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The Impacts Of Allocation Strategies For Spatially Regulated Chemical Use


  • Lynch, Lori
  • Carpenter, Janet


Spatial regulations can restrict chemical use more efficiently by linking benefits to the costs. California has instituted such a spatially based regulation of an agricultural fumigant to meet air quality standards. We examine the implications of alternative allocation mechanisms: use allocated based on a first come, first served basis; on quotas linked to historical use; and on the highest-value use. Although there are distributional impacts by crop, the overall change in aggregate value from using a highest value use mechanism rather than a first come, first served approach is estimated to be less than nine million.

Suggested Citation

  • Lynch, Lori & Carpenter, Janet, 2001. "The Impacts Of Allocation Strategies For Spatially Regulated Chemical Use," Working Papers 28576, University of Maryland, Department of Agricultural and Resource Economics.
  • Handle: RePEc:ags:umdrwp:28576
    DOI: 10.22004/ag.econ.28576

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    1. Deepak, M.S. & Spreen, Thomas H. & VanSickle, John J., 1996. "An Analysis Of The Impact Of A Ban Of Methyl Bromide On The U.S. Winter Fresh Vegetable Market," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-11, December.
    2. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, December.
    3. repec:ags:joaaec:v:28:y:1996:i:2:p:433-43 is not listed on IDEAS
    4. Taylor, C. Robert & Lacewell, Ronald D. & Talpaz, Hovav, 1979. "Use Of Extraneous Information With An Econometric Model To Evaluate Impacts Of Pesticide Withdrawals," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 4(1), pages 1-8, July.
    5. Erik Lichtenberg & Douglas D. Parker & David Zilberman, 1988. "Marginal Analysis of Welfare Costs of Environmental Policies: The Case of Pesticide Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(4), pages 867-874.
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    Environmental Economics and Policy;


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