GREEN PAYMENTS AND DUAL POLICY GOALS

Hongli Feng

No 19697, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper analyzes the efficient design of green payments. Green payments can generate environmental benefits and support farmers' income. We extend a standard adverse selection model by incorporating dual policy goals into the design of green payments: conservation and income support. We also introduce heterogeneity into conservation efficiency type. The results of our dual-goal model and the standard adverse selection model are significantly different. The differences arise from two aspects. First, since farmers may receive green payments for conservation, or income support, or both, the incentive structure in the standard adverse selection model can be significantly altered. Second, information rent is no longer just a cost to induce truthful revelation, it also acts as income support if it goes to farmers whose income support is valued by policymakers. These two differences have important implications for the design of green payments.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 26
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/19697/files/sp02fe01.pdf (application/pdf)

Related works:
Journal Article: Green payments and dual policy goals (2007)
Working Paper: Green Payments and Dual Policy Goals (2007)
Working Paper: Green Payments and Dual Policy Goals (2007)
Working Paper: Green payments and dual policy goals (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea02:19697

DOI: 10.22004/ag.econ.19697

Access Statistics for this paper

More papers in 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().