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Extramural Research

Grantee Research Project Results

Grantee Research Project Results

Design of Optimal Cost-Sharing Arrangements for Nonpoint Source Pollution Control

EPA Grant Number: U915395
Title: Design of Optimal Cost-Sharing Arrangements for Nonpoint Source Pollution Control
Investigators: Baerenklau, Kenneth A.
Institution: University of Wisconsin - Madison
EPA Project Officer: Edwards, Jason
Project Period: September 1, 1998 through August 1, 2001
Project Amount: $88,199
RFA: STAR Graduate Fellowships (1998)
Research Category: Academic Fellowships , Economics and Decision Sciences , Fellowship - Economics and Business



The objectives of this research project are to: (1) apply a game-theoretic approach to the problem of developing optimal voluntary cost-sharing arrangements for controlling nonpoint source pollution; and (2) compare theoretically optimal policies derived under various conditions with empirical observations.


The first objective will be accomplished through original work in economic theory that will focus on developing an accurate theoretical model of the problems faced by regulators who are constrained both by limited funding and by exogenous environmental standards. The second objective will require gathering relevant data from public agencies and private landowners and developing an empirical model that includes the roles of uncertainty, information asymmetry, risk, and site heterogeneity. Until the appropriate economic theory is developed, it remains difficult to determine what types of statistical analyses will be used to evaluate Wisconsin's program.

Supplemental Keywords:

fellowship, principal agent, cost sharing, cost-sharing arrangements, nonpoint source pollution, NPSP, technology adoption., RFA, Economic, Social, & Behavioral Science Research Program, Scientific Discipline, Geographic Area, Applied Math & Statistics, State, Economics, Economics and Business, decision-making, Economics & Decision Making, control of NPSP, Wisconsin Priority Watershed Program, voluntary cost-sharing, cost-sharing, empirical models, models, Wisconsin (WI), nonpoint source pollution (NPSP), voluntary programs

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The perspectives, information and conclusions conveyed in research project abstracts, progress reports, final reports, journal abstracts and journal publications convey the viewpoints of the principal investigator and may not represent the views and policies of ORD and EPA. Conclusions drawn by the principal investigators have not been reviewed by the Agency.

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