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What is the future of water quality trading?

  • Haiyan Liu*
  • , Roy Brouwer
  • *Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

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Abstract

A comprehensive review of experiences with water quality trading (WQT) programs worldwide is presented, spanning altogether more than 4 decades. A new WQT database is built, extracting data and information from existing review papers, complemented with gray and published literature about individual trading programs. Key aspects that affect trading volumes and program continuation are identified and categorized. No single success or fail factor emerges from this review, typically a mix of factors play a role. There is potential for WQT to evolve further and serve as a cost-effective pollution control instrument, but this requires nudging political will to regulate nonpoint source.

Original languageEnglish
Pages (from-to)194-217
Number of pages24
JournalContemporary Economic Policy
Volume41
Issue number1
Early online date17 Aug 2022
DOIs
Publication statusPublished - Jan 2023

Bibliographical note

Funding Information:
This study was conducted as part of the Canada First Research Excellence Fund (CFREF) project Global Water Futures, in particular the projects Agricultural Water Futures and Lake Futures.

Publisher Copyright:
© 2022 Western Economic Association International.

Funding

This study was conducted as part of the Canada First Research Excellence Fund (CFREF) project Global Water Futures, in particular the projects Agricultural Water Futures and Lake Futures.

Keywords

  • institutional design
  • meta-review
  • optimal trading ratio
  • success and fail factors
  • water quality trading

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