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Lessons about Effluent Trading from a Single Trade

Richard T. Woodward
Review of Agricultural Economics
Vol. 25, No. 1 (Spring - Summer, 2003), pp. 235-245
Stable URL: http://www.jstor.org/stable/1349874
Page Count: 11
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Lessons about Effluent Trading from a Single Trade
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Abstract

Despite many years of existence, programs that allow transferable discharge permits to control water pollution have had quite limited success. This paper discusses a single trade that recently took place in the Lake Dillon drainage basin between point and nonpoint pollution sources. This trade demonstrates many of the challenges that are faced in effluent trading but also highlights the potential efficiency gains that can be achieved through such programs.

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