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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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    More about this item

    Keywords

    point-nonpoint integration; ambient taxes; effluent taxes; cap and tax; input taxes; water quality trading;
    All these keywords.

    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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