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Cost Effectiveness in River Management: Evaluation of Integrated River Policy System in Tidal Ouse

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  • Tao Wang

    (University of York)

Abstract

The River Ouse forms a significant part of Humber river system, which drains about one fifth the land area of England and provides the largest fresh water source to the North Sea from UK. The river quality in the tidal river suffered from sag of dissolved oxygen (DO) during last few decades, deteriorated by the effluent discharges. The Environment Agency (EA) proposed to increase the water quality of Ouse by implementing more potent environmental policies. This paper explores the cost effectiveness of water management in the Tidal Ouse through various options by taking into account the variation of assimilative capacity of river water, both in static and dynamic scope of time. Reduction in both effluent discharges and water abstraction were considered along side with choice of effluent discharge location. Different instruments of environmental policy, the emission tax-subsidy (ETS) scheme and tradable pollution permits (TPP) systems were compared with the direct quantitative control approach. This paper at the last illustrated an empirical example to reach a particular water quality target in the tidal Ouse at the least cost, through a solution of constrained optimisation problem. The results suggested significant improvement in the water quality with less cost than current that will fail the target in low flow year.

Suggested Citation

  • Tao Wang, 2006. "Cost Effectiveness in River Management: Evaluation of Integrated River Policy System in Tidal Ouse," Working Papers 2006.142, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2006.142
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    References listed on IDEAS

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    1. Cowan, Simon, 1998. "Water Pollution and Abstraction and Economic Instruments," Oxford Review of Economic Policy, Oxford University Press, vol. 14(4), pages 40-49, Winter.
    2. Hanley, Nick D & Moffatt, Ian, 1993. "Efficiency and Distributional Aspects of Market Mechanisms in the Control of Pollution: An Empirical Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 40(1), pages 69-87, February.
    3. Oates, Wallace E. & Strassmann, Diana L., 1984. "Effluent fees and market structure," Journal of Public Economics, Elsevier, vol. 24(1), pages 29-46, June.
    4. Zylicz, Tomasz, 2003. "Instruments for water management at the drainage basin scale," Ecological Economics, Elsevier, vol. 47(1), pages 43-51, November.
    5. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    6. Michael Hoy & John Livernois & Chris McKenna & Ray Rees & Anthanassios Stengos, 2001. "Mathematics for Economics, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582074, January.
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    Cited by:

    1. Brouwer, Roy & Hofkes, Marjan & Linderhof, Vincent, 2008. "General equilibrium modelling of the direct and indirect economic impacts of water quality improvements in the Netherlands at national and river basin scale," Ecological Economics, Elsevier, vol. 66(1), pages 127-140, May.

    More about this item

    Keywords

    Water Quality Management; Tradable Pollution Permits; Tax and Subsidy; Effluent Discharge; Water Abstraction; Dynamic Equilibrium; Integrated River Policy; Cost Effectiveness;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other

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