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.     

我国排污权交易政策及完善对策研究

排污权交易在环境管理领域里正受到越来越多的关注。回顾了我国近年来的排污权交易政策,并对排污权交易试点实施效果进行了阐述,同时结合目前排污权交易在我国应用和研究现状,对排污权交易制度在实践过程中仍存在法律政策落后、初始分配公平与效率缺乏保障、市场体制欠缺以及监测监督力度不够等主要问题进行分析,并从排污立法、市场培育、政府监管3个方面提出政策建议。     

关于《水污染防治法》修订中加强经济政策手段的思考

"十二五"以来,我国对水污染防治运用经济政策手段进行了积极探索。党和国家出台的政策文件、新修订的《中华人民共和国环境保护法》以及《水污染防治行动计划》等都对水污染防治经济政策手段的制定和实施提出了新的要求。因此,亟需在未来《水污染防治法》的修订过程中加强对相关经济政策手段的规定,给予相关手段明确的法律地位,充分发挥经济政策在水污染防治中的重要作用。为此,本文建议着眼于"十三五"及未来更长一段时期水环境质量改善以及水污染防治形势和突出问题,以推动构建和实施系统、协调和高效的水污染防治经济政策体系为目标,结合党和国家相关文件、法律、行动计划的最新要求,借鉴国际上通过立法保障水污染防治经济政策手段制定和实施的经验,重点从投融资政策、税费和价格政策、排污交易政策等三个方面对现行《水污染防治法》进行修订、补充和完善。具体建议包括:一是完善关于财政投入和融资渠道的相关规定,要求加大水污染防治财政投入和补贴力度、鼓励水污染防治第三方治理方式和PPP模式以及建立流域上下游(跨界)生态补偿机制等;二是完善对于环境税(费)和其他价格机制的相关规定,增加关于环境保护税的说明等;三是增加逐步推行重点水污染物排污权交易的条款等。     

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。     

Emissions trading,equity, and sustainability: the case for allocating entitlements to “individuals-in-community”

Given the likelihood that a post-Kyoto climate change agreement will include provisions for trading greenhouse gas (GHG) emission rights (carbon credits), it is timely and important to look more closely into the merits (or otherwise) of emissions trading systems (ETS), in particular with regard to the issue of the allocation and distribution of entitlements. Thus far, ETSs and other tradable permit systems have allocated entitlements to those historically responsible for emissions or the exploitation of resources (the “grandfathering” principle). There are, however, strong reasons for challenging this practice, and for advocating the allocation of entitlements to all people, in line with the per capita distribution principle. This article argues that GHG emission rights, if they are to be granted, should be distributed on a globally determined equal per capita basis, but collectively managed by community bodies (Community Carbon Trusts) on an “individuals-in-community” basis, instead of being granted or sold by governments to (big) emitters. The approach advocated here is not only ethically more justified, but also strengthens the capacity of communities to deal with climate change and to advance sustainability. It offers an example of how a significant environmental challenge can be met in a more positive way than by the prevailing approaches based on narrow, mainly economic, considerations.     

A case study of REDD+ challenges in the post‐2012 climate regime: The scenarios approach

The REDD+ (Reducing Emissions from Deforestation and Forest Degradation) partnership works to promote the reduction of greenhouse gas (GHG) emissions by protecting forests in developing countries through positive incentives. It is regarded as an essential component of the post‐2012 climate regime to stabilize GHG emissions and engage developing countries in worldwide mitigation endeavours. This study focuses on the gap between agricultural revenue and REDD+ compensation through the construction of several scenarios that explore the impacts of possible carbon price ranges.Three scenarios that reflect different potential policies are examined: (1) current carbon trading; (2) carbon trading with all forestry activities; and (3) carbon trading with all countries participating gradually over the coming decades. Data for developing the scenarios were obtained through a case study in central Kalimantan, Indonesia, by interrogating the potential for revenue by expanding agricultural land. The results indicate that REDD+ payments could not effectively compensate land users for their opportunity cost of deforestation, making it difficult for the governments to ensure that REDD+ money “reaches the ground” in terms of balancing the agricultural revenue of land users.     

太湖流域水污染权交易制度比较分析——基于环湖六市的调研

太湖流域作为全国经济发达的地区之一,水环境污染成为制约太湖流域可持续发展的重要因素。同时作为水污染权交易制度实施最早的流域,该制度在太湖流域理论与实践层面探索经验的总结对排污许可制度的应用和排污权交易的推广有着重要的理论意义和紧迫的现实意义。本文通过对嘉兴、湖州、苏州、无锡、常州及上海地方经验的调研,从制度设计、产权界定、信息披露、制度效率等方面进行比较分析,发现市场主导型的水污染权交易模式可以显著提高政策绩效,而交易市场的规模是交易制度推广实施的关键,最后,提出建立太湖流域统一水污染权交易市场等的政策建议。     

“排污权”和“碳排放权”交易的减污降碳协同效应研究——基于污染治理和政策管理的双重视角

全面系统地评估排污权交易和碳排放权交易的减污降碳协同效应,对于进一步发挥应对气候变化和大气污染治理的协同效应、推进全国统一生态环境市场建设具有重要意义。本文基于污染治理和政策管理的双重视角,采用多时点双重差分和倾向得分匹配,分别检验排污权交易和碳排放权交易的减污和降碳效应;并在此基础上,研究三种政策情景下（排污权交易、碳排放权交易以及组合政策）的协同减排效应差异。研究表明,从污染治理视角,排污权交易和碳排放权交易均显著降低了二氧化硫和二氧化碳排放量,实现了减污降碳的协同效应;从政策协同管理视角,在减少二氧化硫污染方面,组合政策比各类政策的单独实施更为有效;在降低二氧化碳排放方面,碳排放权交易比排污权交易和组合政策更为有效。因此,在推进气候变化应对和大气污染治理机制融合的进程中,应有所侧重地推进碳排放权交易和排污权交易组合使用。     

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.     

ECONOMIC INCENTIVES FOR AGRICULTURAL NONPOINT SOURCE POLLUTION CONTROL1

ABSTRACT. The limited success of command-and-control policies for reducing nonpoint source (NPS) water pollution mandated under the Federal Water Pollution Control Act (FWPCA) has prompted increased interest in economic incentive policies as an alternative control mechanism. A variety of measures have been proposed ranging from fairly minor modifications of existing policies to substantial revisions including watershed-wide polices that rely on economic incentives. While greater use of economic incentive policies, such as environmental bonds and point/nonpoint source trading is being advocated in the reauthorization of the CWA, the expected effects of individual proposals will be modest. The characteristics of NPS pollution, namely uncertainty and asymmetrical information, underscores that there is no single, ideal policy instrument for controlling the many types of agricultural NPS water pollution. Some of the usual incentive-based policies, such as effluent taxes, are not well suited to the task. Individual incentive policies proposed for the reauthorized CWA, such as pollution trading or deposit/refund systems, are not broadly applicable for heterogeneous pollution situations. Economic incentive policies may be appropriate in some cases, and command-and-control policies will be preferable in others and may in fact complement incentive policies.     

欧美经验对我国“十三五”大气污染防治战略的启示

当前,我国大气污染形势严峻,复合型污染特征突出。新修订的《中华人民共和国环境保护法》、《中华人民共和国大气污染防治法》、《环境空气质量标准》以及《大气污染防治行动计划》的发布和实施,对我国大气污染防治工作提出了更高要求。"十三五"时期是我国环境保护负重前行困难期和大有作为关键期,也是我国改善大气环境质量的攻坚期,需要系统谋划大气污染防治战略。欧盟和美国在制定大气污染防治战略时,以改善空气质量为核心,构建了涵盖一次污染物和二次污染物的多污染物目标体系,规定了环境浓度、排放量、直观感受(能见度)、健康以及管理等约束性指标,并且针对大气污染防治政策分析实施的成本与收益,开发相应的模型工具,基于收益成本比进行科学决策。本文对欧美环境规划和战略中的多污染物协同控制目标体系以及大气污染防治政策成本效益评估经验进行梳理,分析我国大气污染防治战略的现状和问题,并提出相关政策建议,以期为解决"心肺之患"、实现环保"十三五"总体目标提供参考。     

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.     

探析我国环境税收制度的构建

环境税收制度是未来中国环境政策改革的突破口，相对于其它的环境政策如排污收费与排污权交易等，环境税收其经济效益与环境效益明显，开征环境税收有重要的意义，但在短期内，我国实施环境税收制度的条件尚不成熟，环境政策体系应该采取税费并存并逐步过渡到以环境税为主的方式。     

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.     

南充市“白色污染”现状及对策措施和建议

本文通过实地调查,分析了南充市“白色污染”现状、危害和治理工作存在的主要问题,提出了治理“白色污染”的对策措施和建议。     

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.     

滨海新区大港农业非点源污染状况研究简

立足天津市滨海新区大港农业背景情况,采用适宜的方法,分别从种植业、畜禽养殖和水产养殖业三方面分析非点源污染物排放量。结果表明：2010年大港地区农业非点源主要污染物COD排放量为377.67 t,氨氮排放量为72.33 t,畜禽养殖排放的污染已占农业非点源污染的一半以上。在此基础上,分别从优化畜禽养殖的养殖模式、种植业科学施用化学品、水产养殖合理投放饲料等方面提出了大港地区农业非点源污染控制的对策。     

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。     

WATER QUALITY IMPACTS OF CONSERVATION AGRICULTURAL PRACTICES IN THE MISSISSIPPI DELTA1

ABSTRACT: Nonpoint pollution in the form of runoff generated by conventional agricultural practices is one of the major sources of environmental degradation of surface water bodies. Agricultural conservation practices including no‐tillage operations have been introduced as alternatives to cope with such challenges. This study attempts to examine the economic and environmental impacts of no‐tillage as compared to conventional agricultural practices for cotton, soybeans and corn cultivated in the Mississippi Delta. Impacts in the form of sediment, nutrient and pesticide runoff at farm level are investigated, using the Erosion Productivity Impact Calculator (EPIC).     

DO WETLANDS BEHAVE LIKE SHALLOW LAKES IN TERMS OF PHOSPHORUS DYNAMICS?1

ABSTRACT: The applicability of empirical relationships governing phosphorus (P) retention and nutrient assimilation in lakes and reservoirs was extended to include free surface water wetland treatment systems. Mixed reactor models have been used in lakes to predict steady state P concentration, characterize trophic state, compare P‐dynamics, and predict permissible P‐loading rates. Applying lake models to free surface water wetlands treatment systems, it was found that: sedimentation rates, loading rates, and settling velocity in these wetlands, and their typology are comparable to their lake counterparts. The analyses also suggest that phosphorus removal efficiency in a free surface water wetland treatment system is independent of trophic status, and similar to lakes, these wetlands can be classified according to their trophic state. Oligo‐and eutrophic wetland treatment systems can be defined by low and high TP inflow concentrations, respectively. In this study, olig‐otrophic status is defined as systems receiving inflow P‐loading less than 0.10 g m^‐2 year‐¹, and their P inputs are mainly derived from agricultural and stormwater runoff. Eutrophic treatment systems, on the other hand, are defined as those receiving inflow P‐loading higher than 0.20 g m² year‐¹, and their inputs are mainly derived from industrial and municipal wastewater. The comparability found between lakes and free surface water wetlands treatment systems raises the question: should we consider these wetlands “shallow lakes?”