A Joint Framework for Analysis of Agri-Environmental Payment Programs

Posted: 11 Oct 2003

See all articles by Joseph C. Cooper

Joseph C. Cooper

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Abstract

This article presents an approach for simultaneously estimating farmers' decisions to accept incentive payments in return for adopting a bundle of environmentally benign best management practices. Using the results of a multinomial probit analysis of surveys of over 1,000 farmers facing five adoption decisions in a voluntary program, we show how the farmers' perceptions of the desirability of various bundles change with the offer amounts and with which practices are offered in the bundle. We also demonstrate an estimator for the mean minimum willingness to accept for the adoption of a practice conditional on the cost share offers for other practices.

Suggested Citation

Cooper, Joseph C., A Joint Framework for Analysis of Agri-Environmental Payment Programs. Available at SSRN: https://ssrn.com/abstract=457779

Joseph C. Cooper (Contact Author)

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

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