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Cost Effectiveness of Alternative Subsidy Strategies for Soil Erosion Control

Published online by Cambridge University Press:  05 September 2016

William M. Park  and
David G. Sawyer
William M. Park
Affiliation:
Department of Agricultural Economics, University of Tennessee
David G. Sawyer
Affiliation:
Appraisal and Program Development Division, Soil Conservation Service, Washington, D.C
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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.

Keywords

cost effectivenesssubsidiescost sharingpolicysoil erosion
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 19 , Issue 2 , December 1987 , pp. 21 - 32
Copyright
Copyright © Southern Agricultural Economics Association 1987

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