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Optimal combination of pollution prevention and abatement policies: The case of agricultural drainage

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  • Farhed Shah
  • David Zilberman
  • Erik Lichtenberg

Abstract

The adoption of pollution prevention and abatement practices is examined in the context of a model of exhaustible resource use with a backstop technology. For the sake of concreteness, the paper focuses on the problem of water-logging caused by the subsurface accumulation of agricultural drainwater. In modelling this problem, a region's underground capacity to store drainwater is considered an exhaustible resource, while the installation of subsurface drainage is viewed as the corresponding backstop technology (or abatement practice). The exhaustible resource is typically over-exploited due to common access problems, which forces a suboptimally fast adoption of the abatement practice. Conservationist irrigation technologies, such as drip and sprinkler systems, tend to reduce drainwater generation, and their adoption could increase social welfare by delaying the abatement stage. Public policies are suggested to increase the adoption of such conservationist technologies. Data from California is used to illustrate the results and to demonstrate the efficacy of the model for policy purposes. While the setting used for the analysis in this paper is quite specific (i.e., water-logging), the same general modelling ideas may be applied to many other problems of environmental degradation. Copyright Kluwer Academic Publishers 1995

Suggested Citation

  • Farhed Shah & David Zilberman & Erik Lichtenberg, 1995. "Optimal combination of pollution prevention and abatement policies: The case of agricultural drainage," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(1), pages 29-49, January.
  • Handle: RePEc:kap:enreec:v:5:y:1995:i:1:p:29-49
    DOI: 10.1007/BF00691908
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    References listed on IDEAS

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    1. Heal, Geoffrey M., 1993. "The optimal use of exhaustible resources," Handbook of Natural Resource and Energy Economics,in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 3, chapter 18, pages 855-880 Elsevier.
    2. Marca Weinberg & Catherine L. Kling & James E. Wilen, 1993. "Water Markets and Water Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 278-291.
    3. Regev, Uri & Shalit, Haim & Gutierrez, A. P., 1983. "On the optimal allocation of pesticides with increasing resistance: The case of alfalfa weevil," Journal of Environmental Economics and Management, Elsevier, vol. 10(1), pages 86-100, March.
    4. Ariel Dinar & Mark Campbell & David Zilberman, 1992. "Adoption of improved irrigation and drainage reduction technologies under limiting environmental conditions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(4), pages 373-398, July.
    5. Kim, C. S. & Moore, Michael R. & Hanchar, John J. & Nieswiadomy, Michael, 1989. "A dynamic model of adaptation to resource depletion: theory and an application to groundwater mining," Journal of Environmental Economics and Management, Elsevier, vol. 17(1), pages 66-82, July.
    6. Morton I. Kamien & Nancy L. Schwartz, 1978. "Optimal Exhaustible Resource Depletion with Endogenous Technical Change," Review of Economic Studies, Oxford University Press, vol. 45(1), pages 179-196.
    7. Dasgupta, Partha & Stiglitz, Joseph, 1981. "Resource Depletion under Technological Uncertainty," Econometrica, Econometric Society, vol. 49(1), pages 85-104, January.
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    Citations

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    Cited by:

    1. Iddo Kan, 2008. "Yield quality and irrigation with saline water under environmental limitations: the case of processing tomatoes in California," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 57-66, January.
    2. Zhang, Jiangfeng, 2001. "Dynamic Water Regulation Under Endogenous Irrigation Investment and Production Uncertainty," 2001 Annual meeting, August 5-8, Chicago, IL 20661, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Knapp, Keith C. & Baerenklau, Kenneth A., 2006. "Ground Water Quantity and Quality Management: Agricultural Production and Aquifer Salinization over Long Time Scales," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(03), December.
    4. Xabadia, Angels & Goetz, Renan U. & Zilberman, David, 2006. "Control of accumulating stock pollution by heterogeneous producers," Journal of Economic Dynamics and Control, Elsevier, vol. 30(7), pages 1105-1130, July.
    5. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313 Elsevier.
    6. Wang,Hua*Ming Chen, 1999. "How the Chinese system of charges and subsidies affects pollution control efforts by China's top industrial polluters," Policy Research Working Paper Series 2198, The World Bank.
    7. Schwabe, Kurt A. & Knapp, Keith C. & Kan, Iddo, 2002. "Integrated Drainwater Management In Irrigated Agriculture," 2002 Annual meeting, July 28-31, Long Beach, CA 19609, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Xabadia, M. Àngels & Goetz, Renan U. & Zilberman, David, 2004. "Spatially and Intertemporally Efficient Management of Waterlogging," Working Papers of the Department of Economics, University of Girona 9, Department of Economics, University of Girona.
    9. Zilberman, David & Khanna, Madhu & Lipper, Leslie, 1997. "Economics of new technologies for sustainable agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(1), March.

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