An economic approach to reducing water pollution: point and diffuse sources

A review of economic policy towards pollution control is presented which shows that appropriate measures will depend on whether the pollution is of a point or a diffuse nature. Regulation of the former is comparatively straightforward, with command and control and market instruments the tools of pollution control. The advantages and disadvantages of each measure are outlined. However, the inability to monitor emissions at source, precludes the application of point source measures in the case of diffuse source pollution. Instead, methods are required which overcome the need for direct monitoring. Several suggestions that propose ways of achieving this have been put forward and these are described. It is concluded that appropriate measures depend on the particular features of the problem and it is not possible to offer a blanket solution to either point sources or diffuse pollution.