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Transaction Costs of Policies to Reduce Agricultural Phosphorous Pollution in the Minnesota River

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Author Info
Laura McCann
K. William Easter
Abstract

This study measured the magnitude of transaction costs associated with policies to reduce agricultural nonpoint source pollution. Interviews with staff from governmental agencies were conducted to estimate transaction costs associated with four policies to reduce agricultural phosphorous pollution in the Minnesota River. The tax on phosphate fertilizers had the lowest transaction costs ($0.94 million), followed by educational programs on best management practices ($3.11 million), the requirement for conservation tillage on all cropped land ($7.85 million), and expansion of a permanent conservation easement program ($9.37 million). Taxes, thus, may have advantages with respect to transaction costs and abatement costs.

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Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 75 (1999)
Issue (Month): 3 ()
Pages: 402-414
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Handle: RePEc:uwp:landec:v:75:y:1999:i:3:p:402-414

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Web page: http://le.uwpress.org/

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Find related papers by JEL classification:
Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation
Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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  1. Kampas, Athanasios, 2001. "Identifying Common Fallacies in the Choice of Environmental Taxes for Agricultural Pollution Control: The Absence of Transaction Costs and the Normality of Agricultural Pollutants," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 2(2), August. [Downloadable!]
  2. Lacroix, A. & Bel, F. & Mollard, A. & Sauboua, E., 2004. "Interest of site-specific pollution control policies," Working Papers 200424, Grenoble Applied Economics Laboratory (GAEL). [Downloadable!]
  3. Nguyen, Nga & Shortle, James, 2006. "Transactions Costs and Point-Nonpoint Source Water Pollution Trading," 2006 Annual meeting, July 23-26, Long Beach, CA 21096, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Athanasios Kampas & Ben White, 2004. "Administrative Costs and Instrument Choice for Stochastic Non-point Source Pollutants," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 27(2), pages 109-133, February. [Downloadable!] (restricted)
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This page was last updated on 2009-12-19.

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