Incremental and Average Control Costs in a Model of Water Quality Trading with Discrete Abatement Units

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Incremental and Average Control Costs in a Model of Water Quality Trading with Discrete Abatement Units

This paper answers three questions related to the discrete nature of pollution abatement: (i) does a source's incremental control cost (as defined by the U.S. Environmental Protection Agency) necessarily exceed its average control cost, (ii) is incremental control cost a better approximation of a source's willingness to pay for abatement credits than average control cost, and (iii) exactly how ...

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This paper examines how water quality trading interacts with nonpoint-source abatement cost sharing (e.g., as currently practiced by the National Resource Conservation Service through its Environmental Quality Incentives Program (EQIP)) to promote the participation of nonpoint sources in a water quality market; participation that has thus far been noticeably lacking nationwide. As such, an idea...

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ژورنال

عنوان ژورنال: Environmental and Resource Economics

سال: 2008

ISSN: 0924-6460,1573-1502

DOI: 10.1007/s10640-008-9200-5