TY - JOUR
T1 - Recycled effluent
T2 - Should the polluter pay?
AU - Feinerman, Eli
AU - Plessner, Yakir
AU - DiSegni Eshel, Dafna M.
PY - 2001
Y1 - 2001
N2 - A coastal city can either dispose of recycled effluent by dumping it in the sea, or transfer it to farmers in its hinterland for irrigation. Who should bear the cost of recycling? Three alternatives are employed: a central planner who maximizes the combined utility of city and farmers; regulation by prices, for which purpose we develop the city's supply function; and a bargaining framework for the allocation of costs. The main conclusions are that "the polluter pays" rule cannot be justified in principle and that bargaining may result in inefficiency. We demonstrate with an example from Israel that essentially conforms to the theoretical structure.
AB - A coastal city can either dispose of recycled effluent by dumping it in the sea, or transfer it to farmers in its hinterland for irrigation. Who should bear the cost of recycling? Three alternatives are employed: a central planner who maximizes the combined utility of city and farmers; regulation by prices, for which purpose we develop the city's supply function; and a bargaining framework for the allocation of costs. The main conclusions are that "the polluter pays" rule cannot be justified in principle and that bargaining may result in inefficiency. We demonstrate with an example from Israel that essentially conforms to the theoretical structure.
KW - City behavior
KW - Cost allocation patterns
KW - Farmer behavior
KW - Institutional arrangements
KW - Recycled effluent
UR - http://www.scopus.com/inward/record.url?scp=0035666760&partnerID=8YFLogxK
U2 - 10.1111/0002-9092.00222
DO - 10.1111/0002-9092.00222
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AN - SCOPUS:0035666760
SN - 0002-9092
VL - 83
SP - 958
EP - 971
JO - American Journal of Agricultural Economics
JF - American Journal of Agricultural Economics
IS - 4
ER -
