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Demand for Grazing on Public Lands: A Disequilibrium Approach

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  • Arunava Bhattacharyya
  • Rangesan Narayanan
  • Thomas R. MacDiarmid
  • Thomas R. Harris
  • William O. Champney

Abstract

A demand function for grazing on western public rangelands is estimated. Since the federal government sets the grazing fee and rations the quantity of Animal Unit Months (AUMs), a disequilibrium market model is developed. The estimate of own-price elasticity of demand (-0.178) suggests a 0.82 percent revenue gain for a 1 percent fee increase. Results show that most western states experienced excess supply of AUMs since the mid-1980s, suggesting a relatively high fee. The levels of demand and effective supply vary substantially across states; this implies that state- or region-specific factors should be incorporated in setting the grazing fee.

Suggested Citation

  • Arunava Bhattacharyya & Rangesan Narayanan & Thomas R. MacDiarmid & Thomas R. Harris & William O. Champney, 1996. "Demand for Grazing on Public Lands: A Disequilibrium Approach," Land Economics, University of Wisconsin Press, vol. 72(4), pages 483-499.
    • Handle: RePEc:uwp:landec:v:72:y:1996:i:4:p:483-499
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    Cited by:

    1. Lambert, David K. & Shonkwiler, John Scott, 1995. "Property Rights, Grazing Permits, And Rancher Welfare," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-19, July.
    2. McCluskey, Jill J. & Rausser, Gordon C., 1999. "Federal Grazing Reform And Avoidable Risk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-15, July.

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