A regional market for rights to use fertilizer as a means of achieving water quality standards

The attributes and effects of one possible arrangement of a market for rights to use fertilizer are discussed in this article. Because of some similarities in effect, this type of policy is compared with the imposition of a fixed per unit excise tax on fertilizer. Some empirical results for the establishment of a market for rights to use nitrogen fertilizer and for the imposition of a tax on nitrogen fertilizer only in Illinois are presented. These results are derived from a national spatial equilibrium model of crop production in the United States. © 1976.

Duke Scholars

Author Curtis R. Taylor Economics