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WATER QUALITY TRADING
Page last updated:
June 4, 2008

ETN Home – WQT Publications

epa policy
state programs
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trading papers
issues and discussions

 

 

Trading research and papers

 

Topics:
General
BMPs
Case Studies
Credit quantification/ratios
Economic Analysis
Nonpoint sources/Agriculture
Stormwater
TMDL
Wetlands


General

Cross Cutting Analysis of Trading Programs: Case Studies in Air, Water and Wetland Mitigation Trading Systems; Learning from Innovations in Environmental Protection, Research Paper Number 6; By Robert L. Kerr, Steven J. Anderson, John Jaksch Kerr; Greiner, Anderson & April and Battelle Pacific Northwest Division (June 2000). Nine Case Studies, Appendices A-I.

Trading Research of Richard T. Woodward (homepage), Department of Agricultural Economics Texas A&M University: "Lessons about Effluent Trading From a Single Trade" (2003), "The Structure and Practice of Water-Quality Trading Markets" (2002), "Market Structures for U.S. Water Quality Trading" (2002), "Market-Based Solutions to Environmental Problems" (2000).

Trading on Water (2001) by S. Greenhalgh and P. Faeth - Forum for Applied Research and Public Policy.

"Watershed-based Pollution Trading development and current trading programs" (2001) by Mc Ginnis, SL. Environmental Engineering and Policy 2 (3): 161-170, Springer Link.

Water Resources Impacts "Harnessing Markets for Water Quality" (Nov. 2002) - Link to AWRA Newletter.

Watershed Nutrient Trading under Asymmetric Information (Oct 2002). Robert Johansson, Agricultural and Resource Economics Review.

Removing Muck with Markets: A case study on pollutant trading for cleaner water (2003). Policy brief to Reason Foundation. Link.

Will nutrient trading ever work? An assessment of supply and demand problems and institutional obstacles (2003) by D. King and P. Kuch. Environmental Law Reporter.

The Role of Tradable Permits in Water Pollution Control (2003). Joseph Kraemer. Ecologic, Institute for International and European Environmental Policy. Report.

Preliminary Review for a Geographic and Monitoring Program Project: A review of point source-nonpoint source effluent trading /offset systems in watersheds (2003). Alexander Wood and Richard Bernknopf. USGS Open file report 03-79.

Trading Cases: Is trading credits in created markets a better way to reduce pollution and protect natural resources? (2003) James Boyd et al. Environmental Science and Technology 37 (111):217-233. (pdf)

Contract-based Trading Programs in Environmental Regulations (2004) A.G. Keeler Contemporary Economic Policy 22: 526-533.

A Feasibility analysis of applying water quality trading in Georgia Watersheds (June 2005) Water Policy Working Paper 2005-020, prepared by: Kristin Rowles, Georgia State University, Andrew Young School of Public Policy & Georgia Water Planning and Policy Center North Georgia.

"Crunch Time for Water Quality Trading" (2005) - by Dennis King in Choices (publication of the American Agricultural Economics Association).

Effluent trading to improve water quality: what do we know now? (2005) by Sandra Rousseau, Center for Economic Studies, Leuven, Belgium pdf

Addressing Total Phosphorus Impairments with Water Quality Trading (2006). Christopher Obropta and Gregory Rusciano. Journal of the American Water Resources Association 42 (5):1297-1306.


BMPs

Cost-effectiveness of Agricultural BMPs for Nutrient Reduction in the Tar-Pamlico River Basin (July 1995) North Carolina Cooperative Extension Service.

BMP List for the Lower Boise River Pollution Trading Program (2002).

Proposed BMPs to be Applied in the Lower Boise River Effluent Trading Demonstration (2002) by David L. Carter (pdf).


Case studies

Cheasapeake Bay

Effluent trading for water quality management: concept and application to the Chesapeake Bay Watershed (2003). E. Nishizawa, Marine Pollution Bulletin 47: 169-174. Link to abstract.

An evaluation of Virginia's Nutrient Credit Trading Program (2006). Kurt Stephenson, Stephen Aultman, Leonard Shabman. Paper presented at the American Agricultural Economics Association Annual Meeting (July 23-26, 2006).

Georgia

A Framework for Trading Phosphorus Credits in the Lake Allatoona Watershed (2003)- River Basin Center report

Water Quality Trading: Legal Analysis for Georgia Watersheds (2005) - Kristin Rowles and Ben Thompson, pdf

A Feasibility Analysis of Applying Water Quality Trading in Georgia Watersheds (2005) - Kristin Rowles, Georgia State University. pdf

An evaluation of water quality trading for Georgia watersheds - Kristin Rowles, Proceedings of the 2005 Georgia Water Resources Conference, held April 25-27, 2005, at The University of Georgia. pdf.

Water Quality Trading: Addressing two potential impediments to success (2005). Nanette Nelson and Andrew Keeler, Proceedings of the 2005 Georgia Water Resources Conference, pdf.

Building a foundation for water quality trading in Georgia (2006) - Kristin Rowles, Ronald G. Cummings, and Laura O. Taylor. Georgia State University - Final report. pdf

Gulf of Mexico

Nitrogen sources and gulf hypoxia: potential for environmental credit trading (2005). Marc Ribaudo, Ralph Heimlich, and Mark Peters. Ecological Economics 52: 159-168. Link to article.

"Awakening the "Dead Zone": An investment for agriculture, water quality and climate change" - Suzie Greenhalgh and Amanda Sauer, WRI (2003) - link includes presentations on P, N and CO2 trading, and full text document.

Idaho

A new approach to water quality trading: applying lessons from the acid rain program in the Lower Boise River Watershed. (2004). Claire Schary, Karen Fisher-Vanden. Environmental Practice 6 (4): 281-295.

Lower Boise River, Idaho - Effluent Trading Demonstration Project Final Report

Long Island Sound

Connecticut Nitrogen Exchange Credit Program (2005). Ann Powers, Pace Law School. View paper.

Minnesota

Fang, Feng (Andrew), K. William Easter, and Patrick L. Brezonik, 2005. Point-Nonpoint Source Water Quality Trading: A Case Study in the Minnesota River Basin. Journal of the American Water Resources Association (JAWRA) 41(3):645-658.

Pollutant Trading to Offset New Pollutant Loadings: A Case Study in the Minnesota River Basin, by Dr. "Andrew" Feng Fang, Kieser & Associates.

Other

Sharing the Load: Effluent Trading for Indirect Dischargers (1998). US EPA, New Jersey DEP. Link.

Effluent Trading: A policy review for Texas (1999) - Center for Public Leadership Studies - Link to report.

"Point/nonpoint nutrient trading in the Susquehanna River Basin" (2002) - Richard Horan, James Shortle, David Abler. Water Resources Research 38 (5): 1050. Link to abstract.

Lessons Learned from the Trading Pilots: Applications for Wisconsin Water Quality Trading Policy, Resource Strategies, Inc. for Fox-Wolf Watershed Alliance (2003).

Developing and Assessing Policy Options for Reducing Phosphorus Loading in Lake Champlain - USDA-ARS (Dec 2004).

A water quality trading simulation for Northeast Kansas (2005). J. Peterson, Craig Smith and Luc Valentin. Paper presented at the American Agricultural Economics Association Annual Meeting (July 24-27, 2005).

Water Quality Trading Suitability Analysis - Spokane River Watershed Final Report (2005) - Ross & Associates - pdf.

"Water Quality Trading in the Lower Delaware River Basin: A Resource for Practitioners": a Report to the William Penn Foundation by the Institute for Environmental Studies, University of Pennsylvania (March 2006).

"Trading Pollution for Water Quality: Assessing the effects of market-based instruments in three basins" (2007) by K.H. Wallace. Master's thesis.

Pennsylvania

Pennsylvania's Nutrient Trading Program: Legal Issues and Challenges (Dec 2007) - A white paper prepared by S. Showalter and S. Spigener.

Foreign

"South Nation Conservation Authority: What has 57 years of Watershed Management and Multi-Million Dollar Watershed Plans taught us?" Published by the American Society of Agricultural and Biological Engineers, St. Joseph, Michigan www.asabe.org, Paper number  042175,  2004 ASAE Annual Meeting . Abstract.

Tradable discharge permits system for water pollution in the upper Nanpan River, China (2003). Wendong Tao, Weimin Yang, and Bo Zhou. Research Report.

Evolving Environmental Policies and Asset Values: Nutrient trading schemes in the Netherlands (1998). Tomislav Vukina, Ada Wossink. World Congress of Environmental and Resource Economists. Abstract.

Market-Based Tools for Environmental Management (Oct 2004) -Proceedings of the 6th annual AARES National Symposium 2003. Australian Government Initiative. pdf

Economic Instrument for Managing Water Quality in New Zealand (Jan. 2004) - Final report for NZ Ministry for the Environment. pdf


Credit Quantification/ratios

"Point/non-point source source trading of pollution abatement: choosing the right trading ratio" Arun S. Malik, David Letson, Stephen R. Crutchfield (1993). American Journal of Agricultural Economics, Vol. 75 (4): 959-967.

Rainfall Simulation Study on the Effectiveness of Continuous No-till in Virginia - 2001

"Differences in Social and Public Risk Perceptions and Conflicting Impacts on Point/Nonpoint Trading Ratios" (2001). Richard Horan, American Journal of Agricultural Economics 83 (4) - Link to abstract.

2002 Cost for Connecticut Nitrogen Trades

South Nation Watershed Phosphorus Algorithm Report Phase II - Jan 2003

"When two wrongs make a right:second-best point/nonpoint trading ratios " (2005). Richard Horan, American Journal of Agricultural Economics 87 (2):340 - Link to abstract

Water Quality II: Using trading ratios to deal with uncertainties. Briefing note. Policy Research Initiative Canada.


Economic Analysis

Stavins, R.N. (1995). Transaction costs and tradable permits. Journal of Environmental Economics and Management, 29, 133-148.

Analysis of Phosphorus Control Costs and Effectiveness for Point and Nonpoint Sources in the Fox-Wolf Basin, Resource Strategis, Inc. (July 1999)

Fertile Ground: Nutrient Trading's potential to cost-effectively improve water quality (2000) - Paul Faeth, World Resources Institute - Link

Transaction costs and trading behavior in an immature water market (2002). Janis Carey, David Sunding, and David Zilberman. Environment and Development Economics 7:733-750. Link to abstract.

Economic and Environmental Implications of Phosphorus Control at North Bosque River (Texas) Wastewater Treatment Plants (July 2003) by Keith Keplinger et al. at Texas Institute for Applied Environmental Research.

An optimal control approach to water quality trading: cost-effective point/nonpoint management in a watershed framework (2004). Xiaobing Zhao, Jerald Fletcher. Paper presented at the American Agricultural Economics Association Annual Meeting (Aug. 1-4, 2004).

Preliminary Economic Analysis of Water Quality Trading Opportunities in the Great Miami River Watershed, Ohio, Prepared by Kieser & Associates for the Miami Conservancy District (To obtain the Technical Memorandum for this report, please contact Mark Kieser via email or at 269-344-7117).

Setting Permit Prices in a Transferable Discharge Permit (TDP) system for Water Quality Management (2005)- Paper by D. Collentine for 99th Seminar of the European Association of Agricultural Economists.

Paying for Environmental Performance: Using reverse auctions to allocate funding for conservation - WRI Policy Note no 3 (Jan. 2007) - pdf


Non-point Sources/Agriculture

Point-nonpoint Eflluent Trading in Watersheds: a Review and Critique. Michelle Jarvie and Barry Solomon (1998). Environmental Impact Assessment Review 18 (2):135-157. Link to abstract.

Incentive-based solutions to agricultural environmental problems: recent developments in theory and practice (2000). Allen Randall and Michael Taylor, Journal of Agricultural and Applied Economics 32 (2):221-234. View article.

Pollutant Monitoring of Effluent Credit Trading Programs for Agricultural Nonpoint Source Control, Master's Thesis, Daniel Jackson March, Virginia Polytechnic Institute and State University, November, 2000.

"Search for the northwest passage: the assignation of NSP (non-point source pollution) rights in nutrient trading programs" (2002) by D. Collentine, Water Science and Technology 45 (9):227-234 Abstract.

"Nitrogen Farming; Harvesting a different crop" (2002) Donald L. Hey. Restoration Ecology 10 (1) - Link to abstract

"Offset Banking: A way ahead for controlling nonpoint source pollution in urban areas in Georgia". (2002). Mark Morrisson, Georgia State University, Water Policy Working Paper

Nonpoint source and carbon sequestration credit trading: what can the two learn from each other (2003). Kurt Stephenson, Darrell Bosch. Paper presented at the American Agricultural Economics Association Annual Meeting (July 27-30, 2003).

"Trust and Communication: Mechanisms for Increasing Farmers’ Participation in Water Quality Trading" Hanna L. Breetza, Karen Fisher-Vandena, Hannah Jacobs, and Claire Schary (2004) - View article

The Coordination and Design of Point/Nonpoint trading programs and agri-environmental policies (2004). Richard Horan, James Shortle and David Abler. Agricultural and Resource Economics Review 33 (1): 61-78. View article.

"Including non-point sources in a water quality trading permit program" (2005) by D. Collentine, Water Science and Technology 51 (3-4):47-53 Abstract

Phosphorus trade credits for non-point source projects - presentation by Earles T., Lorenz A., and Koger W. Proceedings from the World Water Congress 2005.

The Future of Agriculture and Water: Market and Policy based strategies for sustainability. What can the developing world learn from North America? (2005) Conference paper by S. Msangi, C. Ringler, and M. Rosegrant. International Food Policy Research Institute. OECD workshop on Agriculture and Water.

"Nutrient farming: the business of environmental management" (2005) Donald L. Hey, Laura S. Urban, Jill A. Kostel. Ecological Engineering 24: 279–287

Water Quality Trading 1: Scientific considerations for Agricultural Pollutants. Briefing Note, Policy Research Initiative Canada.

Can Water Quality Trading help to address agricultural sources of pollution in Canada? Policy Research Initiative Final report (May 2006). Presentation by Bernard Cantin.

Water Quality and Agriculture (2007) - Choices 22 (2) - includes the article: "Water Quality Credit Trading and Agriculture: Recognizing the Challenges and Policy Issues Ahead", p.117.


Stormwater

Thermal Load Credit Trading Plan at Rock Creek and Durham wastewater treatment facilities, OR - Clean Water Services (2003)

Portland Stormwater Marketplace

Shepherd Creek, Cincinnati, OH - EPA National Risk Managment Research Laboratory
Using Tradable Credits to Control Excess Stormwater Runoff
An Application of Tradable Credits to Urban Stormwater Management.
Trading stormwater abatement credits in Cincinnati's Shepherd Creek.

Implementation of the EPA's Water Quality Trading Policy for Storm Water Management and Smart Growth (2005). Kathleen M. Trauth and Yee-Sook Shin, Journal of Urban Plng. and Devel., Volume 131 (4): 258-269 - (citation).

"Application of market mechanisms and incentives to reduce stormwater runoff: An integrated hydrologic, economic and legal approach" (2005). Punam Parikh, Michael A. Taylor 1, Theresa Hoagland, Hale Thurston, William Shuster - Environmental Science & Policy.

Pollutant trading to improve riparian habitat - article in Stormwater (Jan/Feb 2006)


TMDL

The Current Controversy regarding TMDLs: Contemporary perspectives "TMDLS and Pollutant Trading" (2003). Ann Powers, Vermont Journal of Environmental Law volume 4. Link to article.

The Economics of Total Maximum Daily Loads (Feb 2003) by Keith Keplinger at Texas Institute for Applied Environmental Research.

A framework for pollutant trading during the TMDL allocation phase (2004). A. Zaidi et al. American Society of Agricultural Engineers Conference Paper.


Wetlands

"Applying Lessons Learned from Wetlands Mitigation Banking to Water Quality Trading" (Feb. 2005) – White Paper prepared for: Office of Policy, Economics, and Innovation and Office of Water, U.S. Environmental Protection Agency, 1 by: Mark Landry, Antje Siems, and Gerald Stedge, Abt Associates Inc. and Leonard Shabman, Virginia Polytechnic Institute and State University.

Water Quality Trading: What can we learn from 10 years of wetland mitigation banking? (2005). Eric Raffini and Morgan Robertson, National Wetlands Newsletter 27 (4) - Link to abstract.

National Forum on Synergies Between Water Quality Trading and Wetland Mitigation Banking (Jan 2006) - Environmental Law Institute report

Wetlands and Water Quality Trading: Review of Current Science and Economic Practices with Selected Case Studies - US EPA Report (EPA/600/R-06/155 - July 2007)

 


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