ABSTRACT
[1] There is considerable interest in the use of pollution trading between point and nonpoint sources to improve the cost-effectiveness of water pollution control but little literature to guide the design of trading systems involving nonpoint sources. Expanding on prior theoretical work, this paper provides empirical evidence about design and performance issues for two types of trading Systems that would allow nutrient trading among and between point and nonpoint sources in the Susquehanna River basin in Pennsylvania. Index Terms: 6304 Policy Sciences: benefit-cost analysis; 6309 Policy Sciences: decision-making under uncertainty; 1871 Hydrology: surface water quality; Keywords: water quality, Chesapeake Bay, economics, nitrogen, agriculture, pollution trading
