Pay for Performance: Optimizing public investments in agricultural best management practices in the Chesapeake Bay Watershed

摘要: Agricultural best management practices (BMPs) such as streamside buffer zones and cover crops are increasingly being used to reduce nutrient pollution into water bodies. Eutrophication from fertilizer runoff is the key driver behind growth of hypoxic “dead zones” where fish production comes a standstill. Governments heavily subsidize BMPs, but do not generally allocate funds maximize their environmental benefits. But with ever-increasing fiscal constraints, policy makers searching for ways enhance efficiency BMP programs. Pay performance presents an alternative platform based on reduction achieved. This paper compares conventional subsidy approach pay BMPs designed Chesapeake Bay. We model four paired scenarios using constrained optimization model. In first pairing we held level constant compared cost effectiveness two allocation methods. second program investment outcomes. both pairings, was far superior — delivering identical outcomes at less than half in three times amount same budget second.