Abstract
This chapter discusses smart markets for water quality, sediment, and impervious cover. The market designs for these resources are similar to the design for a water quantity market. Implementers must work through prerequisites, including setting initial allocations, which may need to be subject to scaling of some kind for revenue neutrality. But the designs differ in important ways from the water market design. Briefly, users cannot precisely know and control their run-off or groundwater recharge quality; they can control only their use of the land. Thus, implementers must design the bid structure to allow users to buy and sell the right to change their land use, not to buy and sell the water resource impact.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Collentine, D. (2005). Including non-point sources in a water quality trading permit program. Water Science and Technology 51(3–4), 47–53.
Hardin, G. (1968). The tragedy of the commons. Science 162, 1243.
Hung, M.-F., & Shaw, D. (2005). A trading-ratio system for trading water pollution discharge permits. Journal of Environmental Economics and Management 49(1), 83–102.
Kostel, J. A., Monchak, J., Tomer, M. D, Bingner, R. L, Bank Lentz, A. T, Ando, A. W, Brozovic, N., Raffensperger, J. F, Ranga Prabodanie, R. A., Wohlgezogen, F., Zajac, E., & Hey, D. (2014, September). Feasibility assessment of a nutrient trading market in the big bureau creek watershed final report, Prepared for U.S. Environmental Protection Agency, Targeted Watershed Grant WS-00E71101.
Lefkoff, L. J., & Gorelick, S. M. (1990). Benefits of an irrigation water rental market in a saline stream-aquifer system. Water Resources Research 26(7), 1371–1381.
Morgan, C. L., Coggins, J. S., & Eidman, V. R. (2000). Tradable permits for controlling nitrates in groundwater at the farm level: A conceptual model. Journal of Agricultural and Applied Economics 32(2), 249–258.
Pinto Rodriguez, A. A. (2013). Market mechanisms to allow trading of impervious cover. PhD thesis, University of Canterbury, Christchurch
Pinto Rodriguez, A. A., Raffensperger, J. F., Cochrane, T. A., & Dye, S. (2009, December 3–4). A proposed smart market for impervious cover runoff under rainfall uncertainty. In Proceedings of the ORNSZ conference, Christchurch, (pp. 190–199).
Pinto Rodriguez, A. A., Raffensperger, J. F., Cochrane, T. A., & Read, E. G. (2013). A proposed smart market design for sediment discharge. Journal of Water Resources Planning and Management 139(1), 96–108.
Prabodanie, R., Ranga, A., Raffensperger, J. F, & Milke, M. W. (2009, July 13–17). Simulation-optimization approach for trading point and non-point source nutrient permits, 18th World IMACS/MODSIM Congress, Cairns, Australia.
Prabodanie, R., Ranga, A., Raffensperger, J. F., & Milke, M. W. (2010). A pollution offset system for trading non-point source water pollution permits. Journal of Environmental and Resource Economics 45(4), 499–515.
Prabodanie, R. A., Ranga, John F., Raffensperger, E., Read, G., & Milke, Mark W. (2011). LP models for pricing diffuse nitrate discharge permits. Annals of Operations Research. doi: 10.1007/s10479-011-0941-0
Pritchard, G., Zakeri, G., & Philpott, A. (2010). A single-settlement, energy-only electric power market for unpredictable and intermittent participants. Operations Research 58(4), 1210–1219.
Raffensperger, J. F., & Cochrane, T. (2010). A smart market for impervious cover. Water Resources Management 24(12), 3065–3083.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing AG
About this chapter
Cite this chapter
Raffensperger, J.F., Milke, M.W. (2017). Smart Markets for Water Quality, Sediment, and Impervious Cover. In: Smart Markets for Water Resources. Global Issues in Water Policy, vol 12. Springer, Cham. https://doi.org/10.1007/978-3-319-55008-4_12
Download citation
DOI: https://doi.org/10.1007/978-3-319-55008-4_12
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-55007-7
Online ISBN: 978-3-319-55008-4
eBook Packages: Earth and Environmental ScienceEarth and Environmental Science (R0)