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Groundwater Protection Policy And Agricultural Production: A Recursive Stochastic Analysis

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  • Baker, Brian P.

Abstract

Contamination of groundwater by agricultural practices presents a dilemma between protecting a vital resource and maintaining a valuable part of the economy. Policies to balance these objectives are presented. In addition to an historical baseline, policies that ban certain pesticides, taxes and subsidies, and control cultural practices are also considered. A model is developed to reflect the current state of agriculture in Eastern Suffolk County. This model consists of a recursive programming component, which has input for it generated by a stochastic model of Colorado potato beetle pest dynamics and management strategies to control those pests. While income is reduced by banning pesticides, the reduction is small when compared with the improvement in environmental quality. Further efforts to reduce pesticide use resulted in a reduction in potato acreage and incomes, as well as yields. Analysis concludes that improvements in both farm income and environmental quality could be achieved through the adoption of subsidies for low-input conservation crops.

Suggested Citation

  • Baker, Brian P., 1988. "Groundwater Protection Policy And Agricultural Production: A Recursive Stochastic Analysis," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 17(2), October.
  • Handle: RePEc:ags:nejare:28826
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    File URL: http://purl.umn.edu/28826
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    1. Hochman, Eithan & Zilberman, David & Just, Richard E., 1977. "Two-goal regional environmental policy: The case of the Santa Ana river basin," Journal of Environmental Economics and Management, Elsevier, vol. 4(1), pages 25-39, March.
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    Keywords

    Resource /Energy Economics and Policy;

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