Cost-Share Incentives and Best Management Practices in a Pilot Water Quality Program

This study integrates three biophysical simulators to predict crop yields, water-soil pollution emissions, and farmers' net returns under uncertain weather and market conditions. Multiple-objective programming incorporates farmer attitudes toward voluntary participation under alternate rates of...

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Bibliographic Details
Published inJournal of Agricultural and Resource Economics Vol. 24; no. 1; pp. 239 - 252
Main Authors Houston, Jack E., Sun, Henglun
Format Journal Article
LanguageEnglish
Published Western Agricultural Economics Association 01.07.1999
Edition1835
Subjects
Agricultural management
best management practices
biophysical simulation
cost-share incentives
Crop economics
Crop management
Crop production
Crops
Leaching
multi-objective programming
nonpoint pollution
Nonpoint source pollution
Pollutant emissions
Resource /Energy Economics and Policy
Soil pollution
Water pollution
water quality
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Summary:This study integrates three biophysical simulators to predict crop yields, water-soil pollution emissions, and farmers' net returns under uncertain weather and market conditions. Multiple-objective programming incorporates farmer attitudes toward voluntary participation under alternate rates of government cost-share subsidies to search for efficient pollution abatement solutions as best management practices (BMPs). Net returns decline an estimated 9.6% when farmers adopt a cost-share program with a $2.50/acre subsidy, while reducing N leaching by 2.7%. For a $10/acre subsidy, N leaching can be reduced by almost 6%, but farmer net returns decline by 15%.
ISSN:1068-5502
2327-8285
DOI:10.22004/ag.econ.30880