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Tradable Permits for Controlling Nitrates in Groundwater at the Farm Level: A Conceptual Model

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  • Morgan, Cynthia L.
  • Coggins, Jay S.
  • Eidman, Vernon R.

Abstract

Nitrate contamination of municipal and domestic well water supplies is becoming an increasing problem in many rural and urban areas, raising the cost of providing safe drinking water. The objective of this paper is to describe a marketable permit scheme that can effectively manage nitrate pollution of groundwater supplies for communities in rural areas without hindering agricultural production in watersheds. The key to implementing this scheme is being able to link nitrate leaching from nitrogen fertilizer applied to crops at a farm to nitrate levels measured at a drinking water well.

Suggested Citation

  • Morgan, Cynthia L. & Coggins, Jay S. & Eidman, Vernon R., 2000. "Tradable Permits for Controlling Nitrates in Groundwater at the Farm Level: A Conceptual Model," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(2), pages 249-258, August.
    • Handle: RePEc:cup:jagaec:v:32:y:2000:i:02:p:249-258_02
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    References listed on IDEAS

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    1. Jia Hua Pan & Ian Hodge, 1994. "Land Use Permits As An Alternative To Fertiliser And Leaching Taxes For The Control Of Nitrate Pollution," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 102-112, January.
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    6. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
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    Cited by:

    1. Sergey S. Rabotyagov & Adriana M. Valcu & Catherine L. Kling, 2014. "Reversing Property Rights: Practice-Based Approaches for Controlling Agricultural Nonpoint-source Water Pollution When Emissions Aggregate Nonlinearly," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(2), pages 397-419.
    2. Scott Steele, 2010. "An Organisational Discussion of Incomplete Contracting and Transaction Costs in Conservation Contracts," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 163-174, February.
    3. Richard T. Woodward & Ronald A. Kaiser, 2002. "Market Structures for U.S. Water Quality Trading," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 366-383.
    4. R. Ranga Prabodanie & John Raffensperger & E. Read & Mark Milke, 2014. "LP models for pricing diffuse nitrate discharge permits," Annals of Operations Research, Springer, vol. 220(1), pages 87-109, September.
    5. R. Prabodanie & John Raffensperger & Mark Milke, 2010. "A Pollution Offset System for Trading Non-Point Source Water Pollution Permits," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(4), pages 499-515, April.
    6. Valcu, Adriana M. & Kling, Catherine L., 2011. "A POLLUTION TRADING SYSTEM WITH COST ASSYMETRY: An Application to Nonpoint Source Trading in the Boone River Watershed," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103719, Agricultural and Applied Economics Association.
    7. Xu, Meng & Grant-Muller, Susan, 2016. "Trip mode and travel pattern impacts of a Tradable Credits Scheme: A case study of Beijing," Transport Policy, Elsevier, vol. 47(C), pages 72-83.
    8. Valcu, Adriana Mihaela, 2013. "Agricultural nonpoint source pollution and water quality trading: empirical analysis under imperfect cost information and measurement error," ISU General Staff Papers 201301010800004451, Iowa State University, Department of Economics.

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