IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/30920.html
   My bibliography  Save this article

Cost-Responsiveness of Conservation Practice Adoption: A Revealed Preference Approach

Author

Listed:
  • Lichtenberg, Erik

Abstract

While there is current interest in reorienting agricultural policy toward environmental and resource conservation goals, relatively little is known about the influence of cost on conservation adoption decisions or about how farmers combine multiple practices into an overall conservation package. Using farmer survey data combined with information on standard unit installation costs, this study estimates latent demand models for seven on-farm conservation practices. All of the practices exhibit downward-sloping demand. Topographical variations in adoption conform to expectations. The estimation results suggest that cost sharing should have substantial effects on the adoption of several practices, and indicate strong complementarity among others.

Suggested Citation

  • Lichtenberg, Erik, 2004. "Cost-Responsiveness of Conservation Practice Adoption: A Revealed Preference Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(3), pages 1-16, December.
    • Handle: RePEc:ags:jlaare:30920
    DOI: 10.22004/ag.econ.30920
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/30920/files/29030420.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.30920?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Meredith J. Soule & Abebayehu Tegene & Keith D. Wiebe, 2000. "Land Tenure and the Adoption of Conservation Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 993-1005.
    2. Norris, Patricia E. & Batie, Sandra S., 1987. "Virginia Farmers' Soil Conservation Decisions: An Application Of Tobit Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(1), pages 1-12, July.
    3. Gregory Amacher & Peter Feather, 1997. "Testing producer perceptions of jointly beneficial best management practices for improved water quality," Applied Economics, Taylor & Francis Journals, vol. 29(2), pages 153-159.
    4. Joseph C. Cooper & Russ W. Keim, 1996. "Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 54-64.
    5. Madhu Khanna, 2001. "Sequential Adoption of Site-Specific Technologies and its Implications for Nitrogen Productivity: A Double Selectivity Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 35-51.
    6. Cooper, Joseph C., 1997. "Combining Actual And Contingent Behavior Data To Model Farmer Adoption Of Water Quality Protection Practices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(1), pages 1-14, July.
    7. Allen M. Featherstone & Barry K. Goodwin, 1993. "Factors Influencing a Farmer's Decision to Invest in Long-Term Conservation Improvements," Land Economics, University of Wisconsin Press, vol. 69(1), pages 67-81.
    8. Gary D. Lynne & J. S. Shonkwiler & Leandro R. Rola, 1988. "Attitudes and Farmer Conservation Behavior," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 12-19.
    9. Jeffrey H. Dorfman, 1996. "Modeling Multiple Adoption Decisions in a Joint Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 547-557.
    10. Michael R. Caputo, 1990. "Comparative Dynamics via Envelope Methods in Variational Calculus," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(4), pages 689-697.
    11. Peter M. Feather & Gregory S. Amacher, 1994. "Role of information in the adoption of best management practices for water quality improvement," Agricultural Economics, International Association of Agricultural Economists, vol. 11(2-3), pages 159-170, December.
    12. Feather, Peter M. & Amacher, Gregory S., 1994. "Role of information in the adoption of best management practices for water quality improvement," Agricultural Economics, Blackwell, vol. 11(2-3), pages 159-170, December.
    13. Luanne Lohr & Timothy A. Park, 1995. "Utility-Consistent Discrete-Continuous Choices in Soil Conservation," Land Economics, University of Wisconsin Press, vol. 71(4), pages 474-490.
    14. Allen, Douglas & Lueck, Dean, 1992. "Contract Choice in Modern Agriculture: Cash Rent versus Cropshare," Journal of Law and Economics, University of Chicago Press, vol. 35(2), pages 397-426, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lichtenberg, Erik, 2001. "Adoption Of Soil Conservation Practices: A Revealed Preference Approach," Working Papers 28609, University of Maryland, Department of Agricultural and Resource Economics.
    2. Burnett, J. Wesley & Szmurlo, Daniel & Callahan, Scott, 2024. "Farmland Rental and Conservation Practice Adoption," Economic Information Bulletin 341821, United States Department of Agriculture, Economic Research Service.
    3. Joseph C. Cooper, 2003. "A Joint Framework for Analysis of Agri-Environmental Payment Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 976-987.
    4. Thompson, Nathanael M. & Reeling, Carson J. & Fleckenstein, Michelle R. & Prokopy, Linda S. & Armstrong, Shalamar D., 2021. "Examining intensity of conservation practice adoption: Evidence from cover crop use on U.S. Midwest farms," Food Policy, Elsevier, vol. 101(C).
    5. Kurkalova, Lyubov A. & Kling, Catherine L. & Zhao, Jinhua, 2001. "The Subsidy For Adopting Conservation Tillage: Estimation From Observed Behavior," 2001 Annual meeting, August 5-8, Chicago, IL 20542, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Hand, Michael S. & Nickerson, Cynthia J., 2009. "The Role of Cost-Share Rates and Prices on the Size of Conservation Investments in EQIP," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49257, Agricultural and Applied Economics Association.
    7. Burnett, Wesley & Szmurlo, Daniel & Callahan, Scott, 2022. "Land tenure and conservation adoption: An analysis of contracts and incentives," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322244, Agricultural and Applied Economics Association.
    8. Baidu-Forson, J., 1999. "Factors influencing adoption of land-enhancing technology in the Sahel: lessons from a case study in Niger," Agricultural Economics, Blackwell, vol. 20(3), pages 231-239, May.
    9. Joseph Cooper & Giovanni Signorello, 2008. "Farmer Premiums for the Voluntary Adoption of Conservation Plans," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(1), pages 1-14.
    10. Collentine, Dennis & Larsson, Martin & Hannerz, Nils, 2004. "Exploiting decision heuristics and IT in the design of a DSS for voluntary agri-environmental programs," Ecological Economics, Elsevier, vol. 49(3), pages 303-315, July.
    11. Kim, Seon-Ae & Gillespie, Jeffrey M. & Paudel, Krishna P., 2004. "The Effect Of Economic Factors On The Apoption Of Best Management Practices In Beef Cattle Production," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34670, Southern Agricultural Economics Association.
    12. Lynch, Lori & Hardie, Ian W. & Parker, Douglas D., 2002. "Analyzing Agricultural Landowners' Willingness To Install Streamside Buffers," Working Papers 28570, University of Maryland, Department of Agricultural and Resource Economics.
    13. Soule, Meredith J., 2001. "Soil Management And The Farm Typology: Do Small Family Farms Manage Soil And Nutrient Resources Differently Than Large Family Farms?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 30(2), pages 1-10, October.
    14. Daberkow, Stan G. & McBride, William D., 2001. "Information And The Adoption Of Precision Farming," 2001 Annual meeting, August 5-8, Chicago, IL 20556, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Paudel, Krishna P. & Gauthier, Wayne M. & Westra, John V. & Hall, Larry M., 2008. "Factors Influencing and Steps Leading to the Adoption of Best Management Practices by Louisiana Dairy Farmers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 203-222, April.
    16. repec:bla:canjag:v:58:y:2010:i:s1:p:481-496 is not listed on IDEAS
    17. Lichtenberg, Erik, 2001. "Tenancy and Soil Conservation in Market Equilibrium," 2001 Annual meeting, August 5-8, Chicago, IL 20489, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Nadella, Karthik & Deaton, Brady & Lawley, Chad & Weersink, Alfons, 2014. "Do farmers treat rented land differently than the land they own? A fixed effects model of farmer’s decision to adopt conservation practices on owned and rented land," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170633, Agricultural and Applied Economics Association.
    19. Sheng Gong & Jason.S. Bergtold & Elizabeth Yeager, 2021. "Assessing the joint adoption and complementarity between in-field conservation practices of Kansas farmers," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-24, December.
    20. Morrison, Mark, 2005. "Identifying Market Segments for Technology Adoption," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137937, Australian Agricultural and Resource Economics Society.
    21. Caroline Roussy & Aude Ridier & Karim Chaïb, 2014. "Adoption d’innovations par les agriculteurs : rôle des perceptions et des préférences," Post-Print hal-01123427, HAL.

    More about this item

    Keywords

    Environmental Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:30920. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.