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Market-based systems for reducing chemical use in agriculture in the United States

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Author Info
C. Rendleman
Kenneth Reinert
James Tobey

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Abstract

This study uses a computable general equilibrium (CGE) model of the U.S. economy to estimate the economic effects of agricultural fertilizer and pesticide input reductions on individual farm sectors, and on the economy as a whole. The costs of reducing agricultural chemicals using a market-based approach and a command-and-control approach are compared. The real cost to society of restrictng fertilizer and pesticide use by 20-percent across all uses is estimated to be $2.3 billion. A market-based approach that would provide incentives to reduce chemical use in the most cost efficient manner would be about 10-percent less costly. Copyright Kluwer Academic Publishers 1995

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File URL: http://hdl.handle.net/10.1007/BF00691909
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.

Volume (Year): 5 (1995)
Issue (Month): 1 (January)
Pages: 51-70
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Handle: RePEc:kap:enreec:v:5:y:1995:i:1:p:51-70

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Web page: http://www.springerlink.com/link.asp?id=100263

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Related research
Keywords: Agriculture; nonpoint source pollution; pesticide; fertilizer; computable general equilibrium model; chemical charges; tradeable input permits; command-and-control; chemical reduction costs;

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  1. Lars Bergman, 1991. "General equilibrium effects of environmental policy: A CGE-modeling approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(1), pages 43-61, March. [Downloadable!] (restricted)
  2. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June. [Downloadable!] (restricted)
  3. Shoven, John B. & Whalley, John, 1972. "A general equilibrium calculation of the effects of differential taxation of income from capital in the U.S," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 281-321, November. [Downloadable!] (restricted)
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  4. Bohm, Peter & Russell, Clifford S., 1985. "Comparative analysis of alternative policy instruments," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 10, pages 395-460 Elsevier. [Downloadable!] (restricted)
  5. Dale W. Jorgenson & Peter J. Wilcoxen, 1990. "Environmental Regulation and U.S. Economic Growth," RAND Journal of Economics, The RAND Corporation, vol. 21(2), pages 314-340, Summer. [Downloadable!] (restricted)
  6. Tietenberg, T H, 1990. "Economic Instruments for Environmental Regulation," Oxford Review of Economic Policy, Oxford University Press, vol. 6(1), pages 17-33, Spring.
  7. Hrubovcak, James & LeBlanc, Michael & Miranowski, John, 1990. "Limitations in Evaluating Environmental and Agricultural Policy Coordination Benefits," American Economic Review, American Economic Association, vol. 80(2), pages 208-12, May. [Downloadable!] (restricted)
  8. Xepapadeas, A. P., 1991. "Environmental policy under imperfect information: Incentives and moral hazard," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 113-126, March. [Downloadable!] (restricted)
  9. Shoven, John B. & Whalley, John, 1974. "On the computation of competitive equilibrium on International markets with tariffs," Journal of International Economics, Elsevier, vol. 4(4), pages 341-354, November. [Downloadable!] (restricted)
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