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Policy Instruments for Water Quality Protection

Author

Listed:
  • James Shortle

    () (Environment and Natural Resources Institute, Pennsylvania State University, University Park, Pennsylvania 16802)

  • Richard D. Horan

    () (Department of Agricultural, Food, and Resource Economics, Michigan State University, East Lansing, Michigan 48824)

Abstract

We examine policy instruments for ambient water quality protection. One objective is to illustrate the unique and complex informational challenges that must be addressed in constructing instruments that are effective and efficient for point and nonpoint sources. A second objective is to describe developments in real-world policies. Crucial to solving contemporary water quality challenges and improving the efficiency of water quality protection are reducing nonpoint pollution and efficiently integrating point management and nonpoint management. Accordingly, particular attention is given to instruments for nonpoint sources and to instruments that integrate point and nonpoint management. Our review of the literature in this area indicates that practical approaches will necessarily be second best but that careful instrument design and coordinated control across all sources can enhance the effectiveness and efficiency of water pollution control.

Suggested Citation

  • 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.
  • Handle: RePEc:anr:reseco:v:5:y:2013:p:111-138
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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev-resource-091912-151903
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    Cited by:

    1. Paudel, Jayash & Crago, Christine L., 2018. "Fertilizer Use and Water Quality in the United States," 2018 Annual Meeting, August 5-7, Washington, D.C. 274312, Agricultural and Applied Economics Association.
    2. 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.
    3. Horan, Richard & Shortle, James, 2014. "Point-Nonpoint Heresy?! An Endogenous Risk Explanation for Point-Nonpoint Trading Ratios Less than One," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170274, Agricultural and Applied Economics Association.
    4. Fleming, Patrick & Lichtenberg, Erik & Newburn, David A., 2015. "Agricultural Cost Sharing and Conservation Practices for Nutrient Reduction in the Chesapeake Bay Watershed," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205762, Agricultural and Applied Economics Association.
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    6. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press, vol. 33(4), pages 541-571.
    7. 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.
    8. Cloé Garnache & Scott M. Swinton & Joseph A. Herriges & Frank Lupi & R. Jan Stevenson, 2016. "Solving the Phosphorus Pollution Puzzle: Synthesis and Directions for Future Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1334-1359.
    9. Cook, Aaron & Shortle, James, 2018. "Intertemporal Trading Ratios for Nutrient Pollution Control," 2018 Annual Meeting, August 5-7, Washington, D.C. 274845, Agricultural and Applied Economics Association.
    10. Whittaker, Gerald & Färe, Rolf & Grosskopf, Shawna & Barnhart, Bradley & Bostian, Moriah & Mueller-Warrant, George & Griffith, Stephen, 2017. "Spatial targeting of agri-environmental policy using bilevel evolutionary optimization," Omega, Elsevier, vol. 66(PA), pages 15-27.
    11. Valcu, Adriana & Rabotyagov, Sergey S. & Kling, Catherine L., 2013. "Flexible Practice-Based Approaches For Controlling Multiple Agricultural Nonpoint-Source Water Pollution," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150450, Agricultural and Applied Economics Association.
    12. Janusch, Nicholas R. & Messer, Kent D. & Ferraro, Paul J. & Allen, William, 2017. "Farmer participation in nutrient management practices in Delaware: A field experiment," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258456, Agricultural and Applied Economics Association.
    13. repec:wsi:wepxxx:v:03:y:2017:i:02:n:s2382624x17710047 is not listed on IDEAS
    14. Motallebi, Marzieh & Ali, Tasdighi & Hoag, Dana & Arabi, Mazdak, 2016. "Role of Weather on Design of a Water Quality Trading Program Baseline: A Case Study of the Jordan Lake Watershed, North Carolina," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235688, Agricultural and Applied Economics Association.
    15. Valcu, Adriana Mihaela, 2013. "Agricultural nonpoint source pollution and water quality trading: empirical analysis under imperfect cost information and measurement error," ISU General Staff Papers 201301010800004451, Iowa State University, Department of Economics.
    16. repec:wsi:wepxxx:v:03:y:2017:i:02:n:s2382624x16500338 is not listed on IDEAS

    More about this item

    Keywords

    point-nonpoint integration; ambient taxes; effluent taxes; cap and tax; input taxes; water quality trading;

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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