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Nitrogen Trading in Lake Taupo: An Analysis and Evaluation of an Innovative Water Management Strategy

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  • Duhon, Madeline
  • Young, Justine
  • Kerr, Suzi

Abstract

This paper provides a concise introduction to and evaluation of the Lake Taupo nitrogen cap and trade program established as part of Waikato Regional Council's recent Regional Plan Variation Five. The policy establishes a catchment-wide cap on nitrogen losses by allocating farmers individual nitrogen discharge allowances and allowing those farmers flexibility to trade allowances amongst themselves and to sell allowances to a public fund while remaining within the overall catchment cap. This paper seeks to explain the structure and evolution of the nitrogen trading market and to analyse its impact thus far by drawing on a wide variety of relevant perspectives. Research drawn from written material and basic quantitative data provide the basis for analysing the policy, while interviews with relevant stakeholders provide insight into the successful, surprising and contentious issues which arose throughout its development and implementation.

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File URL: http://purl.umn.edu/115353
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Bibliographic Info

Paper provided by New Zealand Agricultural and Resource Economics Society in its series 2011 Conference, August 25-26, 2011, Nelson, New Zealand with number 115353.

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Date of creation: 2011
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Handle: RePEc:ags:nzar11:115353

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Web page: http://www.nzares.org.nz/
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Keywords: Environmental Economics and Policy; Land Economics/Use;

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