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The Economics Of A Stock Pollutant: Aldicarb On Long Island

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  • Conrad, Jon M.
  • Olson, Lars J.

Abstract

A stock pollutant is a residual waste that can accumulate or degrade over time. Aldicarb was a pesticide used by farmers growing fruit and vegetables. Potato growers on eastern Long Island, New York, used aldicarb from 1975 to 1979 to control the Colorado potato beetle and the golden nematode. In August of 1979 aldicarb residues were detected in well water, and subsequent testing found more than 2,000 wells with concentrations in excess of the New York State health standard of 7 parts per billion (ppb). Aldicarb was banned from use on Long Island after 1979. In this paper we develop a dynamic model of a stock pollutant. The model is calibrated for aldicarb on eastern Long Island and steady-state solutions for static profit-maximizing rate and the maximization of discounted net benefits (welfare}are estimated. The New York State health standard of 7 ppb is associated with a pesticide application rate less than one-tenth the profit-maximizing rate and it contamination at about $1.5 million. Simulations indicate that the average concentration of aldicarb is not expected to decline below 7 ppb until 1996.

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Bibliographic Info

Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 6328.

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Date of creation: 1990
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Handle: RePEc:ags:cudawp:6328

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Keywords: Environmental Economics and Policy;

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References

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  1. Edwards, Steven F., 1988. "Option prices for groundwater protection," Journal of Environmental Economics and Management, Elsevier, vol. 15(4), pages 475-487, December.
  2. Robert L. Raucher, 1986. "The Benefits and Costs of Policies Related to Groundwater Contamination," Land Economics, University of Wisconsin Press, vol. 62(1), pages 33-45.
  3. Smith, Vernon L, 1972. "Dynamics of Waste Accumulation: Disposal Versus Recycling," The Quarterly Journal of Economics, MIT Press, vol. 86(4), pages 600-616, November.
  4. Keeler, Emmett & Spence, Michael & Zeckhauser, Richard, 1972. "The optimal control of pollution," Journal of Economic Theory, Elsevier, vol. 4(1), pages 19-34, February.
  5. Kitabatake, Yoshifusa, 1989. "Optimal exploitation and enhancement of environmental resources," Journal of Environmental Economics and Management, Elsevier, vol. 16(3), pages 224-241, May.
  6. Lichtenberg, Erik & Zilberman, David & Bogen, Kenneth T., 1989. "Regulating environmental health risks under uncertainty: Groundwater contamination in California," Journal of Environmental Economics and Management, Elsevier, vol. 17(1), pages 22-34, July.
  7. C. G. Plourde, 1972. "A Model of Waste Accumulation and Disposal," Canadian Journal of Economics, Canadian Economics Association, vol. 5(1), pages 119-25, February.
  8. Spence, A Michael & Starrett, David, 1975. "Most Rapid Approach Paths in Accumulation Problems," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 388-403, June.
  9. Shechter, Mordechai, 1985. "An anatomy of a groundwater contamination episode," Journal of Environmental Economics and Management, Elsevier, vol. 12(1), pages 72-88, March.
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Citations

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Cited by:
  1. Knapp, Keith C. & Franklin, Bradley, 2012. "Sustainability Economics of Groundwater Usage and Management," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124959, Agricultural and Applied Economics Association.
  2. Easter, K. William & Yadav, Satya N., 1995. "OPTIMUM NITROGEN USE UNDER GROUNDWATER POLLUTION CONSTRAINTS; Proceedings of the 4th Minnesota Padova Conference on Food, Agriculture, and the Environment, September 4-10, 1994, Wayzata, MN," Working Papers 14474, University of Minnesota, Center for International Food and Agricultural Policy.
  3. Olli Tahvonen, 1995. "Dynamics of pollution control when damage is sensitive to the rate of pollution accumulation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 5(1), pages 9-27, January.
  4. Nkonya, Ephraim M. & Featherstone, Allen M., 1999. "Determining Socially Optimal Nitrogen Application Rates Using A Delayed Response Model: The Case Of Irrigated Corn In Western Kansas," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35737, Western Agricultural Economics Association.
  5. Conrad, Klaus, 2001. "The Optimal Path of Energy and CO2 Taxes for Intertemporal Resource Allocation," Discussion Papers 602, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  6. Toman, Michael & Withagen, Cees, 1998. "Accumulative Pollution, "Clean Technology," and Policy Design," Discussion Papers dp-98-43, Resources For the Future.
  7. Knapp, Keith C. & Baerenklau, Kenneth A., 2006. "Ground Water Quantity and Quality Management: Agricultural Production and Aquifer Salinization over Long Time Scales," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(03), December.
  8. Michael Toman & Karen Palmer, 1997. "How should an accumulative toxic substance be banned?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(1), pages 83-102, January.

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