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Point-Nonpoint Source Phosphorus Pollution Trading in the Minnesota River Basin: A Cost-Effectiveness Analysis

Author

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  • Fang, Feng
  • Brezonik, Patrick L.
  • Easter, K. William

Abstract

Two point-nonpoint source pollution trading programs in the Minnesota River Basin were reviewed to examine their cost-effectiveness in controlling nonpoint pollution. Other social benefits resulting from the programs were also examined. An agricultural field pollutant transport model, ADAPT, was used to examine the phosphorus load reduction effectiveness of an important agricultural BMP, spring cover cropping for sugar beets, used extensively in one of the two programs. Results indicated that without considering transaction costs, point-nonpoint source pollution trading in the Minnesota River Basin was able to achieve pollution control cost savings, although at various degrees. The most cost-effective nonpoint source pollution control measures were those involving pollution reduction structures with long lifetime. Initial analysis showed that sugar beet spring cover cropping may be only marginally cost-effective in phosphorus pollution reduction. ADAPT simulations demonstrated that high residue conservation tillage was more cost-effective than spring cover cropping, especially under average climatic conditions. An important finding from this study is that point-nonpoint source trading programs, besides introducing cost savings to pollution control, brought some other social benefits to the trading area. Issues identified in this study include the difficulty in the finding nonpoint source trading partners and potentially significant transaction costs.

Suggested Citation

  • Fang, Feng & Brezonik, Patrick L. & Easter, K. William, 2002. "Point-Nonpoint Source Phosphorus Pollution Trading in the Minnesota River Basin: A Cost-Effectiveness Analysis," Miscellaneous Publications 333868, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaemp:333868
    DOI: 10.22004/ag.econ.333868
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