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Using Field-level Characteristics as Proxy Measures to Test for the Presence of Economies of Scale in Nonpoint Pollution Control
Agricultural and Resource Economics Review (2013)
  • Arthur J. Caplan, Utah State University
  • John Gilbert, Utah State University
  • Devalina Chatterjee, Utah State University
Abstract
We use parametric and nonparametric methods to estimate correlations between average control cost and three field-level characteristics—field size and delivered phosphorous per field and per acre—as proxies for economies of scale in controlling nonpoint pollution. We combine load and delivery-ratio estimates for more than 12,000 fields in the Bear River Basin, Utah, with estimates of control costs and effectiveness of management practices from the literature. Results suggest a negative relationship between control cost and delivered phosphorous per field and per acre. Ranking fields by phosphorous load therefore prioritizes management-practice subsidies by economies of scale.
Keywords
  • economies of scale,
  • nonpoint-source pollution,
  • delivered load,
  • control costs
Disciplines
Publication Date
2013
Citation Information
Arthur J. Caplan, John Gilbert and Devalina Chatterjee. "Using Field-level Characteristics as Proxy Measures to Test for the Presence of Economies of Scale in Nonpoint Pollution Control" Agricultural and Resource Economics Review Vol. 42 Iss. 2 (2013)
Available at: http://works.bepress.com/arthur_caplan/117/