Demand for Grazing on Public Lands: A Disequilibrium Approach
A demand function for grazing on western public rangelands is estimated. Since the federal government sets the grazing fee and rations the quantity of Animal Unit Months (AUMs), a disequilibrium market model is developed. The estimate of own-price elasticity of demand (-0.178) suggests a 0.82 percent revenue gain for a 1 percent fee increase. Results show that most western states experienced excess supply of AUMs since the mid-1980s, suggesting a relatively high fee. The levels of demand and effective supply vary substantially across states; this implies that state- or region-specific factors should be incorporated in setting the grazing fee.
Year of publication: |
1996
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Authors: | Bhattacharyya, Arunava ; Narayanan, Rangesan ; MacDiarmid, Thomas R. ; Harris, Thomas R. ; Champney, William O. |
Published in: |
Land Economics. - University of Wisconsin Press. - Vol. 72.1996, 4
|
Publisher: |
University of Wisconsin Press |
Saved in:
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