Title
The Effect of Conservation Priority Areas on Bidding Behavior in the Conservation Reserve Program
Campus Units
Economics
Document Type
Article
Publication Version
Submitted Manuscript
Publication Date
2014
Journal or Book Title
Land Economics
Volume
90
Issue
1
First Page or Article ID Number
1
Last Page
25
DOI
10.3368/le.90.1.1
Abstract
We explore how a landowner’s bid to enroll in the Conservation Reserve Program (CRP) is influenced by his parcel’s designation as a Conservation Priority Area (CPA). A theoretical model of a landowner’s optimal bid is presented, and we demonstrate the ambiguity in a landowner’s optimal bid response to CPA designations. The bid choice is analyzed using a data set of accepted and unaccepted offers during three CRP sign-up periods. We focus empirically on a subset of offers from the Prairie Pothole CPA to identify whether bid responses to exogenous location factors differ across landowners with varying opportunity costs to enrollment. (JEL Q15, Q18)
Copyright Owner
Board of Regents of the University of Wisconsin System
Copyright Date
2014
Language
en
File Format
application/pdf
Recommended Citation
Jacobs, Keri L.; Thurman, Walter N.; and Marra, Michelle C., "The Effect of Conservation Priority Areas on Bidding Behavior in the Conservation Reserve Program" (2014). Economics Publications. 41.
https://lib.dr.iastate.edu/econ_las_pubs/41
Included in
Agricultural Economics Commons, Growth and Development Commons, Regional Economics Commons
Comments
This is a manuscript of an article from Land Economics 90 (2014): 1, doi:10.3368/le.90.1.1. Posted with permission.