Article ID: | iaor201524577 |
Volume: | 28 |
Issue: | 4 |
Start Page Number: | 567 |
End Page Number: | 584 |
Publication Date: | Dec 2006 |
Journal: | Review of Agricultural Economics |
Authors: | Johansson Robert C, Cattaneo Andrea |
Keywords: | measurement |
Using environmental indices (EIs) to rank applications for enrollment in conservation programs is becoming common practice. However, there is little guidance on how it should be done. The indices adopted by existing programs have often been linear, using weighted averages of environmental parameters without explicit consideration of whether they represent a reliable preference ordering on environmental states. Our article investigates society's weights for addressing multiple resource concerns and how functional forms of EIs can influence program outcomes. We propose a means by which preference weights are observed from policymaker actions. Weights for multiple resource concerns are determined and combined with biophysical crop simulation data to create an environmental index (EI) for crop rotations. This index is developed using alternative function forms to score conservation efforts on working cropland and to measure their effect on program outcomes.