Nitrate pollution from agriculture is an important environmental problem, caused bythe excessive use of inorganic fertilizers. The internalization of this externality, via a tax onmineral nitrogen, could lead to a second best solution, reducing nitrate emissions. Severalauthors suggest that a...

Although the initial allocation of pollution permits is neutral in terms of efficiency, itdoes have a significant impact on distributive equity. In this paper, we examine the twomain categories of permit allocation rules, the distributive and the reductive, for controllingphosphorus pollution in...