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Environmental and Distributional Impacts of Conservation Targeting Strategies

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  • JunJie Wu
  • David Zilberman
  • Bruce A. Babcock

Abstract

Resource purchasing funds have become a major tool for environmental protection and resource conservation. Existing conservation funds do not use identical strategies for targeting purchases, which may be determined by both political and economic considerations. This paper compares the effects of alternative targeting strategies in consumer surplus, producer surplus, and environmental benefits. It shows that the performance of a purchasing strategy depends on the variability of a correlation between productivity and environmental benefits of resources, and that ignoring the output price effect of purchasing funds may have severe consequences.

Suggested Citation

  • JunJie Wu & David Zilberman & Bruce A. Babcock, 1999. "Environmental and Distributional Impacts of Conservation Targeting Strategies," Center for Agricultural and Rural Development (CARD) Publications 99-wp230, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:99-wp230
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    References listed on IDEAS

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    1. Katherine Reichelderfer & William G. Boggess, 1988. "Government Decision Making and Program Performance: The Case of the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 1-11.
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    8. 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.
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    17. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
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