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Regulating nonpoint source pollution under heterogeneous conditions

Because of difficulties in measuring effluent from nonpoint pollution, proposals for regulating agricultural runoff often suggest instruments applied to inputs or management practices. When pollution functions vary across sources, uniform input instruments cannot achieve a least-cost pollution reduc...

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Bibliographic Details
Published in:American journal of agricultural economics 1995-11, Vol.77 (4), p.1024-1032
Main Authors: Helfand, G.E. (University of California, Davis.), House, B.W
Format: Article
Language:English
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Summary:Because of difficulties in measuring effluent from nonpoint pollution, proposals for regulating agricultural runoff often suggest instruments applied to inputs or management practices. When pollution functions vary across sources, uniform input instruments cannot achieve a least-cost pollution reduction, but efficient instruments may be difficult to administer. In this paper we analyze lettuce production on two soils in California's Salinas Valley to consider empirical costs associated with uniform input taxes and regulations. The results suggest that uniform instruments may not be costly relative to an efficient baseline. Though taxes are more efficient, farmers have higher profits with regulations.
ISSN:0002-9092
1467-8276
DOI:10.2307/1243825