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Nutrient Trading, the Flush Tax, and Maryland's Nitrogen Emissions to the Chesapeake Bay AgEcon
Hanson, James C.; McConnell, Kenneth E..
We investigate nutrient trading for point and non-point sources for the Bay Restoration Fund in Maryland. We demonstrate how to use the proceeds from the tax revenue to mimic trading high-cost upgrades of sewage treatment plants for low-cost winter cover crops. Under an optimistic assumption about costs for non-point sources, we calculate that abatement could be increased by more than 50%, while in a pessimistic scenario, abatement could be increased by 2%. We also explore the role of uncertainty in determining the appropriate trading ratio between point and non-point sources of pollution, showing that the higher uncertainty associated with non-point sources should induce a lower trading ratio.
Tipo: Working or Discussion Paper Palavras-chave: Chesapeake Bay; Cover crops; Nitrogen abatement; Nutrient trading; Sewage treatment plants; Trading ratios; Water pollution; Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/7343
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Simulated Trading for Maryland's Nitrogen Loadings in the Chesapeake Bay AgEcon
Hanson, James C.; McConnell, Kenneth E..
We investigate nutrient trading for point and non-point sources for the Bay Restoration Fund in Maryland. We demonstrate how to use the proceeds from the tax revenue to mimic a market by trading high-cost upgrades of sewage treatment plants for low-cost winter cover crops. Under an optimistic assumption about costs for non-point sources and naïve assumptions about the lag from planting cover crops to changes in nitrogen load, we calculate that 100 percent of abatement could be achieved at 56 percent of total costs, while in a pessimistic scenario, 100 percent of abatement could be could be achieved at 83 percent of total costs.
Tipo: Journal Article Palavras-chave: Chesapeake Bay; Cover crops; Nitrogen abatement; Nutrient trading; Sewage treatment plants; Trading ratios; Water pollution; Environmental Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/45669
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