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Point-Nonpoint Source Trading for Managing Agricultural Pollutant Loadings: Prospects for Coastal Watersheds

Author

Listed:
  • Letson, David
  • Crutchfield, Stephen
  • Malik, Arun

Abstract

A recent focus of water quality discussions has been the idea of “trading” cleanup efforts between pollution sources. Trading would allow a polluting firm to sponsor pollution controls elsewhere in a watershed rather than install controls of its own. Point-nonpoint trading takes place between two dissimilar firms, one, a point source, involving traceable pollution, and another, a nonpoint source, producing more diffuse pollution, such as runoff of agricultural chemicals from cropland. If nonpoint source pollution is significant and the cost of its control is lower than for additional point source controls, trading could achieve water quality goals at a lower cost. This analysis provides an initial, empirical assessment of the feasibility of trading for managing agricultural land use in coastal watersheds to protect water quality.

Suggested Citation

  • Letson, David & Crutchfield, Stephen & Malik, Arun, 1993. "Point-Nonpoint Source Trading for Managing Agricultural Pollutant Loadings: Prospects for Coastal Watersheds," Agricultural Economic Reports 308279, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:308279
    DOI: 10.22004/ag.econ.308279
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    References listed on IDEAS

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    1. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    2. Arun S. Malik & David Letson & Stephen R. Crutchfield, 1993. "Point/Nonpoint Source Trading of Pollution Abatement: Choosing the Right Trading Ratio," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 959-967.
    3. Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
    4. Shortle, James S., 1987. "Allocative Implications Of Comparisons Between The Marginal Costs Of Point And Nonpoint Source Pollution Abatement," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 16(1), pages 1-7, April.
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    Cited by:

    1. Heimlich, Ralph E. & Claassen, Roger, 1998. "Agricultural Conservation Policy At A Crossroads," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(1), pages 1-13, April.
    2. Ribaudo, Marc O. & Heimlich, Ralph & Peters, Mark, 2005. "Nitrogen sources and Gulf hypoxia: potential for environmental credit trading," Ecological Economics, Elsevier, vol. 52(2), pages 159-168, January.
    3. Speir, Cameron & Stephenson, Kurt & Shabman, Leonard A., 2000. "Command-And-Control Or Effluent Allowance Markets: Roles Of Economic Analysis," 2000 Annual meeting, July 30-August 2, Tampa, FL 21869, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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