 Benchmarking an optimal pattern of pollution trading: The case of Cub River, UtahArthur Caplan and Yuya Sasaki Economic Modelling, 2014, vol. 36, issue C, 502-510 Abstract: This paper employs a recently developed, dynamic trading algorithm to establish a benchmark pattern of trade for a potential water quality trading (WQT) market in the Cub River sub-basin of Utah; a market that would ultimately include both point and nonpoint sources. The algorithm accounts for three complications that naturally arise in trading scenarios: (1) combinatorial matching of traders, (2) trader heterogeneity, and (3) discreteness in abatement technology. The algorithm establishes as detailed a reduced-cost benchmark as possible for the sub-basin by distinguishing a specific pattern of trade among would-be market participants. As such, the algorithm provides a benchmark against which an actual pollution market's performance could conceivably be compared. We find that a benchmarked trading pattern for a potential Cub River WQT market – where each source, point or nonpoint, would be required to reduce its pollution loadings – may entail some point sources selling abatement credits to nonpoint sources. Keywords: Advancement algorithm; Retreat algorithm; Water quality trading (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:36:y:2014:i:c:p:502-510 DOI: 10.1016/j.econmod.2013.09.026 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.