The Social Costs of Water Pollution Workshop
Event
Wednesday, April 3, 2019 (All day) to Friday, April 5, 2019 (All day)
Event Type:
Location: Cornell University
Location: Cornell University
The writer of this question understands economics and the market failure associated with externalities very well. Thank you for such an informed and interesting question! The writer is quite correct that the fact that agriculture generates an externality (nutrient pollution) that is not priced or regulated creates an incentive for excessive nutrient runoff. Research on this question suggests that the increased price of corn associated with biofuels policy and crop shortages leads to increased planting of corn acreage, in turn resulting in increased nutrient runoff.