Agricultural nonpoint source pollution and water quality trading: empirical analysis under imperfect cost information and measurement error

摘要: Water quality problems associated with agricultural nonpoint-source pollution remain significant in the majority of US watersheds. In this dissertation, I present a theoretical model water that captures main characteristics (the unobservability and interactions between field-level emissions, imperfect knowledge abatement costs), propose empirically estimate simplified proxy for complex process characterizes fate transport pollutants, apply variety empirical studies to evaluate alternative policy programs designed improve quality. Under linear approximation function, more flexible policies like performance standard or trading program may outperform command-and-control terms costs, but they also result non-attainment goal. However, incentive-based can overcome, partially totally, issue cost asymmetries, since regulator does not need know farm-level costs.I an approach linearizing function using system point coefficients measure impact action on overall level. The are estimated nitrogen phosphorus consideration two pollutants have separate functions.The assessments proposed watersheds Iowa show good incentives based programs: deviations from goals sizable savings relative realized. A robustness analysis shows results consistent across different: (a) (nitrogen phosphorus), (b) sets (field-specific level, subbasin-specific, watershed-specific), (c) distribution historical weather. procedure is extended pollutant markets, where each market uses set coefficients. Given same actions potential increase amount carbon sequestration soil, point-based allow participants enter carbon, including selling offsets actions.