A Recourse‐Based Interval Fuzzy Programming Model for Point‐Nonpoint Source Effluent Trading under Uncertainty

In this study, a recourse‐based interval fuzzy programming (RIFP) model is developed for tackling uncertainties expressed as fuzzy, interval, and/or probabilistic forms in an effluent trading program. It can incorporate preregulated water‐pollution control policies directly into its optimization process, such that an effective linkage between environmental regulations and economic implications (i.e., penalties) caused by improper policies due to uncertainty existence can be provided. The RIFP model is applied to point‐nonpoint source effluent trading of the Xiangxi River in China. The efficiency of trading efforts between water quality improvement and net system benefit under different degrees of satisfying discharge limits is analyzed. The results are able to help support (1) formulation of water‐pollution control strategies under various economic objectives and system‐reliability constraints, (2) selection of the desired effluent trading pattern for point and nonpoint sources, and (3) generation of tradeoffs among system benefit, satisfaction degree, and pollutant mitigation under multiple uncertainties. Compared with the traditional regulatory approaches, the results demonstrate that the water‐pollution control program can be performed more cost‐effectively through trading than nontrading.     

GOAL-ORIENTED AGRICULTURAL WATER QUALITY LEGISLATION1

ABSTRACT: While significant nonpoint source (NIPS) pollution control progress has been made since passage of Section 319 in the 1987 Water Quality Act, existing federal legislation does not provide for the most timely and cost-effective NIPS pollution reduction. In this paper, we use findings from the Rural Clean Water Program and other nationwide agricultural NIPS pollution control programs, building on legislative history to recommend a coordinated and efficient direction for agricultural water quality legislation. A collaborative framework should be established to accomplish the goals of the Clean Water Act (CWA), Coastal Zone Management Act (CZMA), and the Conservation Title of the Farm Bill. Valuable elements of the 1990 CZMA amendments that created a coastal NIPS program should be subsumed into the CWA. The CWA should reemphasize use of receiving water quality criteria and standards and should allow states flexibility to tailor basin-scale NPS program implementation to local needs. Implementation should involve targeting of NIPS pollution control efforts to critical land treatment areas and use of systems of best management practices to address these targeted water quality problems. The 1995 Farm Bill should reorient production incentives toward water quality to support the collaborative framework, implementing ecologically sound source reduction principles. The Farm Bill and the CWA should contain interrelated provisions for voluntary, incentive-assisted producer participation and fallback regulatory measures. Such coordinated national water quality and Farm Bill legislation that recognizes the need for flexibility in state implementation is supported as the most rational and cost-effective means of attaining water quality goals.     

Where Did the Agricultural Nonpoint Source Trades Go? Lessons from Virginia Water Quality Trading Programs

Governmental agencies, nongovernmental organizations, and agricultural organizations promote water quality trading programs as an innovative policy to engage agricultural producers in conservation activities. Cost analyses suggest regulated sources can reduce compliance costs by purchasing agricultural nonpoint source credits. Yet, such “point‐nonpoint” trades are rare. This article assesses the demand for agricultural nonpoint sources in well‐developed nutrient trading programs in Virginia for industrial and municipal wastewater treatment plants, municipal stormwater programs, and land developers. Evidence suggests nutrient trading programs in Virginia will not stimulate investments in pollutant reduction practices on working agricultural lands. The lack of demand for agricultural nonpoint source credits can be attributed to a substantial degree to the design features and incentives present in multiple overlapping regulatory programs. The legal setting that dampens regulated source demand for nonpoint source credits in Virginia is broadly representative of conditions found elsewhere in the United States.     

Assessing the Relationship Between Landscape Patterns and Nonpoint‐Source Pollution in the Danjiangkou Reservoir Basin in China1

Abstract: The constrained ordination method from quantitative ecology was utilized to assess the relationship between landscape patterns and nonpoint‐source (NPS) pollution for the purpose of identifying effective water‐quality improvement practices in Danjiangkou Reservoir (DJKR) basin, China. The soil and water assessment tool (SWAT) was applied to simulate NPS pollution and the Fragstats model was applied to calculate the landscape metrics. The study concluded that organic nutrients formed the main NPS pollutant in the DJKR basin and that most of the NPS pollution occurred along with soil loss. Based on partial redundancy analysis, the conclusion that landscape metrics were significantly correlated to NPS pollution indices was obtained. Specifically, the composition of LULC (land use/land cover) was the most effective factor to estimate NPS pollution. Dry cultivated land was identified as the main source of NPS pollution, and paddy fields were characterized with the most intensive soluble nutrients loss. In addition, the reason that fragmented and complex landscape patterns exacerbate NPS pollution was that natural landscape composed most of this area. Moreover, the fragmented natural landscape indicated intensive agricultural activities that were the crucial trigger for NPS pollution. Combined with the economic condition in China, Conversion of Cropland to Forests Program (CCFP) should be conducted selectively and gradually in the DJKR basin.     

Economic and Ecological Rules for Water Quality Trading1

Horan, Richard D. and James S. Shortle, 2011. Economic and Ecological Rules for Water Quality Trading. Journal of the American Water Resources Association (JAWRA) 47(1):59‐69. DOI: 10.1111/j.1752‐1688.2010.00463.x Abstract: Emissions trading in textbook form uses markets to achieve pollution targets cost‐efficiently. This result is accomplished in markets that regulators can implement without knowing pollution abatement costs. The theoretical promise of emissions trading, along with real‐world success stories from air emissions trading, has led to initiatives to use trading for water pollution control. Yet, trading, particularly when it involves nonpoint sources of pollution, requires significant departures from the textbook concept. This paper explores how features of water quality problems affect the design of markets for water pollution control relative to textbook emissions markets. Three fundamental design tasks that regulators must address for pollution trading to achieve an environmental goal at low cost are examined: (1) defining the point and nonpoint commodities to be traded, (2) defining rules governing commodity exchange, and (3) setting caps on the commodity supplies so as to achieve an environmental target. We show that the way in which these tasks are optimally addressed for water quality markets differs significantly from the textbook model and its real‐world analogs. We also show that the fundamental appeal of emissions trading is lost in the case of realistic water quality markets, as market designs that reduce the costs of achieving water quality goals may no longer be implementable without the regulatory authority having information on abatement costs.     

ADDRESSING TOTAL PHOSPHORUS IMPAIRMENTS WITH WATER QUALITY TRADING1

ABSTRACT: Water quality trading is a voluntary economic process that provides an opportunity for dischargers to reduce the costs associated with meeting a discharge limitation. Trading can provide a cost effective solution for point sources (i.e., wastewater treatment plants) to meet strict effluent limitations set in response to total maximum daily loads (TMDLs). A successful trading program often depends on first determining the trading suitability of a pollutant for a particular watershed. A simple technical approach has been developed to identify sub‐watersheds within the Raritan River Basin, New Jersey, where water quality trading could provide a cost effective and scientifically feasible method for addressing total phosphorus impairments. The methodology presented will serve as a model to conduct similar analyses in other watersheds. The Raritan River Basin was divided into 12 subwatershed‐based study areas. Point‐nonpoint source trading opportunities were examined for each study area by examining the point and nonpoint source total phosphorus loading to impaired water bodies. Of the 12 subwatersheds examined, four had a high potential for implementing a successful trading program. Since instream phosphorus concentrations are closely related to soil erosion, an additional analysis was performed to examine soil erodibility. Recommendations are presented for conducting an economic analysis following the feasibility study.     

POINT‐NONPOINT SOURCE WATER QUALITY TRADING: A CASE STUDY IN THE MINNESOTA RIVER BASIN1

ABSTRACT: Contrary to the general trend of only a few actual trades occurring within point‐nonpoint source water quality trading programs in the United States, two trading projects in the Minnesota River Basin, created under the provisions of National Pollutant Discharge Elimination System (NPDES) permits, have generated five major trades and numerous smaller ones. In this paper, these two projects are described to illustrate their origins, implementation, and results. It was found that several factors contributed to the relatively high number of trades in these projects, including the offsetting nature of the projects (hence a fixed number of credits that the point sources were required to obtain), readily available information on potential nonpoint source trading partners, and an effectively internal trading scheme used by one of the two projects. It was also found that long term structural pollution control measures, such as streambank stabilization, offered substantial cost savings over point source controls. Estimates of transaction costs showed that the total costs of the trading projects were increased by at least 35 percent after transaction costs were taken into account. Evidence also showed that in addition to pollution reduction, these two trading projects brought other benefits to the watershed, such as helping balance environmental protection and regional economic growth.     

REGULATING NONPOINT SOURCE POLLUTION IN SURFACE WATERS: A PROPOSAL1

ABSTRACT: Nonpoint sources (NPS) are an important and continuing source of toxic and conventional pollutants to surface waters. The Clean Water Act amendments of 1987 call for the regulation of these sources through the use of Best Management Practices (BMP). However, BMP implementation has generally occurred on a voluntary basis. This paper proposes a regulatory mechanism to control nonpoint source pollution. The regulatory mechanism involves the development of consortia, made up of all parties potentially responsible for NPS pollution, the development of wasteload allocations that coordinate the pollutant contributions from both point and nonpoint sources in a stream segment, and the issuance of permits to consortia to regulate the impacts of NPS pollution and ensure achievement of state or federal Water Quality Criteria and Standards.     

AGRICULTURAL POLLUTION CONTROL: IMPLICATIONS FROM THE RURAL CLEAN WATER PROGRAM1

ABSTRACT: The Rural Clean Water Program has provided a unique opportunity to study the economics of agricultural nonpoint source pollution control. Several implications for improving the economic efficiency of future agricultural nonpoint source pollution control programs can be drawn from the results. First, individual projects should be targeted towards water bodies that have water quality problems causing economic damages. Considerable variation can exist among areas in the magnitude of economic damages, which may not be proportional to physical impacts. Second, the relative costs and effectiveness of the practices selected to reduce the delivery of pollutants can vary dramatically from one location to another. Early identification and emphasis on cost-effective BMPs can substantially reduce project costs and may make a project economically justifiable that would not otherwise be so. Finally, some projects that do not hive potential economic benefits from water quality improvements exceeding government cost may have on-farm benefits from reduced costs and increased long-term yields that are sufficient to make total benefits (water quality and on-farm) exceed costs.     

EFFECT OF WATER QUALITY STANDARDS ON FARM INCOME,RISK, AND NPS POLLUTION1

ABSTRACT: Enforceable standards play a crucial role in the design and implementation of most water quality policies. The impacts of these standards on farm income and nonpoint source (NPS) pollution can provide valuable information to develop economic policies that can improve water quality with minimal loss in income and minimal risk. This study uses an integration of nonlinear programming and a simulation model to assess the impacts of enforceable standards at technology and farm boundary levels. The results indicate that the type of pollutant regulated, enforcement type, and the level of standard had a significant impact on farm income and water quality. Choice of farm boundary standards over technology standards is dependent on the impact of the policy on other NPS pollutants, in addition to the reduction of nitrate and phosphorus pollutants. Enforcing farm boundary standards on nitrates had desirable effects on subsurface and percolate nitrogen and variance in income. Technology standards were uncertain in their effects because of the restriction on the choice of technologies available to farmers. A comparative policy analysis considering incentives, multiple impacts, transaction costs of implementation, and regional consideration is important to an effective policy design.     

Nonpoint Source Pollution Responses Simulation for Conversion Cropland to Forest in Mountains by SWAT in China

Several environmental protection policies have been implemented to prevent soil erosion and nonpoint source (NPS) pollutions in China. After severe Yangtze River floods, the “conversion cropland to forest policy” (CCFP) was carried out throughout China, especially in the middle and upper reaches of Yangtze River. The research area of the current study is located in Bazhong City, Sichuan Province in Yangtze River watershed, where soil erosion and NPS pollution are serious concerns. Major NPS pollutants include nitrogen (N) and phosphorus (P). The objective of this study is to evaluate the long-term impact of implementation of the CCFP on stream flow, sediment yields, and the main NPS pollutant loading at watershed level. The Soil and Water Assessment Tool (SWAT) is a watershed environmental model and is applied here to simulate and quantify the impacts. Four scenarios are constructed representing different patterns of conversion from cropland to forest under various conditions set by the CCFP. Scenario A represented the baseline, i.e., the cropland and forest area conditions before the implementation of CCFP. Scenario B represents the condition under which all hillside cropland with slope larger than 25° was converted into forest. In scenario C and D, hillside cropland with slope larger than 15° and 7.5° was substituted by forest, respectively. Under the various scenarios, the NPS pollution reduction due to CCFP implementation from 1996–2005 is estimated by SWAT. The results are presented as percentage change of water flow, sediment, organic N, and organic P at watershed level. Furthermore, a regression analysis is conducted between forest area ratio and ten years’ average NPS load estimations, which confirmed the benefits of implementing CCFP in reducing nonpoint source pollution by increasing forest area in mountainous areas. The reduction of organic N and organic P is significant (decrease 42.1% and 62.7%, respectively) at watershed level. In addition, this study also proves that SWAT modeling approach can be used to estimate NPS pollutants’ impacts of land use conversions in large watershed.     

NPS MODEL PARAMETER UNCERTAINTY ANALYSIS FOR AN OFF-STREAM RESERVOIR1

ABSTRACT: Parameter uncertainties exert a significant effect on nonpoint source pollution (NPS) modeling results. A decision made on the basis of such results may thereby be inappropriate. In this work, the parameter uncertainty is analyzed to explore an improved modeling procedure. Drainage patterns generated from digital elevation data and rainfall are the major parameters examined. A case study for the watershed of the Posan off-stream reservoir is implemented. A significant spatial variation of NPS distribution simulated with a drainage pattern generated from varied methods is observed. The effects of rainfall randomness on the spatial loading distribution are assessed and computed based on a Monte Carlo simulation. The proposed procedure is capable of improving the quality of modeling results and the decision for an appropriate control strategy.     

IDENTIFICATION OF CRITICAL NONPOINT POLLUTION SOURCE AREAS USING GEOGRAPHIC INFORMATION SYSTEMS AND WATER QUALITY MODELING1

n integrated approach coupling water quality computer simulation modeling with a geographic information system (GIS) was used to delineate critical areas of nonpoint source (NPS) pollution at the watershed level. Two simplified pollutant export models were integrated with the Virginia Geographic Information System (VirGIS) to estimate soil erosion, sediment yield, and phosphorus (P) loading from the Nomini Creek watershed located in Westmoreland County, Virginia. On the basis of selected criteria for soil erosion rate, sediment yield, and P loading, model outputs were used to identily watershed areas which exhibit three categories (low, medium, high) of non-point source pollution potentials. The percentage of the watershed area in each category, and the land area with critical pollution problems were also identified. For the 1505-ha Nomini Creek watershed, about 15, 16, and 21 percent of the watershed area were delineated as sources of critical soil erosion, sediment, and phosphorus pollution problems, respectively. In general, the study demonstrated the usefulness of integrating GIS with simulation modeling for nonpoint source pollution control and planning. Such techniques can facilitate making priorities and targeting nonpoint source pollution control programs.     

DEVELOPMENT OF A NONDEGRAIATION POLICY FOR HIGH QUALITY WATERS1

ABSTRACT: The development of a nondegradation policy for high quality waters is a complex and often controversial process. This paper discusses the development of a nondegradation policy for two components of the National Wild and Scenic Rivers System. Water quality in these reaches of the Delaware River is threatened by rapid growth and development and the cumulative impacts from numerous wastewater discharges and nonpoint sources of pollution. The Delaware River Basin Commission, with assistance from its member states and the National Park Service, conducted a highly public, six-year planning process to develop a nondegradation policy that protected existing water quality without impinging upon local and state economic development objectives. The resulting non-degradation policy includes such features as numeric definitions of existing water quality and measurable change; stringent point source requirements; nonpoint source requirements including watershed planning requirements; and other water quality management policies.     

Water Quality Functions of Riparian Forest Buffers in Chesapeake Bay Watersheds

/ Maryland, Virginia, and Pennsylvania, USA, have agreed to reduce nutrient loadings to Chesapeake Bay by 40% by the year 2000. This requires control of nonpoint sources of nutrients, much of which comes from agriculture. Riparian forest buffer systems (RFBS) provide effective control of nonpoint source (NPS) pollution in some types of agricultural watersheds. Control of NPS pollution is dependent on the type of pollutant and the hydrologic connection between pollution sources, the RFBS, and the stream. Water quality improvements are most likely in areas of where most of the excess precipitation moves across, in, or near the root zone of the RFBS. In areas such as the Inner Coastal Plain and Piedmont watersheds with thin soils, RFBS should retain 50%-90% of the total loading of nitrate in shallow groundwater, sediment in surface runoff, and total N in both surface runoff and groundwater. Retention of phosphorus is generally much less. In regions with deeper soils and/or greater regional groundwater recharge (such as parts of the Piedmont and the Valley and Ridge), RFBS water quality improvements are probably much less. The expected levels of pollutant control by RFBS are identified for each of nine physiographic provinces of the Chesapeake Bay Watershed. Issues related to of establishment, sustainability, and management are also discussed.KEY WORDS: Riparian forest buffers; Chesapeake Bay; Nonpoint source pollution; Nitrogen; Phosphorus; Sediment     

Linking Nitrogen Export to Landscape Heterogeneity: The Role of Infrastructure and Storm Flows in a Mediterranean Urban System

Urban ecosystems are often sources of nonpoint source (NPS) nitrogen (N) pollution to aquatic ecosystems. However, N export from urban watersheds is highly variable. Examples of densely urbanized watersheds are not well studied, and these may have comparatively low export rates. Commonly used metrics of landscape heterogeneity may obscure our ability to discern relationships among landscape characteristics that can explain these lower export rates. We expected that differences not often captured by these metrics in the relative cover of vegetation, structures, and impervious surfaces would better explain observed variation in N export. We examined these relationships during storms in residential watersheds. Contrary to expectations, land cover did not directly predict variation in N or water export. Instead, N export was strongly linked to drainage infrastructure density. Our research highlights the role of fine‐scaled landscape attributes, mainly infrastructure, in explaining patterns of N export from densely urbanized watersheds. Changes to hydrologic flow paths by infrastructure explained more variation in N export than land cover. Our findings support further development of landscape ecological models of urban N export that focus on hydrologic modification by infrastructure rather than traditional landscape measures such as land use, as indicators for evaluating patterns of NPS nitrogen pollution in densely urbanized watersheds.     

RURAL NONPOINT SOURCE POLLUTION CONTROL IN WISCONSIN: THE LIMITS OF A VOLUNTARY PROGRAM?1

ABSTRACT: This paper examines the relationship between best-management practices, institutional needs, and improved water quality within the watersheds of Wisconsin's program for controlling rural nonpoint source pollution. The first section describes the federal requirements for state nonpoint source programs and the legislative and management methods the state of Wisconsin uses to put those requirements into practice. The emphasis of the paper, described in the second section, is the institutional difficulty in evaluating the success of a large, integrated water quality program. Measurements which are investigated include (1) watershed water quality before and after implementation of BMPs; (2) program participation as measured by eligible vs. participating landowners, BMPs considered necessary vs. BMPs implemented, or dollars allocated to the NPS program vs. dollars expended; and (3) institutional goal coordination and management effectiveness. It is found that, despite the size and sophistication of Wisconsin's NPS program, there is little if any improvement in ambient water quality in these watersheds, probably because of a general lack of adequate participation in this voluntary program.     

Exploring Nontraditional Participation as an Approach to Make Water Quality Trading Markets More Effective

Water quality trading (WQT) has the potential to be a low‐cost means for achieving water quality goals. WQT allows regulated wastewater treatment plants (WWTPs) facing discharge limits the flexibility to either reduce their own discharge or purchase pollution control from other WWTPs or nonpoint sources (NPSs) such as agricultural producers. Under this limited scope, programs with NPSs have been largely unsuccessful at meeting water quality goals. The decision to participate in trading depends on many factors including the pollution control costs, uncertainty in pollution control, and discharge limits. Current research that focuses on making WQT work tends to identify how to increase participation by traditional traders such as WWTPs and agricultural producers. As an alternative, but complementary approach, we consider whether augmenting WQT markets with nontraditional participants would help increase the number of trades. Determining the economic incentives for these potential participants requires the development of novel benefit functions requiring not only economic considerations but also accounting for ecological and engineering processes. Existing literature on nontraditional participants in environmental markets tends to center on air quality and only increasing citizen participation as buyers. Here, we consider the issues for broadening participation (both buyers and sellers) in WQT and outline a multidisciplinary approach to begin evaluating feasibility.     

A SPATIAL DECISION SUPPORT SYSTEM FOR ASSESSING AGRICULTURAL NONPOINT SOURCE POLLUTION1

ABSTRACT: A spatial decision support system (SDSS) was developed to assess agricultural nonpoint source (NPS) pollution using an NPS pollution model and geographic information systems (GIS). With minimal user interaction, the SDSS assists with extracting the input parameters for a distributed parameter NPS pollution model from user-supplied GIS base layers. Thus, significant amounts of time, labor, and expertise can be saved. Further, the SDSS assists with visualizing and analyzing the output of the NPS pollution simulations. Capabilities of the visualization component include displays of sediment, nutrient, and runoff movement from a watershed. The input and output interface techniques/algorithms used to develop the SDSS, along with an example application of the SDSS, are described.