Green Payments and Dual Policy Goals
We use a mechanism design framework to analyze the optimal design of green payment policies with the dual goals of conservation and income support for small farms. Each farm is characterized by two dimensions of attributes: farms size and conservation efficiency. The policymaker may not be able to use the attributes as an explicit criterion for payments. We characterize optimal policy when conservation efficiency is unobservable to policy-makers, and when farm size is also unobservable. An income support goal is shown to reduce the conservation distortion caused by asymmetric information. The cost of optimal green payment mechanisms is shown to depend crucially on whether large or small farms have greater conservation efficiency.
|Date of creation:||01 Nov 2007|
|Date of revision:|
|Publication status:||Published in Journal of Environmental Economics and Management, November 2007, vol. 54 no. 3, pp. 323-335|
|Contact details of provider:|| Postal: |
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wu, JunJie & Babcock, Bruce A., 1996.
"Contract Design for the Purchase of Environmental Goods from Agriculture,"
Staff General Research Papers
1050, Iowa State University, Department of Economics.
- JunJie Wu & Bruce A. Babcock, 1996. "Contract Design for the Purchase of Environmental Goods from Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 935-945.
- Jean-Marc Bourgeon & Robert G. Chambers, 2000. "Stop-and-Go Agricultural Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 1-13.
When requesting a correction, please mention this item's handle: RePEc:isu:genres:2108. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Bridges)The email address of this maintainer does not seem to be valid anymore. Please ask Stephanie Bridges to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.