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Slippage in the Conservation Reserve Program or Spurious Correlation? A Rejoinder

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  • Michael J. Roberts
  • Shawn Bucholz

Abstract

The Conservation Reserve Program (CRP) pays farmers about $2 billion per year to retire cropland under ten- to fifteen-year contracts. Recent research by Wu (2000) found that slippage—an unintended stimulus of new plantings—offsets some of CRP's environmental benefits. In a comment on Wu, we argued CRP enrollments were endogenous and confounded by omitted variables. In his reply, Wu (2005) used results from a Hausman test to argue that CRP enrollments are exogenous. In this rejoinder, we explain why the candidate instrument (erodibility) is likely confounded by omitted variables, so Wu's use of the Hausman test is uninformative. Copyright 2006, Oxford University Press.

Suggested Citation

  • Michael J. Roberts & Shawn Bucholz, 2006. "Slippage in the Conservation Reserve Program or Spurious Correlation? A Rejoinder," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 512-514.
    • Handle: RePEc:oup:ajagec:v:88:y:2006:i:2:p:512-514
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00875.x
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    Cited by:

    1. Baylis, Kathy & Peplow, Stephen & Rausser, Gordon & Simon, Leo, 2008. "Agri-environmental policies in the EU and United States: A comparison," Ecological Economics, Elsevier, vol. 65(4), pages 753-764, May.
    2. Alexander Pfaff & Juan Robalino, 2017. "Spillovers from Conservation Programs," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 299-315, October.
    3. Jennifer M. Alix-Garcia & Elizabeth N. Shapiro & Katharine R. E. Sims, 2012. "Forest Conservation and Slippage: Evidence from Mexico’s National Payments for Ecosystem Services Program," Land Economics, University of Wisconsin Press, vol. 88(4), pages 613-638.
    4. David A. Fleming, 2014. "Slippage effects of land-based policies: Evaluating the Conservation Reserve Program using satellite imagery," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 167-178, November.
    5. Jones, Carol Adaire & Nickerson, Cynthia J. & Heisey, Paul W., 2012. "New Uses of Old Tools: An Assessment of Current and Potential Agricultural Greenhouse Gas Mitigation with Sector-based Policies," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124735, Agricultural and Applied Economics Association.
    6. Lötjönen, Sanna & Ollikainen, Markku & Kotamäki, Niina & Huttunen, Markus & Huttunen, Inese, 2021. "Nutrient load compensation as a means of maintaining the good ecological status of surface waters," Ecological Economics, Elsevier, vol. 188(C).
    7. Kim, Man-Keun & Peralta, Denis & McCarl, Bruce A., 2014. "Land-based greenhouse gas emission offset and leakage discounting," Ecological Economics, Elsevier, vol. 105(C), pages 265-273.
    8. Fleming, David A., 2010. "Slippage Effects of the Conservation Reserve Program: New Evidence from Satellite Imagery," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61394, Agricultural and Applied Economics Association.
    9. Stibniati Atmadja & Louis Verchot, 2012. "A review of the state of research, policies and strategies in addressing leakage from reducing emissions from deforestation and forest degradation (REDD+)," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(3), pages 311-336, March.
    10. Filewod, Ben & McCarney, Geoff, 2023. "Avoiding leakage from nature-based offsets by design," LSE Research Online Documents on Economics 117928, London School of Economics and Political Science, LSE Library.
    11. B Kelsey Jack & Carolyn Kousky & Katharine R E Sims, 2007. "Lessons Relearned: Can Previous Research on Incentive-Based Mechanisms Point the Way for Payments for Ecosystem Services?," CID Working Papers 15, Center for International Development at Harvard University.
    12. Georgina Belem Carrasco Galvan & Jacqueline M. Vadjunec & Todd D. Fagin, 2024. "Lessons from the Archives: Understanding Historical Agricultural Change in the Southern Great Plains," Land, MDPI, vol. 13(2), pages 1-31, February.
    13. Filewod, Ben & McCarney, Geoff, 2023. "Avoiding leakage from nature-based offsets by design," LSE Research Online Documents on Economics 117927, London School of Economics and Political Science, LSE Library.
    14. Jones, Carol & Nickerson, Cynthia J. & Sperow, Mark, 2013. "Greenhouse Gas Mitigation from the Conservation Reserve Program: The Contribution of Post-Contract Land Use Change," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150501, Agricultural and Applied Economics Association.
    15. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute of Labor Economics (IZA).
    16. Andrew Manale & Cynthia Morgan & Glenn Sheriff & David Simpson, 2011. "Offset markets for nutrient and sediment discharges in the Chesapeake Bay Watershed: Policy tradeoffs and potential steps forward," NCEE Working Paper Series 201105, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Aug 2011.
    17. Ekaterina Vorotnikova & Serhat Asci & James L. Seale, 2018. "Joint production, land allocation, and the effects of the production flexibility program," Empirical Economics, Springer, vol. 55(3), pages 1121-1143, November.

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