ROLE OF VOLUNTARY PROGRAMS IN AGRICULTURAL NONPOINT POLLUTION POLICY

In: Contemporary economic policy: a journal of Western Economic Association International, Band 12, Heft 1, S. 113-121

Abstract

Voluntary programs' effectiveness in reducing agricultural pollution is under debate in the professional literature, within government regulatory agencies, and among legislators. In general, non‐farm business owners bear little or none of the costs of environmental degradation that their business activities cause. However, farmers who reside on the farm may bear some of the costs associated with using chemicals. As a result, voluntary programs encouraging adoption of management practices that simultaneously improve on farm and off‐farm environmental quality may not require subsidizing farmers for their full loss in profits. However, farmers likely will not adopt regulatory agencies' recommended management practices that do not positively affect on farm environmental quality unless subsidies exceed full adoption costs.