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Efficient Policies For Environmental Protection: An Econometric Analysis Of Incentives For Land Conversion And Retention

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  • Plantinga, Andrew J.
  • Ahn, Soeun

Abstract

This study investigates the costs of subsidies for land retention and conversion, in addition to a policy that combines the incentives. A Markov model of forest and agricultural land use is estimated for the U.S. South Central region and used to simulate retention and conversion policies. Results suggest a conversion policy is less costly for increasing forest area, and a retention policy is less costly for increasing agricultural land area. The costs of separate subsidies can be up to 300% higher than the costs of combined incentives. However, when administrative costs are taken into account, conversion policies are likely to be less costly.

Suggested Citation

  • Plantinga, Andrew J. & Ahn, Soeun, 2002. "Efficient Policies For Environmental Protection: An Econometric Analysis Of Incentives For Land Conversion And Retention," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-18, July.
    • Handle: RePEc:ags:jlaare:31086
    DOI: 10.22004/ag.econ.31086
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    Cited by:

    1. Ruben N. Lubowski & Andrew J. Plantinga & Robert N. Stavins, 2008. "What Drives Land-Use Change in the United States? A National Analysis of Landowner Decisions," Land Economics, University of Wisconsin Press, vol. 84(4), pages 529-550.
    2. David J. Lewis & Andrew J. Plantinga & JunJie Wu, 2009. "Targeting Incentives to Reduce Habitat Fragmentation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1080-1096.
    3. Raja Chakir, 2009. "Spatial Downscaling of Agricultural Land-Use Data: An Econometric Approach Using Cross Entropy," Land Economics, University of Wisconsin Press, vol. 85(2), pages 238-251.
    4. D. M. Lambert & C. N. Boyer & L. He, 2016. "Spatial-temporal heteroskedastic robust covariance estimation for Markov transition probabilities: an application examining land use change," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 353-362, October.
    5. Michael J. Roberts & Ruben N. Lubowski, 2007. "Enduring Impacts of Land Retirement Policies: Evidence from the Conservation Reserve Program," Land Economics, University of Wisconsin Press, vol. 83(4), pages 516-538.
    6. Carpentier, Alain & Gohin, Alexandre & Sckokai, Paolo & Thomas, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 131-165, March.
    7. David J. Lewis & Andrew J. Plantinga, 2007. "Policies for Habitat Fragmentation: Combining Econometrics with GIS-Based Landscape Simulations," Land Economics, University of Wisconsin Press, vol. 83(2), pages 109-127.
    8. Sandler, Austin M. & Rashford, Benjamin S., 2018. "Misclassification error in satellite imagery data: Implications for empirical land-use models," Land Use Policy, Elsevier, vol. 75(C), pages 530-537.
    9. Anne A. Gharaibeh & Tareq N. Aldela’a, 2023. "Understanding the Relationship Between Natural Habitat Loss and Urban Development in Irbid Governorate," RAIS Conference Proceedings 2022-2024 0295, Research Association for Interdisciplinary Studies.
    10. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2003. "Determinants of Land-Use Change In the United States 1982-1997," Discussion Papers 10714, Resources for the Future.
    11. Fezzi, Carlo & Bateman, Ian J., 2009. "Structural Agricultural Land Use Modelling," 2009 Conference, August 16-22, 2009, Beijing, China 51423, International Association of Agricultural Economists.
    12. Maples, Chellie H. & Hagerman, Amy D. & Lambert, Dayton M., 2022. "Ex-ante effects of the 2018 Agricultural Improvement Act’s grassland initiative," Land Use Policy, Elsevier, vol. 116(C).
    13. Chakir, Raja & Lungarska, Anna, 2015. "Agricultural land rents in land use models: a spatial econometric analysis," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212641, European Association of Agricultural Economists.
    14. Chakir, Raja & Le Gallo, Julie, 2013. "Predicting land use allocation in France: A spatial panel data analysis," Ecological Economics, Elsevier, vol. 92(C), pages 114-125.
    15. Kim, Taek Joo & Wear, David N. & Coulston, John & Li, Ruhong, 2018. "Forest land use responses to wood product markets," Forest Policy and Economics, Elsevier, vol. 93(C), pages 45-52.
    16. Alig, Ralph J. & Plantinga, Andrew J. & Haim, David & Todd, Maribeth, 2010. "Area Changes in U.S. Forests and Other Major Land Uses, 1982 to 2002, With Projections to 2062," USDA Miscellaneous 338718, United States Department of Agriculture.
    17. Jane Musole Kwenye & Xiaoting Hou Jones & Alan Renwick, 2023. "Understanding Land-Use Trade-off Decision Making Using the Analytical Hierarchy Process: Insights from Agricultural Land Managers in Zambia," Land, MDPI, vol. 12(3), pages 1-19, February.

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