Price Endogeneity and Marginal Cost Effects on Incentive Compatible Stormwater Management Policies

Incentive based stormwater management policies offer the prospect of reducing urban stormwater runoff while increasing developer profits. An incentive compatible Stormwater Banking Program (SBP) is presented that allows developers to build at higher residential densities in exchange for including low impact stormwater Best Management Practices (BMPs) in the development’s stormwater management infrastructure. Price endogeneity presents itself when the smaller residential lots created by building at a greater density sell for a lower price than the original, larger lots. Stormwater management authorities must be aware of this and the effects of the program participation fee structure in designing voluntary incentive based policies that meet runoff reduction objectives.


Subject(s):
Issue Date:
2010
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/61859
Total Pages:
34
Series Statement:
Selected Paper
11987




 Record created 2017-04-01, last modified 2017-08-25

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