Identifying Common Fallacies in the Choice of Environmental Taxes for Agricultural Pollution Control: The Absence of Transaction Costs and the Normality of Agricultural Pollutants
The choice of environmental taxes is one of the central themes in policy design for agricultural pollution control, which dominates both empirical and theoretical research. This paper examines two assumptions very often employed in applied research, namely the absence of transaction costs and the normality of agricultural pollutants. Our results indicate that the well-known superiority of emission taxes over input taxes may not always be valid, when transaction costs are taken into account. Further more, the assumption of normal distributed agricultural pollutants overestimate the relative abatement costs.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wu, JunJie & Teague, Mark L. & Mapp, Harry P. & Bernardo, Daniel J., 1995. "An Empirical Analysis of the Relative Efficiency of Policy Instruments to Reduce Nitrate Water Pollution in the U.S. Southern High Plains," Staff General Research Papers Archive 921, Iowa State University, Department of Economics.
- Smith, Rodney B.W. & Tomasi, Theodore D., 1995. "Transaction Costs And Agricultural Nonpoint-Source Water Pollution Control Policies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(02), December.
- Common, Michael S, 1977. " A Note on the Use of Taxes to Control Pollution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 79(3), pages 346-49.
- A. Mitchell Polinsky & Steven Shavell, 1981.
"Pigouvian Taxation with Administrative Costs,"
NBER Working Papers
0742, National Bureau of Economic Research, Inc.
- Ribaudo, Marc & Horan, Richard D. & Smith, Mark E., 1999. "Economics of Water Quality Protection from Nonpoint Sources: Theory and Practice," Agricultural Economics Reports 33913, United States Department of Agriculture, Economic Research Service.
- Beavis, Brian & Walker, Martin, 1983. "Random wastes, imperfect monitoring and environmental quality standards," Journal of Public Economics, Elsevier, vol. 21(3), pages 377-387, August.
- Arild Vatn, 1998. "Input versus Emission Taxes: Environmental Taxes in a Mass Balance and Transaction Costs Perspective," Land Economics, University of Wisconsin Press, vol. 74(4), pages 514-525.
- Holtermann, Sally, 1976. "Alternative Tax Systems to Correct for Externalities, and the Efficiency of Paying Compensation," Economica, London School of Economics and Political Science, vol. 43(169), pages 1-16, February.
- Laura McCann & K. William Easter, 1999. "Transaction Costs of Policies to Reduce Agricultural Phosphorous Pollution in the Minnesota River," Land Economics, University of Wisconsin Press, vol. 75(3), pages 402-414.
- Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
- Krupnick, Alan & Austin, David & Morton, Brian & McConnell, Virginia & Stoessell, Terrell & Cannon, Matthew, 1998. "The Chesapeake Bay and the Control of NOx Emissions: A Policy Analysis," Discussion Papers dp-98-46, Resources For the Future.
- Jia Hua Pan & Ian Hodge, 1994. "Land Use Permits As An Alternative To Fertiliser And Leaching Taxes For The Control Of Nitrate Pollution," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 102-112.
- McKitrick, R., 1998. "The Design and Implementation of Regulations Expressed as Ratios or Percentage Quotas," Working Papers 1998-5, University of Guelph, Department of Economics and Finance.
- Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
- Chambers, Robert G. & Quiggin, John, 1996. "Non-point-source pollution regulation as a multi-task principal-agent problem," Journal of Public Economics, Elsevier, vol. 59(1), pages 95-116, January.
- Vatn, Arild, et al, 1997. "Regulating Nonpoint-," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(2), pages 207-29.
- Stevens, Brandt K., 1988. "Fiscal implications of effluent charges and input taxes," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 285-296, September.
- Bouzaher, Aziz & Lakshminarayan, P. G. & Cabe, Richard & Carriquiry, Alicia L. & Gassman, Philip W. & Shogren, Jason F., 1993.
"Metamodels and Nonpoint Pollution Policy in Agriculture,"
Staff General Research Papers Archive
531, Iowa State University, Department of Economics.
- Aziz Bouzaher & Richard Cabe & Alicia L. Carriquiry & Philip W. Gassman & P. G. Lakshminarayan & Jason F. Shogren, 1992. "Metamodels and Nonpoint Pollution Policy in Agriculture," Center for Agricultural and Rural Development (CARD) Publications 92-wp97, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Spulber, Daniel F., 1985. "Effluent regulation and long-run optimality," Journal of Environmental Economics and Management, Elsevier, vol. 12(2), pages 103-116, June.
- 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.
- Hahn, Robert W., 1995. "Government markets and the theory of the Nth best," Journal of Public Economics, Elsevier, vol. 57(2), pages 219-234, June.
- Malik, Arun S., 1990. "Markets for pollution control when firms are noncompliant," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages 97-106, March.
When requesting a correction, please mention this item's handle: RePEc:ags:aergaa:26422. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.