A Note on Distortional Distributional Effects in River Basin Discharge Permit Trade

A Note on Distortional Distributional Effects in River Basin Discharge Permit Trade

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Article ID: iaor2014255
Volume: 28
Issue: 1
Start Page Number: 279
End Page Number: 285
Publication Date: Jan 2014
Journal: Water Resources Management
Authors:
Keywords: location, economics
Abstract:

This note exhibits how the implementation of the Total Loads Standard for issuing tradable water rights along a river basin can cause a significant location‐induced economic disadvantage to some of the agents located along a given river site. Analysis shows, however, that this issue can be resolved by a modification of the original Total Load Standard regarding the handling of so called critical zones in which the desired water quality level is otherwise not upheld.

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