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Probabilistic Cost Effectiveness in Agricultural Nonpoint Pollution Control

Published online by Cambridge University Press:  09 September 2016

William T. McSweeny  and
James S. Shortle
William T. McSweeny
Affiliation:
Department of Agricultural Economics and Rural Sociology, Pennsylvania State University, University Park, PA
James S. Shortle
Affiliation:
Department of Agricultural Economics and Rural Sociology, Pennsylvania State University, University Park, PA
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Abstract

Conceptual weaknesses in the use of costs of average abatement as a measure of the cost effectiveness of agricultural nonpoint pollution control are examined. A probabilistic alternative is developed. The focus is on methods for evaluating whole-farm pollution control plans rather than individual practices. As a consequence, the analysis is presented in a chance-constrained activity analysis framework because activity analysis procedures are a practical and well developed device for screening farm plans. Reliability of control is shown to be as important as reduction targets in designing farm plans for pollution control. Furthermore, broad-axe prescriptions of technology in the form of Best Management Practices may perform poorly with respect to cost effectiveness.

Keywords

nonpoint pollutionBest Management Practicescost effectiveness
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 22 , Issue 1 , July 1990 , pp. 95 - 104
Copyright
Copyright © Southern Agricultural Economics Association 1990

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