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Optimal Design of a Voluntary Green Payment Program Under Asymmetric Information

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  • JunJie Wu
  • Bruce A. Babcock

Abstract

Green payment programs, by which the government pays farmers directly for environmental benefits, have been proposed as an alternative to the current method of achieving environmental benefits by restricting farming practices in exchange for deficiency payments. This paper examines a green payment program applied to irrigated corn production in the Oklahoma Panhandle, where nitrogen fertilizer is a conjoint source of pollution.

Suggested Citation

  • JunJie Wu & Bruce A. Babcock, 1995. "Optimal Design of a Voluntary Green Payment Program Under Asymmetric Information," Center for Agricultural and Rural Development (CARD) Publications 95-wp131, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:95-wp131
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