Optimal Pollution Trading Without Pollution Reductions: A Note

Journal of the American Water Resources Association

Volumn 47, Issue 1, 2011, Pages 52-58

  García, Jorge H ^a   Heberling, Matthew T ^b   Thurston, Hale W ^b  

^a PONTIFICIA UNIVERSIDAD JAVERIANA   (Colombia)

^b U S ENVIRONMENTAL PROTECTION AGENCY   (United States)

Author keywords

Flow pollution; Trading ratio; Water quality trading; Wetlands

Indexed keywords

ENVIRONMENTAL DAMAGE; FLOW POLLUTION; POLLUTION REDUCTION; POLLUTION SOURCES; POLLUTION TRADING; RUNOFF REDUCTION; TRADING RATIO; URBAN RUNOFF; WATER QUALITY TRADING;

COMMERCE; ENVIRONMENTAL IMPACT; OPTIMIZATION; SEWAGE; WATER POLLUTION; WATER QUALITY; WETLANDS;

AGRICULTURAL RUNOFF;

AGRICULTURAL PRACTICE; AGRICULTURAL RUNOFF; EMISSION; ENVIRONMENTAL IMPACT; NUMERICAL MODEL; POLLUTANT SOURCE; POLLUTION CONTROL; TRADE-ENVIRONMENT RELATIONS; URBAN AREA; WATER QUALITY; WATER RETENTION; WETLAND;

EID: 79251498647     PISSN: 1093474X     EISSN: 17521688     Source Type: Journal    
DOI: 10.1111/j.1752-1688.2010.00476.x     Document Type: Article

References (29)

1. Baumol, W.J., and W.E. Oates, 1998. The Theory of Environmental Policy. Cambridge University Press, Cambirdge, United Kingdom.
2. Crumpton, W., D. Kovacic, D. Hey, and J. Kostel, 2008. Potential of Restored and Constructed Wetlands to Reduce Nutrient Export From Agricultural Watersheds in the Corn Belt. Upper Mississippi River Sub-basin Hypoxia Nutrient Committee. Final Report: Gulf Hypoxia and Local Water Quality Concerns Workshop. American Society of Agricultural and Biological Engineers, St. Joseph, Michigan.
3. Dahl, T.E., 1990. Wetland Losses in the United States 1780s to 1980s. Department of the Interior Fish and Wildlife Service, Washington, D.C.
4. Dahl, T.E., 2006. Status and Trends of Wetlands in the Conterminous United States 1998 to 2004. U.S. Department of the Interior, Fish and Wildlife Service, Washington, D.C.
5. Day, J., Jr, A. Yañéz Arancibia, W. Mitsch, A. Lara-Dominguez, J. Day, J.-Y. Ko, R. Lane, and J. Lindsey, 2003. Using Ecotechnology to Address Water Quality and Wetland Habitat Loss Problems in the Mississippi Basin: A Hierarchical Approach. Biotechnology Advances 22:135-159.
6. Heberling, M.T., J.H. Garcia, and H.W. Thurston, 2010. Does Encouraging the Use of Wetlands in Water Quality Trading Programs Make Economic Sense? Ecological Economics 69:1988-1994.
7. Hernández-Delgado, E., B. Sandoz, M. Bonkosky, J. Norat-Ramírez, and H. Mattei, 2008. Impacts of Non-Point Source Sewage Pollution on Elkhorn Coral, Acropora Palmata (Lamarck), Assemblages of the Southwestern Puerto Rico Shelf. Proceedings of the 11th International Coral Reef Symposium, Ft. Lauderdale, Florida.
8. Hey, D.L., J.A. Kostel, A.P. Hurter, and R.H. Kadlec 2005. Nutrient Farming and Traditional Removal: An Economic Comparison. WERF 03-WSM-6CO. Water and Environment Research Foundation, Alexandria, Virginia.
9. Horan, R. and J. Shortle, 2005. When Two Wrongs Make a Right: Second-Best Point-Nonpoint Trading Ratios. American Journal of Agricultural Economics 87:340-352.
10. Horan, R., J. Shortle, and D. Abler, 2004. The Coordination and Design of Point-Nonpoint Trading Programs and Agri-Environmental Policies. Agricultural and Resource Economics Review 33:61-78.
11. Kadlec, R.L. and R.H. Wallace, 2009. Treatment Wetlands. Lewis Publishers, Boca Raton, Florida.
12. Knight, R., 1997. Wildlife Habitat and Public Use Benefits of Treatment Wetlands. Water, Science, and Technology 35:35-43.
13. Malik, A.S., D. Letson, and S.R. Crutchfield, 1993. Point/Nonpoint Source Trading of Pollution Abatement: Choosing the Right Trading Ratio. American Journal of Agricultural Economics 75:959-967.
14. Mitsch, W.J., J.W. Day Jr., L. Zhang, and R. Lane, 2005. Nitrate-Nitrogen Retention in Wetlands in the Mississippi River Basin. Ecological Engineering 24:267-278.
15. Mitsch, W.J. and J.G. Gosselink, 2007. Wetlands (Fourth Edition), John Wiley & Sons, Inc., New York.
16. Mitsch, W.J., J.G. Gosselink, C.J. Anderson, and L. Zhang, 2009. Wetland Ecosystems. John Wiley & Sons, Inc., New York.
17. Morgan, C. and A. Wolverton, 2005. Water Quality Trading in the United States. U.S. Environmental Protection Agency, National Center for Environmental Economics, Working Paper # 05-07, Washington, D.C.
18. Nguyen, N. and J. Shortle, 2007. Transactions Costs and the Design of Trade Ratios for Point-Nonpoint Source Water Pollution Trading. Presented at the 2008 Annual Meeting of the European Association of Environmental and Resource Economists. Thessoloniki, Greece, June 2008.
19. Persson, J., N.L.G. Somes, and T.H.F. Wong, 1999. Hydraulics Efficiency of Constructed Wetlands and Ponds. Water Science and Technology 40(3):291-300.
20. Pharino, C., 2007. Sustainable Water Quality Management Policy. The Role of Trading: The U.S. Experience. Springer Dordrecht, The Netherlands.
21. Shortle, J.S., 1987. Allocative Implications of Comparisons Between the Marginal Costs of Point and Nonpoint Source Pollution Abatement. Northeastern Journal of Agricultural and Resource Economics 16:17-23.
22. Shortle, J.S. and R.D. Horan, 2008. The Economics of Water Quality Trading. International Review of Environmental and Resource Economics 2(2):101-133.
23. Stavins, R., 1995. Transaction Costs and Tradeable Permits. Journal of Environmental Economics and Management 29:133-148.
24. Tietenberg, T., 2006. Emissions Trading: Principles and Practice (Second Edition). RFF Press, Washington, D.C.
25. Tucker, G.E. and R.L. Bras, 2000. A Stochastic Approach to Modeling the Role of Rainfall Variability in Drainage Basin Evolution. Water Resource Research 36(7):1953-1964.
26. USEPA (U.S. Environmental Protection Agency), 2003. US Water Quality Trading Policy. Office of Water, Washington, D.C.
27. USEPA (U.S. Environmental Protection Agency), 2007. Wetlands and Water Quality Trading: Review of Current Science and Economic Practices With Selected Case Studies. EPA, Ada, Oklahoma, EPA/600/R-06/155 .
28. USEPA (U.S. Environmental Protection Agency), 2008. Using Economic Incentives to Manage Stormwater Runofff in the Shepherd Creek Watershed, Part I. National Risk Management Research Laboratory, Cincinnati, Ohio. EPA/600/R-08/129.
29. Woodward, R., R. Kaiser, and A. Wicks, 2002. The Structure and Practice of Water Quality Trading Markets. Journal of the American Water Resources Association (JAWRA) 38:967-979.