THE IMPACTS OF ALLOCATION STRATEGIES FOR SPATIALLY REGULATED CHEMICAL USE

Lori Lynch and Janet Carpenter

No 28576, Working Papers from University of Maryland, Department of Agricultural and Resource Economics

Abstract: Spatial regulations can restrict chemical use more efficiently by linking benefits to the costs. California has instituted such a spatially based regulation of an agricultural fumigant to meet air quality standards. We examine the implications of alternative allocation mechanisms: use allocated based on a first come, first served basis; on quotas linked to historical use; and on the highest-value use. Although there are distributional impacts by crop, the overall change in aggregate value from using a highest value use mechanism rather than a first come, first served approach is estimated to be less than nine million.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 30
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:ags:umdrwp:28576

DOI: 10.22004/ag.econ.28576

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