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Marketable Pollution Risk: A Potential Policy For Agriculture

Author

Listed:
  • Aihoon, J. Kojo
  • Groenewald, Jan A.
  • Sartorius von Bach, Helmke J.

Abstract

Pollution reduces society's welfare, and efforts to minimise it may be costly. The "polluter pays" principle can be used to determine optimum levels where marginal gains of abatement equal marginal cost. It is possible to involve insurance for this purpose; there are reasons to expect pollution insurance to be more efficient than most other proposals. However, compulsion is needed for such a market to develop, and to forestall non-insurance and default by polluters.

Suggested Citation

  • Aihoon, J. Kojo & Groenewald, Jan A. & Sartorius von Bach, Helmke J., 1995. "Marketable Pollution Risk: A Potential Policy For Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 34(4), December.
    • Handle: RePEc:ags:agreko:267845
    DOI: 10.22004/ag.econ.267845
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    References listed on IDEAS

    as
    1. Dockel, J. A., 1971. "Macro Resource Planning and adjustment," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 10(1), January.
    2. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, October.
    3. Dinar, Ariel & Knapp, Keith C. & Letey, J., 1989. "Irrigation water pricing policies to reduce and finance subsurface drainage disposal," Agricultural Water Management, Elsevier, vol. 16(1-2), pages 155-171, August.
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    Keywords

    Agricultural and Food Policy; Marketing;

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