Probabilistic Cost Effectiveness in Agricultural Nonpoint Pollution Control

William T. McSweeny and James Shortle

Journal of Agricultural and Applied Economics, 1990, vol. 22, issue 1, 95-104

Abstract: Conceptual weaknesses in the use of costs of average abatement as a measure of the cost effectiveness of agricultural nonpoint pollution control are examined. A probabilistic alternative is developed. The focus is on methods for evaluating whole-farm pollution control plans rather than individual practices. As a consequence, the analysis is presented in a chance-constrained activity analysis framework because activity analysis procedures are a practical and well developed device for screening farm plans. Reliability of control is shown to be as important as reduction targets in designing farm plans for pollution control. Furthermore, broad-axe prescriptions of technology in the form of Best Management Practices may perform poorly with respect to cost effectiveness.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:22:y:1990:i:01:p:95-104_00

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