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Efficient Management of Coastal Marine Nutrient Loads with Multiple Sources of Abatement Instruments

Author

Listed:
  • Kimberly Burnett

    (UHERO)

  • James Roumasset

    (UHERO, and Department of Economics, University of Hawaii at Manoa)

  • Christopher Wada

    (UHERO)

Abstract

Pollution management based on marginal abatement costs is optimal only if those abatement costs are specified correctly. Using the example of nitrogen pollution in groundwater, we show that the marginal abatement cost function for any given pollution source can be directly derived from a social-welfare maximization problem, wherein controls include both abatement instruments and inputs to pollution-generating production of a good or service. The solution to the optimization model reveals that abatement instruments for each source should be used in order of least marginal abatement cost, and the sources should in turn abate in order of least cost. The least-cost result remains optimal, even when the abatement target is exogenously determined.

Suggested Citation

  • Kimberly Burnett & James Roumasset & Christopher Wada, 2011. "Efficient Management of Coastal Marine Nutrient Loads with Multiple Sources of Abatement Instruments," Working Papers 2011-3, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2011-3
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    References listed on IDEAS

    as
    1. Goetz, Renan U. & Zilberman, David, 2000. "The dynamics of spatial pollution: The case of phosphorus runoff from agricultural land," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 143-163, January.
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    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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