The performance of compliance measures and instruments for nitrate nonpoint pollution control under uncertainty and alternative agricultural commodity policy regimes

Nii Adote Abrahams, James S. Shortle

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Following Weitzman (1974), there is ample theoretical literature indicating that choice of pollution control instruments under conditions of uncertainty will affect the expected net benefits that can be realized from environmental protection. However, there is little empirical research on the ex ante efficiency of alternative instruments for controlling water, or other types of pollution, under uncertainty about costs and benefits. Using a simulation model that incorporates various sources of uncertainty, the ex ante efficiency of price and quantity controls applied to two alternative policy targets, fertilizer application rates and estimated excess nitrogen applications, are examined under varying assumptions about agricultural income support policies. Results indicate price instruments outperform quantity instruments. A tax on excess nitrogen substantially outperforms a fertilizer tax in the scenario with support programs, while the ranking is reversed in the scenario without support programs.

Original languageEnglish (US)
Pages (from-to)79-90
Number of pages12
JournalAgricultural and Resource Economics Review
Volume33
Issue number1
DOIs
StatePublished - Apr 2004

Fingerprint

nonpoint source pollution
pollution control
agricultural products
compliance
uncertainty
nitrates
taxes
agricultural income
environmental protection
nitrogen
application rate
simulation models
fertilizer application
pollution
fertilizers
Nonpoint pollution
Uncertainty
Pollution control
Nitrate
Agricultural commodities

All Science Journal Classification (ASJC) codes

  • Agronomy and Crop Science
  • Economics and Econometrics

Cite this

@article{ab5526cfd9ca4e678f4b9075640ef2c2,
title = "The performance of compliance measures and instruments for nitrate nonpoint pollution control under uncertainty and alternative agricultural commodity policy regimes",
abstract = "Following Weitzman (1974), there is ample theoretical literature indicating that choice of pollution control instruments under conditions of uncertainty will affect the expected net benefits that can be realized from environmental protection. However, there is little empirical research on the ex ante efficiency of alternative instruments for controlling water, or other types of pollution, under uncertainty about costs and benefits. Using a simulation model that incorporates various sources of uncertainty, the ex ante efficiency of price and quantity controls applied to two alternative policy targets, fertilizer application rates and estimated excess nitrogen applications, are examined under varying assumptions about agricultural income support policies. Results indicate price instruments outperform quantity instruments. A tax on excess nitrogen substantially outperforms a fertilizer tax in the scenario with support programs, while the ranking is reversed in the scenario without support programs.",
author = "Abrahams, {Nii Adote} and Shortle, {James S.}",
year = "2004",
month = "4",
doi = "10.1017/S1068280500005657",
language = "English (US)",
volume = "33",
pages = "79--90",
journal = "Agricultural and Resource Economics Review",
issn = "1068-2805",
publisher = "Northeastern Agricultural and Resource Economics Association",
number = "1",

}

TY - JOUR

T1 - The performance of compliance measures and instruments for nitrate nonpoint pollution control under uncertainty and alternative agricultural commodity policy regimes

AU - Abrahams, Nii Adote

AU - Shortle, James S.

PY - 2004/4

Y1 - 2004/4

N2 - Following Weitzman (1974), there is ample theoretical literature indicating that choice of pollution control instruments under conditions of uncertainty will affect the expected net benefits that can be realized from environmental protection. However, there is little empirical research on the ex ante efficiency of alternative instruments for controlling water, or other types of pollution, under uncertainty about costs and benefits. Using a simulation model that incorporates various sources of uncertainty, the ex ante efficiency of price and quantity controls applied to two alternative policy targets, fertilizer application rates and estimated excess nitrogen applications, are examined under varying assumptions about agricultural income support policies. Results indicate price instruments outperform quantity instruments. A tax on excess nitrogen substantially outperforms a fertilizer tax in the scenario with support programs, while the ranking is reversed in the scenario without support programs.

AB - Following Weitzman (1974), there is ample theoretical literature indicating that choice of pollution control instruments under conditions of uncertainty will affect the expected net benefits that can be realized from environmental protection. However, there is little empirical research on the ex ante efficiency of alternative instruments for controlling water, or other types of pollution, under uncertainty about costs and benefits. Using a simulation model that incorporates various sources of uncertainty, the ex ante efficiency of price and quantity controls applied to two alternative policy targets, fertilizer application rates and estimated excess nitrogen applications, are examined under varying assumptions about agricultural income support policies. Results indicate price instruments outperform quantity instruments. A tax on excess nitrogen substantially outperforms a fertilizer tax in the scenario with support programs, while the ranking is reversed in the scenario without support programs.

UR - http://www.scopus.com/inward/record.url?scp=8344266180&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=8344266180&partnerID=8YFLogxK

U2 - 10.1017/S1068280500005657

DO - 10.1017/S1068280500005657

M3 - Article

AN - SCOPUS:8344266180

VL - 33

SP - 79

EP - 90

JO - Agricultural and Resource Economics Review

JF - Agricultural and Resource Economics Review

SN - 1068-2805

IS - 1

ER -