Tradable Permits Financing Water Security and Green Growth

Abstract

Abstract Tradable permit schemes have been implemented in environmental policy since the 1970s and are commonly used to reduce greenhouse gas emissions. They have also been implemented in a broader spectrum of fields, including water resources management. Tradable permit schemes are one of the most efficient market-based instruments for allocating water resources and for mitigating the pollution of water resources. This chapter will first discuss the concept of tradable permit schemes before discussing tradable water rights and water quality trading. The chapter will then review the concept of urban water trading and stormwater volume credit trading. Following this, the chapter will discuss groundwater trading and the acquiring of water for the environment.