The Effect of Conservation Priority Areas on Bidding Behavior in the Conservation Reserve Program

Keri Jacobs, Walter N. Thurman and Michele C. Marra

Land Economics, 2014, vol. 90, issue 1, 1-25

Abstract: We explore how a landowner’s bid to enroll in the Conservation Reserve Program (CRP) is influenced by his parcel’s designation as a Conservation Priority Area (CPA). A theoretical model of a landowner’s optimal bid is presented, and we demonstrate the ambiguity in a landowner’s optimal bid response to CPA designations. The bid choice is analyzed using a data set of accepted and unaccepted offers during three CRP sign-up periods. We focus empirically on a subset of offers from the Prairie Pothole CPA to identify whether bid responses to exogenous location factors differ across landowners with varying opportunity costs to enrollment.

JEL-codes: Q15 Q18 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (8)

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Working Paper: The Effect of Conservation Priority Areas on Bidding Behavior in the Conservation Reserve Program (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:90:y:2014:i:1:p:1-25

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