Economic analysis of best management practices in the Gum Creek Watershed water quality program

• Published in: Journal of soil and water conservation Vol. 51; no. 2; pp. 176 - 180
• Main Authors: Sun, H. (University of Georgia, Athens, GA), Houston, J, Bergstrom, J
• Format: Journal Article
• Language: English
• Published: Ankeny, IA Soil and Water Conservation Society 01.03.1996; Soil & Water Conservation Society
• Subjects: Agricultural pollution; Agricultural productivity; Agronomy. Soil science and plant productions; ANALISIS ECONOMICO; ANALISIS ESTADISTICO; ANALYSE ECONOMIQUE; ANALYSE STATISTIQUE; BASSIN VERSANT; Biological and medical sciences; CALIDAD DEL AGUA; CONDUITE DE LA CULTURE; CONTROL DE LA CONTAMINACION; CROP MANAGEMENT; CUENCAS HIDROGRAFICAS; ECONOMIC ANALYSIS; Fundamental and applied biological sciences. Psychology; GEORGIA (EUA); GEORGIA (USA); GEORGIE (EU); GESTION DES EAUX; LUTTE ANTIPOLLUTION; Management; MANEJO DEL CULTIVO; NON-POINT SOURCE POLLUTION; ORDENACION DE AGUAS; POINT SOURCES; POLLUTION; POLLUTION CONTROL; POLUCION; Prevention; QUALITE DE L'EAU; RIESGO; RISK; RISQUE; SIMULACION; SIMULATION; Soil and water pollution; Soil science; STATISTICAL ANALYSIS; STOCHASTIC PROCESSES; SUBSIDIES; SUBSIDIOS; SUBVENTION; WATER MANAGEMENT; WATER QUALITY; Water quality management; Watershed management; WATERSHEDS; Georgia; United States; North America; America; Macronutrient(mineral); Economic analysis; Water management; Underground leaching; Cultivated soil; Cropping system; Nitrogen; Economic return; Leaching; Runoff; Nonpoint pollution; Agricultural production; Watershed; Water quality; Simulation model; Field study
• ISSN: 0022-4561; 1941-3300

Crop growth and agricultural nonpoint pollution levels were simulated under stochastic weather and market observations to predict farmers' expected net returns and the environmental effects of implementing best management practices (BMPs) under risky and uncertain conditions. Stochastic dominance analysis reveals economically preferred BMPs, the trade-offs relative to the production and market uncertainties, and the opportunity costs of altering current practices to meet prospective regulatory limits for nitrogen runoff and leaching. Our simulations provide evidence that the control of nonpoint source pollution in this area through crop production and water management practices alone appears to be expensive and very limited. A federal cost-share program could provide incentives to farmers for voluntary adoption of economically efficient and environmentally acceptable BMPs. Simulation of expected returns may also allow the identification of those producers who could most efficiently reduce N leaching/runoff and woidd be superior to an alternative scenario of regulating/penalizing all producers in the watershed.