Toward an Effective Watershed-Based Effluent Allowance Trading System: Identifying the Statutory and Regulatory Barriers to Implementation

Environmental Lawyer, Vol. 5, Pp. 775-815, 1999

Posted: 13 Jun 2000

See all articles by Kurt Stephenson

Kurt Stephenson

Virginia Polytechnic Institute & State University - Department of Agricultural and Applied Economics

Leonard Shabman

Resources for the Future

L. Leon Geyer

Virginia Polytechnic Institute & State University

Abstract

Effluent allowance trading is increasingly being proposed as one means to improve management of effluent discharge into the waters of the United States. Despite the growing enthusiasm, this paper argues that the current statutory and regulatory framework of the Clean Water Act will limit the economic and environmental potential of market-like trading systems.

The paper first describes the characteristics of a market system for effluent discharge allowances. Next, a number of features of the Clean Water Act (and the regulatory behavior motivated by the statutory framework) are identified that undermine the creation and development of market-like effluent allowance trading systems. While several pilot programs have been described as trading, we argue these programs are better described as extensions of the regulatory authority of the Clean Water Act. Examples of more market-like systems have been implemented but only when the more restrictive provisions of the Clean Water Act can be avoided. We conclude by identifying the changes to the Clean Water Act that would facilitate the creation of effluent allowance trading systems.

Note: This is a description of the paper and is not the actual abstract.

Suggested Citation

Stephenson, Kurt and Shabman, Leonard and Geyer, L. Leon, Toward an Effective Watershed-Based Effluent Allowance Trading System: Identifying the Statutory and Regulatory Barriers to Implementation. Environmental Lawyer, Vol. 5, Pp. 775-815, 1999. Available at SSRN: https://ssrn.com/abstract=186028

Kurt Stephenson (Contact Author)

Virginia Polytechnic Institute & State University - Department of Agricultural and Applied Economics ( email )

2025 Woodland Hills Dr.
Blacksburg, VA 24061
United States
540-231-5381 (Phone)
540-231-7417 (Fax)

Leonard Shabman

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
2023285139 (Phone)
2023285139 (Fax)

L. Leon Geyer

Virginia Polytechnic Institute & State University ( email )

Department of Agriculture and Applied Economics
Blacksburg, VA 24061
United States
540-231-4528 (Phone)
540-231-7417 (Fax)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
712
PlumX Metrics