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| Title: | A Paradox for Agro-Environmental Land Policy |
| Authors: | Hennessy, David A.
Feng, Hongli |
| Authors (Email): | Hennessy, David A. (hennessy@iastate.edu)
Feng, Hongli (hfeng@iastate.edu) |
| Keywords: | benefit-to-cost ratio
environmental policy
land heterogeneity
Simpson’s paradox. |
| Issue Date: | 2009-10 |
| Series/Report no.: | CARD Working Paper
09-WP 499 |
| Abstract: | A regulator with a fixed budget to spend on securing environmental benefits from farmed land has to choose between how many acres to enroll and the extent of benefits to require of each enrolled acre. Here we consider, given heterogeneous land, what properties of the environmental benefit-to-cost ratio imply for the choice of optimal program as the available budget varies. Conditions are found such that a program of high benefits on few acres is preferred for any budget level. It is also possible that a program delivering low benefits per acre at low cost is preferred on each land type, and yet a high benefit program is optimal policy, a variant of Simpson’s paradox. |
| URI: | http://purl.umn.edu/53934 |
| Institution/Association: | Iowa State University>Center for Agricultural and Rural Development>CARD Working Paper Series |
| Total Pages: | 20 |
| Collections: | CARD Working Paper Series
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Files in This Item:
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| 09-WP_499.Hennessy+Feng.pdf | | 135Kb | PDF | View/Open |
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