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Nutrient Trading in Lake Rotorua: Overview of a Prototype System

Author

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  • Lock, Kelly
  • Kerr, Suzi

Abstract

Water quality in Lake Rotorua has been declining for at least the last 30 years as increased levels of nutrients have entered the lake. Despite significant effort and expenditure, the level of nutrients entering the lake still exceeds sustainable levels. A nutrient trading system would help the catchment achieve this goal at least cost. Nutrient sources would bear the cost of their impact on water quality and hence take these costs into account in their decision-making. This paper presents a prototype nutrient trading system for achieving cost effective nutrient loss reductions for the Lake Rotorua catchment.

Suggested Citation

  • Lock, Kelly & Kerr, Suzi, 2008. "Nutrient Trading in Lake Rotorua: Overview of a Prototype System," Motu Working Papers 292663, Motu Economic and Public Policy Research.
    • Handle: RePEc:ags:motuwp:292663
    DOI: 10.22004/ag.econ.292663
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    File URL: https://ageconsearch.umn.edu/record/292663/files/08_02.pdf
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    2. 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.
    3. Simon Anastasiadis & Marie-Laure Nauleau & Suzi Kerr & Tim Cox & Kit Rutherford, 2011. "Does Complex Hydrology Require Complex Water Quality Policy? NManager Simulations for Lake Rotorua," Motu Working Papers 11_14, Motu Economic and Public Policy Research.
    4. Yeo, Boon-Ling & Anastasiadis, Simon & Kerr, Suzi & Browne, Oliver, 2012. "Synergies between Nutrient Trading Scheme and the New Zealand Greenhouse Gas (GHG) Emissions Trading Scheme (ETS) in the Lake Rotorua Catchment," 2012 Conference, August 31, 2012, Nelson, New Zealand 144270, New Zealand Agricultural and Resource Economics Society.
    5. 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.
    6. McDonald, Hugh & Kerr, Suzi, 2011. "Trading Efficiency in Water Quality Trading Markets: An Assessment of Trade-Offs," Motu Working Papers 291426, Motu Economic and Public Policy Research.
    7. Anastasiadis, Simon & Nauleau, Marie-Laure & Kerr, Suzi & Cox, Tim & Rutherford, Kit, 2011. "Water Quality Management in Lake Rotorua: A comparison of Regulatory Approaches using the NManager Model," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115348, New Zealand Agricultural and Resource Economics Society.
    8. R. Ranga Prabodanie & John Raffensperger & E. Read & Mark Milke, 2014. "LP models for pricing diffuse nitrate discharge permits," Annals of Operations Research, Springer, vol. 220(1), pages 87-109, September.

    More about this item

    Keywords

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    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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