INCENTIVE-BASED NONPOINT-SOURCE POLLUTION-ABATEMENT IN A REAUTHORIZEDCLEAN-WATER-ACT

This paper summarizes key provisions of the Clinton Administration's p roposals for change in the Clean Water Act. Two of the important theme s for change are tougher controls for non-point source pollution and t he use of market-based instruments. A detailed analysis of market-base d abatement suggests limited potential for reducing costs. The keys to nonpoint source pollution control are clearer definition of property rights combined with changes in government programs that encourage pol luting activities.