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The Allocation of Nutrient Load Reduction across a Watershed: Assessing Delivery Coefficients as an Implementation Tool

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  • Hongli Feng
  • Manoj Jha
  • Phil Gassman

Abstract

Delivery coefficients have long been used in economic analysis of policies that seek to address environmental problems like water pollution. However, the derivation and validity of delivery coefficients have not been examined carefully by empirical analyses. We derived estimates of delivery coefficients and then evaluated them as a bridge between complex simulation models and economic policies like water quality trading. We found that the allocations achieved outcomes that differed from intended water quality targets by less than 10% in most cases. For the least-cost allocation with heterogeneous costs, cost savings significantly outweighed deviations from water quality targets.

Suggested Citation

  • Hongli Feng & Manoj Jha & Phil Gassman, 2009. "The Allocation of Nutrient Load Reduction across a Watershed: Assessing Delivery Coefficients as an Implementation Tool," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(1), pages 183-204.
    • Handle: RePEc:oup:revage:v:31:y:2009:i:1:p:183-204.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2008.01432.x
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    1. Bruce A. Babcock, 1992. "The Effects of Uncertainty on Optimal Nitrogen Applications," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 14(2), pages 271-280.
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    2. Qianwen Yu & Zehao Sun & Junyuan Shen & Xia Xu & Xiangnan Chen, 2023. "Interactive Allocation of Water Pollutant Initial Emission Rights in a Basin under Total Amount Control: A Leader-Follower Hierarchical Decision Model," IJERPH, MDPI, vol. 20(2), pages 1-25, January.
    3. Konrad, Maria Theresia & Hansen, Line Block & Levin, Gregor & Blicher-Mathiesen, Gitte & Andersen, Hans Estrup & Martinsen, Louise & Hasler, Berit, 2022. "Targeted regulation of nitrogen loads: A national, cross-sectoral analysis," Ecological Economics, Elsevier, vol. 193(C).

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