Essays in environmental policy, biotechnology and non-point source pollution

Abstract

This thesis provides an economic analysis of issues relating to genetic modification (GM) an non-point source pollution (NPS).  The type of GM considered is the modification of crops to protect the against pests.  Such modification may adversely affect biodiversity.  Our analysis shows that, to ensure the optimal level of biodiversity, intervention in the GM R&D market to reflect its social cost is necessary.  In some instances, a subsidy to non-GM crops may also be required.

In a separate analysis, we examine how the potential for pests to develop resistance to GM technology affects the relative incentives to carry out R&D.  This analysis highlights the underlying factors determining the incentives to invest in R&D when such a possibility exists.

In relation to NPS we provide a theoretical overview of the literature and an empirical analysis of nitrogen taxation in the Kennet catchment.  By linking an economic model to a hydrological model, we can evaluate the environmental effectiveness of taxation.  Although we find a significant impact on land-use decisions in response to the tax, this effect is not reflected in reductions in stream-water nitrate concentrations.

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