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Nutrient Pollution: A Wicked Challenge for Economic Instruments

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  • James Shortle

    (Environment and Natural Resources Institute, College of Agricultural Sciences, Penn State University, USA)

  • Richard D. Horan

    (#x2020;Department of Agricultural, Food, and Resource Economics, Michigan State University, USA)

Abstract

Nutrient pollution is one of the most important problems facing aquatic systems globally. The problem qualifies as a wicked one, involving multiple pollutants from multiple sources interacting in complex ways over space and time along multiple pathways, with uncertainty present at each stage of the process—from pollutant generation to the final ecological and economic impacts. We draw on a diverse interdisciplinary literature to identify challenges for implementing efficient solutions using economic instruments, but also describe why economic research and concern for economic efficiency are of crucial importance to the selection of instruments to address the problem, and propose a general equilibrium economic geography paradigm for research on instrument design and choice.

Suggested Citation

  • James Shortle & Richard D. Horan, 2017. "Nutrient Pollution: A Wicked Challenge for Economic Instruments," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-39, April.
    • Handle: RePEc:wsi:wepxxx:v:03:y:2017:i:02:n:s2382624x16500338
    DOI: 10.1142/S2382624X16500338
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    4. Haiyan Liu & Roy Brouwer, 2023. "What is the future of water quality trading?," Contemporary Economic Policy, Western Economic Association International, vol. 41(1), pages 194-217, January.
    5. Mark V. Brady & Jordan Hristov & Fredrik Wilhelmsson & Katarina Hedlund, 2019. "Roadmap for Valuing Soil Ecosystem Services to Inform Multi-Level Decision-Making in Agriculture," Sustainability, MDPI, vol. 11(19), pages 1-20, September.
    6. Martin Henseler & Ruth Delzeit & Marcel Adenäuer & Sarah Baum & Peter Kreins, 2020. "Nitrogen Tax and Set-Aside as Greenhouse Gas Abatement Policies Under Global Change Scenarios: A Case Study for Germany," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 299-329, July.
    7. Chunlin Hua & Jiuhong Zhang & Zhiru Long & Richard T. Woodward, 2023. "Effects of Policy for Controlling Agricultural Non-Point Source Pollution in China: From a Perspective of Regional and Policy Measures Differences," IJERPH, MDPI, vol. 20(4), pages 1-19, February.
    8. James Shortle, 2017. "Policy Nook: “Economic Incentives for Water Quality Protection”," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-11, April.
    9. Liu, Jing & Hertel, Thomas W. & Kucharik, Christopher & Baldos, Uris Lantz C. & Jarvis, Larissa & Ramankutty, Navin, 2018. "Using Targeted Policies to Manage Nitrogen for Sustainable Agriculture in the US," 2018 Annual Meeting, August 5-7, Washington, D.C. 274427, Agricultural and Applied Economics Association.
    10. Jing Liu & Laura Bowling & Christopher Kucharik & Sadia Jame & Uris Baldos & Larissa Jarvis & Navin Ramankutty & Thomas Hertel, 2022. "Multi-scale Analysis of Nitrogen Loss Mitigation in the US Corn Belt," Papers 2206.07596, arXiv.org.
    11. Yingzhuang Guo & Xiaoyan Wang & Lili Zhou & Charles Melching & Zeqi Li, 2020. "Identification of Critical Source Areas of Nitrogen Load in the Miyun Reservoir Watershed under Different Hydrological Conditions," Sustainability, MDPI, vol. 12(3), pages 1-22, January.

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    14. Sheila M. Olmstead, 2010. "The Economics of Water Quality," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 44-62, Winter.
    15. Anastasios Xepapadeas, 2011. "The Economics of Non-Point-Source Pollution," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 355-373, October.
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