Feasibility of Discharge Permit Market in Rivers

The purpose of this study is to focus on the challenges that the nitrogen discharge permits market face with in Sefidrud River. In addition، it intends to find the optimal waste load allocation (WLA) in regard. Thus، the river is simulated by Qual2kw in which the total maximum daily loads (TMDLs) and the impacts of dischargers at the quality of checkpoint are calculated. Eventually، the optimization of WLA is assigned using the total abatement cost functions. Results verify that this market is limited because of few permits supplied by point sources. Here، 150 permits are totally traded that can only save 2% in total abatement costs comparing to the conventional TMDL policy. The economically incentive based optimal solution is only in hand if some dischargers use 15 to 25% of primary price as discount. However، in case of Gharesoo، the total cost savings increase to 35%. It can be concluded that the outcomes of discharge permit market relies on the total permit supplies and demands and their feasibility requires case studies in advance.