The conservation reserve program as a least-cost land retirement mechanism

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Mechanism design theory is used to characterize the properties of a least-cost CRP. If marginal land rents decrease with acres farmed then a least-cost CRP is a set of nonlinear price schedules. If marginal land rents are independent of acres farmed then an offer system constitutes a least-cost CRP. The least-cost offer system gives a useful estimate of the upper bound of a least-cost CRP. Empirical results suggest that a 34-million-acre CRP should have cost no more than $1 billion per year.

Original languageEnglish (US)
Title of host publicationThe Economics of Agri-Environmental Policy
PublisherTaylor and Francis
Pages257-269
Number of pages13
Volume2
ISBN (Electronic)9781351146968
ISBN (Print)9780815397694
StatePublished - Nov 30 2017

Keywords

  • Asymmetric information
  • Contract
  • Mechanism design
  • Private information

Fingerprint Dive into the research topics of 'The conservation reserve program as a least-cost land retirement mechanism'. Together they form a unique fingerprint.

Cite this