Negative Pollution Taxes for Controlling Wind Erosion

Julie A. Bunn

Review of Agricultural Economics, 1999, vol. 21, issue 2, 306-318

Abstract: This article explores the use of a negative pollution tax to control erosion in semiarid agriculture. This tax operates on the setting of either one or two threshold levels. With two threshold levels, T-max identifies the maximum acceptable limit of pollution and T-min identifies the desirable or target level. Above T-max, fines or penalties are imposed; below T-min, the farm, county, or state is paid for their superior achievement. Although from a theoretical perspective the negative pollution tax has several attractive features, from an operational and political point of view many obstacles to its implementation must be surmounted.

Date: 1999
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