Spatial Heterogeneity and the Choice of Instruments to Control Nonpoint Pollution
JunJie Wu, Bruce A. Babcock
September 1996 [96-WP 164]
Wu, J. and B.A. Babcock. 1996. "Spatial Heterogeneity and the Choice of Instruments to Control Nonpoint Pollution." Working paper 96-WP 164. Center for Agricultural and Rural Development, Iowa State University.
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.