IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v72y2018icp1-11.html
   My bibliography  Save this article

Facilitating markets and mitigation: A systematic review of early-action incentives in the U.S

Author

Listed:
  • Galik, Christopher S.
  • Olander, Lydia P.

Abstract

Early action refers to activities undertaken prior to a regulatory program or generation of services prior to mitigation of impacts elsewhere. In U.S. environmental markets, early action could reduce lags in environmental performance, improve outcomes, and encourage innovation in mitigation approaches. Multiple tools have emerged for encouraging early action in environmental markets. Several tools have also been deployed in markets, providing valuable insight into their function. This paper presents a systematic review of early action tools and describes their use in wetland and stream mitigation, species and habitat banking, greenhouse gas mitigation, and water quality trading. It finds that incentives necessary to motivate sellers differ from those motivating buyers. The tool or approach best suited to encourage early action also varies as conditions change. Anecdotal evidence suggests the potential for benefits to accrue from early action, but additional data are needed to inform the use of specific tools.

Suggested Citation

  • Galik, Christopher S. & Olander, Lydia P., 2018. "Facilitating markets and mitigation: A systematic review of early-action incentives in the U.S," Land Use Policy, Elsevier, vol. 72(C), pages 1-11.
    • Handle: RePEc:eee:lauspo:v:72:y:2018:i:c:p:1-11
    DOI: 10.1016/j.landusepol.2017.12.032
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837716313783
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2017.12.032?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. Ian W.H. Parry & Michael Toman, 2002. "Early Emission Reduction Programs: An Application to CO2 Policy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 73-95.
    2. Cramton, Peter & Kerr, Suzi, 2002. "Tradeable carbon permit auctions: How and why to auction not grandfather," Energy Policy, Elsevier, vol. 30(4), pages 333-345, March.
    3. Hahn, Robert W & Noll, Roger G, 1990. "Enviromental Markets in the Year 2000," Journal of Risk and Uncertainty, Springer, vol. 3(4), pages 351-367, December.
    4. Pan, Haoran & Regemorter, Denise Van, 2004. "The costs and benefits of early action before Kyoto compliance," Energy Policy, Elsevier, vol. 32(13), pages 1477-1486, September.
    5. Richard T. Woodward, 2003. "Lessons about Effluent Trading from a Single Trade," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 235-245.
    6. Woodward, Richard T. & Newburn, David A. & Mezzatesta, Mariano, 2016. "Additionality and reverse crowding out for pollution offsets in water quality trading," Ecological Economics, Elsevier, vol. 128(C), pages 224-231.
    7. Dana L. Hoag & Jennie S. Hughes-Popp, 1997. "Theory and Practice of Pollution Credit Trading in Water Quality Management," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 19(2), pages 252-262.
    8. David C. Roberts & Christopher D. Clark & William M. Park & Burton C. English, 2008. "A Spatial Assessment of Possible Water Quality Trading Markets in Tennessee," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(4), pages 711-728.
    9. Galik, Christopher S., 2015. "Exploring the determinants of emerging bioenergy market participation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 107-116.
    10. Douglas J Bruggeman, 2015. "The Value of Learning about Natural History in Biodiversity Markets," PLOS ONE, Public Library of Science, vol. 10(12), pages 1-21, December.
    11. Greenhalgh, Suzie & Selman, Mindy, 2008. "Water quality trading programs: A comparison between the Northern and Southern Hemispheres," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6028, Australian Agricultural and Resource Economics Society.
    12. Ribaudo, Marc & Greene, Catherine & Hansen, LeRoy & Hellerstein, Daniel, 2010. "Ecosystem services from agriculture: Steps for expanding markets," Ecological Economics, Elsevier, vol. 69(11), pages 2085-2092, September.
    13. Shortle, James S. & Horan, Richard D., 2008. "The Economics of Water Quality Trading," International Review of Environmental and Resource Economics, now publishers, vol. 2(2), pages 101-133, October.
    14. Shortle, James, 2013. "Economics and Environmental Markets: Lessons from Water-Quality Trading," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), pages 1-18, April.
    15. Urs Steiner Brandt & Gert Tinggaard Svendsen, 2009. "The Choice between Auctioning and Grandfathering in the Eu," Energy & Environment, , vol. 20(7), pages 1117-1130, November.
    16. A. Denny Ellerman & Juan-Pablo Montero, 2007. "The Efficiency and Robustness of Allowance Banking in the U.S. Acid Rain Program," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 47-72.
    17. Ribaudo, Marc, 2009. "Agriculture and Water Quality Trading: Exploring the Possibilities," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-1, March.
    18. 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.
    19. Montagnoli, Alberto & de Vries, Frans P., 2010. "Carbon trading thickness and market efficiency," Energy Economics, Elsevier, vol. 32(6), pages 1331-1336, November.
    20. Cynthia Morgan & Ann Wolverton, 2005. "Water Quality Trading in the United States," NCEE Working Paper Series 200507, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jun 2005.
    21. Marshall, Elizabeth P. & Weinberg, Marca, 2012. "Baselines in Environmental Markets: Tradeoffs Between Cost and Additionality," Economic Brief 138922, United States Department of Agriculture, Economic Research Service.
    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. Barral, Stéphanie & Guillet, Fanny, 2023. "Preserving peri-urban land through biodiversity offsets: Between market transactions and planning regulations," Land Use Policy, Elsevier, vol. 127(C).
    2. Frey, Gregory E. & Kallayanamitra, Chalisa & Wilkens, Philadelphia & James, Natasha A., 2021. "Payments for forest-based ecosystem services in the United States: Magnitudes and trends," Ecosystem Services, Elsevier, vol. 52(C).

    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. Caela O'Connell & Marzieh Motallebi & Deanna L. Osmond & Dana L. K. Hoag, 2017. "Trading on risk: The moral logics and economic reasoning of North Carolina farmers in water quality trading markets," Economic Anthropology, Wiley Blackwell, vol. 4(2), pages 225-238, June.
    2. Stephenson, Kurt & Shabman, Leonard, 2015. "Nutrient Assimilation Services for Water Quality Credit Trading Programs," RFF Working Paper Series dp-15-33, Resources for the Future.
    3. Filippelli, Raphael & Termansen, Mette & Hasan, Syezlin & Hasler, Berit & Hansen, Line & Smart, James C.R., 2022. "Water quality trading markets – Integrating land and marine based measures under a smart market approach," Ecological Economics, Elsevier, vol. 200(C).
    4. Ribaudo, Marc & Savage, Jeffrey & Aillery, Marcel P., 2014. "An Economic Assessment of Policy Options To Reduce Agricultural Pollutants in the Chesapeake Bay," Economic Research Report 171880, United States Department of Agriculture, Economic Research Service.
    5. Call, Isabel L. & Lew, Daniel K., 2015. "Tradable permit programs: What are the lessons for the new Alaska halibut catch sharing plan?," Marine Policy, Elsevier, vol. 52(C), pages 125-137.
    6. 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.
    7. Suzi Kerr, 2013. "Managing Risks and Tradeoffs Using Water Markets," Working Papers 13_13, Motu Economic and Public Policy Research.
    8. Robert W. Hahn & Robert N. Stavins, 2011. "The Effect of Allowance Allocations on Cap-and-Trade System Performance," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 267-294.
    9. Andrew Manale & Cynthia Morgan & Glenn Sheriff & David Simpson, 2011. "Offset markets for nutrient and sediment discharges in the Chesapeake Bay Watershed: Policy tradeoffs and potential steps forward," NCEE Working Paper Series 201105, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Aug 2011.
    10. 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.
    11. McDonald, Hugh J. & Kennedy, Marianna & Ngawhika, Simon & Kerr, Suzi, 2010. "Trading efficiency in water quality markets," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96949, New Zealand Agricultural and Resource Economics Society.
    12. Uchida, Emi & Swallow, Stephen K. & Gold, Arthur J. & Opaluch, James & Kafle, Achyut & Merrill, Nathaniel H. & Michaud, Clayton & Gill, Carrie Anne, 2018. "Integrating Watershed Hydrology and Economics to Establish a Local Market for Water Quality Improvement: A Field Experiment," Ecological Economics, Elsevier, vol. 146(C), pages 17-25.
    13. Lötjönen, Sanna & Ollikainen, Markku & Kotamäki, Niina & Huttunen, Markus & Huttunen, Inese, 2021. "Nutrient load compensation as a means of maintaining the good ecological status of surface waters," Ecological Economics, Elsevier, vol. 188(C).
    14. Carson Reeling & Richard D. Horan & Cloé Garnache, 2020. "When the Levee Breaks: Can Multi‐Pollutant Markets Break the Dam on Point–Nonpoint Market Participation?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 625-640, March.
    15. Carson Reeling & Richard D. Horan & Cloé Garnache, 2018. "Multi-Pollutant Point-Nonpoint Trading with Participation Decisions: The Role of Transaction Costs," CESifo Working Paper Series 7152, CESifo.
    16. 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.
    17. Peter S. Schmidt & Therese Werner, 2012. "Channeling the final Say in Politics," CER-ETH Economics working paper series 12/165, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    18. Khatri-Chhetri, Arun & Collins, Alan R, 2013. "Reducing Phosphorus Impairments with Nutrient Trading," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149686, Agricultural and Applied Economics Association.
    19. Haiyan Liu & Roy Brouwer, 2023. "What is the future of water quality trading?," Contemporary Economic Policy, Western Economic Association International, vol. 41(1), pages 194-217, January.
    20. Zhao, Tianli & Poe, Gregory L. & Boisvert, Richard N., 2015. "Management Areas and Fixed Costs in the Economics of Water Quality Trading," Working Papers 250017, Cornell University, Department of Applied Economics and Management.

    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:lauspo:v:72:y:2018:i:c:p:1-11. 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: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    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.