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GTAP Resources: Resource Display

GTAP Resource #7149

"Nonpoint Source Pollution Mitigation Through Tax under Climate Change"
by Liu, Jing, Kelsie Ferin, Chris Kucharik and Thomas Hertel


Abstract
A growing body of research suggests that climate change will have an overall negative effect on the challenges of nonpoint source pollution control. Much of this literature has focused on linking projections of changing climate to process-based hydrological and biophysical models, and some simultaneously considered stylized changes in management practices. The role of markets and economic choices, as well as its interaction with the physical world has largely been left out of the assessment. In this paper, we demonstrate how economic decisions can be connected with biophysical properties via the medium of transfer functions. Applying this integrated modeling framework to a hypothetical N loss tax experiment, we find that employing market-mediated instruments to reduce nonpoint source pollution will become more costly due to the still profitable intensification and the increasing opportunity cost of conservation associated with the warming climate. The original tax rate of 1 $/kg of N loss will increase to $1.3 and $1.7 under the RCP4.5 and RCP8.5 emission scenarios to achieve the same amount of N loss reduction. The unit abatement cost will also increase respectively from $10 to $15 and $20 per kg of N loss removal under future climate.


Resource Details (Export Citation) GTAP Keywords
Category: 2024 Conference Paper
Status: Not published
By/In: Presented during the 27th Annual Conference on Global Economic Analysis (Fort Collins, Colorado, USA)
Date: 2024
Version:
Created: Liu, J. (4/5/2024)
Updated: Liu, J. (4/5/2024)
Visits: 132
- Climate impacts
- Environmental policies
- Sustainable development
- Water quality
- North America


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