Project Title & Description
WETLAND MARKET FEASIBILITY ASSESSMENT OF A NUTRIENT TRADING MARKET
The Wetlands Initiative (TWI) intends to build on the knowledge of unsuccessful Water Quality (WQ) Trading programs and will develop a framework to create a fully-functional trading market. The framework includes: 1) identification of socio-cultural barriers that commonly create "market friction" and lead to lack of trust among trading partners; 2) models for how to overcome these barriers; 3) regulatory means to create market incentives, including integrating WQ trading into National Pollutant Discharge Elimination System (NPDES) permits; 4) strategies to effectively pool resources and efforts to sell credits; and 5) use of "smart models" to reduce transaction costs. Once developed, this framework could be applicable to other watersheds within the Illinois and Mississippi rivers.