PT  - JOURNAL ARTICLE
AU  - Howard, Gregory
TI  - Additionality Violations in Agricultural Payment for Service Programs: Experimental Evidence
AID  - 10.3368/le.96.2.244
DP  - 2020 Mar 01
TA  - Land Economics
PG  - 244--264
VI  - 96
IP  - 2
4099  - http://le.uwpress.org/content/96/2/244.short
4100  - http://le.uwpress.org/content/96/2/244.full
SO  - Land Econ2020 Mar 01; 96
AB  - This article defines perfect program additionality (PPA) for payment for ecosystem services subsidy programs and formalizes potential violations of PPA. PPA is examined for multiple subsidy programs in an experimental setting using a variant of the common public good game. A large proportion of subsidized activities are found to be nonadditional. Further, two sources of nonadditionality are identified and tested for: the pay-for-nothing effect and crowding-out. The extent to which subsidies generate truly additional benefits is a function of both the design of the subsidy program and, crucially, whether the incentivized best management practice acts as a substitute for other best management practices. (JEL Q18, Q58)