ENVIRONMENTAL-POLICY DESIGN AND DYNAMIC NONPOINT-SOURCE POLLUTION

The inability to monitor individual discharges renders inadequate standard instruments of environmental policy. The instruments proposed in this context have been essentially static because they do not account for the effects of the dynamic processes describing pollutant accumulation. This paper proposes incentive schemes appropriate for a dynamic framework. The schemes take the form of charges per unit deviation between desired and observed pollutant accumulation paths. Under the incentive schemes, these paths converge to the socially desirable ambient pollutant concentration. © 1992.