Cost-effectiveness of reverse auctions for watershed nutrient reductions in the presence of climate variability: An empirical approach for the Boone River watershed

Abstract

Abstract:The Intergovernmental Panel on Climate Change (IPCC) has predicted that changes in climate patterns (higher temperatures, changes in extreme precipitation events, and higher level of humidity) will adversely impact water quality. Given the implications of climate change on water and soil quality, it is important for watershed managers, stakeholders, and policymakers to understand not only the effectiveness of different conservation practices in improving water quality, but also the cost-effectiveness of a watershed-level policy program designed for implementing conservation practices. A system of points measuring the efficiency of five conservation practices in reducing nutrient (nitrogen [N] and phosphorus [P]) runoff are estimated using the Soil and Water Assessment Tool (SWAT) model in this study for the Boone River watershed (BRW) in north central Iowa. The points can be interpreted as indices of the environmental benefits associated with each conservation practice. Among the various market instruments proposed as resource and cost-revelation mechanisms, competitive biddings, also referred to as "reverse auctions" or procurement auctions, have come to the attention of researchers and policymakers. Competitive bidding mechanisms induce landowners to submit bids close to their opportunity costs, thus increasing the budgetary cost-effectiveness and revealing the true costs of adopting different conservation practices. This study considers the cost efficiency of reverse auction programs designed for improving water quality in the BRW, where the bids are constructed using the system of points.

The Optimality of Using Marginal Land for Bioenergy Crops: Tradeoffs between Food, Fuel, and Environmental Services

“…Each HRU represents a homogeneous area of topography, soil characteristics, land use, and management. The current baseline for the watershed is calibrated using monthly stream-flow nutrient data and incorporating earlier calibration efforts (Gassman 2008, Valcu-Lisman et al 2016). 4 The baseline testing of the SWAT monthly and annual predicted stream flows and pollutant loads are reported in Valcu-Lisman et al (2016).…”

“…The current baseline for the watershed is calibrated using monthly stream-flow nutrient data and incorporating earlier calibration efforts (Gassman 2008, Valcu-Lisman et al 2016). 4 The baseline testing of the SWAT monthly and annual predicted stream flows and pollutant loads are reported in Valcu-Lisman et al (2016). The graphical results and statistics reported there indicate that SWAT accurately replicated annual and monthly stream-flow patterns across the simulation period.…”

A Phased Assessment of Restoration Alternatives to Achieve Phosphorus Water Quality Targets for Lake Okeechobee, Florida, USA

“…To determine the effectiveness of these strategies, monitoring nutrients at the source level and modeling at the watershed level to determine pollution hot-spots and potential changes under future climate are necessary to determine the impacts of these initiatives [7][8][9][10]. These types of studies should also be accompanied by identification of optimal combination of nutrient control strategies considering overall implementation cost to present an accurate and reliable assessment of how much it would take to reach the target for informed decision making [11][12][13].…”

Assessment of Bioenergy Cropping Scenarios for the Boone River Watershed in North Central Iowa, United States

“…() and Valcu‐Lisman et al . (, ). This study includes BRW scenarios that incorporate adoption of either switchgrass or Miscanthus , and/or analysis of the impacts of corn stover removal on cropland managed with corn production.…”