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Tradable Permits for Controlling Nitrates in Groundwater at the Farm Level: A Conceptual Model

Published online by Cambridge University Press:  28 April 2015

Cynthia L. Morgan ,
Jay S. Coggins  and
Vernon R. Eidman
Cynthia L. Morgan
Affiliation:
U.S. Environmental Protection Agency
Jay S. Coggins
Affiliation:
Department of Applied Economics, University of Minnesota
Vernon R. Eidman
Affiliation:
Department of Applied Economics, University of Minnesota
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Abstract

Nitrate contamination of municipal and domestic well water supplies is becoming an increasing problem in many rural and urban areas, raising the cost of providing safe drinking water. The objective of this paper is to describe a marketable permit scheme that can effectively manage nitrate pollution of groundwater supplies for communities in rural areas without hindering agricultural production in watersheds. The key to implementing this scheme is being able to link nitrate leaching from nitrogen fertilizer applied to crops at a farm to nitrate levels measured at a drinking water well.

Keywords

agriculturegroundwater pollutionleaching, nitratespollution trading
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 32 , Issue 2 , August 2000 , pp. 249 - 258
Copyright
Copyright © Southern Agricultural Economics Association 2000

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