ALTERNATIVE POLLUTION STANDARDS FOR REGULATING NONPOINT-SOURCE POLLUTION

Regulation of nonpoint source pollution is complicated by the unobserv ability of the effluent. Thus, control measures often focus on indirec t approaches involving input use and management practices. This paper examines several regulatory standards that rely on observable characte ristics, including restricting outputs and inputs which contribute to pollution. The theory shows that a pollution standard is more efficien t than these alternatives, though the output standard can be as effici ent. An empirical application to lettuce production in the Salinas Val ley of California finds that restricting water use is virtually as eff icient in reducing pollution as a pollution standard. (C) 1995 Academi c Press Limited