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Nitrogen Trading in Lake Taupo: An Analysis and Evaluation of an Innovative Water Management Policy

This paper provides an overview and early evaluation of the Lake Taupo nitrogen cap and trade programme, established as part of Waikato Regional Council’s 2011 Regional Plan Variation Five. The policy establishes a catchment-wide cap...

Cost sharing and free allocation in a nutrient trading system with heterogenous farms : a model of the Lake Rotorua catchment

We use a nutrient trading simulation model to explore the incidence of costs across heterogeneous farm properties after mitigation actions and trade of allowances.
We compare two approaches to the free allocation of nutrient discharge allowances:...

The Taupo Nitrogen Market: The World's Only Diffuse Source Trading Programme

The Taupo Nitrogen market was part of a water quality policy package with three components – regulation of farm nitrogen leaching, a public fund, and a market. Observed trading activity and estimates of transaction costs suggest the...

Synergies between policy instruments for regulating interdependent pollutants: a numerical analysis of emissions trading schemes in New Zealand

Agricultural production affects both nutrient and greenhouse gas emissions. Environmental policy designed to reduce one type of pollution may interact in positive or negative ways with efforts to reduce other types of pollution. In this paper...

Does Complex Hydrology Require Complex Water Quality Policy?

This article was originally published as a working paper.
Nonpoint-source water pollution is frequently considered intractable because it is hard to regulate large numbers of small sources and because the science associated with assessing the impact...

Managing Risks and Tradeoffs Using Water Markets

Risk (and often the certainty) of adverse environmental outcomes motivates environmental regulation; other risks also affect welfare outcomes.
Economic instruments are one way to reduce environmental risk while maintaining flexibility that helps manage other risks. However...

An Integrated Model for Simulating Nitrogen Trading in an Agricultural Catchment with Complex Hydrology

Nitrogen loads to several New Zealand lakes are dominated by nonpoint runoff from pastoral farmland which adversely affects lake water quality.
A "cap and trade" scheme is being considered to help meet targets set for nitrogen...

Water Security for Better Lives

This publication examines the critical issues surrounding water security (water shortage, water excess, inadequate water quality, the resilience of freshwater systems), providing a rationale for a risk-based approach and the management of trade-offs between water...

Educational Water Trading Games: Simulation Software and Future Potential

This document summarizes the design of an educational water trading game. The intention of the game is to educate participants about how regulations for fresh water quality and quantity might function.
The trading game was developed...

An Inertia Model for the Adoption of New Farming Practices

Nutrient emissions from agricultural land are now widely recognized as one of the key contributors to poor water quality in local lakes, rivers and streams. Nutrient trading for non-point sources, including farm land, has been...

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