Lessons about Effluent Trading from a Single Trade

Richard Woodward

Review of Agricultural Economics, 2003, vol. 25, issue 1, 235-245

Abstract: Despite many years of existence, programs that allow transferable discharge permits to control water pollution have had quite limited success. This paper discusses a single trade that recently took place in the Lake Dillon drainage basin between point and nonpoint pollution sources. This trade demonstrates many of the challenges that are faced in effluent trading but also highlights the potential efficiency gains that can be achieved through such programs.

Date: 2003
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