The Impact of Agriculture on Waterfowl Abundance: Evidence from Panel Data

Because there are potential externality benefits, it is important to specify an appropriate statistical model when analyzing the conflict between agriculture and migratory waterfowl in Canada’s pothole region. Unlike non-spatial panel models, our use of a spatial autoregressive panel model identifies indirect impacts of agricultural activities on wetlands and waterfowl. In particular, we find that programs to restore wetlands in one location will result in enhanced duck productivity of wetlands and habitat in other locations within the study region. Even so, costs of protecting ducks could range from $107 to $204 per bird.