Theory and Practice of Pollution Credit Trading in Water Quality Management

Hoag, Dana L.; Hughes-Popp, Jennie S.

doi:10.2307/1349740

Cited by 73 publications

(48 citation statements)

References 15 publications

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“…Lease prices can then remain above what potential leasees perceive it to be worth at that point in time, and this ultimately results in fewer quota units being traded and used than would have otherwise. Inadequate program design, which resulted in increased trading costs, was found partially to blame for nontrading in five nutrient trading programs in the U.S. (Hoag and Hughes-Popp 1997). As lease-dependent fishers were responsible for 64% of all CT landed in 2011-2012, and 83% of this catch was landed using quota that they had leased in, lease prices are an important component of the variable costs these operators face.…”

Section: Discussionmentioning

confidence: 99%

Does size matter? An assessment of quota market evolution and performance in the Great Barrier Reef fin-fish fishery

Innes¹,

Thébaud²,

Norman-López³

et al. 2014

E&S

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ABSTRACT. In fisheries managed using individual transferable quotas (ITQs) it is generally assumed that quota markets are wellfunctioning, allowing quota to flow on either a temporary or permanent basis to those able to make best use of it. However, despite an increasing number of fisheries being managed under ITQs, empirical assessments of the quota markets that have actually evolved in these fisheries remain scarce. The Queensland Coral Reef Fin-Fish Fishery (CRFFF) on the Great Barrier Reef has been managed under a system of ITQs since 2004. Data on individual quota holdings and trades for the period 2004-2012 were used to assess the CRFFF quota market and its evolution through time. Network analysis was applied to assess market structure and the nature of leasetrading relationships. An assessment of market participants' abilities to balance their quota accounts, i.e., gap analysis, provided insights into market functionality and how this may have changed in the period observed. Trends in ownership and trade were determined, and market participants were identified as belonging to one out of a set of seven generalized types. The emergence of groups such as investors and lease-dependent fishers is clear. In 2011-2012, 41% of coral trout quota was owned by participants that did not fish it, and 64% of total coral trout landings were made by fishers that owned only 10% of the quota. Quota brokers emerged whose influence on the market varied with the bioeconomic conditions of the fishery. Throughout the study period some quota was found to remain inactive, implying potential market inefficiencies. Contribution to this inactivity appeared asymmetrical, with most residing in the hands of smaller quota holders. The importance of transaction costs in the operation of the quota market and the inequalities that may result are discussed in light of these findings.

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Section: Discussionmentioning

confidence: 99%

Does size matter? An assessment of quota market evolution and performance in the Great Barrier Reef fin-fish fishery

Innes¹,

Thébaud²,

Norman-López³

et al. 2014

E&S

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show abstract

“…Uncertainty in compliance can also affect nutrient trading, a marketbased strategy for watershed-scale nutrient management consistent with the Total Maximum Daily Load (TMDL) framework used by the EPA and State regulators (Branosky et al, 2011;Hoag and Hughes-Popp, 1997;Jones et al, 2010;Lal, 2010;Ribaudo et al, 2005;Virginia Department of Environmental Equality, 2016). Studies of the feasibility of nutrient credit trading and attempts to implement a market approach have focused on trades between point (wastewater discharges) and nonpoint (primarily agriculture) sectors and results have been generally disappointing.…”

Section: Introductionmentioning

confidence: 99%

Assessment of wastewater treatment facility compliance with decreasing ammonia discharge limits using a regression tree model

Suchetana

Rajagopalan

Silverstein

2017

Science of The Total Environment

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“…Much has been written about various issues related to point/nonpoint trading, including uncertainty, trading ratios, and validation problems (Hoag and Hughes-Popp, 1997;King and Kuch, 2003;King, 2005;Ribaudo and Nickerson, 2009). One area of program design that has not received much attention is the establishment of the baseline for calculating nonpoint source offsets.…”

Section: Introductionmentioning

confidence: 99%

Baseline requirements can hinder trades in water quality trading programs: Evidence from the Conestoga watershed

Ghosh

Ribaudo

Shortle

2011

Journal of Environmental Management

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Theory and Practice of Pollution Credit Trading in Water Quality Management

Cited by 73 publications

References 15 publications

Does size matter? An assessment of quota market evolution and performance in the Great Barrier Reef fin-fish fishery

Does size matter? An assessment of quota market evolution and performance in the Great Barrier Reef fin-fish fishery

Assessment of wastewater treatment facility compliance with decreasing ammonia discharge limits using a regression tree model

Baseline requirements can hinder trades in water quality trading programs: Evidence from the Conestoga watershed

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