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Administrative Costs and Instrument Choice for Stochastic Non-point Source Pollutants

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  • Athanasios Kampas
  • Ben White

Abstract

This paper extends the empiricalanalysis of non-point source pollution to thecase where the pollutant is stochastic andalternative regulatory instruments havedifferent administrative costs. It also appliesa method of stochastic programming whereemissions are log-normally distributed. Forthe Kennet catchment in South West England werank a range of policies in terms of abatementcosts alone, and total costs (abatement andadministrative costs). On the basis ofabatement costs alone, a uniform emission taxis the cost minimising policy, but on the basisof total cost a nitrogen input tax is theleast-cost policy. Furthermore, the policyranking, based on total costs, changes as thereliability standard increases. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Athanasios Kampas & Ben White, 2004. "Administrative Costs and Instrument Choice for Stochastic Non-point Source Pollutants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(2), pages 109-133, February.
  • Handle: RePEc:kap:enreec:v:27:y:2004:i:2:p:109-133
    DOI: 10.1023/B:EARE.0000017275.44350.e5
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    Cited by:

    1. Lacroix, A. & Bel, F. & Mollard, A. & Sauboua, E., 2004. "Interest of site-specific pollution control policies," Working Papers 200424, Grenoble Applied Economics Laboratory (GAEL).
    2. Doole, Graeme J. & Kingwell, Ross, 2015. "Efficient economic and environmental management of pastoral systems: Theory and application," Agricultural Systems, Elsevier, vol. 133(C), pages 73-84.
    3. Sergey S. Rabotyagov & Manoj Jha & Todd D. Campbell, 2010. "Nonpoint-Source Pollution Reduction for an Iowa Watershed: An Application of Evolutionary Algorithms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(s1), pages 411-431, December.
    4. Doole, Graeme J., 2012. "Cost-effective policies for improving water quality by reducing nitrate emissions from diverse dairy farms: An abatement–cost perspective," Agricultural Water Management, Elsevier, vol. 104(C), pages 10-20.
    5. Anastasios Xepapadeas, 2011. "The Economics of Non-Point-Source Pollution," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 355-373, October.
    6. Jussi Lankoski & Erik Lichtenberg & Markku Ollikainen, 2010. "Agri-Environmental Program Compliance in a Heterogeneous Landscape," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 1-22, September.
    7. Aftab, Ashar & Hanley, Nick & Baiocchi, Giovanni, 2010. "Integrated regulation of nonpoint pollution: Combining managerial controls and economic instruments under multiple environmental targets," Ecological Economics, Elsevier, vol. 70(1), pages 24-33, November.
    8. repec:eee:jeeman:v:83:y:2017:i:c:p:68-89 is not listed on IDEAS
    9. Ashar Aftab & Nick Hanley & Athanasios Kampas, 2007. "Co-ordinated environmental regulation: controlling non-point nitrate pollution while maintaining river flows," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 573-593, December.
    10. Peter Heindl, 2017. "The impact of administrative transaction costs in the EU emissions trading system," Climate Policy, Taylor & Francis Journals, vol. 17(3), pages 314-329, April.
    11. Gray, Emily & Ancev, Tihomir & Drynan, Ross, 2011. "Coexistence of GM and non-GM crops with endogenously determined separation," Ecological Economics, Elsevier, vol. 70(12), pages 2486-2493.
    12. John Stranlund & Carlos Chávez, 2013. "Who should bear the administrative costs of an emissions tax?," Journal of Regulatory Economics, Springer, vol. 44(1), pages 53-79, August.
    13. Aftab, Ashar & Hanley, Nick & Baiocchi, Giovanni, 2017. "Transferability of Policies to Control Agricultural Nonpoint Pollution in Relatively Similar Catchments," Ecological Economics, Elsevier, vol. 134(C), pages 11-21.
    14. Encarna Esteban & José Albiac, 2016. "Salinity Pollution Control in the Presence of Farm Heterogeneity — An Empirical Analysis," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 1-20, June.
    15. Simanti Banerjee & Timothy N. Cason & Frans P. de Vries & Nick Hanley, 2015. "Spatial Coordination in Agglomeration Bonus Schemes with Transaction Costs and Communication: An Experimental Study," Discussion Papers in Environment and Development Economics 2015-10, University of St. Andrews, School of Geography and Sustainable Development.
    16. 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.
    17. Doole, Graeme & Pannell, David J., 2011. "Evaluating environmental policies under uncertainty through application of robust nonlinear programming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), December.
    18. Säll, Sarah & Gren, Ing-Marie, 2015. "Effects of an environmental tax on meat and dairy consumption in Sweden," Food Policy, Elsevier, vol. 55(C), pages 41-53.
    19. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest, 2007. "Farmers' costs of environmental regulation: Reducing the consumption of nitrogen in citrus farming," Economic Modelling, Elsevier, vol. 24(2), pages 312-328, March.

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