Cost Effectiveness of Alternative Subsidy Strategies for Soil Erosion Control

William M. Park and David G. Sawyer

Journal of Agricultural and Applied Economics, 1987, vol. 19, issue 2, 21-32

Abstract: This article reports on analyses of the cost effectiveness of three soil erosion control policy alternatives, specifically 1) uniform-rate cost sharing, 2) variable-rate cost sharing, and 3) fixed subsidy payments per unit reduction in erosion. A brief discussion of the place of these alternative subsidy strategies within the context of the current policy environment is presented. Integer programming is employed to simulate adoption of “best management practices” (BMPs) on a set of representative farms in a case study water-shed in response to these alternative subsidy strategies. Conclusions and policy implications are outlined.

Date: 1987
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