Flexible Incentives for the Adoption of Environmental Technologies in Agriculture

368 Pages·1999·22.17 MB·English

by  David Zilberman (auth.)

Flexible Incentives
for the Adoption of
Environmental Technologies
in Agriculture
NATURAL RESOURCE MANAGEMENT AND POLICY
Editors:
Ariel Dinar David Zilberman
Agricultural and Natural Resources Dept. Dept. of Agricultural and
The World Bank Resource Economics
1818 H Street, NW Univ. of California, Berkeley
Washington, DC 20433 Berkeley, CA 94720
EDITORIAL STATEMENT
There is a growing awareness to the role that natural resources such as water, land,
forests and environmental amenities play in our lives. There are many competing uses
for natural resources, and society is challenged to manage them for improving social
well being. Furthermore, there may be dire consequences to natural resources
mismanagement. Renewable resources such as water, land and the environment are
linked, and decisions made with regard to one may affect the others. Policy and
management of natural resources now require interdisciplinary approach including
natural and social sciences to correctly address our society preferences.
This series provides a collection of works containing most recent findings on economics,
management and policy of renewable biological resources such as water, land, crop
protection, sustainable agriculture, technology, and environmental health. It
incorporates modern thinking and techniques of economics and management. Books in
this series will incorporate knowledge and models of natural phenomena with economics
and managerial decision frameworks to assess alternative options for managing natural
resources and environment.
Environmental effects of agricultural activities have been in the center of public debate
and government intervention for some time. Top-down regulations have proven to be
less efficient than expected and it seems as environment and agriculture couldn't operate
side by side. This book focuses on identifying flexible and sustainable regulations that
provide economical incentives for improving environmental quality, while allowing
agricultural development. Using both a conceptual framework and empirical-based
examples, the book will attract a variety of readers interested in environmental
regulation in agriculture
The Series Editors
Recently Published Books in the Series
Bauer, Carl J.:
Against the Current: Privatization, Water Markets, and the State in Chile
Easter, K. William, Rosegrant, Mark W., and Dinar, Ariel:
Markets for Water: Potential and Performance
Smale, Melinda:
Farmers,Gene Banks, and Crop Breeding: Economic Analyses of Diversity in Wheat,
Maize, and Rice
Flexible Incentives
for the Adoption of
Environmental Technologies
in Agriculture
EDITE D BY
Frank Casey
Andrew Schmitz
Scott Swinton
David Zilberman
t 4
W
Springer Science+Business Media, LL C
Library of Congress Cataloging-in-Publicatino Data
Flexible incentives for the adoption of environmental technologies
in agriculture / edited by Frank Casey ... [et al.].
p. cm. ~ (Natural resource management and policy)
Papers derived from a symposium held at the University of Florida,
Gainesville, June 8-9, 1997.
Includes bibliographical references and index.
ISBN 978-94-010-5888-9 ISBN 978-94-011-4395-0 (eBook)
DOI 10.1007/978-94-011-4395-0
1. Agricultural innovations-Environmental aspects.
2. Agricultural innovations-Economic aspects. 3. Agriculture and
state. I. Casey, Frank. II. Series
S494.5.I5F59 1999
363.73'7-dc21 99-23739
CIP
Copyright © 1999 by Springer Science+Busines sMedia New York
Originally published by Kluwer Academci Publishesr in 1999
Softcover reprint of the hardcover 1st edition 1999
All rights reserve.d No part of this publication may be reproduce,d stored in a retrieval
system or transmitted in any form or by any mean,s mechanica, lphoto-copying, recording,
or otherwise, without the prior written permission of the publishe,r
Springer Science+Busines sMedia, LLC
Printed on acid-free paper.
Contents
Acknow ledgements
About the Contributors
Preface
Introduction 2
David Zilberman
Part I: Overview of the Role of Environmental Regulations in Agriculture
2 Environmental Regulation in Agriculture and
the Adoption of Environmental Technology 7
Marc Ribaudo and Margriet F. Caswell
3 Evolution of EPA Programs and Policies that Impact Agriculture 27
A. Clayton W Ogg
4 Environmental Conservation Strategies:
What Works and What Might Work Better 43
Stephen B. Lovejoy
Part II: Theoretical and Conceptual Framework
5 Flexible Incentives for Environmental Management in Agriculture:
A Typology 55
Sandra S. Batie and David E. Ervin
6 Flexible Incentives: A Unifying Framework for Policy Analysis 79
Kathleen Segerson
7 Sustainability, Technology and Incentives 97
Madhu Khanna, Katti Millock, and David Zilberman
Part III: Case Studies
8 Using Ecolabeling to Encourage the Adoption of
Innovative Environmental Technologies in Agriculture 119
Eileen 0. van Ravenswaay and Jeffrey R. Blend
vi
9 Environmental Externalities and International Trade:
The Case of Methyl Bromide 139
MS. Deepak, Thomas H. Spreen, and John J. VanSickle
10 Alcohol Fuel Tax Policy: Sugar, Com and the Environment 157
Andrew Schmitz and Leo Polop olus
11 Public versus Private Land Ownership to Preserve Wildlife Habitat 179
Fritz M Roka and Martin B. Main
12 Environmental Policy and Technology Adoption
in Animal Agriculture 193
Patricia E. Norris and Amy P. Thurow
13 Flexible Incentives and Water Quality Control Technologies
for the Everglades Agricultural Area 211
Donna J. Lee and J. Walter Milon
14 Adoption of Water Conserving Technologies in Agriculture:
the Role of Expected Profiles and Public Interest 229
Frank Casey and Gary D. Lynne
15 Technological Innovation to Remove Water Pollutants 249
Douglas D. Parker and Margriet F. Caswell
16 Health Risk Information to Reduce Water Pollution 263
Scott M Swinton, Nicole N. Owens and Eileen 0. van Ravenswaay
17 Agricultural Production Contracts to Reduce Water Pollution 273
Scott M Swinton, Mie-chin Chu, and Sandra S. Batie
18 Design versus Performance Standards to Reduce Nitrogen Runoff:
Chesapeake Bay Watershed Dairy Farms 285
C. Line Carpentier and Darrell J. Bosch
Part IV: Political Economy of Environmental Regulation
19 Regulatory Takings Issues:
The Case of Grass Field-burning Restrictions
in Eastern Washington State 307
Ray Huffaker and Stina Levin
20 Providing for the Common Good
in an Era of Resurgent Individualism 323
Alan Randall
vii
21 Political Feasibility:
Institutional Limits on Environmental Regulation 339
William P. Browne
Part V: Synthesis and Conclusions
22 From Adoption to Innovation of Environmental Technologies 351
Scott M Swinton and Frank Casey
Index 361
Acknowledgements
The editors thank all who attended and participated in the symposium entitled
"Flexible Incentives for the Adoption of Environmental Technologies in Agricul
ture," from which this book is derived. The symposium was held at the University
of Florida, Gainesville, from June 8-9, 1997. Special thanks go to the authors of
the chapters in this book who put forth a great effort in producing a thoughtful and
innovative set of papers. We deeply appreciate the thoughtful contributions of the
discussants whose ideas improved the papers as they matured into book chapters;
the discussants included Terry Francl of the American Fann Bureau Federation,
Jack Laurie, President of the Michigan Fann Bureau, and Gary Fairchild and Ken
Tefertiller at the University of Florida.
A grateful acknowledgement is extended to the various agencies and institutions
that provided the financial support to organize the symposium and to prepare this
book for publication. Included as fmancial supporters are the Resource Economics
Division of the Economic Research Service at the U.S. Department of Agriculture,
The Ben Hill Griffin, Jr., Endowed Chair in the Department of Food and Resource
Economics at the University of Florida, The Elton R. Smith Endowed Chair in
Food and Agricultural Policy at Michigan State University, The Department of
Food and Resource Economics at the University of Florida, the Department of
Agricultural Economics at Michigan State University, the Department of Agri
cultural and Resource Economics at the University of California, Berkeley, the
Florida Fann Bureau, Northwest Economic Associates, Henry A. Wallace Insti
tute for Alternative Agriculture, and the Institute of Food and Agricultural Sci
ences at the University of Florida.
A special thank you is bestowed upon H. Carole Schmitz for her invaluable as
sistance in organizing the symposium, fonnatting the book and carrying out its
copy-editing. This book would not have been possible without her participation.
Tom Stevens provided invaluable computer and editing skills, and Kim Box con
tributed her consultation services regarding the presentation of the book materials.
About the Contributors
Sandra S. Batie, Elton R. Smith Professor in Food and Agricultural Policy, De
partment of Agricultural Economics, Michigan State University, East Lansing,
Michigan.
Jeffrey R. Blend, Tax Policy and Research Economist, Montana Department of
Revenue, Helena, Montana.
Darrell J. Bosch, Associate Professor, Department of Agricultural and Applied
Economics, Virginia Polytechnic Institute and State University, Blacksburg, Vir
ginia.
William P. Browne, Professor of Political Science, Central Michigan University,
Mount Pleasant, Michigan.
C. Line Carpentier, Formerly with the International Food Policy Institute, now is
a Policy Analyst, Henry A. Wallace Institute, Greenbelt, Maryland.
Frank Casey, Economist, Northwest Economic Associates, Vancouver, Wash
ington.
Margriet F. Caswell, Chief, Production Management and Technology Branch,
Economic Research Service, U.S. Department of Agriculture, Washington, DC.
Mei-chin Chu, Associate Researcher, Taiwan Institute of Economic Research,
Taipei, Taiwan, Republic of China.
M.S. Deepak, Economic Analyst, Europe, Africa and Middle East Branch, Eco
nomic Research Service, U.S. Department of Agriculture, Washington, DC.
David E. Ervin, Director of the Policy Studies Program for the Henry A. Wallace
Institute, Greenbelt, Maryland.
Ray Huffaker, Associate Professor, Department of Agricultural Economics,
Washington State University, Pullman, Washington.
Madhu Khanna, Assistant Professor, Department of Agricultural and Consumer
Economics, University of Illinois, Urbana, Illinois
Donna J. Lee, Assistant Professor, Department of Food and Resource Economics,
University of Florida, Gainesville, Florida.
Stina Levin, Ph.D. Graduate, Department of Agricultural Economics, Washington
State University, Pullman, Washington.
Stephen B. Lovejoy, Professor, Agricultural and Environmental Policy, Purdue
University, Lafayette, Indiana.
Gary D. Lynne, Professor and Department Chair, Department of Agricultural
Economics, University of Nebraska, Lincoln, Nebraska.
Martin B. Main, Assistant Professor of Wildlife Ecology and Conservation,
Southwest Florida Research and Education Center, Institute of Agricultural Sci
ences, University of Florida, Immokalee, Florida.
Katti Millock, Post Doctoral Research Fellow, Institute of Economics, University
of Copenhagen, Denmark.
J. Walter Milon, Professor, Department of Food and Resource Economics, Uni
versity of Florida, Gainesville, Florida.
xii
Patricia E. Norris, Associate Professor, Department of Agricultural Economics
and the Department of Resource Development, Michigan State University, East
Lansing, Michigan.
Douglas D. Parker, Assistant Professor and Extension Economist, Department of
Agricultural and Resource Economics, University of Maryland, College Park,
Maryland.
A. Clayton W. Ogg, U.S. Environmental Protection Agency, Washington, DC.
Nicole N. Owens, Economist, U.S. Environmental Protection Agency, Washing
ton, DC.
Leo Polopolus, Professor Emeritus, Department of Food and Resource Econom
ics, University of Florida, Gainesville, Florida.
Alan Randall, Professor and Department Chair, The Ohio State University, De
partment of Agricultural, Environmental and Development Economics, Columbus,
Ohio.
Mark Ribaudo, Agricultural Economist, Resource and Environmental Policy
Branch, Economic Research Service, U.S. Department of Agriculture.
Fritz M. Roka, Assistant Professor of Agricultural Economics, Southwest Florida
Research and Education Center, Institute of Agricultural Sciences, University of
Florida, Immokalee, Florida.
Andrew Schmitz, Eminent Scholar, Ben Hill Griffin, Jr., Endowed Chair, De
partment of Food and Resource Economics, University of Florida, Gainesville,
Florida.
Kathleen Segerson, Professor, Department of Economics, University of Con
necticut, Storrs, Connecticut.
Thomas H. Spreen, Professor, Department of Agricultural Economics, University
of Florida, Gainesville, Florida.
Scott M. Swinton, Associate Professor, Agricultural Economics, Michigan State
University, East Lansing, Michigan.
Amy P. Thurow, Assistant Professor, Department of Agricultural Economics,
Texas A&M University, College Station, Texas.
Eileen O. van Ravenswaay, Professor, Agricultural Economics, Michigan State
University, East Lansing, Michigan.
John J. VanSickle, Professor, Department of Agricultural Economics, University
of Florida, Gainesville, Florida.
David Zilberman, Professor and Department Chair, Department of Agricultural
and Resource Economics, University of California, Berkeley, California.