Spatial regulations can restrict chemical use more efficiently by linking local benefits to local costs. California has instituted such a spatially based regulation of an agricultural fumigant to meet air quality standards. We examine the implications of alternative allocation mechanisms: allocation of use based on a first come, first served basis; on quotas linked to historical use; and on the highest-value use. Although there are distributional impacts by crop, the overall change in aggregate value from using a highest-value use mechanism rather than a first come, first served approach is estimated to be less than $9 million of a total potential regulatory cost of $65 million.
Lynch, L. and Carpenter, J. (2002), "The impacts of allocation strategies for spatially regulated chemical use", Hall, D. and Joe Moffitt, L. (Ed.) Economics of Pesticides, Sustainable Food Production, and Organic Food Markets (Advances in the Economics of Environmental Resources, Vol. 4), Emerald Group Publishing Limited, Bingley, pp. 209-230. https://doi.org/10.1016/S1569-3740(02)04011-7Download as .RIS
Emerald Group Publishing Limited
Copyright © 2002, Emerald Group Publishing Limited