ABSTRACT

The effects of stormwater runoff on stream ecosystems are exacerbated by urbanization and the coincident increase in impervious surface in a watershed. Proliferation of impervious surfaces allows more water from rain events to reach a stream faster causing higher peak …ows that can lead to stream alteration and habitat degradation. Where impervious surfaces prevent rainfall from in‚ltrating the soil, less water is available for groundwater recharge, which reduces stream base …ow. Depending upon the land use in the watershed, nutrients and toxins can be scrubbed off

CONTENTS

Introduction .................................................................................................... 147 Economic Incentive Mechanisms ................................................................. 148

Fee and Rebate ........................................................................................... 148 Tradable Allowances ................................................................................. 149

Opportunity Costs ......................................................................................... 150 Estimating Opportunity Costs of BMPs ................................................. 151 Data ............................................................................................................. 153 Results ......................................................................................................... 153

Application to a Case Study ......................................................................... 155 Numerical Example .................................................................................. 158 Incentives I: Fee and Rebate..................................................................... 159 Incentives II: Tradable Allowances ..........................................................161

Conclusions ..................................................................................................... 163 Acknowledgment ........................................................................................... 163 References ........................................................................................................ 164

roadways and parking lots and transported overland and through storm drains into waterways causing toxic loading of the stream.