IDEAS home Printed from https://ideas.repec.org/p/ags/cudawp/6328.html
   My bibliography  Save this paper

The Economics Of A Stock Pollutant: Aldicarb On Long Island

Author

Listed:
  • Conrad, Jon M.
  • Olson, Lars J.

Abstract

A stock pollutant is a residual waste that can accumulate or degrade over time. Aldicarb was a pesticide used by farmers growing fruit and vegetables. Potato growers on eastern Long Island, New York, used aldicarb from 1975 to 1979 to control the Colorado potato beetle and the golden nematode. In August of 1979 aldicarb residues were detected in well water, and subsequent testing found more than 2,000 wells with concentrations in excess of the New York State health standard of 7 parts per billion (ppb). Aldicarb was banned from use on Long Island after 1979. In this paper we develop a dynamic model of a stock pollutant. The model is calibrated for aldicarb on eastern Long Island and steady-state solutions for static profit-maximizing rate and the maximization of discounted net benefits (welfare}are estimated. The New York State health standard of 7 ppb is associated with a pesticide application rate less than one-tenth the profit-maximizing rate and it contamination at about $1.5 million. Simulations indicate that the average concentration of aldicarb is not expected to decline below 7 ppb until 1996.

Suggested Citation

  • Conrad, Jon M. & Olson, Lars J., 1990. "The Economics Of A Stock Pollutant: Aldicarb On Long Island," Working Papers 6328, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:6328
    DOI: 10.22004/ag.econ.6328
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/6328/files/wp90016.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.6328?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Spence, A Michael & Starrett, David, 1975. "Most Rapid Approach Paths in Accumulation Problems," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 388-403, June.
    2. Shechter, Mordechai, 1985. "An anatomy of a groundwater contamination episode," Journal of Environmental Economics and Management, Elsevier, vol. 12(1), pages 72-88, March.
    3. Vernon L. Smith, 1972. "Dynamics of Waste Accumulation: Disposal versus Recycling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(4), pages 600-616.
    4. Edwards, Steven F., 1988. "Option prices for groundwater protection," Journal of Environmental Economics and Management, Elsevier, vol. 15(4), pages 475-487, December.
    5. Robert L. Raucher, 1986. "The Benefits and Costs of Policies Related to Groundwater Contamination," Land Economics, University of Wisconsin Press, vol. 62(1), pages 33-45.
    6. Lichtenberg, Erik & Zilberman, David & Bogen, Kenneth T., 1989. "Regulating environmental health risks under uncertainty: Groundwater contamination in California," Journal of Environmental Economics and Management, Elsevier, vol. 17(1), pages 22-34, July.
    7. C. G. Plourde, 1972. "A Model of Waste Accumulation and Disposal," Canadian Journal of Economics, Canadian Economics Association, vol. 5(1), pages 119-125, February.
    8. Glen D. Anderson & James J. Opaluch & W. Michael Sullivan, 1985. "Nonpoint Agricultural Pollution: Pesticide Contamination of Groundwater Supplies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(5), pages 1238-1243.
    9. Keeler, Emmett & Spence, Michael & Zeckhauser, Richard, 1972. "The optimal control of pollution," Journal of Economic Theory, Elsevier, vol. 4(1), pages 19-34, February.
    10. Kitabatake, Yoshifusa, 1989. "Optimal exploitation and enhancement of environmental resources," Journal of Environmental Economics and Management, Elsevier, vol. 16(3), pages 224-241, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Conrad, Klaus, 2001. "The Optimal Path of Energy and CO2 Taxes for Intertemporal Resource Allocation," Discussion Papers 602, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    2. Nkonya, Ephraim M. & Featherstone, Allen M., 2000. "Determining Socially Optimal Nitrogen Application Rates Using A Delayed Response Model: The Case Of Irrigated Corn In Western Kansas," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-15, December.
    3. Easter, K. William & Yadav, Satya N., 1995. "OPTIMUM NITROGEN USE UNDER GROUNDWATER POLLUTION CONSTRAINTS; Proceedings of the 4th Minnesota Padova Conference on Food, Agriculture, and the Environment, September 4-10, 1994, Wayzata, MN," Working Papers 14474, University of Minnesota, Center for International Food and Agricultural Policy.
    4. Michael Toman & Karen Palmer, 1997. "How should an accumulative toxic substance be banned?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(1), pages 83-102, January.
    5. Knapp, Keith C. & Franklin, Bradley, 2012. "Sustainability Economics of Groundwater Usage and Management," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124959, Agricultural and Applied Economics Association.
    6. Yusuke Kuwayama & Nicholas Brozović, 2017. "Optimal Management of Environmental Externalities with Time Lags and Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 473-499, November.
    7. 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(3), pages 1-26, December.
    8. Toman, Michael A. & Withagen, Cees, 2000. "Accumulative pollution, "clean technology," and policy design," Resource and Energy Economics, Elsevier, vol. 22(4), pages 367-384, October.
    9. Gopalakrishnan, Sathya & Liu, Hongxing, 2018. "Land-lake Dynamics: Are there Welfare Gains from Targeted Policies in a Heterogeneous Landscape," 2018 Annual Meeting, August 5-7, Washington, D.C. 274310, Agricultural and Applied Economics Association.
    10. Silke Gabbert & Arianne de Blaeij & Joris T. K. Quik & Joost Bakker & Joop de Knecht & Eric Verbruggen & Richard Luit, 2023. "Can cost‐effectiveness analysis of control measures for persistent chemicals be improved? A critical evaluation of approaches for assessing “effectiveness”," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 155-169, February.
    11. Aaron M. Cook & James S. Shortle, 2022. "Pollutant Trading with Transport Time Lags," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(2), pages 355-382, June.
    12. Olli Tahvonen, 1995. "Dynamics of pollution control when damage is sensitive to the rate of pollution accumulation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(1), pages 9-27, January.
    13. Poe, Gregory, 1997. ""Maximizing the Environmental Benefits per Dollar Expended" An Economic Interpretation and Review of Agricultural Environmental Benefits and Costs," EB Series 186405, Cornell University, Department of Applied Economics and Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Holger Wacker, 1987. "Die optimale Allokation von Arbeit in Abfallbehandlungsaktivitäten," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 123(IV), pages 467-481, December.
    2. Newell, Richard G. & Pizer, William A., 2003. "Regulating stock externalities under uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 416-432, March.
    3. Nathaniel O. Keohane & Benjamin Van Roy & Richard J. Zeckhauser, 2000. "Controlling Stocks and Flows to Promote Quality: The Environment, With Applications to Physical and Human Capital," NBER Working Papers 7727, National Bureau of Economic Research, Inc.
    4. Dominique Prunetti, 1998. "Taxation dynamique dans le cadre d'une industrie polluante concurrentielle et de deux variables de contrôle," Revue d'Économie Industrielle, Programme National Persée, vol. 83(1), pages 167-181.
    5. Keohane, Nathaniel & Van Roy, Benjamin & Zeckhauser, Richard, 2005. "The Optimal Management of Environmental Quality with Stock and Flow Controls," Working Paper Series rwp05-042, Harvard University, John F. Kennedy School of Government.
    6. Tsur, Yacov & Zemel, Amos, 1998. "Pollution control in an uncertain environment," Journal of Economic Dynamics and Control, Elsevier, vol. 22(6), pages 967-975, June.
    7. Giuseppe Di Vita, 2004. "Natural Resources Dynamics: Another Look," Working Papers 2004.110, Fondazione Eni Enrico Mattei.
    8. B. A. Forster, 1973. "Optimal Consumption Planning in a Polluted Environment," The Economic Record, The Economic Society of Australia, vol. 49(4), pages 534-545, December.
    9. Fisher, Anthony C & Peterson, Frederick M, 1976. "The Environment in Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 14(1), pages 1-33, March.
    10. Conrad, Klaus, 2001. "The Optimal Path of Energy and CO2 Taxes for Intertemporal Resource Allocation," Discussion Papers 602, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    11. Poe, Gregory L. & Bishop, Richard C., 1992. "Measuring the Benefits of Groundwater Protection from Agricultural Contamination: Results from a Two-Stage Contingent Valuation Study," Staff Papers 200549, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    12. Lafforgue, Gilles & Lorang, Etienne, 2022. "Recycling under environmental, climate and resource constraints," Resource and Energy Economics, Elsevier, vol. 67(C).
    13. Di Vita, Giuseppe, 2008. "Capital accumulation, interest rate, and the income-pollution pattern. A simple model," Economic Modelling, Elsevier, vol. 25(2), pages 225-235, March.
    14. Pongkijvorasin, Sittidaj & Pitafi, Basharat A.K. & Roumasset, James A., 2006. "Pricing Resource Extraction With Stock Externalities," 2006 Annual meeting, July 23-26, Long Beach, CA 21340, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Anni Huhtala, 1997. "A Post-Consumer Waste Management Model for Determining Optimal Levels of Recycling and Landfilling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(3), pages 301-314, October.
    16. Aaron M. Cook & James S. Shortle, 2022. "Pollutant Trading with Transport Time Lags," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(2), pages 355-382, June.
    17. James BARRETT & Kathleen SEGERSON, "undated". "Prevention And Treatment In Food Safety: An Analysis Of Conceptual Issues," Department of Resource Economics Regional Research Project 9521, University of Massachusetts.
    18. Mark Eiswerth & Wayne Johnson, 2002. "Managing Nonindigenous Invasive Species: Insights from Dynamic Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 319-342, November.
    19. Baumgärtner, Stefan & Jöst, Frank & Winkler, Ralph, 2009. "Optimal dynamic scale and structure of a multi-pollution economy," Ecological Economics, Elsevier, vol. 68(4), pages 1226-1238, February.
    20. Marc Leandri & Mabel Tidball, 2017. "Assessing the sustainability of optimal pollution paths in a world with inertia," Working Papers 2017.10, FAERE - French Association of Environmental and Resource Economists.

    More about this item

    Keywords

    Environmental Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:cudawp:6328. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dacorus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.