Can water pollution policy be efficient

Journal Article · · Cato J.; (United States)

OSTI ID:5178381

Milliman, J W

Examined are three pollution abatement strategies as a basis for an efficient water pollution control policy. The present policy of direct regulation is based almost exclusively on direct government controls, with almost no reliance on economic tests for efficiency, and with no reliance on private property and market-type approaches. A second strategy effluent charges, stems from the advocation of taxes to correct for divergencies between marginal private costs and the marginal costs of pollution imposed upon third parties. A system of effluent charges implies that the property rights in the water system have been vested in the water uses; meaning that if the standards to be achieved are based upon the preservation of aquatic life, such activities as boating, swimming, and fishing, as well as aesthetic appreciation and the preservation of the water resource ecology, have a vested right. Advantages of effluent charges and problems of this strategy are detailed. A third strategy, tradable permits, is presented in the options. (1) Bubbles allow plants to reduce controls on air emissions in portions of facilities where abatement costs are high in exchange for increases in control in the same plant where abatement costs are lower. (2) Offsets allow a firm an increase in emissions if it pays for emission reductions from some other source in the same region. (3) Banks allow dischargers that exceed their emission, standards to receive credit for some fraction of the excess reduction in an emission bank. Obstacles to efficient policy in view of a lack of benefit estimation and nonpoint pollution are further discussed. (DLS)

• Research Organization: Univ. of Florida, Gainesville
• OSTI ID: 5178381
• Journal Information: Cato J.; (United States), Journal Name: Cato J.; (United States) Vol. 2:1; ISSN CAJOD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290300 -- Energy Planning & Policy-- Environment
Health
& Safety
530100* -- Environmental-Social Aspects of Energy Technologies-- Social & Economic Studies-- (-1989)
AESTHETICS
ALLOCATIONS
AQUATIC ECOSYSTEMS
CONTROL
ECONOMICS
ECOSYSTEMS
EFFICIENCY
ENVIRONMENTAL POLICY
GOVERNMENT POLICIES
INSTITUTIONAL FACTORS
LAWS
PLANNING
POLLUTION
POLLUTION ABATEMENT
POLLUTION CONTROL
POLLUTION LAWS
POLLUTION SOURCES
PROPERTY RIGHTS
RECREATIONAL AREAS
SOCIO-ECONOMIC FACTORS
TAXES
WATER POLLUTION
WATER POLLUTION ABATEMENT
WATER POLLUTION CONTROL
WATER RIGHTS