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The Economics of Nonpoint Source Pollution

Author

Listed:
  • Anastasios Xepapadeas

Abstract

Nonpoint source (NPS) pollution refers to the form of pollution where neither the source nor the size of specific emissions can be observed and identified with sufficient accuracy. In NPS pollution the ambient concentration of pollutants associated with the individually unobserved emissions is typically observed. NPS pollution due to agricultural run-off is a major source of water pollution, eutrophication and hypoxia. Due to informational asymmetries and stochastic effects, the use of traditional environmental policy instruments such as emission taxes or tradable quotas to regulate NPS pollution is very difficult. This chapter reviews the main theoretical approaches, up to the present, to the regulation of NPS pollution � input-based schemes, ambient schemes, and endogenous monitoring � and discusses issues associated with NPS pollution regulation and their relation to the theoretically proposed instruments.

Suggested Citation

  • Anastasios Xepapadeas, "undated". "The Economics of Nonpoint Source Pollution," DEOS Working Papers 1233, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:1233
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    1. is not listed on IDEAS
    2. Grenestam, Erik & Nordin, Martin, 2018. "Estimating the impact of agri-environmental payments on nutrient runoff using a unique combination of data," Land Use Policy, Elsevier, vol. 75(C), pages 388-398.
    3. Fausto Cavalli & Ahmad Naimzada & Enrico Moretto, 2023. "Dynamical analysis of evolutionary transition toward sustainable technologies," Working Papers 510, University of Milano-Bicocca, Department of Economics.
    4. Dieter Schmidtchen & Jenny Helstroffer & Christian Koboldt, 2021. "Regulatory failure and the polluter pays principle: why regulatory impact assessment dominates the polluter pays principle," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 109-144, January.
    5. Kathleen Segerson, 2013. "Voluntary Approaches to Environmental Protection and Resource Management," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 161-180, June.
    6. Xiaoling Zhu & Hio-Jung Shin, 2021. "Financial Analysis for Improving River Water Quality through Introduction of Organic Agriculture," Sustainability, MDPI, vol. 13(5), pages 1-15, March.
    7. Mark Agerton & Ben Gilbert & Gregory B. Upton Jr., 2021. "The Economics of Natural Gas Venting, Flaring and Leaking in U.S. Shale: An Agenda for Research and Policy," Working Papers 2021-02, Colorado School of Mines, Division of Economics and Business.
    8. Zhang, Fan & Fogarty, James, "undated". "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.
    9. Jorg Franke & Shasi Nandeibam, 2021. "Efficient Probabilistic Fines Under Negative Externalities," Department of Economics Working Papers 86/21, University of Bath, Department of Economics.
    10. Emmanuelle Augeraud-Véron & Catherine Choquet & Éloïse Comte, 2017. "Optimal Control for a Groundwater Pollution Ruled by a Convection–Diffusion–Reaction Problem," Journal of Optimization Theory and Applications, Springer, vol. 173(3), pages 941-966, June.
    11. Griesinger, Mark R. & Palm-Forster, Leah H. & Messer, Kent D. & Butler, Julianna & Fooks, Jacob, "undated". "Stewardship signaling and the power of using social pressures to reduce nonpoint source pollution," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259153, Agricultural and Applied Economics Association.
    12. Hansen, Lars Gårn, 2020. "A Montero payment mechanism for regulating non-point pollution emissions," Resource and Energy Economics, Elsevier, vol. 61(C).
    13. Wang, Jingjing, 2022. "Harnessing natural attenuation to reduce CAFOs nitrate emissions: An integrated modeling approach," Ecological Economics, Elsevier, vol. 199(C).
    14. Ming Gao & Fanlue Li & Meili Huan & Run Zhu & Zhaofeng Zheng & Ke He & Xiaoshi Zhou & Jinkai Li, 2025. "Long-term reduced agricultural nonpoint source pollution driven by rural population aging," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-17, December.
    15. J. Walter Milon, 2019. "The polluter pays principle and Everglades restoration," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 9(1), pages 67-81, March.
    16. Nery, Thayse & Polyakov, Maksym & Sadler, Rohan & White, Ben, 2019. "Spatial patterns of boom and bust forestry investment development: A case study from Western Australia," Land Use Policy, Elsevier, vol. 86(C), pages 67-77.
    17. Wu, Shang & Palm-Forster, Leah H. & Messer, Kent D., 2021. "Impact of peer comparisons and firm heterogeneity on nonpoint source water pollution: An experimental study," Resource and Energy Economics, Elsevier, vol. 63(C).
    18. Zilberman, David & Kaplan, Scott & Huang, Alice & Goldberg, Lanie, 2023. "Teaching Water Economics Using Dynamics and a Political Economy Framework," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 5(3), September.
    19. Michail Tsagris & Vangelis Tzouvelekas, 2021. "Nitrate Pollution and Efficiency Measurement in Intensive Farming Systems: A Parametric By-Production Technology Approach," Working Papers 2101, University of Crete, Department of Economics.
    20. Meilin Ma & Carson Reeling & Megan N Hughes & Shalamar Armstrong & Richard Roth, 2023. "Comparison of conservation instruments under long-run yield uncertainty and farmer risk aversion," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(5), pages 1685-1714.
    21. Fausto Cavalli & Enrico Moretto & Ahmad Naimzada, 2024. "Green transition and environmental quality: an evolutionary approach," Annals of Operations Research, Springer, vol. 337(3), pages 1009-1035, June.
    22. James Shortle & Richard D. Horan, 2013. "Policy Instruments for Water Quality Protection," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 111-138, June.
    23. 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.

    More about this item

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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