Abstract
How a system of corrective taxes can be applied to the problem of managing surface water nitrate pollution in agricultural regions is demonstrated. A spatial linear programming model of the US livestock-feed complex including constraint equations linking fertilizer nitrogen use by Illinois farmers to water quality in that state has been developed. The solution to this model at various desired levels of NO/sub 3/-N in Illinois provides estimates of regional taxes on fertilizer nitrogen use appropriate to the ''Environmental Pricing and Standards'' system. In addition, other estimated changes in agricultural activity induced by this system of corrective taxes are presented. 20 references, 6 figures, 11 tables.
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