A study in the economics of water quality management

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Abstract
Several methods of allocating waste reductions among dischargers are available to water pollution control administrators. The most recent addition to this collection is the effluent charge. In this study comparisons were made among two effluent charge schemes, a least‐cost allocation and a more conventional uniform removal approach to load allocation in the attainment of several water quality improvement goals. The results indicate that the effluent charge concept should be seriously considered as a means of attaining water quality improvement and that such a scheme is capable of achieving improvements at a cost approaching that of the least costly plan. The impact on the regional economy is not expected to be significantly different under any of the schemes studied. However, the efficiency and equity characteristics of the effluent charge techniques appear superior to those of more conventional techniques. Additional studies in the application of charges are needed to cope with differential charges related to dynamic waste discharge situations, to describe discharger response more fully, and to define administrative problems and costs. (Key words: Economics; estuaries; planning; quality of water; waste disposal; water management; water resources)

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