WATERSHED-SCALE ECONOMIC AND ENVIRONMENTAL TRADEOFFS INCORPORATING RISKS: A TARGET MOTAD APPROACH

This paper evaluates the economic and environmental tradeoffs at watershed scale by incorporating both economic and environmental risks in agricultural production. The Target MOTAD model is modified by imposing a probability-constrained objective function to capture the yield uncertainty caused by random allocation of farming systems to soil types and by introducing environmental targets to incorporate environmental risk due to random storm events. This framework is used to determine the tradeoffs frontier between watershed net return and sediment yield and nitrogen concentration in runoff in Goodwater Creek watershed, Missouri. The frontier is significantly affected by environmental risk preference.


Issue Date:
1998-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31523
Published in:
Agricultural and Resource Economics Review, Volume 27, Number 2
Page range:
231-240
Total Pages:
10




 Record created 2017-04-01, last modified 2017-08-24

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