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Farmers' Perceived Costs of Wetlands: Effects of Wetland Size, Hydration, and Dispersion

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  • John A. Fox
  • Jeffrey M. Peterson

Abstract

We survey landowners to investigate the costs associated with the presence of permanent or seasonal wetland areas in cropland. We find, as predicted by our conceptual model, that dispersion of wetland areas imposes substantial inconvenience costs for producers but that costs respond nonlinearly and irregularly to changes in the frequency of hydration. Producer attitudes toward conservation and environmental regulation have a significant impact on perceived costs, as do some demographic attributes. The analysis suggests that incentives to aggregate dispersed wetlands into larger contiguous areas could benefit landowners and at the same time provide a net increase in wetland area. Copyright 2008, Oxford University Press.

Suggested Citation

  • John A. Fox & Jeffrey M. Peterson, 2008. "Farmers' Perceived Costs of Wetlands: Effects of Wetland Size, Hydration, and Dispersion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 172-185.
    • Handle: RePEc:oup:ajagec:v:90:y:2008:i:1:p:172-185
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01056.x
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    Cited by:

    1. Aaron Laporte, 2014. "Effects of Crop Prices, Nuisance Costs, and Wetland Regulation on Saskatchewan NAWMP Implementation Goals," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(1), pages 47-67, March.
    2. Neuman, Amber D. & Belcher, Ken W., 2011. "The contribution of carbon-based payments to wetland conservation compensation on agricultural landscapes," Agricultural Systems, Elsevier, vol. 104(1), pages 75-81, January.
    3. Moriah B. Bostian & Pierre Dupraz & Jean Minviel, 2015. "Production effects of wetland conservation: evidence from France [Les impacts productifs de la conservation des zones humides : application française]," Working Papers hal-02796850, HAL.
    4. Chad Lawley, 2014. "Changes in Implicit Prices of Prairie Pothole Habitat," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 171-190, June.
    5. Eric Asare & Lloyd‐Smith Patrick & Belcher Kenneth, 2022. "Spatially explicit modeling of wetland conservation costs in Canadian agricultural landscapes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(1), pages 5-19, March.
    6. Kurkalova, Lyubov A., 2014. "On optimal placement of best management practices in agricultural watersheds," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169768, Agricultural and Applied Economics Association.
    7. repec:ags:aaea22:335462 is not listed on IDEAS
    8. Heberling, Matthew T. & García, Jorge H. & Thurston, Hale W., 2010. "Does encouraging the use of wetlands in water quality trading programs make economic sense?," Ecological Economics, Elsevier, vol. 69(10), pages 1988-1994, August.

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