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Author: Arthur J. Caplan
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper examines how water quality trading interacts with nonpoint-source abatement-cost sharing (e.g., as currently practiced by the National Resource Conservation Service through its Environmental Quality Incentives Program [EQIP]) to promote the participation of nonpoint sources in a water quality market, participation that has thus far been noticeably lacking nationwide. As such, an idealized version of water quality trading is envisioned, where water quality trading and nonpoint cost sharing are treated as complementary policy instruments rather than substitutes. Toward this end, the subgame-perfect equilibrium concept is used to model a “multilateral contracting” relationship between the regulatory authority and nonpoint sources when the regulator has incomplete information about the nonpoint sources' production costs. We characterize ex ante (or second-best) nonpoint abatement levels when the regulator chooses cost-share rates in concert with a water quality market. Numerical analysis indicates that current EQIP cost-share rates would likely be lower and more flexibly determined in the presence of water quality trading.
Author: Arthur J. Caplan
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper examines how water quality trading interacts with nonpoint-source abatement-cost sharing (e.g., as currently practiced by the National Resource Conservation Service through its Environmental Quality Incentives Program [EQIP]) to promote the participation of nonpoint sources in a water quality market, participation that has thus far been noticeably lacking nationwide. As such, an idealized version of water quality trading is envisioned, where water quality trading and nonpoint cost sharing are treated as complementary policy instruments rather than substitutes. Toward this end, the subgame-perfect equilibrium concept is used to model a “multilateral contracting” relationship between the regulatory authority and nonpoint sources when the regulator has incomplete information about the nonpoint sources' production costs. We characterize ex ante (or second-best) nonpoint abatement levels when the regulator chooses cost-share rates in concert with a water quality market. Numerical analysis indicates that current EQIP cost-share rates would likely be lower and more flexibly determined in the presence of water quality trading.
Author: Patrick Fleming
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
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Book Description
Most studies of water quality trading (WQT) analyze the cost effectiveness of reducing nutrient pollution in isolation from other policies. However, the policy landscape to reduce nutrient pollution from agriculture is dominated by existing cost-share (CS) programs, which are likely to persist even after introducing WQT. We investigate empirically how these two programs are likely to interact. Using farmer survey data, we estimate the behavioral responses to a CS program aimed at increasing cover crop adoption using a two-stage simultaneous equation approach to correct for voluntary participation in the CS program. We integrate these econometric results with the Chesapeake Bay Program water quality model to evaluate the profit-maximizing decision for farmers sorting between the existing CS program and proposed WQT program. Our results indicate that farmers with comparative advantage in nitrogen abatement per acre will choose to switch into the WQT program, worsening adverse selection and increasing average payments for nitrogen abatement in the existing CS program. Actual increases in nitrogen abatement from the WQT program depend on incentivizing additional cover crop acreage without inducing slippage for those farmers not currently enrolled in the CS program.
Author: Harold E. Marshall
Publisher:
ISBN:
Category : Municipal water supply
Languages : en
Pages : 152
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Book Description
"This study evaluates existing cost-sharing programs for wastewater pollution abatement as described in the Federal Water Pollution Control Act Amendments of 1972, describes alternative cost-sharing programs that provide improvements in terms of national efficiency and equity criteria as defined herein, and suggests related areas for further research. Emphasis is on how federal cost sharing biases communities in favor of certain kinds of techniques. The approach is to describe the current cost-sharing programs for both plant and nonplant techniques; to examine cost-sharing, legal, and other institution biases against certain techniques; to analyze efficiency and equity effects of alternative cost-sharing programs; and to describe the incentive effects of cost sharing on nonfederal interests with respect to their choices among abatement techniques. Findings of the study are that more efficient abatement will result if the same percentage cost share applies to all plant and nonplant techniques of abatement; the same percentage also applies to all categories of cost (e.g., capital, land, operation and maintenance) for a given technique; the same percentage applies to large and small communities; institutional constraints on the selection of nonplant techniques are removed; and if the program provides for federal cost sharing of every abatement technique that is technically viable. This report was submitted in fulfillment of program element PE 1BA030 and work order number EPA-IAG D4 H 374 by the National Bureau of Standards, Building Economics Section."--P. iv.
Author: Cy Jones
Publisher: McGraw Hill Professional
ISBN:
Category : Science
Languages : en
Pages : 368
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Book Description
Publisher's Note: Products purchased from Third Party sellers are not guaranteed by the publisher for quality, authenticity, or access to any online entitlements included with the product. Water-quality trading is a market-based approach that allows a facility to meet its regulatory obligations by using the pollutant reductions created by another facility capable of doing it at a much lower cost. This resource is a practical guide for wastewater treatment plants to use in evaluating the potential for water-quality trading and provides the framework for designing and implementing the trade.
Author: National Research Council
Publisher: National Academies Press
ISBN: 0309069483
Category : Science
Languages : en
Pages : 422
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Book Description
Environmental problems in coastal ecosystems can sometimes be attributed to excess nutrients flowing from upstream watersheds into estuarine settings. This nutrient over-enrichment can result in toxic algal blooms, shellfish poisoning, coral reef destruction, and other harmful outcomes. All U.S. coasts show signs of nutrient over-enrichment, and scientists predict worsening problems in the years ahead. Clean Coastal Waters explains technical aspects of nutrient over-enrichment and proposes both immediate local action by coastal managers and a longer-term national strategy incorporating policy design, classification of affected sites, law and regulation, coordination, and communication. Highlighting the Gulf of Mexico's "Dead Zone," the Pfiesteria outbreak in a tributary of Chesapeake Bay, and other cases, the book explains how nutrients work in the environment, why nitrogen is important, how enrichment turns into over-enrichment, and why some environments are especially susceptible. Economic as well as ecological impacts are examined. In addressing abatement strategies, the committee discusses the importance of monitoring sites, developing useful models of over-enrichment, and setting water quality goals. The book also reviews voluntary programs, mandatory controls, tax incentives, and other policy options for reducing the flow of nutrients from agricultural operations and other sources.
Author: Andrew McLaughlin
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Author: Tianli Zhao
Publisher:
ISBN:
Category :
Languages : en
Pages : 199
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Book Description
The lack of widespread success in existing water quality trading programs may be attributed, in part, to a limited correspondence between the institutional and hydrologic circumstances in "typical" watersheds and the open-market trading system envisioned in standard economics presentations of pollution trading. This thesis explores two aspects of the disparity between the theory and practice of water quality trading programs using modeling results from a case study of the Non-Tidal Passaic River Basin phosphorus emissions trading program. First, recognizing that hydrological systems and Total Maximum Daily Load (TMDL) objectives for a particular watershed may be quite complex, the Hung and Shaw (2005) Trading Ratio System (TRS) is broadly interpreted to enable firms to trade allowances upstream and across tributaries within a specified multi-zone management area. Specifically, the possibility of upstream and cross-tributary trading is investigated by modeling a "Management Area" (MA) policy proposed for the Upper -Passaic River Basin TMDL (Obrupta, Niazi, and Kardos, 2008). Second this study raises concern that the canonical theoretical presentation of tradable pollution allowances, in which firms buy and sell pollution allowances based on marginal abatement costs relative to the market determined price, is inappropriate for cost-effectively meeting a TMDL in a typical watershed. Such open-market exchange programs have been effective in settings, such as the U.S. Acid Rain Trading program that are characterized by large numbers of potential traders with heterogeneous abatement technologies across firms, and heterogeneous present capacity to meet standards. However this type of a trading mechanism is less amenable to point-source-to-point- source trading programs characterized by a small number of potential traders in a watershed, with discrete and homogeneous abatement technologies across firms, and most, if not all, firms not having the present capacity to meet the specified standard. In such settings, managers may be reluctant to not upgrade (and buy permits) or to develop excess treatment capacity (and sell permits) because of the relative lack of buyers and sellers in a thin market. Using the Non-Tidal Passaic River Basin phosphorus emissions trading program as a case study, I simulate trading scenarios under different market mechanisms. Based on the simulations of Marginal Cost Trading, cost savings accomplished under an open market mechanism range from 0.59% to 1.04% of total costs relative to the no-trade baseline. Given positive transactions costs, it is unlikely that a vibrant trading market would result in such circumstances, consistent with the disappointing level of water quality trading observed to date. On the other hand, the simulation results of Optimal Trading results suggest that if WWTPs are able to jointly optimize their capital investment levels, the costs savings can increase dramatically (up to 13.10% of the baseline total cost). This cost-saving potential leads to the argument that a structured bilateral trade system in which profitable trading opportunities are identified and implemented with multiyear contracts between firms, would more likely approximate cost-effective outcomes than an open-market, price directed system.
Author: Texas
Publisher:
ISBN:
Category : Water
Languages : en
Pages : 548
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Book Description
Author: OECD
Publisher: OECD Publishing
ISBN: 9264281770
Category :
Languages : en
Pages : 90
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Book Description
This study assesses the use of economic instruments for water resources management in Georgia and considers options for reform following the 2014 signature of an Association Agreement with the EU committing to alignment with the EU’s Water Framework Directive.
Author: Andy Clark
Publisher: DIANE Publishing
ISBN: 1437903797
Category : Technology & Engineering
Languages : en
Pages : 248
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Book Description
Cover crops slow erosion, improve soil, smother weeds, enhance nutrient and moisture availability, help control many pests and bring a host of other benefits to your farm. At the same time, they can reduce costs, increase profits and even create new sources of income. You¿ll reap dividends on your cover crop investments for years, since their benefits accumulate over the long term. This book will help you find which ones are right for you. Captures farmer and other research results from the past ten years. The authors verified the info. from the 2nd ed., added new results and updated farmer profiles and research data, and added 2 chap. Includes maps and charts, detailed narratives about individual cover crop species, and chap. about aspects of cover cropping.
