An efficient cost-sharing program to reduce nonpoint-source contamination: theory and an application to groundwater contamination

摘要: This research evaluates the economics of cost-sharing improved irrigation technologies to reduce agricultural, nonpoint-source contamination. Irrigation and fertilization inefficiencies are modeled within a nonjoint production process evaluate both private public costs technology adoption its effect on groundwater nitrate-contamination levels. A central Nebraska application indicates that even without current government subsidy, farmer is economically better off switching from gravity-flow surge-flow rather than center-pivot system. An annual subsidy $22.50 (US$) per hectare year required over life system make financially indifferent. However, improves contamination level, while other systems result in continued deterioration quality.