Cost effective management of stochastic coastal water pollution

This study develops a theoretical tool for investigating the impact on cost effective coastal water management from explicit treatment of: coastal pollutant transports, stochastic pollutant transports in the catchment areas, and wetlands as a pollutant abatement option. It is applied to a relatively well investigated estuary, Himmerfjärden, south of the Swedish capital, Stockholm. The theoretical results indicate that all three factors influence cost effective allocation of measures and associated design of economic instruments. The consideration of stochastic pollutant transports will increase costs, but the direction of influence of the other two factors cannot be determined without empirical support. The application to nitrogen transport in Himmerfjärden shows that, for target nitrogen reductions given in terms of a percentage of pre-abatement loads, the inclusion of coastal transports in the cost calculations lowers the estimated total costs for targets interpreted in terms of nitrogen loads to the marine water. The alternative investigated target interpretation was in terms of nitrogen loads to coastal waters. Depending on the ability of wetlands to abate nitrogen and to change the variance in pollutant load to the coastal recipients, costs are either increased or decreased as compared to when wetlands are excluded as nitrogen abatement options.