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Regulating Nonpoint Source Pollution Under Heterogeneous Conditions

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  • Gloria E. Helfand
  • Brett W. House
Abstract
Because of difficulties in measuring effluent from nonpoint pollution, proposals for regulating agricultural runoff often suggest instruments applied to inputs or management practices. When pollution functions vary across sources, uniform input instruments cannot achieve a least-cost pollution reduction, but efficient instruments may be difficult to administer. In this paper we analyze lettuce production on two soils in California's Salinas Valley to consider empirical costs associated with uniform input taxes and regulations. The results suggest that uniform instruments may not be costly relative to an efficient baseline. Though taxes are more efficient, farmers have higher profits with regulations.

Suggested Citation

  • Gloria E. Helfand & Brett W. House, 1995. "Regulating Nonpoint Source Pollution Under Heterogeneous Conditions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 1024-1032.
  • Handle: RePEc:oup:ajagec:v:77:y:1995:i:4:p:1024-1032.
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    File URL: http://hdl.handle.net/10.2307/1243825
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