Cost-Sharing Incentives In The Gum Creek Watershed Agricultural Water Quality Pilot Project
Abstract
Analysis of farmers' attitudes and potential and
predicted responses to cost-sharing incentives is key to prospective
adoption of such a program on a wider scale. A pre-project survey
of potential participants in the Gum Creek Watershed, and an
economic evaluation of management alternatives found that
voluntary participation improved with higher cost-sharing rates.
However, nitrogen runoff leaching effects were limited. Biophysical
simulation and mathematical programming indicate that profitenhancing
changes in supplemental irrigation management cause
little or no added impact on water quality. Decreasing the nitrogen
applications from currently advised rates has limited abatement
potential because it sharply decreases farmers' expected net returns
and voluntary participation. This analytical framework provides
critical decision-making information on the economic and
environmental tradeoffs and burdens under variations of program
implementation. The analytical framework can be applied to other
agricultural areas for prospective pollution abatement policies with
regard to the same or other agricultural practices.
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