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Schemes to Regulate Non-Point Water Pollution: Making Sense of Experimental Results

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  • Pushkarskaya, Helen N.

Abstract

Three theoretical non-point water pollution (NPS) control schemes were tested repeatedly in experimental studies tax-subsidy scheme (K. Segerson, 1988), collective fining (Xepapadeas, 1991) and random fining (Xepapadeas, 1991). Camacho and Requate (2004) summarized results reported by Spraggon (2002), Vossler et al (2002), Cochard et al (2002), and Alpizar et al (2004) and replicated their experiments. This paper discusses similarity and differences among all the reported results and in particular the following two. First, both collective fining and random fining induce abatement under the target, their performance deteriorates over time and is relatively consistent over the replications. Second, tax-subsidy scheme induced abatement over the target, its performance is consistent over periods, but not over the replications.

Suggested Citation

  • Pushkarskaya, Helen N., 2006. "Schemes to Regulate Non-Point Water Pollution: Making Sense of Experimental Results," 2006 Annual meeting, July 23-26, Long Beach, CA 21111, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21111
    DOI: 10.22004/ag.econ.21111
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    References listed on IDEAS

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    1. Spraggon, John, 2002. "Exogenous targeting instruments as a solution to group moral hazards," Journal of Public Economics, Elsevier, vol. 84(3), pages 427-456, June.
    2. François Cochard & Marc Willinger & Anastasios Xepapadeas, 2005. "Efficiency of Nonpoint Source Pollution Instruments: An Experimental Study," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(4), pages 393-422, April.
    3. Camacho Cuena, Eva & Requate, Till, 2004. "Collective and Random Fining versus Tax/Subsidy - Schemes to Regulate Non-Point Pollution: An Experimental Study," Economics Working Papers 2004-10, Christian-Albrechts-University of Kiel, Department of Economics.
    4. Vossler, Christian A. & Poe, Gregory L. & Schulze, William D. & Segerson, Kathleen, 2002. "An Experimental Test of Ambient-Based Mechanisms for Nonpoint Source Pollution Control," Working Papers 127334, Cornell University, Department of Applied Economics and Management.
    5. Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
    6. Francisco Alpízar & Till Requate & Albert Schram, 2004. "Collective versus Random Fining: An Experimental Study on Controlling Ambient Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(2), pages 231-252, October.
    7. François Cochard & Marc Willinger & Anastasios Xepapadeas, 2002. "Efficiency of Nonpoint Source Pollution Instruments with Externality Among Polluters:An Experimental Study," Working Papers of BETA 2002-20, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
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