Approaches to Curtail the Production of Environmental Bads by the Agricultural Industry 1)...
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Transcript of Approaches to Curtail the Production of Environmental Bads by the Agricultural Industry 1)...
![Page 1: Approaches to Curtail the Production of Environmental Bads by the Agricultural Industry 1) Performance Based 2) Design Based 3) Market Based 4) Liability.](https://reader036.fdocuments.in/reader036/viewer/2022083006/56649f335503460f94c4f84c/html5/thumbnails/1.jpg)
Approaches to Curtail the Production of Environmental Bads by the
Agricultural Industry 1) Performance Based
2) Design Based
3) Market Based
4) Liability
![Page 2: Approaches to Curtail the Production of Environmental Bads by the Agricultural Industry 1) Performance Based 2) Design Based 3) Market Based 4) Liability.](https://reader036.fdocuments.in/reader036/viewer/2022083006/56649f335503460f94c4f84c/html5/thumbnails/2.jpg)
Performance Based
Economic – simply taxes on H20 quality
must monitor run-off so farmer consider pollution in costs With current technology not feasible
Standards – regulations placed on observable out comes of polluters decisions
Too complex for agriculture due to variability associated with non-point process
Would have to be defined in terms of probability of attainment – requires unrealistic amount of data collection and calculations
![Page 3: Approaches to Curtail the Production of Environmental Bads by the Agricultural Industry 1) Performance Based 2) Design Based 3) Market Based 4) Liability.](https://reader036.fdocuments.in/reader036/viewer/2022083006/56649f335503460f94c4f84c/html5/thumbnails/3.jpg)
Design Based
• Economic – Taxes and subsidies on inputs and technology causing pollution
Based on expected runoff estimated on inputs and technology in use
Or directly on inputs and technology themselves Estimates made using simulation model incorporating effects of all decisions
Standards – restrictions placed on inputs/production specific to achieving certain environmental goals
Farmers actions observed by authorities basis for compliance not whether goal is achieved or not
Based on expected runoff’s or Directly on inputs/technology
BUT: Administration and enforcement costs high Direct may be better as penalising for something expected not proven can seem
unfair
![Page 4: Approaches to Curtail the Production of Environmental Bads by the Agricultural Industry 1) Performance Based 2) Design Based 3) Market Based 4) Liability.](https://reader036.fdocuments.in/reader036/viewer/2022083006/56649f335503460f94c4f84c/html5/thumbnails/4.jpg)
Market Based
• Emissions trading – hard to impose in agriculture
• How do we base distributing credits/licence to pollute?
• Requires activities that can be easily regulated, measured etc.
![Page 5: Approaches to Curtail the Production of Environmental Bads by the Agricultural Industry 1) Performance Based 2) Design Based 3) Market Based 4) Liability.](https://reader036.fdocuments.in/reader036/viewer/2022083006/56649f335503460f94c4f84c/html5/thumbnails/5.jpg)
Liability
• Serves as an ex-ante incentive to penalise farmers from engaging in activity that may damage others
• Farmers more likely to act environmentally friendly if alternative is penalties that outweigh benefits of pollution producing activity.
• Again hard to measure with agriculture, how do we trace problems to source?
• Site specific info needed – as always with agric policy!
• Legal solutions very costly.
![Page 6: Approaches to Curtail the Production of Environmental Bads by the Agricultural Industry 1) Performance Based 2) Design Based 3) Market Based 4) Liability.](https://reader036.fdocuments.in/reader036/viewer/2022083006/56649f335503460f94c4f84c/html5/thumbnails/6.jpg)
Ranking
1. Direct Methods – economic incentives or standards placed directly on inputs etc that cause problems
2. Market Based – (if possible) measure/distribute credits etc once a year
3. Liability – Strict legal penalties very effective if funding/authority available, spot checks etc