IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/143774.html
   My bibliography  Save this article

Modeling Transactions Costs in a Regional Transferable Discharge Permit System for Phosphorus Runoff

Author

Listed:
  • Mitchell, David M.
  • Willett, Keith

Abstract

This paper examines the construction and implementation of a regional transferable discharge permit system for phosphorus runoff from agricultural-related sources. The impact on behavior at the firm level is also examined. Results indicate that firms may respond to binding environmental constraints by both engaging in the trade of discharge permits and decreasing the output that can cause phosphorus runoff. The criticisms within the literature of building transferable discharge permit systems that ignore transactions costs are also addressed.

Suggested Citation

  • Mitchell, David M. & Willett, Keith, 2012. "Modeling Transactions Costs in a Regional Transferable Discharge Permit System for Phosphorus Runoff," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 42(2), pages 1-13.
    • Handle: RePEc:ags:jrapmc:143774
    DOI: 10.22004/ag.econ.143774
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/143774/files/12-2-3.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.143774?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard Schmalensee & Paul L. Joskow & A. Denny Ellerman & Juan Pablo Montero & Elizabeth M. Bailey, 1998. "An Interim Evaluation of Sulfur Dioxide Emissions Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 53-68, Summer.
    2. Thomas H. Tietenberg, 1980. "Transferable Discharge Permits and the Control of Stationary Source Air Pollution: A Survey and Synthesis," Land Economics, University of Wisconsin Press, vol. 56(4), pages 391-416.
    3. Govindasamy, Ramu & Cochran, Mark J., 1998. "Implications of Policy Regulations on Land Applications of Poultry Litter," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 85-94, April.
    4. O'Neil, William & David, Martin & Moore, Christina & Joeres, Erhard, 1983. "Transferable discharge permits and economic efficiency: The fox river," Journal of Environmental Economics and Management, Elsevier, vol. 10(4), pages 346-355, December.
    5. Ralph Luken & Lyman Clark, 1991. "How efficient are national environmental standards? A benefit-cost analysis of the United States experience," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(4), pages 385-413, December.
    6. Keith Willett & David Mitchell & H. L. Goodwin & Baxter Vieux & Jennie Popp, 2006. "The opportunity cost of regulating phosphorus from broiler production in the Illinois River Basin," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 49(2), pages 181-207.
    7. Govindasamy, Ramu & Cochran, Mark J., 1995. "The Feasibility of Poultry Litter Transportation from Environmentally Sensitive Areas to Delta Row Crop Production," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(1), pages 101-110, April.
    8. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521311120.
    9. Hahn, Robert W, 1989. "Economic Prescriptions for Environmental Problems: How the Patient Followed the Doctor's Orders," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 95-114, Spring.
    10. Knoeber, Charles R & Thurman, Walter N, 1994. "Testing the Theory of Tournaments: An Empirical Analysis of Broiler Production," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 155-179, April.
    11. Ramu Govindasamy & Mark J. Cochran, 1995. "Implications of alternative environmental policies on phosphorus loading from poultry litter," Agricultural Economics, International Association of Agricultural Economists, vol. 13(2), pages 137-148, November.
    12. James J. Opaluch & Richard M. Kashmanian, 1985. "Assessing the Viability of Marketable Permit Systems: An Application in Hazardous Waste Management," Land Economics, University of Wisconsin Press, vol. 64(3), pages 263-271.
    13. Robert N. Stavins, 1998. "What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 69-88, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dionisios Latinopoulos & Eftichios Sartzetakis, 2013. "Using tradable water permits in irrigated agriculture," Discussion Paper Series 2013_04, Department of Economics, University of Macedonia, revised Dec 2013.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stavins, Robert, 2003. "Market-Based Environmental Policies: What Can We Learn from U.S. Experience and Related Research?," Working Paper Series rwp03-031, Harvard University, John F. Kennedy School of Government.
    2. Boisvert, Richard N. & Poe, Gregory L. & Sado, Yukako, 2007. "Selected Economic Aspects of Water Quality Trading: A Primer and Interpretive Literature Review," EB Series 121835, Cornell University, Department of Applied Economics and Management.
    3. Stavins, Robert, 2001. "Lessons From the American Experiment With Market-Based Environmental Policies," RFF Working Paper Series dp-01-53, Resources for the Future.
    4. Richard Schmalensee & Robert N. Stavins, 2019. "Policy Evolution under the Clean Air Act," Journal of Economic Perspectives, American Economic Association, vol. 33(4), pages 27-50, Fall.
    5. Stavins, Robert, 2004. "Environmental Economics," RFF Working Paper Series dp-04-54, Resources for the Future.
    6. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    7. Harstad, Bård & Eskeland, Gunnar S., 2010. "Trading for the future: Signaling in permit markets," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 749-760, October.
    8. Sovacool, Benjamin K., 2015. "The political economy of pollution markets: Historical lessons for modern energy and climate planners," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 943-953.
    9. Revesz, Richard & Stavins, Robert, 2004. "Environmental Law and Policy," Working Paper Series rwp04-023, Harvard University, John F. Kennedy School of Government.
    10. Alessandra Casella, 1999. "Tradable deficit permits: efficient implementation of the Stability Pact in the European Monetary Union," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 14(29), pages 322-361.
    11. Coria, Jessica & Sterner, Thomas, 2008. "Tradable Permits in Developing Countries: Evidence from Air Pollution in Santiago, Chile," RFF Working Paper Series dp-08-51, Resources for the Future.
    12. Joseph E. Aldy & William A. Pizer, 2009. "Issues in Designing U.S. Climate Change Policy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 179-210.
    13. Coria, Jessica & Löfgren, Åsa & Sterner, Thomas, 2009. "To Trade or Not to Trade: Firm-Level Analysis of Emissions Trading in Santiago, Chile," RFF Working Paper Series dp-09-25-efd, Resources for the Future.
    14. Jones, Kezelee Q. & D'Souza, Gerard E., 2001. "Trading Poultry Litter At The Watershed Level : A Goal Focusing Application," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 30(1), pages 1-10, April.
    15. Cohen, Alex & Keiser, David A., 2017. "The effectiveness of incomplete and overlapping pollution regulation: Evidence from bans on phosphate in automatic dishwasher detergent," Journal of Public Economics, Elsevier, vol. 150(C), pages 53-74.
    16. Lawrence J. White, 2006. "Focusing More on Outputs and on Markets: What Financial Regulation Can Learn from Progress in Other Policy Areas," NFI Policy Briefs 2006-PB-18, Indiana State University, Scott College of Business, Networks Financial Institute.
    17. Hahn, Robert W. & Stavins, Robert N., 1999. "What Has Kyoto Wrought? The Real Architecture of International Tradable Permit Markets," Discussion Papers 10747, Resources for the Future.
    18. Lozano, S. & Villa, G. & Brännlund, R., 2009. "Centralised reallocation of emission permits using DEA," European Journal of Operational Research, Elsevier, vol. 193(3), pages 752-760, March.
    19. Hongli Feng & Catherine L. Kling & Lyubov A. Kurkalova & Silvia Secchi, 2003. "Subsidies! The Other Incentive-Based Instrument: The Case of the Conservation Reserve Program," Center for Agricultural and Rural Development (CARD) Publications 03-wp345, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    20. John Pezzey, 2003. "Emission Taxes and Tradeable Permits A Comparison of Views on Long-Run Efficiency," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(2), pages 329-342, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:143774. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/mcrsaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.