Pearce, David and Koundouri, Phoebe (2003): Diffuse Pollution and the Role of Agriculture. Published in: Water Sustainability and Regulation: The Next Periodic Review and Beyond (2003): pp. 125-153.
Download (284kB) | Preview
Agriculture contributes negative and positive externalities to society, that is, beneficial and detrimental changes in human wellbeing to third parties for which they are not generally compensated or charged. Beneficial externalities include the creation of amenity and landscape and negative externalities include pollution of surface and groundwater. In so far as parts of agricultural subsidies compensate for beneficial externalities, they are said to be 'internalised' and should not be the subject of further policy measures. However, agricultural subsidies also add to the negative externalities by expanding output and encouraging environmentally detrimental farming practices. Comprehensive attempts to value these externalities in the UK and to compare them to the true value added of the agricultural sector are to be found in Hartridge and Pearce (2002) and Pretty et al. (2000). A particular feature of the negative externalities is the damage done by nutrient pollution and by pesticides. Nutrient pollution refers to water pollution mainly from nitrates and phosphorus, concentrations being elevated by leaching from soils of fertilisers and animal manure and slurry. A similar leaching process occurs with pesticides. Significant repositories for these leached pollutants are surface waters and groundwater.
|Item Type:||MPRA Paper|
|Original Title:||Diffuse Pollution and the Role of Agriculture|
|English Title:||Diffuse Pollution and the Role of Agriculture|
|Keywords:||diffuse pollution, agriculture, UK|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products
|Depositing User:||Phoebe Koundouri|
|Date Deposited:||01. Oct 2012 13:42|
|Last Modified:||23. Apr 2015 17:51|
Abrahams, N.A., and Shortle, J.S. Choosing between compliance measures and instruments in nonpoint pollution control. Forthcoming, Environmental and Economic Review.
Andersen, M.S., Dengsoe, N and Pedersen, A B. 2001. An Evaluation of the Impact of Green Taxes in the Nordic Countries. Copenhagen: Nordic Council of Ministers.
Archer, D and Shogren, J.S., 2001. Risk-indexed herbicide taxes to reduce ground and surface water pollution: an integrated ecological economics evaluation, Ecological Economics, 38, 227-250
Backman,S. 1999. Literature review on levies and permits, in H.van Zeijts (ed), Economic Instruments for Nitrogen Control in European Agriculture, Utrecht: Centre for Agriculture and Environment
Bailey, A and Rapsomanikis, G. 1999. Producer response to the taxation of pesticide inputs in UK arable agriculture: a profit function approach, Agricultural Economics and Business Management, Wye College, mimeo.
Baumol, W.B., and Oates, W.E, 1988. The Theory of Environmental Policy, Cambridge: Cambridge University Press,.
Bolt, K. 2000. Design of a Differentiated Tax for Pesticides, M.Sc Thesis, Economics, University College London
Brännlund, R and Gren, I-M, 1999. Green taxes in Sweden: a partial equilibrium analysis of the carbon tax and the tax on nitrogen in fertiliser, in Brännlund, R and Gren, I-M (eds), Gren Taxes: Economic Theory and Empirical Evidence from Scandinavia, Cheltenham: Edward Elgar, 109-135
Brännlund, R and Kristrom, B., 1999. Economic Instruments in Environmental Policy in the Nordic Countries, Arbetsrapport 277. Umea: Umea University.
Carpentier, A., 1994. Quoted in ECOTEC (1997).
Daugbjerg, C., 2000. Why the Swedes but not the Danes tax fertiliser: a comparison of policy networks and political parties, in Skou Andersen, M and Sprenger, R-U (eds), Market-based Instruments for Environmental Management: Politics and Institutions. Cheltenham: Edward Elgar, 125-146
DEFRA, 2001. The Protection of Waters Against Agricultural Nitrate Pollution in England: How Should England Implement the 1991 Nitrates Directive? London: Department of the Environment, Food and Rural Affairs
Dosi C., and Moretto M., 1994. Non Point-Source Environmental Externalities and Polluter's Site Quality Standards under Incomplete Information, in C. Dosi and T. Tomasi (eds.), Non Point-Source Pollution Control: Issues and Analysis. Boston: Kluwer, pp. 107-136.
Dosi C., and Moretto M., 1993. Non Point-Source Pollution Maintenance Policy and the Choice of Time Profile for Environmental Fees, in C.S.Russell and J.F.Shogren (eds.), Theory, Modelling and Experience in the Management of Nonpoint-Source Pollution. Boston: Kluwer, pp. 91-121.
Dosi, C and Zeitouni, N. 2000. Controlling Groundwater Pollution From Agricultural Non-Point Sources: An Overview Of Policy Instruments, Nota di Lavoro 103.2000. Milan: FEEM
Dubgaard, A., 1991. Pesticide regulation in Denmark, in N.Hanley (ed), Farming and the Countryside: An Economic Analysis of the External Costs and Benefits, Wallingford: CAB International, 48-58.
ECOTEC, 1997. Economic Instruments for Pesticide Minimisation, London: Department of the Environment
ECOTEC, 1998. ECOTEC, University of Hertfordshire, the Central Science Library, EFTEC and the University of Newcastle upon Tyne, 1999. Design of a Tax or Charge Scheme for Pesticides. London: Department of the Environment, Transport and Regions.
EFTEC, CSERGE and ENTEC, 2002. The Potential Cost and Effectiveness of Voluntary Measures in Reducing the Environmental Impact of Pesticides. London: The Stationery Office, and at www.defra.gov.uk
Faeth, P. 1993. Agricultural Policy and Sustainability: Case Studies from India, Chile, the Philippines and the United States. Washington, DC: World Resources Institute
Faeth, P., 1995. Growing Green: Enhancing the Economic and Environmental Performance of U.S. Agriculture. Washington, DC: World Resources Institute.
Faeth, P., 2000. Fertile Ground: Nutrient Trading’s Potential to Cost-Effectively Improve Water Quality. Washington, DC: World Resources Institute.
Foster, V., Mourato, S., Tinch, R., Ozdemiroglu, E., and Pearce, D. W., 1998. Incorporating external impacts in pest management choices, in W.Vorley and D.Keeney (eds), Bugs in the System: Redesigning the Pesticide Industry for Sustainable Agriculture, Earthscan, London
Groom, B., Koundouri, P., Nauges, C., and Thomas, A., 2001. Stochastic Technology and Risk Attitudes in Agricultural Production. Second World Congress of Environmental and Resource Economists, 2002, June 24-27, Monterey, California.
Griffin, R.C., and Bromley, D.W., 1982. Agricultural runoff as a non-point externality: a theoretical development, American Journal of Agricultural Economics, 64: 547-52.
Gren, I-M., 1994. Regulating the farmers' use of pesticides in Sweden, in J.Opschoor and R Turner (eds), Economic Incentives and Environmental Policies: Principles and Practice, Dordrecht: Kluwer, 153-174
Hanley, N., Shogren, J., White, B., 1997. Environmental Economics in Theory and Practice. Oxford: Oxford University Press.
Hansen, J., 1999. Green tax reform in Denmark, in K. Schlegelmilch (ed), Green Budget Reform in Europe, Springer Verlag, Berlin: 51-66
Hartridge, O and Pearce, D.W., 2002. Is UK agriculture sustainable? Environmentally adjusted economic accounts for UK agriculture. CSERGE, University College London, mimeo.
Horan, R., and Shortle., J.S., 1999. Optimal management of multiple renewable resource stocks with an application to Minke whales. Environmental and Resource Economics, 13: 435-458.
Horan, R., Shortle, J.S., and Abler, D., 1998. Ambient taxes when polluters have multiple choices. Journal of Environmental Economics and Management, 36: 186-199.
Horan, R and Shortle, J., 2001. Environmental instruments for agriculture, in J.Shortle and D Abler (eds), Environmental Policies for Agricultural Pollution Control, Wallingford: CAB International, 19-66
Jonsson, O., Lőfgren, K., Nystrőm, S and Vilborg, I. 1997. Environmental Taxes in Sweden - Economic Instruments and Environmental Policy, Stockholm: Swedish Environmental Protection Agency.
Miceli, T.J. and Segerson, K., 1994. Regulatory takings: when should compensation be paid? Journal of Legal Studies, 23(3): 749-776
Nordic Council of Ministers, 1996. The Use of Economic Instruments in Nordic Environmental Policy, Nordic Council: Copenhagen. OECD, 1995. Environmental Taxes in OECD Countries. Paris: Organisation for Economic Cooperation and Development.
OECD, 1998. Voluntary Approaches for Environmental Protection in the European Union. Paris: Organisation for Economic Cooperation and Development.
Oskam, A.J., 1995. The Economics of Pesticides: an Overview of the Issues, Department of Agricultural Economics, Wageningen University, Wageningen, mimeo.
Pearce, D.W., 2002. What have we learned from the UK's experience with market-based instruments? In S.Scott and D.McCoy, Green and Bear It: Implementing Market-based Instruments for Ireland's Environment. Dublin: Economic and Social Research Institute 7-20
Pretty, J., Brett, C., Gee, D., Hine, R., Mason, C., Morison, J., Raven,H., Rayment,M and van der Bijl, G., 2000. An assessment of the total external costs of UK agriculture, Agricultural Systems, 65(2), 113-136
Rougoor, C., van Zeitjts, H., Hofreither, M. and Bäckman, S., 2001. Experiences with fertiliser taxes in Europe, Journal of Environmental Planning and Management, 44(6), 877-887
Segerson, K and Miceli, T. 1998. Voluntary environmental agreements: good or bad news for environmental protection? Journal of Environmental Economics and Management, 36, 109-130.
Shortle, J. and Horan, R., 2001. The economics of nonpoint pollution. Journal of Economic Surveys, 15 :255-290.
Shortle, J and Abler, D. 1997. Non-point pollution, in H.Folmer and T.Tietenberg (eds), International Yearbook of Environmental and Natural Resource Economics 1997-1998: a Survey of Current Issues, Cheltenham: Edward Elgar, 114-155
Shortle, J.S., and Dunn, J.W., 1986. The relative efficiency of agricultural source water pollution controls. American Journal of Agricultural Economics, 68: 668-677.
Shortle, J and Laughland, A., 1994. Impacts of taxes to reduce agrochemical use when farm policy is endogenous, Journal of Agricultural Economics, 45(1), 3-14
ten Brink, P., 2002. Voluntary Environmental Agreements: Process, Practice and Future Use. Sheffield: Greenleaf
US EPA, 2001. The United States Experience with Economic Incentives for Protecting the Environment, National Center for Environmental Economics, Washington DC: US Environmental Protection Agency. www.yosemite.epa.gov/ee/eed.nsf
van den Bergh, J., Button, K., Nijkamp, P and Pepping, G., 1997. Meta-Analysis in Environmental Economics, Dordrecht: Kluwer
Young, T and Karkoski, J., 2000. Green evolution: are economic incentives the next step in nonpoint source pollution control? Water Policy, 2, 151-173.
Xepapadeas, A.P., 1991. Environmental policy under imperfect information: incentives and moral hazard. Journal of Environmental Economics and Management, 20: 113-126.
Xepapadeas, A.P., 1992. Environmental policy design and dynamic nonpoint-source pollution. Journal of Environmental Economics and Management, 23: 22-39.