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A "Putty-Clay" Approach to Aggregation of Production/Pollution Possibilities: An Application in Dairy Waste Control


  • L. Joe Moffitt
  • David Zilberman
  • Richard E. Just


Utilizing the "putty-clay" production framework, a methodology for empirical assessment of the relationship between aggregate economic variables and environmental policy instruments is developed. Practicality is demonstrated by an application of the approach to the problem of dairy pollution in the Santa Ana River Basin of California. Results indicate pollution taxes to be substantially more efficient than emission standards in achieving a predetermined environmental quality goal. However, redistribution of tax revenues back to the regulated industry may be required to promote political feasibility.

Suggested Citation

  • L. Joe Moffitt & David Zilberman & Richard E. Just, 1978. "A "Putty-Clay" Approach to Aggregation of Production/Pollution Possibilities: An Application in Dairy Waste Control," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(3), pages 452-459.
  • Handle: RePEc:oup:ajagec:v:60:y:1978:i:3:p:452-459.

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    Cited by:

    1. Bangalore, Mook & Hochman, Gal & Zilberman, David, 2016. "Policy incentives and adoption of agricultural anaerobic digestion: A survey of Europe and the United States," Renewable Energy, Elsevier, vol. 97(C), pages 559-571.
    2. Iho, Antti & Parker, Doug & Zilberman, David, 2013. "Optimal Regional Policies to Control Manure Nutrients to Surface and Ground Waters," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149922, Agricultural and Applied Economics Association.
    3. Iho, Antti, 2013. "Optimal Regional Policies to Control Manure Nutrients to Surface and GroundWaters," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158683, Agricultural Economics Society.
    4. Wichelns, Dennis & Horner, Gerald, 1985. "Economic Aspects Of Salinity Management In California'S San Joaquin Valley: Farm-Level And Regional Considerations," Working Papers 225792, University of California, Davis, Department of Agricultural and Resource Economics.
    5. Schuck, Eric C., 2005. "On-farm Manure Storage Adoption Rates: the Roles of Herd Size, Spreading Acreage and Cost-share Programs," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 6, pages 1-14, May.
    6. Musser, Wesley N., 1979. "Discussion: Non-Point Source Pollution Abatement—Potential Impact and Research Needs," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 11(02), pages 11-15, December.
    7. Zilberman, David, 1982. "The Use And Potential Of Optimal Control Models In Agricultural Economics," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(2), pages 1-12, December.
    8. Schuck, Eric C. & Birchall, Scott, 2001. "Manure Bmp Adoption Among North Dakota Animal Feed Operations," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36046, Western Agricultural Economics Association.

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