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.     

排污权交易及其应用探讨

排污权交易在环境管理领域里正受到越来越多的关注。文章回顾了排污权交易在国内外的发展历程，利用经济学原理，对排行权交易理论和市场优化机制进行了阐述，综合介绍了实施排污权交易的步骤与必要性等问题，同时结合我国的具体国情和污染特征，对在我国组建排污权交易市场实施排污权交易进行了可行性分析，并基于目前排污权交易在我国应用和研究的现状，提出了在今后工作中应注意的几个问题。     

Sociopolitical Conditions for Successful Water Quality Trading in the South Nation River Watershed,Ontario, Canada1

O’Grady, Dennis, 2011. Sociopolitical Conditions for Successful Water Quality Trading in the South Nation River Watershed, Ontario, Canada. Journal of the American Water Resources Association (JAWRA) 47(1):39‐51. DOI: 10.1111/j.1752‐1688.2010.00511.x Abstract: The South Nation River watershed has a regulated water quality trading program. Legally, wastewater dischargers must not discharge any increased loading of phosphorus (P) into receiving waters. New wastewater systems are now choosing trading instead of traditional P removal technology, and point source dischargers are buying P credits from rural landowners, primarily farmers. These credits are generated by constructing nonpoint source pollution control measures. Mathematical formulae are used to calculate the credits of P removed by each measure. A successful trading program requires several conditions, including community agreement, legislative backing, credit and cost certainty, simplified delivery and verification, written instruments, and legal liability protection. South Nation Conservation, a community‐based watershed organization, is the broker handling the transactions for these P credits. The program is run by a multi‐stakeholder committee, and all project field visits are done by farmers and not paid professionals. An independent evaluation showed higher opinions for the broker and regulatory agency, and most farmers were willing to, or had already, recommended the program to other farmers.     

Rhetoric and Reality of Water Quality Trading and the Potential for Market‐like Reform1

Stephenson, Kurt and Leonard Shabman, 2011. Rhetoric and Reality of Water Quality Trading and the Potential for Market‐Like Reform. Journal of the American Water Resources Association (JAWRA) 47(1):15‐28. DOI: 10.1111/j.1752‐1688.2010.00492.x Abstract: Many public interest groups, government agencies, and professional economists argue that current approaches to water quality trading are a cost‐effective, politically practical innovation for achieving water quality standards, in part by addressing one of the most difficult water quality improvement challenges – limiting the discharge from nonpoint sources. A critical analysis shows that these claims for current water quality trading programs are often unrealized. This rhetoric, without adherence to principles of market‐like reform, can undermine the support of regulated parties for meaningful water quality policy reform, contribute to missed opportunities to implement cost‐effective programs, and postpone successfully meeting the challenge of limiting nonpoint source discharges. A better understanding and application of market‐like principles can result in an improved design of trading as well as general water quality management programs.     

排污权交易管理信息系统设计

本文为我国的排污权交易设计了一套管理信息系统。该系统设计采用C/S和B/S混合架构体系,充分发挥了两者的长处。该系统一方面可以同时为环境管理部门、排污企业和社会公众三类主体提供信息化服务,大大方便了排污权的交易过程,并保证了排污权交易的公平与透明;另一方面可以使环境管理人员方便地查询和检索相关企业,简化了环境管理工作。     

Conservation‐Induced Wastewater Flow Reductions Improve Nitrogen Removal: Evidence from New York City1

Abstract: Water resources are under increasing pressure to meet potable supply needs while sustaining aquatic ecosystems and fisheries. Growing populations and enforcement of the Total Maximum Daily Load provisions of the Clean Water Act present public water and wastewater utilities with costly options to meet potable water demands and reduce pollutant discharges into receiving waters. This paper documents that New York City’s comprehensive water conservation program – designed to extend the city’s safe yield of potable water—has also resulted in reduced nitrogen discharges from the city’s water pollution control plants during a period of population increases. This paper demonstrates and quantifies the effects that wastewater inflow volume reductions have on increased nitrogen removal, controlling for plant process changes. Conservation programs have saved the city billions of dollars in delayed or avoided capital improvements to both water and wastewater treatment plants, and have enabled the city to meet interim effluent discharge standards.     

An Ex Post Evaluation of Ohio’s Great Miami Water Quality Trading Program1

Newburn, David A. and Richard T. Woodward, 2011. An Ex Post Evaluation of Ohio’s Great Miami Water Quality Trading Program. Journal of the American Water Resources Association (JAWRA) 48(1): 156‐169. DOI: 10.1111/j.1752‐1688.2011.00601.x Abstract: Market‐based approaches to address water quality problems have resulted in only limited success, especially in trading programs involving both point and nonpoint sources. We analyze one of the largest point‐nonpoint trading programs – the Great Miami Trading Program in Ohio, administered by the Miami Conservancy District (MCD). Our evaluation focuses on the economic and institutional aspects of the program, including cost effectiveness, efficiency of bidding, transaction costs, trading ratios, and innovation. We use a unique dataset consisting of all bids from agricultural nonpoint sources and interviews of soil and water conservation district (SWCD) agents in the watershed. We find that the MCD’s reliance on county‐level SWCD offices to recruit and advise farmers has been essential to achieve relatively high rates of farmer participation. Additionally, the MCD is able to partly free ride on the administrative costs that SWCD offices receive to assist federal conservation programs, which is helpful to lower costs for a fledgling trading program. However, the involvement of SWCD offices reduced the potential cost savings from the reverse auction structure because some agents were able to learn about the threshold price over the six rounds of bidding and help farmers bid strategically. Overall, the program structure serves as an effective model for future trading programs in other regions that seek to involve agricultural nonpoint sources.     

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.     

Water Quality Model Uncertainty Analysis of a Point‐Point Source Phosphorus Trading Program1

Kardos, Josef S. and Christopher C. Obropta, 2011. Water Quality Model Uncertainty Analysis of a Point‐Point Source Phosphorus Trading Program. Journal of the American Water Resources Association (JAWRA) 47(6):1317–1337. DOI: 10.1111/j.1752‐1688.2011.00591.x Abstract: Water quality modeling is a major source of scientific uncertainty in the Total Maximum Daily Load (TMDL) process. The effects of these uncertainties extend to water quality trading programs designed to implement TMDLs. This study examines the effects of water quality model uncertainty on a nutrient trading program. The study builds on previous work to design a phosphorus trading program for the Nontidal Passaic River Basin in New Jersey that would implement the watershed TMDL for total phosphorus (TP). The study identified how water quality model uncertainty affects outcomes of potential trades of TP between wastewater treatment plants. The uncertainty analysis found no evidence to suggest that the outcome of trades between wastewater treatment plants, as compared with command and control regulation, will significantly increase uncertainty in the attainment of dissolved oxygen surface water quality standards, site‐specific chlorophyll a criteria, and reduction targets for diverted TP load at potential hot spots in the watershed. Each simulated trading scenario demonstrated parity with or improvement from the command and control approach at the TMDL critical locations, and low risk of hot spots elsewhere.     

DETERMINATION OF BEST TIMING FOR POULTRY WASTE DISPOSAL: A MODELING APPROACH1

ABSTRACT: Confined production of poultry results in significant volumes of waste material which are typically disposed of by land application. Concerns over the potential environmental impacts of poultry waste disposal have resulted in ongoing efforts to develop management practices which maintain high quality of water downstream of disposal areas. The timing of application to minimize waste constituent losses is a management practice with the potential to ensure high quality of streams, rivers, and lakes downstream of receiving areas. This paper describes the development and application of a method to identify which time of year is best, from the standpoint of surface water quality, for land application of poultry waste. The procedure consists of using a mathematical simulation model to estimate average nitrogen and phosphorus losses resulting from different application timings, and then identifying the timings which minimize losses of these nutrients. The procedure was applied to three locations in Arkansas, and three different criteria for optimality of application timing were investigated. One criterion was oriented strictly to water quality, one was oriented only to crop production, and the last was a combination. The criteria resulted in different windows of time being identified as optimal. Optimal windows also varied with location of the receiving area. The results indicate that it is possible to land-apply poultry waste at times which both minimize nutrient losses and maximize crop yield.     

A FRAMEWORK FOR PHOSPHORUS TRANSPORT MODELING IN THE LAKE OKEECHOBEE WATERSHED1

ABSTRACT: A modeling framework was developed to determine phosphorus loadings to Lake Okeechobee from watersheds located north of the lake. This framework consists of the land-based model CREAMS-WT, the in-stream transport model QUAL2E, and an interface procedure to format the land-based model output for use by the in-stream model. QUAL2E hydraulics and water quality routines were modified to account for flow routing and phosphorus retention in both wetlands and stream channels. Phosphorus loadings obtained from previous applications of CREAMS-WT were used by QUAL2E, and calibration and verification showed that QUAL2E accurately simulated seasonal and annual phosphorus loadings from a watershed. Sensitivity and uncertainty analyses indicated that the accuracy of monthly loadings can be improved by using better estimates of in-stream phosphorus decay rates, ground water phosphorus concentrations, and runoff phosphorus concentrations as input to QUAL2E.     

FLOW DURATION CURVES II: A REVIEW OF APPLICATIONS IN WATER RESOURCES PLANNING1

ABSTRACT: A streamflow duration curve illustrates the relationship between the frequency and magnitude of streamflow. Flow duration curves have a long history in the field of water-resource engineering and have been used to solve problems in water-quality management, hydropower, instream flow methodologies, water-use planning, flood control, and river and reservoir sedimentation, and for scientific comparisons of streamflow characteristics across watersheds. This paper reviews traditional applications and provides extensions to some new applications, including water allocation, wasteload allocation, river and wetland inundation mapping, and the economic selection of a water-resource project.     

水环境中重金属污染研究概述

重金属污染是水环境污染的一个重要方面，而水质模型是重金属污染研究的重点方法之一，作者在对溪落渡水库重金属污染的研究工作过程中，收集和整理了大量有关资料，本文概述了目前常用的重金属迁移转化动力学数学模型及建立该模型时所涉及到的重金属存在形态、污染特征，迁移转化过程等方面的研究成果和存在问题。     

COST MINIMIZATION OF NUTRIENT REDUCTION IN WATERSHED MANAGEMENT USING LINEAR PROGRAMMING1

ABSTRACT: Linear programming is applied to identify the least cost strategy for reaching politically specified phosphorus and total suspended solids reduction targets for the Fox-Wolf river basin in Northeast Wisconsin. The programming model uses data collected on annualized unit reduction costs associated with five categories of sources of phosphorus and total suspended solids discharge in each of the 41 sub-watersheds in the basin to determine the least cost management strategy. Results indicate that: (1) cost-effective nutrient reduction requires careful selection of geographic areas and source categories to address throughout the watershed; (2) agricultural sources are the most cost-effective to address in the basin; and (3) care should be exercised in setting nutrient reduction targets, given that there are likely to be significantly increasing marginal costs of nutrient reduction; the model predicts that lowering the most restrictive target by 33 percent would cut reduction expenditures by about 75 percent. Policy implications of the model include support for the investigation and potential development of institutional arrangements that enable cost-effective nutrient reduction activities to occur, such as the creation of an agency with authority over a given watershed, coordinated watershed management activities, or nutrient trading programs.     

HYDRODYNAMIC SIMULATIONS OF A CONSTRUCTED WETLAND IN SOUTH FLORIDA1

ABSTRACT: This paper describes the application of the SHEET2D model to the Florida's Everglades Nutrient Removal (ENR) Project. The ENR Project is a 3815 acre (1545 ha) pilot project, located in Palm Beach County. The operation of the treatment system will be used to demonstrate the performance of larger scale constructed wetland systems for removal of phosphorus from Everglades Agricultural Area (EAA) stormwater runoff. It is currently the largest stormwater wetland treatment system in the world. The SHEET2D model was used to analyze the performance of the ENR Project. SHEET2D is a two-dimensional, depth-averaged hydrodynamic model that is applicable to shallow water flow conditions. Subsequently, results from SHEET2D simulations were used to develop the ENEMOD model. ENRMOD is a lumped parameter box water quality model that can be used to analyze the long term performance of the ENR project with respect to hydrology and phosphorus uptake. Localized short-circuiting in the agricultural ditches within the project area was analyzed by using the RBFVM-2D model, which is a finite volume hydrodynamic model that is also applicable to shallow water flow conditions. The SHEET2D model was employed to simulate the hydraulics of the structures between cells and the hydrodynamics of the sheet-flow moving across the buffer cell and treatment cells. Collection, distribution, and larger discharge canals within the project were simulated by means of the MultiBasin Routing (MBR) model features that are built into the SHEET2D model. Constant inflows (75 to 600 cfs [2.1 to 17 m³/s]) were used in all runs to simulate the discharge of the ENR Project based on the proposed operating schedule for the outflow pump station. The model simulated 30 days to reach steady state conditions. Under steady state conditions, the hydraulic retention times were computed for the project and the split of flow between the two treatment trains of the entire project from the common buffer cell. Additionally, design components such as height of the levees, capacity of the structures, and hydrographs at specified grids were obtained.     

WATER QUALITY AND POLLUTION — SOUTH FORK OF LONG ISLAND,NEW YORK1

ABSTRACT: The South Fork of Long Island, New York is an area which relies entirely on ground water for water supply. Most of the water which is pumped is artifically recharged, without treatment, via cesspools. The natural quality of the ground water is very high. Some areas show increasing nitrate in the ground water. This comes from both cesspools and agricultural fertilizer. Saline water intrusion is a potential problem in coastal areas. High ammonia in surface ponds may result in eutrophication.     

四川升钟水库水质评价及污染负荷分析

选取高锰酸盐指数（CODMn）、五日生化需氧量（BOD5）、总氮（TN）、总磷（TP）4项监测指标,采用单因干评价法、综合污染指数法、内梅罗污染指数法、模糊综合评价法及水质标识指数法对升钟水库2004～2010年水污染特征进行分析与评价,结果表明：水质标识指数法比较适合升钟水库水体富营养化评价;单因子水质标识指数显示,水库主要污染物为总氮（TN）、总磷（TP）,基本呈现富营养状态;2008年水质最差,2010年水质达到Ⅱ类标准;7年Iwq的平均值Ave（Iwq）=3．393,Ave（Iwq）未达到国家Ⅱ类水质标准。近7年综合水质标识指数（Iwq）在不同时点上具有高-低演化规律,总体趋向好转。通过计算2006年N、P污染负荷,TN、TP入库主要源于水产养殖,其贡献率分别为：55％、82％,升钟水库TN、TP是合理容量的1．97～2．32倍。应严格控制水库网箱肥水养殖。研究结果对指导升钟水库水污染防治与水资源管理具有重要的意义。