• Journal Article

Tradeoffs among ecosystem services, performance certainty, and cost-efficiency in implementation of the Chesapeake Bay total maximum daily load

Citation

Wainger, L. A., Van Houtven, G., Loomis, R., Messer, J., Beach, R., & Deerhake, M. (2013). Tradeoffs among ecosystem services, performance certainty, and cost-efficiency in implementation of the Chesapeake Bay total maximum daily load. Agricultural and Resource Economics Review, 42(1), 196-224. DOI: 10.1017/S1068280500007693

Abstract

The cost-effectiveness of total maximum daily load (TMDL) programs depends heavily on program design. We develop an optimization framework to evaluate design choices for the TMDL for the Potomac River, a Chesapeake Bay subbasin. Scenario results suggest that policies inhibiting nutrient trading or offsets between point and nonpoint sources increase compliance costs markedly and reduce ecosystem service co-benefits relative to a least-cost solution. Key decision tradeoffs highlighted by the analysis include whether agricultural production should be exchanged for low-cost pollution abatement and other environmental benefits and whether lower compliance costs and higher co-benefits provide adequate compensation for lower certainty of water-quality outcomes.