Optimal Cost-Sharing Programs to Reduce Agricultural Pollution Report as inadecuate




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Pollution from agriculture depends on the agricultural practices or technologies farmers use. Policy instruments, such as government cost-sharing programs, can reduce the costs of adopting less-polluting practices. This report examines the problem of designing economically efficient cost-sbaring programs. Farmers' decisions to adopt less-polluting technologies are based on the profitability of their farms' adjusting technology, compared with new technologies. A benchmark solution to the pollution problem serves as a reference against which to compare the optimal cost-Sharing policy with imperfect targeting of land. The optimal input subsidy scheme depends on the pollution being managed, costs associated with the participation constraint, and the social cost of public funds.

Keywords: cost-sharing ; technology policy ; technology adoption ; resource quality

Subject(s): Research and Development/Tech Change/Emerging Technologies

Resource /Energy Economics and Policy

Issue Date: 1993-05

Publication Type: Report

PURL Identifier: http://purl.umn.edu/157045

Total Pages: 28

Series Statement: Technical Bulletin

1820

Record appears in: United States Department of Agriculture (USDA) > Economic Research Service > Technical Bulletins





Author: Shoemaker, Robbin ; Malik, Arun

Source: http://ageconsearch.umn.edu/record/157045?ln=en







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