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A System Dynamics Approach to Changing Perceptions about Thermal Water Quality Trading Markets

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  • Asmeret Bier

    (Washington State University, USA)

Abstract

Thermal water quality trading markets give point source thermal polluters the option to comply with effluent restrictions by paying nearby landowners to plant shade trees. The shade trees cool the water, offsetting thermal pollution emitted by the point source. Thermal trading has the potential to create greater environmental benefits at a lower cost than traditional regulation, however; only one such program has been implemented to date in the United States. In this regard, a shift in potential stakeholders’ perceptions of these markets could be useful in allowing the markets to spread. This paper explains why system dynamics modeling is a useful tool for creating such a shift in perception, and describes a method of teaching participants about thermal trading. The method begins with a classroom simulation exercise, uses lessons from that exercise to create a model of a thermal trading market, and uses that model to conduct policy design and uncertainty analyses.

Suggested Citation

  • Asmeret Bier, 2010. "A System Dynamics Approach to Changing Perceptions about Thermal Water Quality Trading Markets," International Journal of Information Systems and Social Change (IJISSC), IGI Global, vol. 1(3), pages 1-12, July.
    • Handle: RePEc:igg:jissc0:v:1:y:2010:i:3:p:1-12
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