There is considerable interest in the use of pollution trading between point and nonpoint sources to improve the cost‐effectiveness of water pollution control but little literature to guide the design of trading systems involving nonpoint sources. Expanding on prior theoretical work, this paper provides empirical evidence about design and performance issues for two types of trading systems that would allow nutrient trading among and between point and nonpoint sources in the Susquehanna River basin in Pennsylvania.
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Horan et al. (2002) studied this question.
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