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Nutrient Trading in Lake Rotorua: Choosing the Scope of a Nutrient Trading System

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Author Info

  • Kelly Lock

    ()
    (Motu Economic and Public Policy Research)

  • Suzi Kerr

    ()
    (Motu Economic and Public Policy Research)

Abstract

A nutrient trading system is one mechanism that is currently being considered to control and reduce nutrient loss into Lake Rotorua. However this may not be the best mechanism for controlling nutrient loss from all sources. A more comprehensive system improves efficiency and decreases market power opportunities, but it can also bring increased compliance and administrative costs. This paper discusses which sources should be included in a nutrient trading system for Lake Rotorua including. It examines existing systems and presents an empirical analysis to estimate the impact of including different nutrient sources.

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Bibliographic Info

Paper provided by Motu Economic and Public Policy Research in its series Working Papers with number 08_05.

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Length: 39 pages
Date of creation: Apr 2008
Date of revision:
Handle: RePEc:mtu:wpaper:08_05

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Related research

Keywords: Water quality; nutrients; trading; Lake Rotorua;

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References

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  1. Misiolek, Walter S. & Elder, Harold W., 1989. "Exclusionary manipulation of markets for pollution rights," Journal of Environmental Economics and Management, Elsevier, vol. 16(2), pages 156-166, March.
  2. Hahn, Robert W, 1984. "Market Power and Transferable Property Rights," The Quarterly Journal of Economics, MIT Press, vol. 99(4), pages 753-65, November.
  3. Kelly Lock & Stefan Leslie, 2007. "New Zealand's Quota Management System: A History of the First 20 Years," Working Papers 07_02, Motu Economic and Public Policy Research.
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Cited by:
  1. Lock, Kelly & Kerr, Suzi & Cox, Tim & Rutherford, Kit, 2008. "Assessing design options for a Nutrient Trading System using an integrated model," 2008 Conference, August 28-29, 2008, Nelson, New Zealand 96443, New Zealand Agricultural and Resource Economics Society.
  2. Kelly Lock & Suzi Kerr, 2008. "Nutrient Trading in Lake Rotorua: Overview of a Prototype System," Working Papers 08_02, Motu Economic and Public Policy Research.
  3. Hugh McDonald & Suzi Kerr, 2011. "Trading Efficiency in Water Quality Trading Markets: An Assessment of Trade-Offs," Working Papers 11_15, Motu Economic and Public Policy Research.

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