COST-SHARE INCENTIVES AND BEST MANAGEMENT PRACTICES IN A PILOT WATER QUALITY PROGRAM

Jack E. Houston and Henglun Sun

Journal of Agricultural and Resource Economics, 1999, vol. 24, issue 01, 14

Abstract: This study integrates three biophysical simulators to predict crop yields, water-soil pollution emissions, and farmers' net returns under uncertain weather and market conditions. Multiple-objective programming incorporates farmer attitudes toward voluntary participation under alternate rates of government cost-share subsidies to search for efficient pollution abatement solutions as best management practices (BMPs). Net returns decline an estimated 9.6% when farmers adopt a cost-share program with a $2.50/acre subsidy, while reducing N leaching by 2.7%. For a $10/acre subsidy, N leaching can be reduced by almost 6%, but farmer net returns decline by 15%.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:30880

DOI: 10.22004/ag.econ.30880

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