Trans-boundary airshed management as an approach to trans-boundary water cooperation: The case of the Chesapeake Bay

This chaster examines implications for cost-effective allocation of pollution controls when preferences of coalitions organized along regional lines, or according to preferences for air versus water qualify improvements, are accounted for. Results are compared to a base case in which NOx emissions reductions must satisfy, only, a water quality standard and total costs are minimized over emissions sources. Relative to a base-case result that marginal control costs must be equal across sources, stronger relative preferences for air imply shifting of control toward sources that produce greater ancillary benefits to air quality. Regional differences may require side payments to induce cooperation where benefits are IOM: but this will not affect how, controls themselves should be allocated.