IDEAS home Printed from https://ideas.repec.org/p/ags/nzar08/96443.html
   My bibliography  Save this paper

Assessing design options for a Nutrient Trading System using an integrated model

Author

Listed:
  • Lock, Kelly
  • Kerr, Suzi
  • Cox, Tim
  • Rutherford, Kit

Abstract

Water quality in many New Zealand waterways is currently declining leading to lakes and rivers being closed for contact recreation such as swimming and potentially threatening our clean, green image. Much of this decline is associated with an increase in the nutrient loss from agriculture in the surrounding catchment. Nutrient trading systems are being considered in a number of catchments across the county to restrict the nutrient loss entering the waterways and thus improve the water quality. Such a system is currently being implemented in Lake Taupo and Environment Bay of Plenty is exploring actively the use of such a system to manage nutrient loss in the Lake Rotorua catchment. Yet the design of such systems is challenging. In a collaborative effort between Motu, NIWA and GNS-Science, we are developing a spatial, stochastic, dynamic simulation model, N-TRADER to simulate the effect of different aspects of nutrient trading policy for the Lake Rotorua catchment. This model combines the economics of land use and management decision making, the functioning of temporal nutrient allowance markets and a model of nutrient flows and lags and is based on the best available empirical information on the geophysical and economic conditions for this catchment. This paper will discuss the design of N-TRADER and some of the nutrient trading system design questions that we plan to explore with the model including what is the impact of different nutrient caps and what is the impact of higher transaction costs.

Suggested Citation

  • Lock, Kelly & Kerr, Suzi & Cox, Tim & Rutherford, Kit, 2008. "Assessing design options for a Nutrient Trading System using an integrated model," 2008 Conference, August 28-29, 2008, Nelson, New Zealand 96443, New Zealand Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:nzar08:96443
    DOI: 10.22004/ag.econ.96443
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/96443/files/2008_6_Motu%20Nutrient%20Trading%20Part%201.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Joanna Hendy & Suzi Kerr & Troy Baisden, 2007. "The Land Use in Rural New Zealand Model Version 1 (LURNZv1: Model Description)," Working Papers 07_07, Motu Economic and Public Policy Research.
    2. Suzi Kerr & Kit Rutherford & Kelly Lock, 2007. "Nutrient Trading in Lake Rotorua: Goals and Trading Caps," Working Papers 07_08, Motu Economic and Public Policy Research.
    3. Kelly Lock & Suzi Kerr, 2008. "Nutrient Trading in Lake Rotorua: Choosing the Scope of a Nutrient Trading System," Working Papers 08_05, Motu Economic and Public Policy Research.
    Full references (including those not matched with items on IDEAS)

    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:ags:nzar08:96443. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/nzareea.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.