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Title: Optimal Control of Nutrient Pollution in a Coastal Ecosystem: Agricultural Abatement versus Investment in Wastewater Treatment Capacity
Authors: Laukkanen, Marita
Huhtala, Anni
Authors (Email): Laukkanen, Marita (
Huhtala, Anni (
Keywords: non-point source pollution
point-source pollution
timing of investment
Issue Date: 2005
Series/Report no.: Contributed Paper
Abstract: We examine in a dynamic framework how public resources should be allocated to small-scale water protection efforts in agriculture or alternatively to investments in large-scale waste water treatment plants to control point source loads. The building of waste water treatment capacity is characterized by high set-up costs as compared to the operating costs. We determine the optimal timing of investment, the rate of nutrient load reduction from point versus non-point sources, and the optimal switching policies from control of non-point pollution only to control of both non-point and point sources. The results of the analytical model are illustrated with simulation of optimal abatement policies for the Finnish coastal waters in the Gulf of Finland.
Institution/Association: European Association of Agricultural Economists>2005 International Congress, August 23-27, 2005, Copenhagen, Denmark
Total Pages: 18
Language: English
Collections:2005 International Congress, August 23-27, 2005, Copenhagen, Denmark

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