@article{Fleming:205762,
      recid = {205762},
      author = {Fleming, Patrick and Lichtenberg, Erik and Newburn, David  A.},
      title = {Agricultural Cost Sharing and Conservation Practices for  Nutrient Reduction in the Chesapeake Bay Watershed},
      address = {2015},
      number = {330-2016-13985},
      series = {Paper 6973},
      pages = {30},
      year = {2015},
      abstract = {Most evaluations of the impact of cost sharing policies  designed to reduce non-point source pollution on water  quality fail to incorporate behavioral responses, which are  important because of the voluntary nature of these  programs.  In this article, a two-stage simultaneous  equation approach is applied to data from a farmer survey  to correct for voluntary self-selection into cost sharing  programs, and account for substitution effects among  conservation practices.  The estimates obtained from the  econometric model are linked with the Chesapeake Bay  Program watershed model to estimate the change in abatement  levels and marginal abatement costs for nitrogen,  phosphorus and sediment after considering non-additional  adoption due to nonrandom enrollment, as well as potential  indirect effects on other conservation practices.  We find  that policy scenarios which do not account for  non-additional adoption significantly overestimate the  abatement achieved by environmental incentive payments.   Accounting for nonrandom enrollment increases the average  marginal cost of abatement by between 37 and 85 percent  across the state of Maryland.  However, estimated indirect  effects of cost sharing suggest the presence of “crowding  in” of other practices, leading to greater abatement and  lower costs, particularly for phosphorus and sediment.},
      url = {http://ageconsearch.umn.edu/record/205762},
      doi = {https://doi.org/10.22004/ag.econ.205762},
}