In 2010, a Total Maximum Daily Load (TMDL) was established for the Chesapeake Bay, defining the limits on emissions of nitrogen, phosphorus, and sediment necessary to reverse declines in the Bay's quality and associated biological resources. Agriculture is the largest single source of nutrients and sediment in the watershed. We use data on crop and animal agriculture in the watershed to assess the relative effectiveness of alternative policy approaches for achieving the nutrient and sediment reduction goals of the TMDL, ranging from voluntary financial incentives to regulations. The cost of achieving water quality goals depends heavily on which policy choices are selected and how they are implemented. We found that policies that provide incentives for water quality improvements are the most efficient, assuming necessary information on pollutant delivery is available for each field. Policies that directly encourage adoption of management systems that protect water quality (referred to as design-based) are the most practical, given the limited information that is generally available to farmers and resource agencies. Information on field characteristics can be used to target design-based policies to improve efficiency.

The Chesapeake Bay is North America's largest and most biologically diverse estuary, as well as an important commercial and recreational resource. However, excessive amounts of nitrogen, phosphorus, and sediment from human activities and land development have disrupted the ecosystem, causing harmful algae blooms, degraded habitats, and diminished populations of many species of fish and shellfish. In 1983, the Chesapeake Bay Program (CBP) was established, based on a cooperative partnership among the U.S. Environmental Protection Agency (EPA), the state of Maryland, and the commonwealths of Pennsylvania and Virginia, and the District of Columbia, to address the extent, complexity, and sources of pollutants entering the Bay. In 2008, the CBP launched a series of initiatives to increase the transparency of the program and heighten its accountability and in 2009 an executive order injected new energy into the restoration. In addition, as part of the effect to improve the pace of progress and increase accountability in the Bay restoration, a two-year milestone strategy was introduced aimed at reducing overall pollution in the Bay by focusing on incremental, short-term commitments from each of the Bay jurisdictions. The National Research Council (NRC) established the Committee on the Evaluation of Chesapeake Bay Program Implementation for Nutrient Reduction in Improve Water Quality in 2009 in response to a request from the EPA. The committee was charged to assess the framework used by the states and the CBP for tracking nutrient and sediment control practices that are implemented in the Chesapeake Bay watershed and to evaluate the two-year milestone strategy. The committee was also to assess existing adaptive management strategies and to recommend improvements that could help CBP to meet its nutrient and sediment reduction goals. The committee did not attempt to identify every possible strategy that could be implemented but instead focused on approaches that are not being implemented to their full potential or that may have substantial, unrealized potential in the Bay watershed. Because many of these strategies have policy or societal implications that could not be fully evaluated by the committee, the strategies are not prioritized but are offered to encourage further consideration and exploration among the CBP partners and stakeholders.

Over the last few decades the quality of many international water bodies has deteriorated, resulting in economic losses from declines in the fishing industry and in tourism, as well as a loss of biodiversity and health impacts from contaminated water. This deterioration has been caused by many factors including nutrient run-off from agriculture, insufficiently treated sewage, drainage of wetlands, coastal erosion, introduction of exotic species, eutrophication and inadequate resource management. One of the most significant sources of degradation has been form excessive discharge of nitrogen and phosphorus compounds (nutrients), due to the poor management practices used in agricultural, domestic and industrial activities. This publication aims to draw the attention of professionals and practitioners working in agricultural and environmental sectors to the experience and successes of the environmentally friendly good agricultural practices being used in the Chesapeake Bay Region of the United States to reduce nutrient loads in water.

"The health of the Chesapeake Bay has been a national concern for over twenty-five years, but no single policy approach has successfully restored the impaired water quality of the Bay. Nutrient trading is a market-based approach that is intended to achieve reductions in nutrient pollution and improve water quality using the most cost-effective means. Trading is an appealing option for the Chesapeake Bay because a major group of nutrient pollution contributors, agricultural non-point sources, may institute relatively inexpensive conservation practices to achieve nutrient reductions and produce tradable credits. While it is true that previous attempts to facilitate trading have been more successful in theory than in practice, trading offers several popular features that make it a more acceptable option to address nutrient pollutions than other policy alternatives. As such, trading can be a valuable tool when used in conjunction with other reduction mechanisms. Particularly in a political climate where alternative regulatory approaches are likely to be seriously encumbered, nutrient trading can advance nutrient reduction efforts and complement, or even temporarily supplement, other policy options. Despite the limitations of trading, it may be the most feasible approach in the near term considering that new, comprehensive command and control regulations of non-point sources and other mechanisms like nutrient taxes are not likely to be politically feasible for some time. To improve the chances of success for nutrient trading in the Bay, existing state trading programs must be harmonized, and trading participation must improve. Engaging interested participants, particularly agricultural non-point sources of nutrient pollution, and developing better program infrastructure now will help ensure program integration and increase the likelihood of a successful Bay-wide trading scheme in the future"--Page iii.

Environmental problems in coastal ecosystems can sometimes be attributed to excess nutrients flowing from upstream watersheds into estuarine settings. This nutrient over-enrichment can result in toxic algal blooms, shellfish poisoning, coral reef destruction, and other harmful outcomes. All U.S. coasts show signs of nutrient over-enrichment, and scientists predict worsening problems in the years ahead. Clean Coastal Waters explains technical aspects of nutrient over-enrichment and proposes both immediate local action by coastal managers and a longer-term national strategy incorporating policy design, classification of affected sites, law and regulation, coordination, and communication. Highlighting the Gulf of Mexico's "Dead Zone," the Pfiesteria outbreak in a tributary of Chesapeake Bay, and other cases, the book explains how nutrients work in the environment, why nitrogen is important, how enrichment turns into over-enrichment, and why some environments are especially susceptible. Economic as well as ecological impacts are examined. In addressing abatement strategies, the committee discusses the importance of monitoring sites, developing useful models of over-enrichment, and setting water quality goals. The book also reviews voluntary programs, mandatory controls, tax incentives, and other policy options for reducing the flow of nutrients from agricultural operations and other sources.

Water pollution control has been a top environmental policy priority of the world’s most developed countries for decades, and the focus of significant regulation and public and private spending. Yet, significant water quality problems remain, and trends for some pollutants are in the wrong direction. This book addresses the economics of water pollution control and water pollution control policy in agriculture, with an aim towards providing students, environmental policy analysts, and other environmental professionals with economic concepts and tools essential to understanding the problem and crafting solutions that can be effective and efficient. The book will also examine existing policies and proposed reforms in the developed world. Although this book addresses and has a general applicability to major water pollutants from agriculture (e.g., pesticides, pharmaceuticals, sediments, nutrients), it will focus on the sediment and nutrient pollution problem. The economic and scientific foundations for pollution management are best developed for these pollutants, and they are currently the top priorities of policy makers. Accordingly, the authors provide both highly salient and informative cases for developing concepts and methods of general applicability, with high profile examples such as the Chesapeake Bay, Lake Erie, and the Gulf of Mexico Dead Zone in the US; the Baltic Sea in Northern Europe; and Lake Taupo in New Zealand.

This book describes the environmental problems associated with agriculture, particularly the use of pesticides and chemical fertilizers and the disposal of animal waste. These have become major policy issues in many countries, with the main polluting effect being on water quality. As with other types of pollution, significant reductions in agriculture's contribution to water pollution requires the application of either enforceable regulatory approaches or changes in the economic environment, so that farmers adopt environmentally-friendly production practices. Providing a review and guide to the policy options and their economic administrative and political merits, the reader can develop an understanding of these options and their merits in the emerging policy context. The principal focus is on the developed world, particularly North America and Europe. The book is aimed at advanced students, researchers and professionals in agricultural economics and policy, and environmental and pollution sciences.