ECONOMIC APPROACH FOR CONTROL AGRICULTURAL NONPOINT SOURCE POLLUTION IN CHINA

This paper mainly discusses the feasibility to establish economic policy systems for control and management of agricultural nonpoint source pollution in China. The current situation of serious agricultural nonpoint source pollution in China is described firstly. Based on the environmental policy and economics theories, the system of economic policies for control and management of agricultural nonpoint source pollution is designed in this paper. This system includes the policy objective, the designing principle and the methods. The key issues include pollution charge, inputs tax for restriction, subsides for induction and incentive, effluent trading for least cost reduction. The emphases are optimized on inputs tax and agricultural chemical tax permit under complete information, as well as sub-optimized inputs tax under incomplete information, subsides for farm due to positive and negative externality. The functions and suitability of the policies are also analyzed in the paper. According to the field experiment results and other relating economic data in watershed of the Chaohe River, Beijing, some economic approaches to reducing agricultural nonpoint source pollution are proposed. The main idea is to encourage and support the farmers to improve their farming way, and to implement the policy of castigating charge simultaneously. The feasibility of the policies are analyzed with consideration of economy, technology and institution. It is concluded that the economic policies are necessary and feasible.

Impact of Agricultural Labor Transfer on Agricultural Nonpoint Source Pollution: A Case Study of Jiangxi, China

A large proportion of the rural labor force in China will continue to transfer to non-agricultural sectors in the near future, which will inevitably lead to the transformation of the agricultural production mode and the structure of the farmers’ livelihood. The Chinese government is making great efforts to govern agricultural nonpoint source pollution(ANSP), and farmers’ environmental behavior is a key factor that must be considered in the formulation of agricultural environmental policies. Based on a set of micro survey data on farmers in the study area and econometric methods, this study investigates the impact of agricultural labor transfer on ANSP by considering the substitution effect of agricultural factors and the effect of agricultural economies of scale. The results show that the increase of the agricultural labor force will not be conducive to reducing ANSP, while the income increase brought by agricultural labor transfer will improve the input structure of agricultural factors and have a positive impact on ANSP reduction. Government departments should provide subsidies or incentive measures to help agricultural social service organizations to expand their coverage and increase the frequency of socialized agricultural services, in order to guide farmers in the use of environment-friendly agricultural technology to reduce the ANSP caused by agricultural factors at the source. Furthermore, it is necessary to facilitate the development of small-sized agricultural machinery suitable for small-area land cultivation.