Feasibility Analysis Of An Offset System For Point-nonpoint Source Water Quality Trading In China

While the abatement cost of point source pollution keep rising since they have always been the focus of china’s pollution control system, nonpoint source, which also makes the important part of pollution, has always been ignored. Point-nonpoint trading system is a possible way to solve this puzzle. According to this practical need, this paper focuses on the feasibility of the point-nonpoint trading system. Based on a stochastic program model, the uncertainty related with weather, the transaction costs related with trading and monitoring, the diffusion of nonpoint sources in china was analyzed in this paper.Based on the model, theoretical study and case study has been conducted in this paper. It finds that the uncertainty of nonpoint emission will raise the trading volume and the total cost of the system. The transaction cost related with trading will raise the total cost directly and indirectly by decreasing the trading volume. The diffusion of nonpoint sources in china will enlarge the effects of both uncertainty and transaction costs.