Title: | Cost-effectiveness of reverse auctions for watershed nutrient reductions in the presence of climate variability: An empirical approach for the Boone River watershed |
Authors: | Valcu-Lisman, A.M., P.W. Gassman, R. Arritt, T. Campbell and D.E. Herzmann |
Year: | 2017 |
Journal: | Journal of Soil and Water Conservation |
Volume (Issue): | 72(5) |
Pages: | 280-295 |
Article ID: | |
DOI: | 10.2489/jswc.72.3.280 |
URL (non-DOI journals): | |
Model: | SWAT |
Broad Application Category: | hydrologic and pollutant |
Primary Application Category: | BMP and/or cropping system assessment |
Secondary Application Category: | climate change assessment |
Watershed Description: | 2,370 km^2 Boone River, a tributary of the Des Moines River located in north central Iowa, U.S. |
Calibration Summary: | |
Validation Summary: | |
General Comments: | |
Abstract: | The Intergovernmental Panel on Climate Change (IPCC) has predicted that
changes in climate patterns (higher temperatures, changes in extreme precipitation events,
and higher level of humidity) will adversely impact water quality. Given the implications of
climate change on water and soil quality, it is important for watershed managers, stakeholders,
and policymakers to understand not only the effectiveness of different conservation practices
in improving water quality, but also the cost-effectiveness of a watershed-level policy program
designed for implementing conservation practices. A system of points measuring the efficiency
of five conservation practices in reducing nutrient (nitrogen [N] and phosphorus [P])
runoff are estimated using the Soil and Water Assessment Tool (SWAT) model in this study
for the Boone River watershed (BRW) in north central Iowa. The points can be interpreted
as indices of the environmental benefits associated with each conservation practice. Among
the various market instruments proposed as resource and cost-revelation mechanisms, competitive
biddings, also referred to as “reverse auctions” or procurement auctions, have come
to the attention of researchers and policymakers. Competitive bidding mechanisms induce
landowners to submit bids close to their opportunity costs, thus increasing the budgetary
cost-effectiveness and revealing the true costs of adopting different conservation practices.
This study considers the cost efficiency of reverse auction programs designed for improving
water quality in the BRW, where the bids are constructed using the system of points. |
Language: | English |
Keywords: | agriculture—climate change—conservation practices—nitrogen reductions—
reverse auction—Soil and Water Assessment Tool (SWAT) |