Administrative Costs and Instrument Choice for Stochastic Non-point Source Pollutants

Athanasios Kampas and Ben White

Environmental & Resource Economics, 2004, vol. 27, issue 2, 109-133

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. Copyright Kluwer Academic Publishers 2004

Keywords: instrument choice; nitrate pollution; non-point source pollutants; stochastic programming (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1023/B:EARE.0000017275.44350.e5

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