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Environmental Economics

ed to protect the integrity of the lands that effect the Chesapeake Bay (2). The States involved also enforced tougher car emissions policies so that the air pollution contribution would be reduced (2). These ordinances were aimed at reducing the pollution of the Chesapeake Bay by reducing high levels of phosphorous and nitrogen. The governments policies effect the economy in the Chesapeake Bay by changing the ways in which industries distribute their waste. The pollution and over-harvesting of the Chesapeake Bay have greatly effected the economy of the area. The net economic condition of the region is caused by the downward swing of fishery output and sales due to the pollution in the Bay as well as the businesses that are effected by the government mandates. There has been a significant downturn in the net profit of the fisheries due to sewage runoff and development around the Bay. The government has recognized the pollution as a problem for economics and bio-diversity. Stated governments, mainly Maryland, have made attempts to reduce pollution by making command and control policies that further hurt the inland economy in an attempt to alleviate Bay damage. The solutions to the pollution problems in the Bay are not easily defined because the government must weigh the rights of the polluters to those being hurt by the pollution and try to come up with ways to get closer to the optimal points for both inland and off-land firms at least cost to both parties. The Oyster fisheries that depend on the Chesapeake Bay are also suffering greatly due to pollution and over-harvesting. The added nutrients, mainly Nitrogen and Phosphorous, are lowering the oyster population and causing fisheries to harvest a significantly lower number of bushels each day. The Oysters importance as a prized food, a vital industry, and an organism that filters pollution is universally recognized (Meyer 1991, 26). The Supply of oysters has decreased great...

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