Simulated Trading for Maryland's Nitrogen Loadings in the Chesapeake Bay
AbstractWe investigate nutrient trading for point and non-point sources for the Bay Restoration Fund in Maryland. We demonstrate how to use the proceeds from the tax revenue to mimic a market by trading high-cost upgrades of sewage treatment plants for low-cost winter cover crops. Under an optimistic assumption about costs for non-point sources and naÃ¯ve assumptions about the lag from planting cover crops to changes in nitrogen load, we calculate that 100 percent of abatement could be achieved at 56 percent of total costs, while in a pessimistic scenario, 100 percent of abatement could be could be achieved at 83 percent of total costs.
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Bibliographic InfoArticle provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.
Volume (Year): 37 (2008)
Issue (Month): 2 (October)
Chesapeake Bay; cover crops; nitrogen abatement; nutrient trading; sewage treatment plants; trading ratios; water pollution; Environmental Economics and Policy;
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- Hennessy, David A. & Feng, Hongli, 2007.
"When Should Uncertain Nonpoint Emissions be Penalized in a Trading Program?,"
2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN
9805, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- David A. Hennessy & Hongli Feng, 2008. "When Should Uncertain Nonpoint Emissions Be Penalized in a Trading Program?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 249-255.
- Hennessy, David A. & Feng, Hongli, 2008. "When Should Uncertain Nonpoint Emissions Be Penalized in a Trading Program?," Staff General Research Papers 12868, Iowa State University, Department of Economics.
- Richard Schmalensee & Paul L. Joskow & A. Denny Ellerman & Juan Pablo Montero & Elizabeth M. Bailey, 1998. "An Interim Evaluation of Sulfur Dioxide Emissions Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 53-68, Summer.
- Stephenson, Kurt & Aultman, Stephen & Metcalfe, Todd & Miller, Alex, 2009. "An Evaluation of Nutrient Trading Options in Virginia: A Role for Agriculture?," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46779, Southern Agricultural Economics Association.
- Wainger, Lisa A. & Van Houtven, George & Loomis, Ross & Messer, Jay & Beach, Robert & Deerhake, Marion, 2013. "Tradeoffs among Ecosystem Services, Performance Certainty, and Cost-efficiency in Implementation of the Chesapeake Bay Total Maximum Daily Load," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), April.
- Movafaghi, Olivia S. & Stephenson, Kurt & Taylor, Daniel, 2013. "Farmer Response to Nutrient Credit Trading Opportunities in the Coastal Plain of Virginia," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150414, Agricultural and Applied Economics Association.
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