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Relative Efficiency of Voluntary Versus Mandatory Environmental Regulations, The

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  • JunJie Wu
  • Bruce A. Babcock

Abstract

When the government wants farmers to adopt a certain management practice on environmentally sensitive land, it can mandate adoption, with fines for noncompliance, or use a stewardship program, with incentives for those who comply. The Federal Agriculture Improvement Act of 1996 (FAIR) continues the tradition of voluntary programs. An analysis by the authors outlines the conditions under which these voluntary programs are more efficient than mandatory ones.

Suggested Citation

  • JunJie Wu & Bruce A. Babcock, 1996. "Relative Efficiency of Voluntary Versus Mandatory Environmental Regulations, The," Center for Agricultural and Rural Development (CARD) Publications 96-wp172, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:96-wp172
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    References listed on IDEAS

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    1. Scott L. Johnson & Richard M. Adams & Gregory M. Perry, 1991. "The On-Farm Costs of Reducing Groundwater Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1063-1073.
    2. Dewees, Donald N, 1983. "Instrument Choice in Environmental Policy," Economic Inquiry, Western Economic Association International, vol. 21(1), pages 53-71, January.
    3. Harrington, Winston, 1988. "Enforcement leverage when penalties are restricted," Journal of Public Economics, Elsevier, vol. 37(1), pages 29-53, October.
    4. Harford, Jon D., 1978. "Firm behavior under imperfectly enforceable pollution standards and taxes," Journal of Environmental Economics and Management, Elsevier, vol. 5(1), pages 26-43, March.
    5. Stranlund John K., 1995. "Public Mechanisms to Support Compliance to an Environmental Norm," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 205-222, March.
    6. Bohm, Peter & Russell, Clifford S., 1985. "Comparative analysis of alternative policy instruments," Handbook of Natural Resource and Energy Economics,in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 10, pages 395-460 Elsevier.
    7. Adar, Zvi & Griffin, James M., 1976. "Uncertainty and the choice of pollution control instruments," Journal of Environmental Economics and Management, Elsevier, vol. 3(3), pages 178-188, October.
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    Cited by:

    1. Strauss, Peter & Leone, Antonio & Ripa, Maria & Turpin, Nadine & Lescot, Jean-Marie & Laplana, Ramon, 2006. "Using critical source areas for targeting cost-effective best management practices to mitigate phosphorus and sediment transfer at the watershed scale," MPRA Paper 66256, University Library of Munich, Germany.
    2. Khanna, Madhu & Isik, Murat & Zilberman, David, 2002. "Cost-effectiveness of alternative green payment policies for conservation technology adoption with heterogeneous land quality," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(2), August.
    3. Feng, Hongli & Kling, Catherine L. & Kurkalova, Lyubov & Secchi, Silvia, 2006. "Subsidies! The Other Incentive†Based Instrument: The Case of the Conservation Reserve Program," ISU General Staff Papers 200610010700001366, Iowa State University, Department of Economics.
    4. Juutinen, Artti & Mäntymaa, Erkki & Ollikainen, Markku, 2013. "Landowners’ conservation motives and the size of information rents in environmental bidding systems," Journal of Forest Economics, Elsevier, vol. 19(2), pages 128-148.
    5. Feng, Hongli & Kling, Catherine L. & Kurkalova, Lyubov A. & Secchi, Silvia, 2007. "Cac Versus Incentive-Based Instruments in Agriculture: The Case of the Conservation Reserve Program," Staff General Research Papers Archive 10796, Iowa State University, Department of Economics.
    6. Juutinen, Artti & Mantymaa, Erkki & Monkkonen, Mikko & Svento, Rauli, 2008. "Voluntary agreements in protecting privately owned forests in Finland -- To buy or to lease," Forest Policy and Economics, Elsevier, vol. 10(4), pages 230-239, February.

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