Water quality trading markets – Integrating land and marine based measures under a smart market approach

Implementation of effective policy instruments to reduce emissions from non-point agricultural sources has been challenging. Mussel farming the potential mitigate diffuse nitrogen losses production, and a Water Quality Trading Market (WQTM) between mussel farmers could potentially be an efficient mechanism. We simulate hypothetical WQTM in catchment northern Denmark using relatively new approach referred as smart market for water quality. Building on previous work, we integrate permit sellers involving analyze effect cost meeting quality improvement targets. In addition, set-up scenarios with decreasing levels participation by (−10%, −20% − 30%). The results show clear benefit allowing trading farmers, reducing total costs much 11.9%. Lower reductions benefits trade. However, mussel-based mitigation supply N permits at modest can partially circumvent well-documented challenge that are reluctant act suppliers WQTMs . study illustrates economic environmental integrating land- marine-based joint scheme coastal marine areas.