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Media type:
E-Article
Title:
Environmental Policy Uncertainty and Marketable Permit Systems: The Dutch Phosphate Quota Program
Contributor:
Wossink, Ada;
Gardebroek, Cornelis
Published:
Wiley, 2006
Published in:
American Journal of Agricultural Economics, 88 (2006) 1, Seite 16-27
Language:
English
DOI:
10.1111/j.1467-8276.2006.00836.x
ISSN:
0002-9092;
1467-8276
Origination:
Footnote:
Description:
<jats:p>Tradable permits are generally considered as an efficient instrument to regulate pollution by individual producers. However, uncertainty about changes in or possible discontinuation of the program could make individual farmers reluctant to invest in tradable permits. This article uses the option approach to derive a theoretical model that shows the impact of policy uncertainty on investment in tradable quota. The empirical assessment provides weak evidence for the existence of option values due to policy uncertainty for phosphate quota in swine production in the Netherlands.</jats:p>