Premium
A “Putty‐Clay” Approach to Aggregation of Production/Pollution Possibilities: An Application in Dairy Waste Control
Author(s) -
Moffitt L. Joe,
Zilberman David,
Just Richard E.
Publication year - 1978
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239942
Subject(s) - production (economics) , redistribution (election) , pollution , putty , revenue , environmental quality , environmental science , environmental economics , natural resource economics , business , economics , politics , microeconomics , ecology , chemistry , accounting , organic chemistry , political science , law , biology , coating
Utilizing the “putty‐clay” production framework, a methodology for empirical assessment of the relationship between aggregate economic variables and environmental policy instruments is developed. Practicality is demonstrated by an application of the approach to the problem of dairy pollution in the Santa Ana River Basin of California. Results indicate pollution taxes to be substantially more efficient than emission standards in achieving a predetermined environmental quality goal. However, redistribution of tax revenues back to the regulated industry may be required to promote political feasibility.