Pharino Sustainable Water Quality Management Policy

The Role of Trading: The U.S. Experience
2007
ISBN: 978-1-4020-5863-9
Verlag: Springer Netherland
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, Band 10, 142 Seiten, eBook

Reihe: Alliance for Global Sustainability Bookseries

This book presents both general and comprehensive observations of unsuccessful and successful experiences in water pollution trading programs within the U.S. These experiences help in understanding the major environmental, economic and regulatory barriers that prevent the application of pollution trading in water media to become successful. This work combines background information with real experience.

Zielgruppe

Research

Autoren/Hrsg.

Pharino, C.

Inhaltsverzeichnis

CHAPTER 1 BACKGROUND; 1.1 Definition of Water Quality and Water Pollution; 1.2 Water Quality Regulation and Policy Reviews; 1.3 Introduction to Water Quality Trading; CHAPTER 2 CONCEPT, FRAMEWORK AND CONSIDERATIONS FOR WATER QUALITY; 2.1. Concept about Tradable Permit Systems; 2.2 Framework for Establishing WQT Systems; 2.3 Considerations in Establishing Tradable Permit Schemes; CHAPTER 3 OVERVIEW OF OBSERVATIONS IN WATER QUALITY TRADING; 3.1 Overview of Water Trading Programs in the U.S.; 3.2 Observations Derived from Trading Programs; CHAPTER 4 THE ROLE OF TRADING; 4.1 A Specific Role of Trading in WQT programs; 4.2 Important Barriers Hindering the Role of Trading; 4.3 Generic Roles of Water Quality Trading; CHAPTER 5 CONCLUSION; 5.1 What distinguishes the success of one WQT program vs. another; 5.2 How well do the WQT programs within the U.S. perform?; 5.3 Why did WQT programs fail to have active trading; 5.4 What should the roles of trading be in water quality management? ; 5.5 What is the suggested guidance for designing WQT programs; 5.6 What are the recommended approaches for promoting a WQT implementation; REFERENCES; APPENDIX; Appendix Summary Details of Water Quality Trading Programs;

Appendix A- 1: Part I Regarding Activity, Type of Participants, Pollutants and Market Structure;

Appendix A-2: Part II Regarding Size of Watershed, Number of PS, Trading Ratio, Number of Trade, and Characteristics of Participants;

Appendix A-3: Part III Regarding TMDL in the Program and Cost-Saving;

Appendix A-4: Summary of Analysis Results from Appendix A-1, A-2, A-3;

References.

Leseproben

Chapter 2 CONCEPT, FRAMEWORK AND CONSIDERATIONS FOR WATER QUALITY TRADING (P. 19)

Introduction
Today, tradable permit systems are increasing in importance and acceptance by the regulators, and the regulated, to manage various environmental problems (Vig and Kraft 2000, Harrington et al. 2004, OECD 2004). After Coase proposed the basic foundation underlying tradable permits on external costs (Coase 1960), and the later development of the concept and use of marketable permit system elaborated by Crocker on controlling air pollution and Dales on regulating water use (Crocker 1966, Dales 1968), the theoretical reasons why trading of pollution rights should be superior to the direct regulation became well known (Stavins 2000, Ellerman 2003, Tietenberg 2004).

Hahn et al and Tietenberg made a review and evaluation of several attempts to introduce market-based instruments into environmental regulation and were optimistic about the applications (Tietenberg 1985, 1990, Hahn and Hester 1989, Hahn 1989). In applying transferable permits to water problems, the earlier experiment conducted in the Fox River was studied by O’Neil et al. (1983).

Water pollution trading may be referred to as ef.uent trading or water quality trading (WQT).Within the past decade, interest in investigating the application of tradable permits in water quality trading has increased. The basic concepts, the fundamental elements, and the mechanics of how trading operates are presented in three sections of this chapter, which will lay the essential foundation for establishing a WQT program.

The first section explains concepts about tradable permit system for water quality trading including definition and classification, permit lifetime, allocation strategy and tradable permit schemes.

The second section describes significant elements (legal, economic and technical) required for establishing the water quality trading program. The third section discusses issues affecting the program’s performance which a program designer needs to take into consideration when developing a program.

2.1 Concept about Tradable Permit Systems

2.1.1 Definition and Classification
The most general use of a tradable permit defined by Ellerman (2005) is as "a transferable right to a common pool resource". The definition of a tradable permit for the environmental application is "a transferable right to emit a substance that can create pollution" to a common pool resource, i.e. air and water (Ellerman 2005).

The author pointed out that the tradable permit for pollution trading is different from the conventional permit implemented in command-and-control regulation in that it is transferable and may not define specific conditions to operate, set standards, or prescribe specific technologies to limit discharges. Contents of permits and conditions of user rights for resource usage may have a significant effect on trading program performance.

Tietenberg argued that the permit should at least provide some security to the permit holders, while still making it clear that it is not a property right (Tietenberg 2000). The crucial features for tradable permit systems are: (1) Entitlement – legally protected entitlement of discharge to a speciied limit, (2) Transferability – right to convey all or part of the entitlement to others, and (3) Enforceability – right to protect the entitlement and ensure compliance of the terms of transfer (Tietenberg 2003a, b).