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Equitably slicing the pie: Water policy and allocation

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  • Daigneault, Adam
  • Greenhalgh, Suzie
  • Samarasinghe, Oshadhi

Abstract

Non-point source pollution is deteriorating water quality throughout the world. New Zealand is addressing this issue by regulating land-based nutrient losses, with debates over how to allocate limits across a heterogeneous landscape. We develop a spatially explicit economic land use model to investigate efficiency and equity issues from seven approaches to allocate nutrient discharges across two New Zealand watersheds. We find that the preferred allocation differs across land use, land characteristics, and regulation stringency; and that there is no universal ‘best’ allocation option. Therefore, decision-makers should focus on, at least, efficiency and equity, and on how to compensate those most affected.

Suggested Citation

  • Daigneault, Adam & Greenhalgh, Suzie & Samarasinghe, Oshadhi, 2017. "Equitably slicing the pie: Water policy and allocation," Ecological Economics, Elsevier, vol. 131(C), pages 449-459.
    • Handle: RePEc:eee:ecolec:v:131:y:2017:i:c:p:449-459
    DOI: 10.1016/j.ecolecon.2016.09.020
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    More about this item

    Keywords

    Nutrient loss; Non-point source pollution; Environmental policy; Equity;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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