Abstract
This paper develops a dynamic model of groundwater contamination by the pesticide aldicarb on eastern Long Island. We estimate what the likely concentration would have been under static profit maximization and the marginal damage coefficient implied by the New York State health standard of 7 ppb. Based on our model, it appears that the concentration of aldicarb will not decline below 7 ppb until 1996 and that the shadow price of the current health standard is about $475,000 per year.
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Conrad, J.M., Olson, L.J. The economics of a stock pollutant: Aldicarb on Long Island. Environ Resource Econ 2, 245–258 (1992). https://doi.org/10.1007/BF00376199
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DOI: https://doi.org/10.1007/BF00376199