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| Isik, Murat; Yang, Wanhong. |
| A real options model is developed to examine the determinants of farmer participation in the Conservation Reserve Program (CRP). This study contributes to the literature by developing a framework for ex post analysis of uncertainty and irreversibility. It extends the applications of real options models to analyze farmer participation in the CRP. The model incorporates land and owner attributes, and determines whether uncertainty and irreversibility affect the probability of participation. Option values play a significant role in farmer decisions to retire land by reducing the probability of participation. These results have implications for the design and implementation of conservation programs. |
| Tipo: Journal Article |
Palavras-chave: Conservation; CRP; Farmer participation; Land rental payments; Option values; Uncertainty; Agricultural and Food Policy. |
| Ano: 2004 |
URL: http://purl.umn.edu/31113 |
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| Yang, Wanhong; Khanna, Madhu; Farnsworth, Richard L.; Onal, Hayri. |
| An integrated watershed management framework that combines economic, hydrologic and GIS modeling is developed to study cost effective land retirement in multiple watersheds to achieve off-site sediment reduction goal. This integrated framework examines two alternative standards-a uniform standard under which each watershed is required to achieve the same sediment reduction goal and a non-uniform standard under which marginal cost of sediment abatement is equal across watersheds. Furthermore, for each standard, costs of abatement under two alternative rental instruments based on marginal cost of sediment abatement ($/ton) and uniform payments per acre ($/acre) are examined. Then the cost effectiveness of the four policy options (uniform standard with $/ton... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Land Economics/Use. |
| Ano: 2001 |
URL: http://purl.umn.edu/20687 |
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| Khanna, Madhu; Yang, Wanhong; Farnsworth, Richard L.; Onal, Hayri. |
| This paper extends an integrated framework that combines economic, environmental and GIS modeling to evaluate the cost effectiveness of land retirement programs. The modeling framework is applied to the Lower Sangamon Watershed in Cass County of Illinois to examine the economic costs and environmental benefits of three land retirement scenarios: land actually enrolled in the Illinois CREP, land selected by a land rental cap mechanism and land identified by a least cost model. We find that land retirement in the watershed successfully achieved the program goal of 20% sediment abatement. However, in achieving the same level of sediment abatement, the costs of actual land retirement are 1.3 times and 2.1 times of those in a land rental cap mechanism and a... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Land Economics/Use. |
| Ano: 2002 |
URL: http://purl.umn.edu/19740 |
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| Yang, Wanhong; Isik, Murat. |
| This study develops a model to examine the impacts of uncertainty about crop production and irreversibility of program participation on determining land rental payments and least-cost land retirement targeting in the Conservation Reserve Enhancement Program (CREP). Results show that under risk aversion only, the marginal cost of abatement and the average land rental payment are less than those under risk neutrality. However, under uncertainty and irreversibility, the marginal cost of abatement and the average land rental payment are considerably higher than those under risk neutrality or risk aversion only. It is important to incorporate uncertainty and irreversibility into the design of land rental payments and in determining participation constraints. |
| Tipo: Journal Article |
Palavras-chave: Farm Management; Land Economics/Use. |
| Ano: 2004 |
URL: http://purl.umn.edu/31264 |
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| Yang, Wanhong; Isik, Murat. |
| This paper develops a model to examine the impacts of uncertainty about crop production and irreversibility of program participation on determining land rental payments and least-cost land retirement targeting in the Conservation Reserve Enhancement Program. Results show that under risk aversion only, the marginal cost of abatement and the average land rental payment are less than those under risk neutrality. However, under uncertainty and irreversibility, the marginal cost and the average land rental payment are considerably higher than those under risk neutrality or risk aversion only. It is important to incorporate uncertainty and irreversibility into the design of land rental payments and in determining participation constraints. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Farm Management; Land Economics/Use. |
| Ano: 2003 |
URL: http://purl.umn.edu/22062 |
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| Yang, Wanhong; Khanna, Madhu; Farnsworth, Richard L.; Onal, Hayri. |
| An integrated watershed management framework that combines detailed spatial biophysical attributes of land with a hydrologic model and an economic model is developed to study the cost-effective enrollment of land in the Conservation Reserve Enhancement Program (CREP). Compared with previous related studies that assumed exogenous sediment deposition coefficients related only to site specific characteristics, this research explicitly considers endogenous sediment deposition coefficients, that are determined by landuse decisions made by all land parcels in the run-off path, in determining land rental offers. The modeling framework is applied to one of the eligible watersheds, Court Creek, in Illinois. We find that the optimal targeting of land enrollment is... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Land Economics/Use; Resource /Energy Economics and Policy. |
| Ano: 2000 |
URL: http://purl.umn.edu/21807 |
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