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Multiple interactive pollutants in water quality trading
Amin Sarang1, Barbara J Lence, Abolfazl Shamsai
1Department of Civil Engineering, Sharif University of Technology, Azadi Avenue, Tehran, 11365-9313, Iran. amin.sarang@gmail.com
Weighted-sum permits offer a cost-efficient method for managing multiple interactive pollutants, improving river water quality. This approach aggregates pollutants into a single market for trading transferable discharge permits (TDPs).
Area of Science:
- Environmental Economics
- Water Resource Management
- Pollution Control
Background:
- Efficient environmental management requires addressing multiple pollutants simultaneously.
- Transferable Discharge Permit (TDP) programs exist as separate permits for individual pollutants or weighted-sum permits aggregating multiple pollutants.
- Interactive pollutants jointly affect the environment, necessitating specialized management strategies.
Purpose of the Study:
- To mathematically analyze TDP programs for multiple interactive pollutants.
- To demonstrate the practicality of weighted-sum permits for cost-efficient river water quality maintenance.
- To derive optimal weighting factors for interactive pollutant management.
Main Methods:
- Mathematical analysis of weighted-sum TDP programs for interactive pollutants.
- Derivation of optimal weighting factors based on water quality impacts, marginal damage, and marginal treatment costs.
- Estimation of damage functions using analytical elasticity of substitution.
- Evaluation using a hypothetical two-interactive-pollutant example.
Main Results:
- Weighted-sum permits are practical for cost-efficient river water quality management with interactive pollutants.
- Optimal weighting factors are derived as functions of environmental and economic variables.
- Comparison shows advantages over individual permit systems and TDPs for additive pollutants.
Conclusions:
- Weighted-sum permit programs are a viable and potentially more efficient approach for managing interactive pollutants.
- Practical implementation considerations for weighted-sum permits are discussed.
- This approach offers a pathway to improved river water quality management.
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