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Cost-Effective Targeting of Land Retirement to Improve Water Quality with Endogenous Sediment Deposition Coefficients

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  • Madhu Khanna
  • Wanhong Yang
  • Richard Farnsworth
  • Hayri Önal

Abstract

An integrated framework that combines spatial and biophysical attributes of land with a hydrological model and an economic model is developed to identify cropland for enrollment in the Conservation Reserve Enhancement Program. Sediment deposition coefficients are determined endogenously depending on the land-use decisions on other land parcels. Application of this framework to a watershed in Illinois demonstrates that highly sloping land adjacent to water bodies should be selected for retirement. A marginal value rental payment scheme can achieve program goals of 20% sediment abatement at 39% lower cost than a productivity-based rental scheme. Copyright 2003, Oxford University Press.

Suggested Citation

  • Madhu Khanna & Wanhong Yang & Richard Farnsworth & Hayri Önal, 2003. "Cost-Effective Targeting of Land Retirement to Improve Water Quality with Endogenous Sediment Deposition Coefficients," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 538-553.
    • Handle: RePEc:oup:ajagec:v:85:y:2003:i:3:p:538-553
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    File URL: http://hdl.handle.net/10.1111/1467-8276.t01-1-00454
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