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Is Geographical Targeting Cost‐Effective? The Case of the Conservation Reserve Enhancement Program in Illinois
Author(s) -
Yang Wanhong,
Khanna Madhu,
Farnsworth Richard,
Önal Hayri
Publication year - 2005
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1111/j.1467-9353.2004.00208.x
Subject(s) - conservation reserve program , natural resource economics , economics , nature reserve , business , geography , archaeology , agriculture
This paper uses economic, hydrologic, and GIS modeling to assess the effectiveness of the Illinois Conservation Reserve Enhancement Program in the Lower Sangamon watershed. Our results show that for a representative five‐year storm event, the acres currently enrolled in the program result in a 12% reduction in sediment loading, which is below the program goal of 20% and four times the least‐cost solution. We also analyze the design of alternative rental payment instruments for improving the cost‐effectiveness of geographical targeting for land retirement. Policy implications for the characteristics of the land parcels that should be targeted for enrollment in the program are discussed.