Governmental regulations and economic incentives : the case of agriculture and water quality

Abstract

The French regulation, here presented, is based on specific measures dealing with agriculture, and the "Law of water" (1964) which gives the general framework for water management. Economic incentives are not very developed, thus the discussion focuses on the interest of nitrogen taxation.To formulate a correct view of the probleme in the first section we identify the main features of agricultural pollution. Then, in the second section we analyze them from a regulatory view point, presenting the French situation where an extension of the Law of water in still in progress. Lastly, we examine economic incerntives which can be used to prevent environmental pollution.