Abstract
The chapter 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 adoption of a practice conditional on the cost share offers for other practices.
The views expressed are the author’s and do not necessarily represent policies or views of the Economic Research Service or the U.S. Department of Agriculture.
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© 2005 Springer
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Cooper, J. (2005). Analysis of Agri-Environmental Payment Programs. In: Scarpa, R., Alberini, A. (eds) Applications of Simulation Methods in Environmental and Resource Economics. The Economics of Non-Market Goods and Resources, vol 6. Springer, Dordrecht. https://doi.org/10.1007/1-4020-3684-1_5
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DOI: https://doi.org/10.1007/1-4020-3684-1_5
Publisher Name: Springer, Dordrecht
Print ISBN: 978-1-4020-3683-5
Online ISBN: 978-1-4020-3684-2
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