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Alternative Green Payment Policies When Multiple Benefits Matter

Published online by Cambridge University Press:  15 September 2016

Jinhua Zhao
Affiliation:
Center for Agricultural and Rural Development
Lyubov A. Kurkalova
Affiliation:
Center for Agricultural and Rural Development
Catherine L. Kling
Affiliation:
Resource and Environmental Policy Division, Center for Agricultural and Rural Development, all at Iowa State University

Abstract

This study investigates the environmental impacts of several forms of policies that offer farmers subsides in return for the adoption of conservation tillage. The policies differ as to whether the tillage practice or one of several environmental benefits is targeted. We develop an Environmental Lorenz Curve which fully represents the performance of the targeting policies, and show that this curve can be directly used to help select the optimal targeting strategy for special classes of social welfare functions. The model is applied to the state of Iowa.

Type
Contributed Papers
Copyright
Copyright © 2004 Northeastern Agricultural and Resource Economics Association 

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