Cost-Effective Targeting of Land Retirement to Improve Water Quality with Endogenous Sediment Deposition Coefficients

An integrated framework that combines spatial and biophysical attributes of land with a hydrological model and an economic model is developed to identify cropland for enrollment in the Conservation Reserve Enhancement Program. Sediment deposition coefficients are determined endogenously depending on the land-use decisions on other land parcels. Application of this framework to a watershed in Illinois demonstrates that highly sloping land adjacent to water bodies should be selected for retirement. A marginal value rental payment scheme can achieve program goals of 20% sediment abatement at 39% lower cost than a productivity-based rental scheme.

Author: 
Madhu Khanna, Wanhong Yang, Richard Farnsworth
Publisher: 
Ames,IA: American Agricultural Economics Association
Page Numbers: 
538-553
Publication Date: 
August 1, 2003
Literature Category: 
Articles