Water Quality Trading Systems: An Integrated Economic Analysis of Theoretical and Practical Approaches

Permit trading systems are often the centre of current interest and activity in the creation of market-based environmental instruments as it is assumed that these systems can offer significant advantages over conventional approaches to pollution control. Economic investigation of permit trading systems often focuses on case studies for air pollution control. Such permit trading systems also exist for water pollution control, in form of water quality trading systems.

The fact that pressure is being put on the quality of water resources in many countries resulting in serious problems means that there is a need to analyse the application of this instrument to control water pollution of rivers in more detail in order to identify its potential.