A Self-Enforcing Cooperative Agreement for Nonpoint Source Pollution Abatement
Helen N. Pushkarskaya
University of Kentucky - Department of Agricultural Economics
Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics
October 10, 2007
In this paper we propose a scheme to control non-point source water pollution that employs subsidies to foster voluntary cooperation among farmers and, in that respect, is aligned with the traditional reliance in US water quality policy on voluntary programs aimed at persuading farmers to use environmentally friendly practices designed to improve water quality (Segerson and Wu, 2006). Unlike other voluntary programs, however, the approach proposed here is incentive-compatible so that compliance with cooperative agreements to abate is the optimal strategy for those who enter voluntarily into them.
Number of Pages in PDF File: 36
Keywords: nonpoint source pollution control, cooperative game theory, noncooperative game theory
JEL Classification: C7, D7working papers series
Date posted: October 28, 2006 ; Last revised: October 20, 2007
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