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A POLLUTION TRADING SYSTEM WITH COST ASSYMETRY: An Application to Nonpoint Source Trading in the Boone River Watershed AgEcon
Valcu, Adriana M.; Kling, Catherine L..
The goal of watershed scale analysis is to assign to each field unit the best set of agricultural practices in order to achieve a maximum outcome from both environmental and economic perspectives. Watershed physically based models linked to multiobjective optimization models can overcome the high dimensionality of watershed pollution problem. Market based instruments such as permit trading settings which consider abatement measures’ cost heterogeneity have been regarded as being superior to command and control programs. Empirical analysis reveals that when local environmental authority and farmers have different cost information, a permit trading program has the potential to offer cost savings.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2011 URL: http://purl.umn.edu/103719
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A Tale of Three Watersheds: Nonpoint Source Pollution and Conservation Practices across Iowa AgEcon
Schilling, Keith E.; Tomer, Mark D.; Gassman, Philip W.; Kling, Catherine L.; Isenhart, Thomas M.; Moorman, Thomas B.; Simpkins, William W.; Wolter, Calvin F..
Tipo: Journal Article Palavras-chave: Resource /Energy Economics and Policy; Q25.
Ano: 2007 URL: http://purl.umn.edu/94483
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ALTERNATIVE GREEN PAYMENT POLICIES UNDER HETEROGENEITY WHEN MULTIPLE BENEFITS MATTER AgEcon
Zhao, Jinhua; Kling, Catherine L.; Kurkalova, Lyubov A..
We investigate the environmental impacts of several forms of policies that offer farmers subsides in return for adoption of conservation tillage. The policies differ on whether the tillage practice or one of the environmental benefits is targeted. We develop an environmental Lorenz curve that fully represents the performance of the targeting policies, and we show that these curves can be used directly to help select the optimal targeting strategy for special classes of social welfare functions. We apply the model to the state of Iowa.
Tipo: Working or Discussion Paper Palavras-chave: Environmental Lorenz curve; Multiple benefits of conservation tillage; Targeting subsidy policy; Environmental Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/18383
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Alternative Green Payment Policies When Multiple Benefits Matter AgEcon
Zhao, Jinhua; Kurkalova, Lyubov A.; Kling, Catherine L..
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.
Tipo: Journal Article Palavras-chave: Environmental Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/31378
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Ask a Hypothetical Question, Get a Valuable Answer? AgEcon
Azevedo, Christopher D.; Herriges, Joseph A.; Kling, Catherine L..
This paper models the recreation demand for Iowa wetlands, combining survey data on both actual usage patterns (i.e., revealed preferences) and anticipated changes to those patterns under hypothetical increases in trip costs (i.e., stated preferences). We formulate and test specific hypotheses concerning potential sources of bias in each data type. We consistently reject consistency between the two data sources, both in terms of implied wetland values and underlying preference parameters. Careful attention is paid to the interpretations of the test results, noting particularly how the interpretation of the same results can vary with the "school of thought" of the reader.
Tipo: Working or Discussion Paper Palavras-chave: Revealed preference; Stated preference; Recreation; Wetlands; Research Methods/ Statistical Methods.
Ano: 2000 URL: http://purl.umn.edu/18418
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ASSESSING THE COSTS AND ENVIRONMENTAL CONSEQUENCES OF AGRICULTURAL LAND USE CHANGES: A SITE-SPECIFIC, POLICY-SCALE MODELING APPROACH AgEcon
Wu, JunJie; Adams, Richard M.; Kling, Catherine L.; Tanaka, Katsuya.
The growth in federal conservation programs has created a need for policy modeling frameworks capable of measuring micro-level behavioral responses and macro-level landscape changes. This paper presents an empirical model that predicts crop choices, crop rotations, and conservation tillage adoption as a function of conservation payment levels, profits, and other variables at more than 42,000 agricultural sites of the National Resource Inventory (NRI) in the Upper Mississippi River Basin. Predicted changes in crop choices and tillage practices are then fed into site-specific environmental production functions to determine changes in nitrate runoff and leaching and in water and wind erosion at each NRI site. This policy-scale model is applied to the case of...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural policy; Conservation practices; Green payments; Land use changes; Nitrate runoff and leaching; Non-point pollution; Soil erosion; Environmental Economics and Policy; Land Economics/Use.
Ano: 2003 URL: http://purl.umn.edu/18475
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Avoiding biases from data-dependent specification search: an application to a tillage choice model AgEcon
Sengupta, Sanchita; Kurkalova, Lyubov A.; Kling, Catherine L..
The study evaluates the gains of avoiding data-dependent specification search on an estimation sample in an application to discrete choice models. We incorporate data splitting, the process by which the total available sample is randomly split in two or more sub-samples with the first (specification) sub-sample used for specification search, and the second (estimation) sub-sample used for obtaining clean estimates using the model chosen on the specification sub-sample according to a set criterion. We estimate 14 binary Logit models of the adoption of conservation tillage corresponding to the major sub-watersheds of the Upper Mississippi River Basin. For each of the sub-watershed models, we use the specification sub-sample to choose the explanatory...
Tipo: Conference Paper or Presentation Palavras-chave: Research Methods/ Statistical Methods.
Ano: 2006 URL: http://purl.umn.edu/21399
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Carbon Sequestration, Co-Benefits, and Conservation Programs AgEcon
Feng, Hongli; Kling, Catherine L.; Gassman, Philip W..
Land retirement and other agricultural conservation actions contribute greenhouse gas offsets and water quality improvements and reduce erosion and nitrogen runoff. Shifting the programmatic focus to carbon would enhance C sequestration and reduce nitrogen runoff, but would likely increase erosion.
Tipo: Journal Article Palavras-chave: Environmental Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/94004
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CARBON SEQUESTRATION, CO-BENEFITS, AND CONSERVATION PROGRAMS AgEcon
Feng, Hongli; Kling, Catherine L.; Gassman, Philip W..
Land use changes to sequester carbon also provide "co-benefits," some of which (for example, water quality) have attracted at least as much attention as carbon storage. The non-separability of these co-benefits presents a challenge for policy design. If carbon markets are employed, then social efficiency will depend on how we take into account co-benefits, that is, externalities, in such markets. If carbon sequestration is incorporated into conservation programs, then the weight given to carbon sequestration relative to its co-benefits will partly shape these programs. Using the Conservation Reserve Program (CRP) as an example, we show that CRP has been sequestering carbon, which was not an intended objective of the program. We also demonstrate that more...
Tipo: Working or Discussion Paper Palavras-chave: Carbon sequestration; Co-benefits; Conservation Reserve Program; Environmental Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/18336
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Carbon Sequestration in Agriculture: an Offset Program versus Other Conservation Programs AgEcon
Feng, Hongli; Kling, Catherine L..
In this paper, we study the social efficiency of private carbon markets that include trading in agricultural soil carbon sequestration when there are significant co-benefits (positive environmental externalities) associated with the practices that sequester carbon. Likewise, we investigate the efficiency of government run conservation programs that are designed to promote a broad array of environmental attributes (both carbon sequestration and its co-benefits) for the supply of carbon. Finally, policy design and efficiency issues associated with the potential interplay between a private carbon market and a government conservation program are studied. Empirical analyses for an area that represents a significant potential source of carbon sequestration and...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2005 URL: http://purl.umn.edu/19177
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Carbon Sequestration in Agriculture: Value and Implementation AgEcon
Feng, Hongli; Zhao, Jinhua; Kling, Catherine L..
We investigate the value of carbon sequestration in a dynamic model, demonstrating that it is only a fraction of the value of emission abatement unless the sequestration, the natural decay rate of carbon and the discount rate. We also show that to optimally reduce the carbon stock, sinks should be utilized as early as possible. Further, we propose and assess three mechanisms to efficiently introduce sequestration into a carbon permit trading market, a pay-as-you-go system. We show that, although the three mechanisms may not be equally feasible to implement, they are all efficient.
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2000 URL: http://purl.umn.edu/18380
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Conservation Payments: Challenges in Design and Implementation AgEcon
Babcock, Bruce A.; Beghin, John C.; Duffy, Michael D.; Feng, Hongli; Hueth, Brent; Kling, Catherine L.; Kurkalova, Lyubov A.; Schneider, Uwe A.; Secchi, Silvia; Weninger, Quinn; Zhao, Jinhua.
As Congress develops new farm legislation, some are lobbying for a new partnership between U.S. taxpayers and farmers. In exchange for an annual transfer of $10 to $20 billion from taxpayers to agriculture, farmers would do much more to enhance environmental quality. An attractive feature of a new partnership is that paying for an improved environment provides a clear and justifiable rationale for farm program payments, something that is lacking under current farm programs. By changing management practices and land use, farmers can provide cleaner water, cleaner air, better wildlife habitat, lower net greenhouse gas emissions, and improved long-run soil quality. Private profit maximizers largely ignore the value of these environmental goods. Hence, the...
Tipo: Working or Discussion Paper Palavras-chave: Land Economics/Use; Resource /Energy Economics and Policy.
Ano: 2001 URL: http://purl.umn.edu/36920
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DESIGNING CONSERVATION PROGRAMS TO MITIGATE CLIMATE CHANGE (PowerPoint Presentation) AgEcon
Kling, Catherine L..
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2005 URL: http://purl.umn.edu/32797
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Economic and Environmental Co-benefits of Carbon Sequestration in Agricultural Soils: Retiring Agricultural Land in the Upper Mississippi River Basin AgEcon
Feng, Hongli; Kurkalova, Lyubov A.; Kling, Catherine L.; Gassman, Philip W..
This study investigates the carbon sequestration potential and co-benefits from policies aimed at retiring agricultural land in the Upper Mississippi River Basin, a large, heavily agricultural area. We extend the empirical measurement of co-benefits from the previous focus on environmental benefits to include economic transfers. These transfers have often been mentioned as a co-benefit, but little empirical work measuring the potential magnitude of these transfers has previously been undertaken. We compare and contrast five targeting schemes, each based on maximizing different physical environmental measures, including carbon sequestration, soil erosion, nitrogen runoff, nitrogen leaching, as well as the area enrolled in the program. In each case, the...
Tipo: Working or Discussion Paper Palavras-chave: Carbon sequestration; Co-benefits; Co-effects; Economic transfers; Environmental benefits targeting; Upper Mississippi River Basin; Environmental Economics and Policy; Land Economics/Use.
Ano: 2005 URL: http://purl.umn.edu/18423
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Empirical Assessment of Baseline Conservation Tillage Adoption Rates and Soil Carbon Sequestration in the Upper Mississippi River Basin AgEcon
Kurkalova, Lyubov A.; Kling, Catherine L..
The study proposes a methodology for developing a carbon sequestration baseline attributable to the current use of conservation tillage. An integral component of the methodology is the explicit acknowledgment that there is an uncertainty in the baseline because of the uncertainty associated with the use of econometrically estimated models. The results of applying the method to a major crop production area, the Upper Mississippi River Basin in the central United States, are reported for two major crops in the region, corn and soybeans. The approach to estimation of the baseline should be readily transferable to other geographic areas and conservation practices.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/21169
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ENVIRONMENTAL CONSERVATION IN AGRICULTURE: LAND RETIREMENT VERSUS CHANGING PRACTICES ON WORKING LAND AgEcon
Feng, Hongli; Kurkalova, Lyubov A.; Kling, Catherine L.; Gassman, Philip W..
The study develops a conceptual framework for analyzing the allocation of conservation funds via selectively offering incentive payments to farmers for enrolling in one of two mutually exclusive agricultural conservation programs: retiring land from production or changing farming practices on land that remains in production. We investigate how the existence of a pre-fixed budget allocation between the programs affects the amounts of environmental benefits obtainable under alternative policy implementation schemes. The framework is applied to a major agricultural production region using field-scale data in conjunction with empirical models of land retirement and conservation tillage adoption, and a biophysical process simulation model for the environmental...
Tipo: Working or Discussion Paper Palavras-chave: Conservation Reserve Program; Land retirement; Working land; Environmental Economics and Policy; Land Economics/Use.
Ano: 2004 URL: http://purl.umn.edu/18627
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ENVIRONMENTAL VALUATION UNDER DYNAMIC CONSUMER BEHAVIOR AgEcon
Zhao, Jinhua; Kling, Catherine L..
The paper presents two simple models of dynamic consumer behavior, both taking into consideration the implications for welfare measurement when agents can delay transactions while obtaining additional information. One model studies the effect when a purchased good is non-perishable and can be consumed in the future, while the other model introduces a perishable good, implying that the quantity of consumption can vary in each period. Even in the case of the perishable item, the availability of information at the time of the consumption decision has important implications for welfare measurement. Agents who must make a decision at the present but know that additional information will be available later may change their income allocation to take advantage of...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Economics and Policy.
Ano: 2002 URL: http://purl.umn.edu/18621
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Estimation and Welfare Calculations in a Generalized Corner Solution Model with an Application to Recreation Demand AgEcon
Phaneuf, Daniel J.; Kling, Catherine L.; Herriges, Joseph A..
The Kuhn-Tucker model of Wales and Woodland (1983) provides a utility theoretic framework for estimating preferences over commodities for which individuals choose not to consume one or more of the goods. Due to the complexity of the model, however, there have been few applications in the literature and little attention has been paid to the problems of welfare analysis within the Kuhn-Tucker framework. This paper provides an application of the model to the problem of recreation demand. In addition, we develop and apply a methodology for estimating compensating variation, relying on Monte Carlo integration to derive expected welfare changes.
Tipo: Working or Discussion Paper Palavras-chave: Resource /Energy Economics and Policy; C25; Q26.
Ano: 1998 URL: http://purl.umn.edu/18585
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GREEN SUBSIDIES IN AGRICULTURE: ESTIMATING THE ADOPTION COSTS OF CONSERVATION TILLAGE FROM OBSERVED BEHAVIOR AgEcon
Kurkalova, Lyubov A.; Kling, Catherine L.; Zhao, Jinhua.
Because of payoff uncertainties combined with risk aversion and/or real options, farmers may demand a premium in order to adopt conservation tillage practices, over and above the compensation for the expected profit losses (if any). We propose a method of directly estimating the financial incentives for adopting conservation tillage and distinguishing between the expected payoff and premium of adoption based on observed behavior. We find that the premium may play a significant role in farmers' adoption decisions.
Tipo: Working or Discussion Paper Palavras-chave: Adoption subsidies; Conservation Security Program (CSP); Conservation tillage; Risk premium; Environmental Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/18517
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INSTITUTIONS AND THE VALUE OF NONPOINT SOURCE MEASUREMENT TECHNOLOGY: CARBON SEQUESTRATION IN AGRICULTURAL SOILS AgEcon
Kurkalova, Lyubov A.; Kling, Catherine L.; Zhao, Jinhua.
The development of technologies for accurate field-scale carbon assessment allows the implementation of more efficient policies than can be implemented in their absence. We estimate the value of accurate measurement technology by estimating the gains from implementing a more efficient policy, one that targets carbon reductions at the field scale but requires accurate field-scale measurement technology, relative to a practice-based policy that can be implemented in the absence of such technology. We find large cost savings due to improved targeting of conservation tillage subsidies for the state of Iowa. The cost savings depend significantly on the choice of baseline carbon, while the ability of the government to cost discriminate has little impact on the...
Tipo: Working or Discussion Paper Palavras-chave: Carbon sequestration; Green payment policy; Value of measurement technology; Environmental Economics and Policy; Institutional and Behavioral Economics.
Ano: 2003 URL: http://purl.umn.edu/18540
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