Designing, Evaluating and Implementing a Market-Based System for Delivery of Conservation Practice Funding

Meeting water quality goals in watersheds negatively impacted by nutrients will require significant reductions in loadings of nitrogen and phosphorous. Market-based systems have been extensively studied and have demonstrated the ability to reduce the costs associated with meeting environmental and conservation goals. The purpose of this project is to pursue market-based approaches that address nutrient-loading reductions in the Conestoga River (Pennsylvania) watershed through a “reverse auction” approach. The grantee will design, test, and evaluate the effectiveness of using a reverse auction system for trading nutrient reduction credits.