A Feasibility Analysis of Applying Water Quality Trading

Water quality trading is a policy tool that could improve the cost-effectiveness of achieving environmental goals, but it is not currently used in the state of Georgia. This paper evaluates the feasibility of applying water quality trading in Georgia watersheds. The criteria used for this evaluation include environmental suitability, regulatory incentive, economic incentive, availability of participants, and stakeholder response. The evaluation concludes that the Georgia watersheds where WQT appears to be most feasible include the Chattahoochee, Coosa, Savannah, and Ocmulgee basins. Feasibility is also likely to be high in the Flint and Oconee basins. However, it is important to note that WQT could develop in any watershed where a pollution source has an economic interest in trading. The evaluation concludes that the opportunity for WQT in Georgia is somewhat limited by present regulatory conditions, but offers alterative WQT models that should be considered. Working Paper Number 2005-002

An Evaluation of Water Quality Trading for Georgia Watersheds

Water quality trading is a policy tool that could improve the cost effectiveness of achieving environmental goals, but it is not currently used in the state of Georgia. This research seeks to evaluate the applicability of water quality trading in Georgia watersheds. This report provides an update on the status of current research on water quality trading conducted through a collaboration of the Georgia Water Policy and Planning Center, the Georgia State University Andrew Young School of Public Policy, and the University of Georgia Warnell School of Forest Resources. Working Paper Number 2005-00

Water Quality Trading: Legal Analysis for Georgia Watersheds

Water quality trading is a policy tool that could improve the cost effectiveness of achieving environmental goals, but it is not currently used in the state of Georgia. This paper seeks to evaluate the applicability of water quality trading in Georgia watersheds with a specific focus on legal issues. This paper reviews Georgia law and regulations to evaluate barriers to and support for water quality trading. It also reviews water quality trading policies from other states and explores the value of adopting a state water quality trading policy in Georgia. The paper concludes that while existing law provides implicit authority to implement water quality trading in Georgia, inadequate regulatory pressure in most Georgia watersheds and possible legal challenges could be significant impediments to implementing water quality trading in the state at this time. The paper also suggests that successful pilot trades should precede the development of statewide water quality trading policy. Working Paper Number 2005-002

Estimation of Costs of Phosphorus Removal In Wastewater Treatment Facilities: Adaptation of Existing Facilities

As part of a wider enquiry into the feasibility of offset banking schemes as a means to implement pollutant trading within Georgia watersheds, this is the second of two reports addressing the issue of estimating costs for upgrades in the performance of phosphorus removal in point-source wastewater treatment facilities. Earlier, preliminary results are presented in Jiang et al (2004) (Working Paper # 2004-010 of the Georgia Water Planning and Policy Center). The present study is much more detailed and employs an advanced software package (WEST®, Hemmis nv, Kortrijk, Belgium) for simulating a variety of treatment plant designs operating under typical Georgia conditions. Specifically, upgrades in performance, in a single step, from a plant working at an effluent limit of less than 2.0 mg/l phosphorus to one working with limits variously ranging between less than 1.0 mg/l to less than 0.05 mg/l phosphorus are simulated and the resulting costs of the upgrade estimated.Five capacities of plant are considered, from 1 MGD to 100 MGD. Three strategic, alternative designs for the facility are considered: the basic activated sludge (AS) process with chemical addition, the Anoxic/Oxic (A/O) arrangement of the AS process, and the Anaerobic/Aerobic/Oxic (A/A/O) arrangement of the AS process. Upgrades in performance are consistent with the logical alternatives for adapting these options. Cost comparisons are made primarily on the basis of the incremental cost of the upgrade, i.e., from the base-case, reference plant to that performing at the higher level, as expressed through the incremental Total Annual Economic Cost (TAEC; in $) and the marginal unit cost of phosphorus removal, expressed in ($/kg).For the most stringent upgrade, for example, to a plant generating an effluent with less than 0.05 mg/l phosphorus, these marginal costs -- the cost of the additional phosphorus removed as a result of the upgrade -- amount to something of the order of 150-425 $/kg, with the upper bound being associated with the smallest plant configuration (1 MGD). Working Paper Number 2005-001

Assessing the Market for Poultry Litter in Georgia: Are Subsidies Needed to Protect Water Quality?

Concerns about nutrient loads into our waters have focused attention on poultry litter applications. Like many states with a large poultry industry, Georgia recently designed a subsidy program to facilitate the transportation of poultry litter out of vulnerable watersheds. This paper uses a transportation model to examine the necessity of a poultry litter subsidy to achieve water protection goals in Georgia. We also demonstrate the relationship between diesel and synthetic fertilizer prices and the value of poultry litter. Results suggest that a well functioning market would be able to remove excess litter from vulnerable watersheds in the absence of a subsidy.fertilizer, phosphorous, poultry litter, subsidy, transportation model, water quality, Environmental Economics and Policy, Marketing, Q12, Q13, Q25, Q53,

Conservation Pricing of Household Water Use in Rural Communities

Proceedings of the 2007 Georgia Water Resources Conference, March 27-29, 2007, Athens, Georgia.Rising concerns about water conservation have led to increased interest in conservation pricing policies on the part of Georgia environmental policy makers. Conservation pricing has been discussed frequently during the on-going development of Georgia’s statewide water plan. It is important to quantify the impact of such policies in order to determine that they will achieve their objectives. For conservation pricing, understanding the relationship between price increases and revenues, as reflected in price elasticity, is critical in designing successful policies. Although a number of studies have estimated the price - quantity relationship for water use, these studies have generally used data from large urban areas. This paper provides new estimates of the price elasticity of demand for water for residential consumers in small, rural com-munities. Residential consumers in rural areas might react differently to conservation pricing, in part because customers in these areas typically are more homogeneous and have lower household incomes than urban households. Our empirical results, based on data from water systems in rural Georgia, confirm that the demand for water is relatively price-inelastic. However, our point estimates of elasticity are somewhat higher than in previous studies, suggesting that residential water demand in small, rural communities may be significantly more responsive to price changes relative to that observed in larger cities. These results demonstrate that the effectiveness of this conservation tool might be different in rural and urban areas of Georgia and emphasize the importance of considering price elasticity in designing conservation pricing strategies.Sponsored and Organized by: U.S. Geological Survey, Georgia Department of Natural Resources, Natural Resources Conservation Service, The University of Georgia, Georgia State University, Georgia Institute of TechnologyThis book was published by the Institute of Ecology, The University of Georgia, Athens, Georgia 30602-2202. The views and statements advanced in this publication are solely those of the authors and do not represent official views or policies of The University of Georgia, the U.S. Geological Survey, the Georgia Water Research Institute as authorized by the Water Resources Research Act of 1990 (P.L. 101-397) or the other conference sponsors

Industry Analysis: Apple Processors in the Northeastern U.S.

Apple processors are an important link in the marketing chain from apple growers to consumers, and their perspective is critical in understanding the industry’s situation and projecting the industry’s future. This paper reports the results of a survey of Northeastern U.S. apple processors. The survey was conducted to provide a snapshot of current strategic issues in the industry, to assess the industry’s strengths and weaknesses, to identify opportunities and threats, to forecast future trends, and to provide background data for additional research in this industry. The survey results provide an overview of trends, issues, and processor perspectives in the Northeastern apple processing industry. The outlook of many processors for future of the industry is negative or uncertain. Processors’ concerns reflect many of those held by the industry’s apple growers. The processing sector faces a number of challenges in a rapidly changing and globalizing market. Looking forward, the industry must consider how to make its products relevant in current and future markets and how to compete effectively with global rivals. Although the outlook of many respondents was negative or uncertain, the survey responses also reveal several industry strengths and opportunities. This survey was completed as a part of a larger research project focused on the Northeastern apple processing industry. The final project results will identify and analyze marketing strategies and opportunities in the industry. The research will convey important data about consumer trends relevant to the processed apple industry, and this data will be interpreted in the context of the industry’s current situation. The information collected should be useful to growers and processors in assessing future opportunities and enhancing competitive capabilities in their efforts to strengthen this important sector of the regional apple industry

Processed Apple Product Marketing Analysis: Apple Juice and Cider

Apple juice and cider experienced rapid market growth in the U.S. during the past few decades, but now a mature market is established. The industry faces economic pressures created by the globalization of the market, and growers and processors across the industry are trying to adapt to new market conditions. The development of effective competitive strategies for this industry requires an understanding of industry trends, market conditions, consumer preferences, and the forces driving competition in the industry. The purpose of this paper is to provide apple growers and processors with information on the markets for apple juice and cider to support the analysis of marketing opportunities and the development of effective competitive strategies. This paper is issued as a part of a larger project focused on the processing apple industry. This paper will be supplemented with additional consumer marketing research findings in the final report for this project

An evaluation of water quality trading for Georgia watersheds

Water quality trading is a policy tool that can improve the cost-effectiveness of achieving environmental goals and provide options for environmental compliance. It is not currently used in the state of Georgia, but it has been established in other watersheds in the U.S., and the U.S. Environmental Protection Agency (EPA) is actively promoting its implementation. In trading programs elsewhere, the primary barrier to trading activity is a lack of adequate financial incentives, which are closely tied to the level of environmental regulation. If the state of Georgia implements nutrient standards in response to EPA guidelines, interest in water quality trading in Georgia is likely to increase. This research seeks to evaluate the applicability of water quality trading in Georgia watersheds.Sponsored by: Georgia Environmental Protection Division U.S. Geological Survey, Georgia Water Science Center U.S. Department of Agriculture, Natural Resources Conservation Service Georgia Institute of Technology, Georgia Water Resources Institute The University of Georgia, Water Resources Facult

Industry Analysis: Apple Processors in the Northeastern U.S.

Apple processors are an important link in the marketing chain from apple growers to consumers, and their perspective is critical in understanding the industry’s situation and projecting the industry’s future. This paper reports the results of a survey of Northeastern U.S. apple processors. The survey was conducted to provide a snapshot of current strategic issues in the industry, to assess the industry’s strengths and weaknesses, to identify opportunities and threats, to forecast future trends, and to provide background data for additional research in this industry. The survey results provide an overview of trends, issues, and processor perspectives in the Northeastern apple processing industry. The outlook of many processors for future of the industry is negative or uncertain. Processors’ concerns reflect many of those held by the industry’s apple growers. The processing sector faces a number of challenges in a rapidly changing and globalizing market. Looking forward, the industry must consider how to make its products relevant in current and future markets and how to compete effectively with global rivals. Although the outlook of many respondents was negative or uncertain, the survey responses also reveal several industry strengths and opportunities. This survey was completed as a part of a larger research project focused on the Northeastern apple processing industry. The final project results will identify and analyze marketing strategies and opportunities in the industry. The research will convey important data about consumer trends relevant to the processed apple industry, and this data will be interpreted in the context of the industry’s current situation. The information collected should be useful to growers and processors in assessing future opportunities and enhancing competitive capabilities in their efforts to strengthen this important sector of the regional apple industry