Discharge permit market and farm management nexus: an approach for eutrophication control in small basins with low-income farmers

Abstract

The economic concerns of low-income farmers are barriers to nutrient abatement policies for eutrophication control in surface waters. This study brings up a perspective that focuses on integrating multiple-pollutant discharge permit markets with farm management practices. This aims to identify a more economically motivated waste load allocation (WLA) for non-point sources (NPS). For this purpose, we chose the small basin of Zrebar Lake in western Iran and used the soil and water assessment tool (SWAT) for modeling. The export coefficients (ECs), effectiveness of best management practices (BMPs), and crop yields were calculated by using this software. These variables show that low-income farmers can hardly afford to invest in BMPs in a typical WLA. Conversely, a discharge permit market presents a more cost-effective solution. This method saves 64% in total abatement costs and motivates farmers by offering economic benefits. A market analysis revealed that nitrogen permits mostly cover the trades with the optimal price ranging from $6 to $30 per kilogram. However, phosphorous permits are limited for trading, and their price exceeds $60 per kilogram. This approach also emphasizes the establishment of a regional institution for market monitoring, dynamic pricing, fair fund reallocation, giving information to participants, and ensuring their income. By these sets of strategies, a WLA on the brink of failure can turn into a cost-effective and sustainable policy for eutrophication control in small basins.

Characterization of Water Quality in Xiao Xingkai Lake: Implications for Trophic Status and Management

“…Furthermore, local governments should monitor and control upstream and non-point nutrient discharge (Kast et al, 2021). Multiple-pollutant discharge permit systems could also be established (Imani et al, 2017) between nature reserves and external pollutant producers and emitters. Such an approach requires a regional institution to coordinate monitoring, dynamic pricing, fair fund reallocation, and dissemination of information to participants, while ensuring sustainable incomes.…”

Daily Water Level Prediction of Zrebar Lake (Iran): A Comparison between M5P, Random Forest, Random Tree and Reduced Error Pruning Trees Algorithms

“…Zrebar Lake is located 3 km west of Marivan City in Kurdistan Province in western Iran (Figure 1). The lake is 1285 m asl, has a length of 5 km, a maximum width of 1.6 km, a maximum depth of 6 m, an area of 8.9 km 2 and a volume of some 30 million m 3 [51]. The water of Zrebar Lake is provided by seasonal rainfall (average precipitation is 650 mm/year) and subaqueous lake-bottom springs.…”

Value-added innovation in infrastructure systems, lessons learned from wastewater treatment plants

“…An approach for water quality monitoring has been developed recently under the framework of discharge permit markets. Considering the success of transferable discharge permit programs for controlling greenhouse gas emissions and pricing carbon (Ohl, 2016), decision makers have recently developed this idea for surface water quality management (Imani et al, 2017). In this framework, ambient water quality standards determine the allowable pollution loads in water bodies.…”