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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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    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, "undated". "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. repec:isu:genstf:201001010800002848 is not listed on IDEAS
    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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