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Water Pollution and Abstraction and Economic Instruments

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  • Cowan, Simon

Abstract

The paper assesses the potential role for economic instruments in the regulation of water pollution and abstraction in the light of the UK government's discussion documents. Economic instruments offer the potential for greater cost efficiency in achieving environmental targets than existing command-and-control methods. Applying economic instruments in the water context, however, is complex, because the location of pollution sources is critical and because of the interactions between pollutants and between effluent and abstraction. Schemes for recycling tax revenue to polluters in ways which preserve the appropriate marginal incentives are examined, and the possibility of combining the existing quantitative controls with a tax scheme is explored. Copyright 1998 by Oxford University Press.

Suggested Citation

  • Cowan, Simon, 1998. "Water Pollution and Abstraction and Economic Instruments," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(4), pages 40-49, Winter.
    • Handle: RePEc:oup:oxford:v:14:y:1998:i:4:p:40-49
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    Cited by:

    1. Edward Calthrop, 2003. "On green production taxes," Economics Series Working Papers 158, University of Oxford, Department of Economics.
    2. Wang, Tao, 2006. "Cost Effectiveness in River Management: Evaluation of Integrated River Policy System in Tidal Ouse," Climate Change Modelling and Policy Working Papers 12054, Fondazione Eni Enrico Mattei (FEEM).
    3. Tao Wang, 2006. "Cost Effectiveness in River Management: Evaluation of Integrated River Policy System in Tidal Ouse," Working Papers 2006.142, Fondazione Eni Enrico Mattei.

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