Multiple Use Benefits on Public Rangelands: An Incentive-Based Fee System

Ray G. Huffaker, James Wilen and B. Delworth Gardner

American Journal of Agricultural Economics, 1989, vol. 71, issue 3, 670-678

Abstract: A grazing fee system is developed which induces multiple-use compliance by present-value-maximizing permittees with stewardship responsibilities. The fee system increases grazing fees per animal stocked when needed to induce permittees to supply increased vegetation for nongrazing uses competing with livestock. The negative impact of increased fees on permittee wealth is offset by compensatory transfer payments. Taken together, grazing fees and compensation payments induce the multiple-use required by the Federal Land Policy and Management Act and protect against the economic disruption of the western livestock industry as required by the Taylor Grazing Act.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:71:y:1989:i:3:p:670-678.

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