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Adaptation and mitigation strategies for controlling stochastic water pollution: An application to the Baltic Sea

  • Gren, Ing-Marie

The purpose of this paper is to analyse and compare the costs of two strategies against transboundary water pollution, mitigation and adaptation measures, which are linked with respect to risk. Chance constraint programming is applied, and the analytical results indicate that total costs for given probabilistic targets are higher (lower) than the costs without risk linkage for negative (positive) covariance between the two classes of measures. A comparison of two international policies--cooperation and national uniform standards--indicates that cleaning under non-cooperative uniform national standards can be increased when considering stochastic pollution and linkage in risk between mitigation and adaptation measures. The empirical application to the Baltic Sea shows that the risk linkage can increase or decrease minimum costs for a given probabilistic target under cooperative solutions by 17 or 13%, and decrease the cost under national uniform policy for a given overall probabilistic target by approximately 10%.

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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 66 (2008)
Issue (Month): 2-3 (June)
Pages: 337-347

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Handle: RePEc:eee:ecolec:v:66:y:2008:i:2-3:p:337-347
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  1. Ing-Marie Gren, 2001. "International Versus National Actions Against Nitrogen Pollution of the Baltic Sea," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(1), pages 41-59, September.
  2. Tore Söderqvist, 1998. "Why Give up Money for the Baltic Sea? – Motives for People's Willingness (or Reluctance) to Pay," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(2), pages 249-254, September.
  3. Turner, R. Kerry & Georgiou, Stavros & Gren, Ing-Marie & Wulff, Fredric & Barrett, Scott & Soderqvist, Tore & Bateman, Ian J. & Folke, Carl & Langaas, Sindre & Zylicz, Tomasz, 1999. "Managing nutrient fluxes and pollution in the Baltic: an interdisciplinary simulation study," Ecological Economics, Elsevier, vol. 30(2), pages 333-352, August.
  4. Barrett, Scott, 2005. "The theory of international environmental agreements," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 28, pages 1457-1516 Elsevier.
  5. Sally Kane & Jason Shogren, 2000. "Linking Adaptation and Mitigation in Climate Change Policy," Climatic Change, Springer, vol. 45(1), pages 75-102, April.
  6. Perrings, Charles, 2005. "Mitigation and adaptation strategies for the control of biological invasions," Ecological Economics, Elsevier, vol. 52(3), pages 315-325, February.
  7. Fankhauser, Samuel & Smith, Joel B. & Tol, Richard S. J., 1999. "Weathering climate change: some simple rules to guide adaptation decisions," Ecological Economics, Elsevier, vol. 30(1), pages 67-78, July.
  8. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, October.
  9. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, June.
  10. Gren, Ing-Marie, 1995. "The Value of Investing in Wetlands for Nitrogen Abatement," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(2), pages 157-72.
  11. Hart, Rob, 2003. "Dynamic pollution control--time lags and optimal restoration of marine ecosystems," Ecological Economics, Elsevier, vol. 47(1), pages 79-93, November.
  12. Elofsson, Katarina, 2003. "Cost-effective reductions of stochastic agricultural loads to the Baltic Sea," Ecological Economics, Elsevier, vol. 47(1), pages 13-31, November.
  13. Markowska, Agnieszka & Zylicz, Tomasz, 1999. "Costing an international public good: the case of the Baltic Sea," Ecological Economics, Elsevier, vol. 30(2), pages 301-316, August.
  14. Huang, Ju-Chin & Haab, Timothy C. & Whitehead, John C., 1997. "Willingness to Pay for Quality Improvements: Should Revealed and Stated Preference Data Be Combined?," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 240-255, November.
  15. Bystrom, Olof, 1998. "The nitrogen abatement cost in wetlands," Ecological Economics, Elsevier, vol. 26(3), pages 321-331, September.
  16. Bystrom, Olof & Andersson, Hans & Gren, Ing-Marie, 2000. "Economic criteria for using wetlands as nitrogen sinks under uncertainty," Ecological Economics, Elsevier, vol. 35(1), pages 35-45, October.
  17. McSweeny, William T. & Shortle, James S., 1990. "Probabilistic Cost Effectiveness In Agricultural Nonpoint Pollution Control," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(01), July.
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