COST SHARING, TRANSACTION COSTS, AND CONSERVATION

Conservation subsidies may be awarded for otherwise profitable projects, in which case they do not improve environmental quality. We show that transaction costs involved in such subsidy programs may induce farmers to reduce the size and scope of conservation projects. An empirical study shows that cost sharing in Maryland has resulted in simpler projects that provide no greater environmental protection. Water quality does not appear to be a goal of cost sharing; farm productivity and political considerations do.


Subject(s):
Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/22141
Total Pages:
41
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-04-26

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