The Effect of Cost-share Programs on Ground Water Exploitation and Nonpoint-source Pollution under Endogenous Technical Change. (29th July 2016)

• Record Type: Journal Article
• Authors: Kim, C. S.; Guilfoos, Todd
• Editors: Guilfoos, Todd; Uchida, Emi
• Is Part Of: Agricultural and resource economics review. Volume 45:Number 2(2016)
• Page Start: 394
• Page End: 417
• Publication Date: 2016-07-29
• Subjects: cost-share program, -- ground water exploitation, -- induced irrigation technology, -- nonjoint production, -- nonpoint-source pollution; Sustainable agriculture -- Periodicals; Sustainable agriculture -- United States -- Periodicals; Natural resources -- Periodicals; Agriculture -- Economic aspects -- Periodicals; Rural development -- Periodicals; 338.10974
• DOI: 10.1017/age.2016.19
• Languages: English
• ISSNs: 1068-2805

Abstract

Abstract : Empirical studies suggest that cost-share programs are unlikely to reduce exploitation of ground water and nonpoint-source pollution. By introducing an induced irrigation technology in our model, we find theoretically that the optimal amount of irrigation water and nitrogen fertilizer increases (decreases) when the increased rate of the marginal net economic benefits from their use with an induced irrigation technology exceeds (is less than) an increase in the rate of irrigation efficiency. Our results suggest that producers should use relatively more irrigation water and fertilizer when greater quantities of high-value crops are grown because producers will adopt improved irrigation technologies for such crops.