Efficiency of Nonpoint Source Pollution Instruments with Externality Among Polluters:An Experimental Study
AbstractIn nonpoint source pollution problems, the regulator does not observe each polluter’s individual emission, which prevents him from using the conventional policy instruments. Therefore new instruments have been designed to regulate this type of pollution. In an experiment, we compare the efficiency of some of these instruments: an input based tax, an ambient tax, and a group fine. We assume that the polluters themselves are affected by environmental damages. A control session without any regulation is also carried out in order to study the “status quo” situation. Our experimental data show that the input tax is almost perfectly efficient and very reliable, and the group fine is fairly efficient and reliable. Both instruments improve welfare with respect to the status quo. On the contrary, the ambient tax decreases social welfare with respect to the status quo, and its effect is very unreliable.
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Bibliographic InfoPaper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2002-20.
Date of creation: 2002
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Environmental Economics; Experimental Economics; Nonpoint source pollution; Regulation; Input Tax; Ambient Tax.;
Find related papers by JEL classification:
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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- Camacho Cuena, Eva & Requate, Till, 2004. "Collective and Random Fining versus Tax/Subsidy - Schemes to Regulate Non-Point Pollution : An Experimental Study," Economics Working Papers 2004,10, Christian-Albrechts-University of Kiel, Department of Economics.
- Kritikos, Alexander S., 2004. "A penalty system to enforce policy measures under incomplete information," International Review of Law and Economics, Elsevier, vol. 24(3), pages 385-403, September.
- Pushkarskaya, Helen N., 2006.
"Schemes to Regulate Non-Point Water Pollution: Making Sense of Experimental Results,"
2006 Annual meeting, July 23-26, Long Beach, CA
21111, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Pushkarskaya, Helen N., 2006. "Schemes to Regulate Non-Point Water Pollution: Making Sense of Experimental Results," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25507, International Association of Agricultural Economists.
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