Nitrogen Farming in the Mississippi Watershed: A Policy Comparison
The aim of this study is to evaluate three market models in their ability to support nitrogen removal through a managed wetland market. The unrestricted model allows emitters to buy permits from any wetland, has the lowest abatement cost, and highest environmental damage as defined in this paper. The “backyard” model, requiring emitters to exhaust permit supply in their local wetland area before purchasing permits elsewhere, was more costly and only marginally less environmentally damaging. The penalties model required emitters to obtain extra permits if non-local permits were purchased, and was most costly and least environmentally damaging.
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