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Marine Resource Economics >
Volume 04, Number 3, 1987 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/48037
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| Title: | Regulation of Marine Contamination under Environmental Uncertainty: Shellfish Contamination in California |
| Authors: | Lichtenberg, Erik
Zilberman, David |
| Issue Date: | 1987 |
| Series/Report no.: | Marine Resource Economics
Vol. 4 No. 3 |
| Abstract: | We develop a model of regulation of environmental risks in a heterogeneous
industry when policy makers are sensitive to uncertainties about the processes generating the risks. Optimal source reduction capacity is shown to vary according to site suitability. Optimal source reduction capacity and the implicit value of risk reduction increase as risk standards become more stringent and as aversion to uncertainty grows. Taxes are more equitable than standards whenever the emissions generating the risks are all-or-nothing.
These results are illustrated for a case of public health regulation of dairy wastes producing enhanced risk of acute gastroenteritis through contamination
of a shellfishery. Aversion to uncertainty influences investment in pollution
control substantially. The premium in pollution control costs imposed by an
increase in the required margin of safety increases as aversion to uncertainty
grows and as the risk standard becomes more stringent, as do the implicit value of risk reduction and optimal tax. Taxes are more equitable than standards for lax risk standards but become less so as the risk standard becomes more stringent. |
| URI: | http://purl.umn.edu/48037 |
| Identifiers: | 0738-1360 |
| Institution/Association: | Marine Resource Economics>Volume 04, Number 3, 1987 |
| Total Pages: | 15 |
| From Page: | 211 |
| To Page: | 225 |
| Collections: | Volume 04, Number 3, 1987
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| 8175728.pdf | | 4626Kb | PDF | View/Open |
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