Spatial Heterogeneity and the Choice of Instruments to Control Nonpoint Pollution

JunJie Wu, Bruce A. Babcock
September 1996  [96-WP 164]

Designing policies to control conjoint pollution poses several difficulties for environmental authorities. This study aims to provide general conditions under which the relative efficiency of input-use taxes and standards can be judged in the presence of spatial heterogeneity. It also shows how consideration of prohibitive taxes on low-productivity land and nonbinding standards on low-input land affect the relative efficiency.

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