Integrated Regulation of Nonpoint Pollution: Combining Managerial Controls and Economic Instruments under Multiple Targets

Aftab, A.; Hanley, N.; Baiocchi, G.

doi:10.1016/j.ecolecon.2010.03.020

Integrated Regulation of Nonpoint Pollution: Combining Managerial Controls and Economic Instruments under Multiple Targets

Aftab, A.; Hanley, N.; Baiocchi, G.

Authors

Dr Ashar Aftab ashar.aftab@durham.ac.uk
Associate Professor

N. Hanley

G. Baiocchi

Abstract

Regulators are often reluctant to rely solely on economic incentives to achieve environmental standards. We evaluate a “mixed approach” of economic instruments and management standards when two environmental objectives need to be met simultaneously: minimum river flow rates and reductions in nitrate pollution. We show how the relative efficiency of such mixed approaches can depend on exogenous factors, in this case weather conditions. Results indicate that mixed instruments outperform stand alone economic incentives or managerial controls under wet weather conditions, but not in ‘average’ years. However, the relative cost-effectiveness of mixed approaches increases considerably at higher levels of environmental standard compliance.

Citation

Aftab, A., Hanley, N., & Baiocchi, G. (2010). Integrated Regulation of Nonpoint Pollution: Combining Managerial Controls and Economic Instruments under Multiple Targets. Ecological Economics, 70(1), 24-33. https://doi.org/10.1016/j.ecolecon.2010.03.020

Journal Article Type	Article
Publication Date	Nov 1, 2010
Deposit Date	Oct 27, 2010
Journal	Ecological Economics
Print ISSN	0921-8009
Publisher	Elsevier
Peer Reviewed	Peer Reviewed
Volume	70
Issue	1
Pages	24-33
DOI	https://doi.org/10.1016/j.ecolecon.2010.03.020
Keywords	Diffuse water pollution, Environmental regulation, Minimum river flow, Mixed instruments, Nonpoint pollution.
Public URL	https://durham-repository.worktribe.com/output/1547543