IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v131y2017icp449-459.html
   My bibliography  Save this article

Equitably slicing the pie: Water policy and allocation

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800916302488
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2016.09.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Simon Anastasiadis & Suzi Kerr & Marie-Laure Nauleau & Tim Cox & Kit Rutherford, 2014. "Does complex hydrology require complex water quality policy?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(1), pages 130-145, January.
    2. Konow, James, 2001. "Fair and square: the four sides of distributive justice," Journal of Economic Behavior & Organization, Elsevier, vol. 46(2), pages 137-164, October.
    3. Regina Betz & Misato Sato, 2006. "Emissions trading: lessons learnt from the 1st phase of the EU ETS and prospects for the 2nd phase," Climate Policy, Taylor & Francis Journals, vol. 6(4), pages 351-359, July.
    4. G T Svendsen, 1998. "The US Acid Rain Program: Design, Performance, and Assessment," Environment and Planning C, , vol. 16(6), pages 723-734, December.
    5. Oliver Sartor & Clement Palli�re & Stephen Lecourt, 2014. "Benchmark-based allocations in EU ETS Phase 3: an early assessment," Climate Policy, Taylor & Francis Journals, vol. 14(4), pages 507-524, July.
    6. Lally, Breda & Riordan, Brendan & van Rensburg, Tom M., 2007. "Controlling Agricultural Emissions of Nitrates: Regulations versus Taxes," 81st Annual Conference, April 2-4, 2007, Reading University, UK 7981, Agricultural Economics Society.
    7. Rose, Adam & Stevens, Brandt, 1993. "The efficiency and equity of marketable permits for CO2 emissions," Resource and Energy Economics, Elsevier, vol. 15(1), pages 117-146, March.
    8. Mr. John Norregaard & Ms. Valerie Reppelin, 2000. "Taxes and Tradable Permits As Instruments for Controlling Pollution: Theory and Practice," IMF Working Papers 2000/013, International Monetary Fund.
    9. R. Quentin Grafton & Gary Libecap & Samuel McGlennon & Clay Landry & Bob O'Brien, 2011. "An Integrated Assessment of Water Markets: A Cross-Country Comparison," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(2), pages 219-239, Summer.
    10. Stavins, Robert N., 2003. "Experience with market-based environmental policy instruments," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 9, pages 355-435, Elsevier.
    11. Myles,Gareth D., 1995. "Public Economics," Cambridge Books, Cambridge University Press, number 9780521497695, January.
    12. Helfand, Gloria E, 1991. "Standards versus Standards: The Effects of Different Pollution Restrictions," American Economic Review, American Economic Association, vol. 81(3), pages 622-634, June.
    13. Madeline Duhon & Suzi Kerr, 2015. "Nitrogen Trading in Lake Taupo: An Analysis and Evaluation of an Innovative Water Management Policy," Working Papers 15_07, Motu Economic and Public Policy Research.
    14. E. Woerdman & O. Couwenberg & A. Nentjes, 2009. "Energy prices and emissions trading: windfall profits from grandfathering?," European Journal of Law and Economics, Springer, vol. 28(2), pages 185-202, October.
    15. Stavins, Robert N., 2001. "Lessons From the American Experiment With Market-Based Environmental Policies," Discussion Papers 10589, Resources for the Future.
    16. Steve Sorrell & Jim Skea (ed.), 1999. "Pollution for Sale," Books, Edward Elgar Publishing, number 1696.
    17. Greenhalgh, Suzie & Selman, Mindy, 2012. "Comparing Water Quality Trading Programs: What Lessons Are There To Learn?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 42(2), pages 1-22.
    18. Kampas, Athanasios & Mamalis, Spyridon, 2006. "Assessing the Distributional Impacts of Transferable Pollution Permits: The Case of Phosphorus Pollution Management at a River Basin Scale," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 7(2), pages 1-12, July.
    19. David Pearce & Phoebe Koundouri, 2003. "Fertilizer and Pesticide Taxes for Controlling Non-point Agricultural Pollution," DEOS Working Papers 0310, Athens University of Economics and Business.
    20. Pascual, Unai & Muradian, Roldan & Rodríguez, Luis C. & Duraiappah, Anantha, 2010. "Exploring the links between equity and efficiency in payments for environmental services: A conceptual approach," Ecological Economics, Elsevier, vol. 69(6), pages 1237-1244, April.
    21. Kampas, Athanasios & White, Ben, 2003. "Selecting permit allocation rules for agricultural pollution control: a bargaining solution," Ecological Economics, Elsevier, vol. 47(2-3), pages 135-147, December.
    22. Ekins, Paul, 1999. "European environmental taxes and charges: recent experience, issues and trends," Ecological Economics, Elsevier, vol. 31(1), pages 39-62, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kaye-Blake, William & Schilling, Chris & Monaghan, Ross & Vibart, Ronaldo & Dennis, Samuel & Post, Elizabeth, 2019. "Quantification of environmental-economic trade-offs in nutrient management policies," Agricultural Systems, Elsevier, vol. 173(C), pages 458-468.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Spicer, E. Anne & Swaffield, Simon & Moore, Kevin, 2021. "Agricultural land use management responses to a cap and trade regime for water quality in Lake Taupo catchment, New Zealand," Land Use Policy, Elsevier, vol. 102(C).
    2. Sun, Tao & Zhang, Hongwei & Wang, Yuan, 2013. "The application of information entropy in basin level water waste permits allocation in China," Resources, Conservation & Recycling, Elsevier, vol. 70(C), pages 50-54.
    3. Sun, Tao & Zhang, Hongwei & Wang, Yuan & Meng, Xiangming & Wang, Chenwan, 2010. "The application of environmental Gini coefficient (EGC) in allocating wastewater discharge permit: The case study of watershed total mass control in Tianjin, China," Resources, Conservation & Recycling, Elsevier, vol. 54(9), pages 601-608.
    4. Daniel Cardona & Jenny De Freitas & Antoni Rubí-Barceló, 2021. "Environmental policy contests: command and control versus taxes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(3), pages 654-684, June.
    5. Stavins, Robert, 2004. "Environmental Economics," RFF Working Paper Series dp-04-54, Resources for the Future.
    6. Woerdman Edwin & Nentjes Andries, 2019. "Emissions Trading Hybrids: The Case of the EU ETS," Review of Law & Economics, De Gruyter, vol. 15(1), pages 1-32, March.
    7. Minxing Jiang & Bangzhu Zhu & Julien Chevallier & Rui Xie, 2018. "Allocating provincial CO2 quotas for the Chinese national carbon program," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), pages 457-479, July.
    8. Mo, Jian-Lei & Agnolucci, Paolo & Jiang, Mao-Rong & Fan, Ying, 2016. "The impact of Chinese carbon emission trading scheme (ETS) on low carbon energy (LCE) investment," Energy Policy, Elsevier, vol. 89(C), pages 271-283.
    9. Chen, Yenming J. & Sheu, Jiuh-Biing, 2009. "Environmental-regulation pricing strategies for green supply chain management," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 667-677, September.
    10. Gordon, Simon, 2003. "Economic Instruments For Nonpoint Source Water Pollution: Options For The Swan-Canning River System," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57873, Australian Agricultural and Resource Economics Society.
    11. Syezlin Hasan & Line Block Hansen & James C. R. Smart & Berit Hasler & Mette Termansen, 2022. "Tradeable Nitrogen Abatement Practices for Diffuse Agricultural Emissions: A ‘Smart Market’ Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(1), pages 29-63, May.
    12. Newell, Richard G & Stavins, Robert N, 2003. "Cost Heterogeneity and the Potential Savings from Market-Based Policies," Journal of Regulatory Economics, Springer, vol. 23(1), pages 43-59, January.
    13. Stavins, Robert, 2003. "Market-Based Environmental Policies: What Can We Learn from U.S. Experience and Related Research?," Working Paper Series rwp03-031, Harvard University, John F. Kennedy School of Government.
    14. Wang, Qiang & Chen, Xi, 2015. "Energy policies for managing China’s carbon emission," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 470-479.
    15. James Shortle & Richard D. Horan, 2013. "Policy Instruments for Water Quality Protection," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 111-138, June.
    16. Daniel Slunge & Francisco Alpizar, 2019. "Market-Based Instruments for Managing Hazardous Chemicals: A Review of the Literature and Future Research Agenda," Sustainability, MDPI, vol. 11(16), pages 1-20, August.
    17. Chen, Yihui & Jiang, Ping & Dong, Wenbo & Huang, Beijia, 2015. "Analysis on the carbon trading approach in promoting sustainable buildings in China," Renewable Energy, Elsevier, vol. 84(C), pages 130-137.
    18. Juan-Pablo Montero, 2004. "Tradable permits with incomplete monitoring - Evidence from Santiago's particulate permits program," Working Papers 0415, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
    19. Saphores, Jean-Daniel M. & Nixon, Hilary, 2014. "How effective are current household recycling policies? Results from a national survey of U.S. households," Resources, Conservation & Recycling, Elsevier, vol. 92(C), pages 1-10.
    20. Richard Schmalensee & Robert N. Stavins, 2013. "The SO 2 Allowance Trading System: The Ironic History of a Grand Policy Experiment," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 103-122, Winter.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:131:y:2017:i:c:p:449-459. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.