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A Note on Distortional Distributional Effects in River Basin Discharge Permit Trade

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  • Nadine Wittmann

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Abstract

This note exhibits how the implementation of the Total Loads Standard for issuing tradable water rights along a river basin can cause a significant location-induced economic disadvantage to some of the agents located along a given river site. Analysis shows, however, that this issue can be resolved by a modification of the original Total Load Standard regarding the handling of so called critical zones in which the desired water quality level is otherwise not upheld. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Nadine Wittmann, 2014. "A Note on Distortional Distributional Effects in River Basin Discharge Permit Trade," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(1), pages 279-285, January.
  • Handle: RePEc:spr:waterr:v:28:y:2014:i:1:p:279-285
    DOI: 10.1007/s11269-013-0473-2
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    References listed on IDEAS

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    1. Erik Ansink & Michael Gengenbach & Hans-Peter Weikard, 2012. "River Sharing and Water Trade," Working Papers 2012.17, Fondazione Eni Enrico Mattei.
    2. Coram, Alex, 2006. "The optimal allocation of water along a system of rivers: a continuous model with sequential bidding," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 0(Issue 3), pages 1-14, September.
    3. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    4. Marianne Keudel, 2006. "Water Quality Trading: Theoretical and Practical Approaches," IWP Discussion Paper Series 01/2006, Institute for Economic Policy, Cologne, Germany.
    5. Erik Ansink & Hans-Peter Weikard, 2012. "Sequential sharing rules for river sharing problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(2), pages 187-210, February.
    6. Ana Iglesias & Luis Garrote & Francisco Flores & Marta Moneo, 2007. "Challenges to Manage the Risk of Water Scarcity and Climate Change in the Mediterranean," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(5), pages 775-788, May.
    7. Beard, Rodney, 2011. "The river sharing problem: A review of the technical literature for policy economists," MPRA Paper 34382, University Library of Munich, Germany.
    8. Hung, Ming-Feng & Shaw, Daigee, 2005. "A trading-ratio system for trading water pollution discharge permits," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 83-102, January.
    9. Alex Coram, 2006. "The optimal allocation of water along a system of rivers: a continuous model with sequential bidding ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 313-326, September.
    10. Weber, Marian L., 2001. "Markets for Water Rights under Environmental Constraints," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 53-64, July.
    11. Bernd Klauer & Michael Rode & Johannes Schiller & Uwe Franko & Melanie Mewes, 2012. "Decision Support for the Selection of Measures according to the Requirements of the EU Water Framework Directive," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(3), pages 775-798, February.
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