Cooper, Joseph C. and Keim, Russ (1996): Incentive payments to encourage farmer adoption of water quality protection practices. Published in: American Journal of Agricultural Economics , Vol. 78, No. 1 (February 1996): pp. 54-64.
Download (95kB) | Preview
Farmers can be encouraged to voluntarily adopt environmentally sound management practices through the use of incentive payments. This paper uses both a bivariate probit with sample selection model and a double hurdle model on data from a survey of farmers to predict farmer adoption of the practices as a function of the payment offer. The five management practices addressed here are integrated pest management,legume crediting, manure testing, split applications of nitrogen, and soil moisture testing. Also estimated are models that predict the acreage on which these practices would be applied given the decision to accept the incentive payments estimated.
|Item Type:||MPRA Paper|
|Original Title:||Incentive payments to encourage farmer adoption of water quality protection practices|
|Keywords:||bivariate probit; double hurdle; incentive payments; sample selection; water quality|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General|
|Depositing User:||Joseph C. Cooper|
|Date Deposited:||10. Sep 2010 15:56|
|Last Modified:||11. Feb 2013 17:31|
Adamowicz, W.L., J. Louviere, and M. Williams. "Combining Stated and Revealed Preference Methods for Valuing Environmental Amenities." J. Environ. Econ. and Manage. 26(May 1994):271-92.
Boyes, W., D. Hoffman, and S. Low. "An Econometric Analysis of the Bank Credit Scoring Problem." J. Econometrics 40(January 1989):3-14.
Blaylock, J.R., and W.N. Blisard. "U.S. Cigarette Consumption: The Case of Low-Income Women." Amer. J. Agr. Econ. 74(August 1992):698-705.
Cooper, J. "Optimal Bid Selection for Dichotomous Choice Contingent Valuation Surveys." J. Environ. Econ. and Manage. 24(January 1993):25-40.
Cragg, J.E. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods." Econometrics 39(September 1971):829-44.
Gould, B.W. "At Home Consumption of Cheese: A Purchase Infrequency Model." Amer. J. Agr. Econ. 74(May 1992):453-59.
Greene, W. Econometric Analysis. New York: MacMillan Publishing Company, 1990.
-. Limdep: User's Manual and Reference Guide, Version 6.0. Econometric Software, Inc., Bellport, New York, 1992.
Hanemann, M. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Response Data." Amer. J. Agr. Econ. 66(August 1984):332-41.
-. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Response Data: Reply." Amer. J. Agr. Econ. 71(November 1989):1057-61.
Hanemann, M., J. Loomis, and B. Kanninen. "Statistical Efficiency of Double-Bound Dichotomous Choice Contingent Valuation." Amer. J. Agr. Econ. 73(November 1991): 1255-63.
Hoehn, J., and A. Randall. "A Satisfactory Benefit Amer. J. Agr. Econ. Cost Indicator From Contingent Valuation." 3. Environ. Econ. and Manage. 12(September 1987):226-47.
Kanninen, B. "Optimal Experimental Design for Double-Bounded Dichotomous Choice Contingent Valuation." Land Econ. 69(May 1993): 138-46.
Lee, L., and G. Maddala. "The Common Structure of Tests for Selectivity Bias, Serial Correlation, Heteroscedasticity and Non-Normality in the Tobit Model." Int. Econ. Rev. 26(February 1985): 1-20.
Maddala, G.S. Limited Dependent and Qualitative Dependent Variables in Econometrics. Cambridge: Cambridge University Press, 1983.
Sinner, J. "We Can Get More for Our Tax Dollars." Choices, Third Quarter 1990, pp. 10-13.
Tunali, I. "A General Structure for Models of Double-Selection and an Application to a Joint MigrationlEarnings Process with Remigration." Res. in Labor Econ. 8(Part B, 1986):235-82.
U.S. Department of Commerce, National Oceanic and Atmospheric Administration. "Proposed Rules: Natural Resource Damage Assessment." Federal Register, vol. 58, 15 January 1993, pp. 4601-14.
Yen, S.T. "Working Wives and Food Away From Home: The Box-Cox Double Hurdle Model." Amer: J. Agr. Econ. 75(November 1994):884-95.