Nutrient Allowances Market and Wetland Abatement
The buffering function of wetlands is one of the most efficient mechanisms for regulating agricultural runoffs and water pollution. The aim of this paper is to show how farmers could use wetland abatement as a way to achieve pollution targets set by a regulator in a nutrient allowance market. The introduction of allowances into farmers’ maximisation programs creates an incentive to either reduce fertilizer use per hectare of crops, or to restore wetlands on agricultural land. Comparative statics results express a negative correlation between the quantity of allowances per farmer and the fertilizer use. Furthermore, the quantity of allowances per farmer is negatively correlated to the wetland surface area.
|Date of creation:||May 2014|
|Contact details of provider:|| Web page: http://www.faere.fr|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ribaudo, Marc O. & Heimlich, Ralph & Claassen, Roger & Peters, Mark, 2001. "Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin," Ecological Economics, Elsevier, vol. 37(2), pages 183-197, May.
- Marcoul, Philippe, 2002.
"Information Sharing and Oligopoly in Agricultural Markets: The Role of Bargaining Associations,"
Staff General Research Papers Archive
10029, Iowa State University, Department of Economics.
- Brent Hueth & Philippe Marcoul, 2002. "Information Sharing and Oligopoly in Agricultural Markets: The Role of Bargaining Associations," Center for Agricultural and Rural Development (CARD) Publications 02-wp313, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Kahn, James R. & Kemp, W. Michael, 1985. "Economic losses associated with the degradation of an ecosystem: The case of submerged aquatic vegetation in Chesapeake Bay," Journal of Environmental Economics and Management, Elsevier, vol. 12(3), pages 246-263, September.
- Line Hansen & Lars Hansen, 2014.
"Can Non-point Phosphorus Emissions from Agriculture be Regulated Efficiently Using Input-Output Taxes?,"
Environmental & Resource Economics,
Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 109-125, May.
- Line Block Hansen & Lars Gårn Hansen, 2012. "Can Non-point Phosphorus Emissions from Agriculture be Regulated efficiently using Input-Output Taxes?," IFRO Working Paper 2012/4, University of Copenhagen, Department of Food and Resource Economics.
- Sen, Anindya & Dutt, Amitava Krishna, 1995. "Wage bargaining, imperfect competition and the markup: Optimizing microfoundations," Economics Letters, Elsevier, vol. 48(1), pages 15-20, April.
- Bystrom, Olof & Andersson, Hans & Gren, Ing-Marie, 2000. "Economic criteria for using wetlands as nitrogen sinks under uncertainty," Ecological Economics, Elsevier, vol. 35(1), pages 35-45, October.
- Simonit, Silvio & Perrings, Charles, 2011. "Sustainability and the value of the 'regulating' services: Wetlands and water quality in Lake Victoria," Ecological Economics, Elsevier, vol. 70(6), pages 1189-1199, April.
- Heberling, Matthew T. & García, Jorge H. & Thurston, Hale W., 2010. "Does encouraging the use of wetlands in water quality trading programs make economic sense?," Ecological Economics, Elsevier, vol. 69(10), pages 1988-1994, August.
- Cason, Timothy N. & Gangadharan, Lata & Duke, Charlotte, 2003.
"A laboratory study of auctions for reducing non-point source pollution,"
Journal of Environmental Economics and Management,
Elsevier, vol. 46(3), pages 446-471, November.
- Cason, Timothy N. & Gangadharan, Lata & Duke, Charlotte, 2002. "A Laboratory Study of Auctions for Reducing Non-Point Source Pollution," 2002 Conference (46th), February 13-15, 2002, Canberra 174066, Australian Agricultural and Resource Economics Society.
- Katarina Elofsson, 2011. "Delegation of Decision-Rights for Wetlands," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(2), pages 285-303, October.
- Dionysis Latinopoulos & Eftichios Sartzetakis, 2011. "Optimal Exploitation of Groundwater and the Potential for a Tradable Permit System in Irrigated Agriculture," Working Papers 2011.26, Fondazione Eni Enrico Mattei.
- Jean-Christophe Pereau & Nicolas Sanz, 2011. "Bycatch ITQ Management in Oligopolistic Fisheries," Documents de Travail 2011-05, CEREGMIA, Université des Antilles et de la Guyane.
When requesting a correction, please mention this item's handle: RePEc:fae:wpaper:2014.06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mireille Chiroleu-Assouline)
If references are entirely missing, you can add them using this form.