The impacts of allocation strategies for spatially regulated chemical use

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Advances in the Economics of Environmental Resources

ISSN: 1569-3740
Series editor(s): Professor Richard Howarth

Subject Area: Economics

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Document Information:
Title:	The impacts of allocation strategies for spatially regulated chemical use
Author(s):	Lori Lynch, Janet Carpenter
Volume:	4 Editor(s): Darwin C. Hall, L. Joe Moffitt ISBN: 978-0-76230-850-7 eISBN: 978-1-84950-138-5
Citation:	Lori Lynch, Janet Carpenter (2002), The impacts of allocation strategies for spatially regulated chemical use, in Darwin C. Hall, L. Joe Moffitt (ed.) Economics of Pesticides, Sustainable Food Production, and Organic Food Markets (Advances in the Economics of Environmental Resources, Volume 4), Emerald Group Publishing Limited, pp.209-230
DOI:	10.1016/S1569-3740(02)04011-7 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Article type:	Full length article
Abstract:	Spatial regulations can restrict chemical use more efficiently by linking local benefits to local costs. California has instituted such a spatially based regulation of an agricultural fumigant to meet air quality standards. We examine the implications of alternative allocation mechanisms: allocation of use based on a first come, first served basis; on quotas linked to historical use; and on the highest-value use. Although there are distributional impacts by crop, the overall change in aggregate value from using a highest-value use mechanism rather than a first come, first served approach is estimated to be less than $9 million of a total potential regulatory cost of $65 million.