Multiple pollutant discharge permit markets, a challenge for wastewater treatment plants

Shervin Jamshidi and Mohammad Hossein Niksokhan

Journal of Environmental Planning and Management, 2016, vol. 59, issue 8, 1438-1455

Abstract: This study focuses on the challenge of using a multiple pollutant transferable discharge permit market for operating wastewater treatment plants. It uses an analytical case of Sefidrud River in Iran with two checkpoints. It shows that the operating limitations for simultaneous biochemical oxidation demand (BOD) and total nitrogen (TN) removal may convert the economically optimal waste load allocation (WLA) to a framework with lack of incentives. Therefore, water quality trading (WQT) may lose its economical advantages. In this case, a third parameter, such as dissolved oxygen is recommended as an index for assigning market interactions. In spite of economical and practical success, this approach made WLA become a more complicated and uncertain policy. It was totally concluded that using single parameter WQT is only recommended for areas with small agricultural activities or lakes. Otherwise, the integrated discharged permit and reclaimed water market is proposed instead for simultaneous BOD and TN management.

Date: 2016
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DOI: 10.1080/09640568.2015.1077106

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