Water protection in the Baltic Sea and the Chesapeake Bay: institutions, policies and efficiency.

The Baltic Sea and the Chesapeake Bay share many characteristics. Both are shallow, brackish marine areas that suffer from eutrophication. Successful policies targeting point source pollution have lowered nutrient loads in both areas, but achieving the desired marine quality will require further abatement: efforts may be extended to more complicated and expensive pollution sources, notably agricultural nonpoint loads. Despite their ecological similarities, the two watersheds have different histories and institutional settings and have thus adopted different policies. Comparing and contrasting the policies reveal ways to improve the efficiency of each and ways to avoid the path of trial and error. No comparison of the parallel protection efforts, which involve expenditures of hundreds of millions of dollars annually, has been carried out to date. The present paper analyzes the policies applied in the two regions, distilling the results into six recommendations for future steps in preserving what are valuable sea areas.

Impact of environmental policies on the adoption of manure management practices in the Chesapeake Bay watershed.

Pollution in the Chesapeake Bay is a problem and has been a focus of federal and state initiatives to reduce nutrient pollution from agriculture and other sources since 1983. In 2010 EPA established a TMDL for the watershed. Producers may voluntarily respond to intense and focused policy scrutiny by adopting best management practices. A detailed analysis of water quality best management practices by animal feeding operations inside and outside the watershed yield insight into this relationship. Our findings support the hypothesis that farmers will adopt water quality measures if links are made clear and there is an expectation of future regulations.

Reforming agricultural nonpoint pollution policy in an increasingly budget-constrained environment.

Agricultural nonpoint source water pollution has long been recognized as an important contributor to U.S. water quality problems and the subject of an array of local, state, and federal initiatives to reduce the problem. A "pay-the-polluter" approach to getting farmers to adopt best management practices has not succeeded in improving water quality in many impaired watersheds. With the prospects of reduced funding for the types of financial and technical assistance programs that have been the mainstay of agricultural water quality policy, alternative approaches need to be considered. Some changes to the way current conservation programs are implemented could increase their efficiency, but there are limits to how effective a purely voluntary approach can be. An alternative paradigm is the "polluter pays" approach, which has been successfully employed to reduce point source pollution. A wholesale implementation of the polluter-pays approach to agriculture is likely infeasible, but elements of the polluter-pays approach could be incorporated into agricultural water quality policy.

Baseline requirements can hinder trades in water quality trading programs: Evidence from the Conestoga watershed.

The U.S. Environmental Protection Agency (USEPA) and the U.S. Department of Agriculture (USDA) are promoting point/nonpoint trading as a way of reducing the costs of meeting water quality goals. Farms can create offsets by implementing management practices such as conservation tillage, nutrient management and buffer strips. To be eligible to sell offsets or credits, farmers must first comply with baseline requirements. USEPA guidance recommends that the baseline for nonpoint sources be management practices that are consistent with the water quality goal. A farmer would not be able to create offsets until the minimum practice standards are met. An alternative baseline is those practices being implemented at the time the trading program starts, or when the farmer enters the program. The selection of the baseline affects the efficiency and equity of the trading program. It has major implications for which farmers benefit from trading, the cost of nonpoint source offsets, and ultimately the number of offsets that nonpoint sources can sell to regulated point sources. We use a simple model of the average profit-maximizing dairy farmer operating in the Conestoga watershed in Pennsylvania to evaluate the implications of baseline requirements on the cost and quantity of offsets that can be produced for sale in a water quality trading market, and which farmers benefit most from trading.

On how environmental stringency influences adoption of best management practices in agriculture.

There are relatively few Federal environmental regulations that influence agricultural production in the US. However, many local and state environmental rules may influence the management practices on US farms as might interactions between urban population centers and agricultural producers. Detailed analysis of corn farms gives insight into these relationships and suggests that stringent environmental regulations could increase the likelihood of adoption of certain conservation practices, all else being constant, but that the interaction between urban populations has less of an effect on the adoption decisions.