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Nutrient Trading in Lake Rotorua: Determining Net Nutrient Inputs

Author

Listed:
  • Suzi Kerr

    (Motu Economic and Public Policy Research)

  • Kit Rutherford

    (National Institute of Water and Atmospheric Research)

Abstract

Lake Rotorua is experiencing increasing nutrient-related water quality problems. This paper is one in a series that explores the idea of creating a nutrient trading system as part of the ongoing policy response to this problem.1 Most of the current nutrient flows to the Lake come from non-point rural sources - measuring these emissions is challenging. We find that it is possible to monitor/model nutrient loss from a wide range of activities in the Rotorua catchment. The model OVERSEER combined with ROTAN and some other models for forestry, urban and geothermal activities and horticulture already exist. They are currently in a process of enhancement - a particular area of current weakness is knowledge of the groundwater lags from specific locations in the catchment. The land-based models need to be used in a specific form that relies on initialisation with verifiable data and uses easily collated and verified data on an annual basis. The form of the model should be fixed for each regulatory year to minimise uncertainty for landowners and regulators. The models need to be updated to reflect new science. The process for doing this needs to be strategic and credible (this will be discussed in a later paper on governance processes). Once changes are recommended they need to be implemented in a way that is perceived to be fair.

Suggested Citation

  • Suzi Kerr & Kit Rutherford, 2008. "Nutrient Trading in Lake Rotorua: Determining Net Nutrient Inputs," Working Papers 08_03, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:08_03
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    File URL: https://motu-www.motu.org.nz/wpapers/08_03.pdf
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    References listed on IDEAS

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    1. Dean R. Hyslop & David C. Maré, 2003. "Understanding New Zealand's Changing Income Distribution 1983-98: A Semiparametric Analysis," Working Papers 03_16, Motu Economic and Public Policy Research.
    2. Steven Stillman, 2005. "Examining Changes in the Value of Rural Land in New Zealand between 1989 and 2003," Working Papers 05_07, Motu Economic and Public Policy Research.
    3. Fullerton, Don & West, Sarah E., 2002. "Can Taxes on Cars and on Gasoline Mimic an Unavailable Tax on Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 135-157, January.
    4. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2005. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521023894, October.
      • Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2000. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521660839, October.
    5. Suzi Kerr & Kit Rutherford & Kelly Lock, 2007. "Nutrient Trading in Lake Rotorua: Goals and Trading Caps," Working Papers 07_08, Motu Economic and Public Policy Research.
    6. Suzi Kerr & Richard G. Newell, 2003. "Policy‐Induced Technology Adoption: Evidence from the U.S. Lead Phasedown," Journal of Industrial Economics, Wiley Blackwell, vol. 51(3), pages 317-343, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Simon Anastasiadis & Suzi Kerr & Marie-Laure Nauleau & Tim Cox & Kit Rutherford, 2014. "Does complex hydrology require complex water quality policy?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(1), pages 130-145, January.
    2. Anastasiadis, Simon & Nauleau, Marie-Laure & Kerr, Suzi & Cox, Tim & Rutherford, Kit, 2011. "Water Quality Management in Lake Rotorua: A comparison of Regulatory Approaches using the NManager Model," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115348, New Zealand Agricultural and Resource Economics Society.
    3. Kelly Lock & Suzi Kerr, 2008. "Nutrient Trading in Lake Rotorua: Overview of a Prototype System," Working Papers 08_02, Motu Economic and Public Policy Research.
    4. Hugh McDonald & Suzi Kerr, 2011. "Trading Efficiency in Water Quality Trading Markets: An Assessment of Trade-Offs," Working Papers 11_15, Motu Economic and Public Policy Research.
    5. Simon Anastasiadis & Marie-Laure Nauleau & Suzi Kerr & Tim Cox & Kit Rutherford, 2011. "Does Complex Hydrology Require Complex Water Quality Policy? NManager Simulations for Lake Rotorua," Working Papers 11_14, Motu Economic and Public Policy Research.

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    More about this item

    Keywords

    Water quality; monitor; verify; report; model; emissions trading;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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