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Nitrogen Trading in Lake Taupo: An Analysis and Evaluation of an Innovative Water Management Strategy

Author

Listed:
  • Duhon, Madeline
  • Young, Justine
  • Kerr, Suzi

Abstract

This paper provides a concise introduction to and evaluation of the Lake Taupo nitrogen cap and trade program established as part of Waikato Regional Council's recent Regional Plan Variation Five. The policy establishes a catchment-wide cap on nitrogen losses by allocating farmers individual nitrogen discharge allowances and allowing those farmers flexibility to trade allowances amongst themselves and to sell allowances to a public fund while remaining within the overall catchment cap. This paper seeks to explain the structure and evolution of the nitrogen trading market and to analyse its impact thus far by drawing on a wide variety of relevant perspectives. Research drawn from written material and basic quantitative data provide the basis for analysing the policy, while interviews with relevant stakeholders provide insight into the successful, surprising and contentious issues which arose throughout its development and implementation.

Suggested Citation

  • Duhon, Madeline & Young, Justine & Kerr, Suzi, 2011. "Nitrogen Trading in Lake Taupo: An Analysis and Evaluation of an Innovative Water Management Strategy," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115353, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar11:115353
    DOI: 10.22004/ag.econ.115353
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    Cited by:

    1. Doole, Graeme J. & Kingwell, Ross, 2015. "Efficient economic and environmental management of pastoral systems: Theory and application," Agricultural Systems, Elsevier, vol. 133(C), pages 73-84.
    2. Spicer, E. Anne & Swaffield, Simon & Moore, Kevin, 2021. "Agricultural land use management responses to a cap and trade regime for water quality in Lake Taupo catchment, New Zealand," Land Use Policy, Elsevier, vol. 102(C).
    3. Yao, Richard T. & Harrison, Duncan R. & Velarde, Sandra J. & Barry, Luke E., 2016. "Validation and enhancement of a spatial economic tool for assessing ecosystem services provided by planted forests," Forest Policy and Economics, Elsevier, vol. 72(C), pages 122-131.
    4. James Shortle & Richard D. Horan, 2013. "Policy Instruments for Water Quality Protection," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 111-138, June.

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