 2005. "Transfers and Environmental Co-Benefits of Carbon Sequestration in Agricultural Soils: Retiring Agricultural Land in the Upper Mississippi River Basin," Staff General Research Papers Archive 12439, Iowa State University, Department of Economics.

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