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A Carrot-and-Stick Approach to Environmental Improvement: Marrying Agri-Environmental Payments and Water Quality Regulations

Published online by Cambridge University Press:  15 September 2016

Robert C. Johansson  and
Jonathan D. Kaplan
Robert C. Johansson
Affiliation:
Resource and Environmental Policy Branch, Economic Research Service, U.S. Department of Agriculture, Washington, DC
Jonathan D. Kaplan
Affiliation:
Department of Economics, California State University, Sacramento
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Abstract

Agri-environmental programs, such as the Environmental Quality Incentives Program, provide payments to livestock and crop producers to generate broadly defined environmental benefits and to help them comply with federal water quality regulations, such as those that require manure nutrients generated on large animal feeding operations to be spread on cropland at no greater than agronomic rates. We couch these policy options in terms of agri-environmental “carrots” and regulatory “sticks,” respectively. The U.S. agricultural sector is likely to respond to these policies in a variety of ways. Simulation analysis suggests that meeting nutrient standards would result in decreased levels of animal production, increased prices for livestock and poultry products, increased levels of crop production, and water quality improvements. However, estimated impacts are not homogeneous across regions. In regions with relatively less cropland per ton of manure produced, the impacts of these policies are more pronounced.

Keywords

agricultural sector simulationagri-environmental programsmanure nutrientswater quality
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 33 , Issue 1 , April 2004 , pp. 91 - 104
Copyright
Copyright © 2004 Northeastern Agricultural and Resource Economics Association 

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