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Alternative Green Payment Policies When Multiple Benefits Matter

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  • Zhao, Jinhua
  • Kurkalova, Lyubov A.
  • Kling, Catherine L.

Abstract

This study investigates the environmental impacts of several forms of policies that offer farmers subsides in return for the adoption of conservation tillage. The policies differ as to whether the tillage practice or one of several environmental benefits is targeted. We develop an Environmental Lorenz Curve which fully represents the performance of the targeting policies, and show that this curve can be directly used to help select the optimal targeting strategy for special classes of social welfare functions. The model is applied to the state of Iowa.

Suggested Citation

  • Zhao, Jinhua & Kurkalova, Lyubov A. & Kling, Catherine L., 2016. "Alternative Green Payment Policies When Multiple Benefits Matter," ISU General Staff Papers 201609150700001362, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201609150700001362
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    1. Lyubov A. Kurkalova & Catherine L. Kling & Jinhua Zhao, 2003. "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior (Revised)," Center for Agricultural and Rural Development (CARD) Publications 01-wp286, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Andrew J. Plantinga & JunJie Wu, 2003. "Co-Benefits from Carbon Sequestration in Forests: Evaluating Reductions in Agricultural Externalities from an Afforestation Policy in Wisconsin," Land Economics, University of Wisconsin Press, vol. 79(1), pages 74-85.
    3. David Zilberman, 1996. "The Economics of a Public Fund for Environmental Amenities: A Study of CRP Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 961-971.
    4. Babcock, Bruce A. & Campbell, Todd & Gassman, Philip W. & Hurley, Terrance M. & Mitchell, Paul D. & Otake, Toshitsugu & Siemers, Mark & Wu, JunJie, 1998. "RAPS 1997: Agricultural and Environmental Outlook," Staff General Research Papers Archive 1158, Iowa State University, Department of Economics.
    5. Babcock, Bruce A. & Lakshminarayan, P. G. & Wu, JunJie & Zilberman, David, 1996. "Economics of a Public Fund for Environmental Amenities (The)," Staff General Research Papers Archive 1065, Iowa State University, Department of Economics.
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    Cited by:

    1. AJ A. Bostian & Moriah B. Bostian & Marita Laukkanen & Antti Simola, 2020. "Assessing the productivity consequences of agri-environmental practices when adoption is endogenous," Journal of Productivity Analysis, Springer, vol. 53(2), pages 141-162, April.
    2. Seong-Hoon Cho & Bijay P. Sharma, 2020. "Optimal spatial budget distribution of forest carbon payments that balances the returns and risks associated with conservation costs," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7239-7267, December.
    3. Billen, Norbert & Röder, Clara & Gaiser, Thomas & Stahr, Karl, 2009. "Carbon sequestration in soils of SW-Germany as affected by agricultural management—Calibration of the EPIC model for regional simulations," Ecological Modelling, Elsevier, vol. 220(1), pages 71-80.
    4. Feng, Hongli & Kurkalova, Lyubov A. & Kling, Catherine L. & Gassman, Philip W., 2005. "Transfers and Environmental Co-Benefits of Carbon Sequestration in Agricultural Soils: Retiring Agricultural Land in the Upper Mississippi River Basin," Staff General Research Papers Archive 12439, Iowa State University, Department of Economics.

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