A Joint Framework for Analysis of Agri-Environmental Payment Programs

Abstract

This paper presents an approach for simultaneously estimating farmers' decisions to accept incentive payments in return for adopting a bundle of environmentally benign management practices. Using the results of a multinomial probit analysis of surveys of over 1,000 farmers facing ten adoption decisions in an EQIP-type program, we show how the farmers' perceptions of the desirability of various bundles changes with the offer amounts and with which practices are offered in the program.incentive payments, EQIP, simulated multivariate normal, multinomial probit, simulated maximum likelihood estimation, best management practices, Environmental Economics and Policy,