IDEAS home Printed from https://ideas.repec.org/a/ags/sojoae/29907.html
   My bibliography  Save this article

Probabilistic Cost Effectiveness In Agricultural Nonpoint Pollution Control

Author

Listed:
  • McSweeny, William T.
  • Shortle, James S.

Abstract

Conceptual weaknesses in the use of costs of average abatement as a measure of the cost effectiveness of agricultural nonpoint pollution control are examined. A probabilistic alternative is developed. The focus is on methods for evaluating whole-farm pollution control plans rather than individual practices. As a consequence, the analysis is presented in a chance-constrained activity analysis framework because activity procedures are a practical and well developed device for screening farm planes. Reliability of control is shown to be as important as reduction targets in designing farm plans for pollution control. Furthermore, broad-axe prescriptions of technology in the form of Best Management Practices may perform poorly with respect to cost effectiveness.

Suggested Citation

  • McSweeny, William T. & Shortle, James S., 1990. "Probabilistic Cost Effectiveness In Agricultural Nonpoint Pollution Control," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(1), pages 1-10, July.
    • Handle: RePEc:ags:sojoae:29907
    DOI: 10.22004/ag.econ.29907
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/29907/files/22010095.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.29907?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Quirino Paris & Christopher D. Easter, 1985. "A Programming Model with Stochastic Technology and Prices: The Case of Australian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(1), pages 120-129.
    2. Dicks, Michael R., 1987. "Definitional Consistency for Conservation Provisions of the 1985 Food Security Act," Staff Reports 277929, United States Department of Agriculture, Economic Research Service.
    3. Beavis, Brian & Walker, Martin, 1983. "Achieving environmental standards with stochastic discharges," Journal of Environmental Economics and Management, Elsevier, vol. 10(2), pages 103-111, June.
    4. Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
    5. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521311120.
    6. William T. McSweeny & Randall A. Kramer, 1986. "The Integration of Farm Programs for Achieving Soil Conservation and Nonpoint Pollution Control Objectives," Land Economics, University of Wisconsin Press, vol. 62(2), pages 159-173.
    7. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    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. repec:bla:canjag:v:58:y:2010:i:s1:p:411-431 is not listed on IDEAS
    2. Kozloff, Keith, 1990. "An Evaluation Of Options For Micro-Targeting Acquisition Of Cropping Rights To Reduce Nonpoint Source Water Pollution," Staff Papers 13610, University of Minnesota, Department of Applied Economics.
    3. Yiridoe, Emmanuel K. & Weersink, Alfons, 1998. "Marginal Abatement Costs Of Reducing Groundwater-N Pollution With Intensive And Extensive Farm Management Choices," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), pages 1-17, October.
    4. Zhen, Chen & Zheng, Xiaoyong, 2015. "Measuring the Informational Value of Interpretive Shelf Nutrition Labels to Shoppers," 2016 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2016, San Francisco, California 212812, Agricultural and Applied Economics Association.
    5. Ekman, Sone, 2002. "Cost-Effective Farm-Level Nitrogen Abatement in the Presence of Environmental and Economic Risk," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24860, European Association of Agricultural Economists.
    6. Gren, Ing-Marie & Carlsson, Mattias & Elofsson, Katarina & Munnich, Miriam, 2012. "Stochastic carbon sinks for combating carbon dioxide emissions in the EU," Energy Economics, Elsevier, vol. 34(5), pages 1523-1531.
    7. Sergey S. Rabotyagov & Adriana M. Valcu-Lisman & Catherine L. Kling, 2016. "Resilient Provision of Ecosystem Services from Agricultural Landscapes: Trade-offs Involving Means and Variances of Water Quality Improvements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1295-1313.
    8. Gren, Ing-Marie, 2008. "Adaptation and mitigation strategies for controlling stochastic water pollution: An application to the Baltic Sea," Ecological Economics, Elsevier, vol. 66(2-3), pages 337-347, June.
    9. Richard T. Woodward & Ronald A. Kaiser, 2002. "Market Structures for U.S. Water Quality Trading," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 366-383.
    10. Bystrom, Olof & Andersson, Hans & Gren, Ing-Marie, 2000. "Economic criteria for using wetlands as nitrogen sinks under uncertainty," Ecological Economics, Elsevier, vol. 35(1), pages 35-45, October.
    11. Bystrom, Olof & Bromley, Daniel W., 1998. "Contracting For Nonpoint-Source Pollution Abatement," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-19, July.
    12. Lacroix, Anne & Beaudoin, Nicolas & Makowski, David, 2005. "Agricultural water nonpoint pollution control under uncertainty and climate variability," Ecological Economics, Elsevier, vol. 53(1), pages 115-127, April.
    13. George HALKOS & Georgia GALANI, 2014. "Cost Effectiveness Analysis in Reducing Nutrient Loading in Baltic and Black Seas A Review," Journal of Advanced Research in Management, ASERS Publishing, vol. 5(1), pages 28-51.
    14. Sergey S. Rabotyagov, 2010. "Ecosystem Services under Benefit and Cost Uncertainty: An Application to Soil Carbon Sequestration," Land Economics, University of Wisconsin Press, vol. 86(4), pages 668-686.
    15. Gren, Ing-Marie, 2024. "A trading market for uncertain carbon removal by land use in the EU," Forest Policy and Economics, Elsevier, vol. 159(C).
    16. Horan, Richard D. & Claassen, Roger & Cooper, Joseph C., 2000. "Environmental Risk And Agri-Environmental Policy Design," 2000 Annual meeting, July 30-August 2, Tampa, FL 21827, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Gren, Ing-Marie & Carlsson, Mattias, 2013. "Economic value of carbon sequestration in forests under multiple sources of uncertainty," Journal of Forest Economics, Elsevier, vol. 19(2), pages 174-189.
    18. Balana, Bedru Babulo & Vinten, Andy & Slee, Bill, 2011. "A review on cost-effectiveness analysis of agri-environmental measures related to the EU WFD: Key issues, methods, and applications," Ecological Economics, Elsevier, vol. 70(6), pages 1021-1031, April.
    19. Gren, Ing-Marie Gren & Elofsson, Katarina, 2013. "Value of land use for carbon sequestration: An application to the EU climate policy," Working Paper Series 2012:4, Swedish University of Agricultural Sciences, Department Economics.
    20. Gren, Ing-Marie & Baxter, Peter & Mikusinski, Grzegorz & Possingham, Hugh, 2014. "Cost-effective biodiversity restoration with uncertain growth in forest habitat quality," Journal of Forest Economics, Elsevier, vol. 20(1), pages 77-92.

    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. Richard Horan, 2001. "Cost-Effective and Stochastic Dominance Approaches to Stochastic Pollution Control," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(4), pages 373-389, April.
    2. Frans P. Vries & Nick Hanley, 2016. "Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 687-702, April.
    3. Bystrom, Olof & Bromley, Daniel W., 1998. "Contracting For Nonpoint-Source Pollution Abatement," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-19, July.
    4. Spaeter, Sandrine & Verchère, Alban, 2004. "Aléa moral et politiques d’audit optimales dans le cadre de la pollution d’origine agricole de l’eau," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 71.
    5. Gordon, Simon, 2003. "Economic Instruments For Nonpoint Source Water Pollution: Options For The Swan-Canning River System," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57873, Australian Agricultural and Resource Economics Society.
    6. Tun Lin & Timo Goeschl, 2004. "Biodiversity Conservation on Private Lands: Information Problems and Regulatory Choices," Working Papers 2004.55, Fondazione Eni Enrico Mattei.
    7. Jones, Kristin Roti & Corona, Joel P., 2008. "An ambient tax approach to invasive species," Ecological Economics, Elsevier, vol. 64(3), pages 534-541, January.
    8. Elofsson, Katarina & Folmer, Henk & Gren, Ing-Marie, 2003. "Management of eutrophicated coastal ecosystems: a synopsis of the literature with emphasis on theory and methodology," Ecological Economics, Elsevier, vol. 47(1), pages 1-11, November.
    9. 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.
    10. Peterson, Jeffrey M. & Boisvert, Richard N., 2001. "Designing Nonpoint Source Policies With Limited Information About Both Risk Attitudes and Production Technology," Working Papers 127661, Cornell University, Department of Applied Economics and Management.
    11. Horan, Richard D. & Lupi, Frank, 2005. "Tradeable risk permits to prevent future introductions of invasive alien species into the Great Lakes," Ecological Economics, Elsevier, vol. 52(3), pages 289-304, February.
    12. Gren, Ing-Marie, 2008. "Adaptation and mitigation strategies for controlling stochastic water pollution: An application to the Baltic Sea," Ecological Economics, Elsevier, vol. 66(2-3), pages 337-347, June.
    13. Segerson, Kathleen, 1994. "Environmental Policy And Risk," 1994 Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses Risk, Technical Committee Meeting, March 24-26, 1994, Gulf Shores State Park, Alabama 271555, Regional Research Projects > S-232: Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk.
    14. Catherine L. Kling, 2011. "Economic Incentives to Improve Water Quality in Agricultural Landscapes: Some New Variations on Old Ideas," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 297-309.
    15. James Shortle & Richard D. Horan, 2013. "Policy Instruments for Water Quality Protection," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 111-138, June.
    16. Xepapadeas, A. P., 1995. "Observability and choice of instrument mix in the control of externalities," Journal of Public Economics, Elsevier, vol. 56(3), pages 485-498, March.
    17. Horan, Richard D. & Lupi, Frank, 2005. "Economic Incentives for Controlling Trade-Related Biological Invasions in the Great Lakes," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(1), pages 75-89, April.
    18. Maurice D. Levi & Barrie R. Nault, 2004. "Converting Technology to Mitigate Environmental Damage," Management Science, INFORMS, vol. 50(8), pages 1015-1030, August.
    19. James Alm & H. Spencer Banzhaf, 2012. "Designing Economic Instruments For The Environment In A Decentralized Fiscal System," Journal of Economic Surveys, Wiley Blackwell, vol. 26(2), pages 177-202, April.
    20. 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.

    More about this item

    Keywords

    Environmental Economics and Policy;

    Statistics

    Access and download statistics

    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:sojoae:29907. 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/saeaaea.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.