solution offered to help the Bay is mandates on development in certain zones surrounding the Bay. Although the decrease in sediment runoff into the Bay from construction and development helps the oyster and marine life population, the costs to agriculture and industry have an impact on the net economy. In 1986 Maryland enacted the Chesapeake Bay Critical Area Protection Program, which gave the government the right to regulate the land usage in the critical areas of pollution surrounding the Bay. Beaton and Pollock did an in depth survey using the Critical Valuation Method and Hedonistic pricing in order to define how this mandated change would affect the land value of the areas selected, affecting agriculture, industry and residential housing. The project is difficult because it is hard to compare different land values because of the many variables that effect land prices. They were able to include a variable comparison ratio in order to limit their price result to the one variable they were interested in, which was the CAPP act. They found that the value of residential property in the selected areas went up by almost 100%, while the value of the agricultural and industrial land went down greatly. The pecuniary externality of this method upon the industry and agricultural land proves that large businesses are not readily willing to decrease their waste without government mandates. Therefore the government has to control part of the Bay pollution through command and control, permits and subsidies. Command and control, combined with other solutions, such as privatization, could help to significantly reduce pollution in the long run. The shared costs and benefits of these two methods would have the least cost to both parties because they could share the costs, even though the fisheries reap most of the benefits.Privatization of the oyster industry is a feasible solution to the pollution problem in the Chesapeake Bay. Since oyste...
