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Regulating Nonpoint Source Pollution Under Heterogeneous Conditions

Author

Listed:
  • Gloria E. Helfand
  • Brett W. House

Abstract

Because of difficulties in measuring effluent from nonpoint pollution, proposals for regulating agricultural runoff often suggest instruments applied to inputs or management practices. When pollution functions vary across sources, uniform input instruments cannot achieve a least-cost pollution reduction, but efficient instruments may be difficult to administer. In this paper we analyze lettuce production on two soils in California's Salinas Valley to consider empirical costs associated with uniform input taxes and regulations. The results suggest that uniform instruments may not be costly relative to an efficient baseline. Though taxes are more efficient, farmers have higher profits with regulations.

Suggested Citation

  • Gloria E. Helfand & Brett W. House, 1995. "Regulating Nonpoint Source Pollution Under Heterogeneous Conditions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 1024-1032.
  • Handle: RePEc:oup:ajagec:v:77:y:1995:i:4:p:1024-1032.
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    File URL: http://hdl.handle.net/10.2307/1243825
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    Cited by:

    1. 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.
    2. Philippe Bontems & Gilles Rotillon & Nadine Turpin, 2004. "Improvement of water quality as a joint production of milk when dairy farms are heterogeneous," Post-Print hal-01606126, HAL.
    3. Andrée, Bo Pieter Johannes & Diogo, Vasco & Koomen, Eric, 2017. "Efficiency of second-generation biofuel crop subsidy schemes: Spatial heterogeneity and policy design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 848-862.
    4. Marlène GUILLON & Jacky MATHONNAT, 2017. "Is there a strategy in China’s health official development assistance to African countries?," Working Papers 201720, CERDI.
    5. repec:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0064-9 is not listed on IDEAS
    6. Segerson, Kathleen & Wu, JunJie, 2006. "Nonpoint pollution control: Inducing first-best outcomes through the use of threats," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 165-184, March.
    7. Graeme J. Doole, 2010. "Evaluating Input Standards for Non-Point Pollution Control under Firm Heterogeneity," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 680-696.
    8. Don Fullerton & Garth Heutel, 2010. "The General Equilibrium Incidence of Environmental Mandates," American Economic Journal: Economic Policy, American Economic Association, vol. 2(3), pages 64-89, August.
    9. Antle, John & Capalbo, Susan & Mooney, Sian & Elliott, Edward & Paustian, Keith, 2003. "Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 231-250, September.
    10. Iho, Antti & Laukkanen, Marita, 2012. "Precision phosphorus management and agricultural phosphorus loading," Ecological Economics, Elsevier, vol. 77(C), pages 91-102.
    11. JunJie Wu & Bruce Babcock, 2001. "Spatial Heterogeneity and the Choice of Instruments to Control Nonpoint Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(2), pages 173-192, February.
    12. Fleming, R. A. & Adams, R. M., 1997. "The Importance of Site-Specific Information in the Design of Policies to Control Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 347-358, July.
    13. Mitchell, Paul David, 1999. "The theory and practice of green insurance: insurance to encourage the adoption of corn rootworm IPM," ISU General Staff Papers 1999010108000013154, Iowa State University, Department of Economics.
    14. Pascale Phelinas & Sonia Schwartz, 2017. "Regulating transgenic soybean production in Argentina," Working Papers halshs-01656924, HAL.
    15. JunJie Wu & Richard M. Adams & Catherine L. Kling & Katsuya Tanaka, 2004. "From Microlevel Decisions to Landscape Changes: An Assessment of Agricultural Conservation Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 26-41.
    16. Weersink, Alfons & Dutka, Charray & Goss, Michael, 1996. "Crop Price And Risk Effects On Farmer Abatement Costs Of Reducing Nitrate Levels In Groundwater Imposed By Environmental Policy Instruments," Working Papers 244794, University of Guelph, Department of Food, Agricultural and Resource Economics.

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