Administrative Costs and Instrument Choice for Stochastic Non-point Source Pollutants |
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Authors: | Athanasios Kampas Ben White |
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Institution: | (1) Macaulay Land Use Research Institute, Aberdeen, AB15, UK;(2) School of Agricultural and Resource Economics, University of Western Australia, 35 Stirling Highway, Crawley, WA, 6009, Australia (Author for correspondence) |
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Abstract: | This paper extends the empiricalanalysis of non-point source pollution to thecase where the pollutant is stochastic andalternative regulatory instruments havedifferent administrative costs. It also appliesa method of stochastic programming whereemissions are log-normally distributed. Forthe Kennet catchment in South West England werank a range of policies in terms of abatementcosts alone, and total costs (abatement andadministrative costs). On the basis ofabatement costs alone, a uniform emission taxis the cost minimising policy, but on the basisof total cost a nitrogen input tax is theleast-cost policy. Furthermore, the policyranking, based on total costs, changes as thereliability standard increases. |
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Keywords: | instrument choice nitrate pollution non-point source pollutants stochastic programming |
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