S UMMARY
Impacts of Total Pollution Load Management System 0n the Regional Economy and Land Use Change
Chong Won Kim, Yeong Kook Choi, Jong Yeol Lee
Chapter 1. Introduction
Over the last decades, water quality management in Korea has been driven by the control of point sources of pollution and use of effluent-based water quality standards.
Under this regulations, the quality of the nation's rivers, reservoirs has generally improved as wastewater treatment plants and industrial dischargers have to comply with effluent-based standards. But still many part of water body are impaired by point and non-point pollution.
The primary objective of this research is to study the impacts of regional economy and land use by implementing Total Pollution Load Management System(TPLMS) in Korea. To attain the primary objective, this study considers following methodologies:
Two methods are employed to analyze the impact of regional economy by
pollution reduction function, the other is a macro-regional economy model.
The sensitivity analysis is employed for the impacts of the TPLMS on land use change. When the amounts of pollutant elimination are assigned at each city under the TPLMS, then each city(county) has to make a plan to attain the target of water quality standard. We assume that each city treat point source pollutants at first with available methods such as sewage treatment and industrial effluent treatment plants.
What is left from point source pollution treatment is burdens of non-point source pollution treatment. At this stage, we consider land use change for the control of non-point source pollution.
Chapter 2. Current Situations and Issues
The TPLMS, initiated in the 「Act for water management and upstream region's resident support in the Nakdong River, Geum River, Yeongsan․Sumjin River 」, recently emerged as a foundation for nation's efforts to meet water quality standards.
This act specifies the amount of a particular pollutant(BOD) that may be present in a water body, allocates allowable pollutant loads and provides the basis for attaining and maintaining water quality standards. The act requires that each metropolitan city and province establish a comprehensive plan of total pollution management system.
If waters fail to meet nation's standards, each city should establish an implementing plan to comply with water quality standards.
The major issues and problems related to the introduction of TPLMS are as follows:
First, there are some insufficient informations such as water flow data, water quality data, unidentified delivery path. Second, the ratio of point source pollution is 62.6%∼
78.3% in Korea, so this indicates that a counter plan to reduce point source pollution is essential prerequisite. A similar system in U. S. A, Total Maximum Daily Loads(TMDL), which focuses on non-point source pollution control contrary to our
approach. Third, side effects on regional economy are not sufficiently considered before the TPLMS is introduced. Forth, there are insufficient experts to implement the TPLMS in local government.
Chapter 3. Relevant Literature Review
There are a few reports related to TPLMS in Korea. Main contents of these reports are afraid of the burden of responsibility for water quality management. Also, they demand alleviation of 「natural reservation area」regulations at upstream regions when the water quality meets the nation's water quality standards. Within 10 years of the Clean Water Act's passage, significant improvements in water quality were being reported by EPA but 30% to 40% of waters still fail to meet state standards in U.
S. A. Recognition is now widespread that non-point sources are of principal concern.
Municipal and industrial sources clearly do not predominate, instead, a host of non-point sources, in particular from urban and agricultural runoff, loom large.
Pesticide, fertilizer, and animal waste runoff from agricultural sector is the single largest contributor to the impairment of rivers and lakes. If more tight standards to point sources is applied, then more burden to industrial activities. That is why U.S.A.
introduce TMDL programs to control non-point sources pollution.
In Japan, Total Maximum Pollution Loads System(similar to TMDL) is applied to severely impaired waters such as Tokyo Estuary, Ise Estuary, etc. TMDL system is not applied in EU. EU still focuses on point source pollution to improve water quality.
The impacts of environmental regulation on economy are categorized into productivity, employment, economic growth, firm location, foreign direct investment,
implications. Overall, the results of studies which examine the impact of environmental on economy are contrary to each other. Although social costs of environmental regulation may be significant, including adverse effects on productivity, studies attempting to measure plant location decisions and net growth effects are either small, statistically insignificant, or not robust to the test of model specification.
Grossman and Krueger(1995) shows that economic growth brings an initial phase of deterioration followed by a subsequent phase of improvement. Jorgenson &
Wilcoxen (1990) quantify the cost of pollution controls by reporting the results of simulations of the growth of the U.S. economy with and without regulation. The results show that pollution abatement has emerged as a major barrier on the economy.
Unfortunately, they have not attempted to assess the benefits resulting from a more clean environment. Porter and Linde(1995) assert that the relationship between environmental regulation and industrial competitiveness is not trade-off but well-designed environmental regulations might lead to improved competitiveness.
The researches which handle the relationship between land use and water pollution are very few. Land use is of concern for water quality conditions and aquatic health.
Walls and McConnell(2004) have reviewed market-based policies, TDRs, PDRs, and development impact fees, to reduce pollutant levels to the Chesapeake Bay in the future. They found that a combination of TDRs, PDRs, and development impact fees may offer the best options for achieving desirable water quality. Ligtenberg et.al.
(2004) use multi-agent system to include multi-actor decision making into models of land use change. Bacon et al. (2002) use Belief Network Model to make a decision for land use change. Belief Network Model is used to estimate what kind of land use is the best option with comparing anticipated benefits of each alternative land use. The approach is illustrated with a case study of the factors that might influence changes from farm land to forestry in marginal upland areas of the UK.
Chapter 4. TPLMS and Regional Economy
Two methods are considered to analyze the impact of environmental regulation on economy. One is micro-approach using production function and pollution abatement technology function of firm. The responses of firms are different according to the characteristics of firm's production and pollution abatement technology functions when the regulation of water quality is more tightened. If the parameters of production and pollution abatement technology functions are all diminishing returns to scale (0<α<1, 0<δ<1), then the best response of firm is to reduce products. If the parameter of production function is diminishing returns(0<α<1) and the parameter of pollution abatement technology function is constant returns(δ=1), then the best response of firm is to increase products. If the parameters of firm's production and pollution abatement technology functions are 0<α<1, δ=1 or α>1, δ=1, then the best response of firm is to produce goods without considering pollution regulation level.
A macro-economic model is considered to capture the impact of environmental regulation on gross regional domestic products. A macro model consists of three part, production, employment, environment. Each part also consist of several equations and total 14 equations are used for the estimation. The case study area is Daegu metropolitan city and we focus on the impact of manufacturing industry of the enforcing water quality standard. The result of analysis shows that gross regional domestic product is reduced by 0.16∼0.18% point if the amount of pollution treatment is increased by 1% point owing to the TPLMS.
Chapter 5. TPLMS and Land Use
The impacts of TPLMS on the land use change are analyzed in this section. First,
pollution discharge allowance. Second, we calculate the maximum amount of reduction of non-point pollution in land use using a non-point pollution loads per acre.
We simulate the land use change to meet the water quality standards in assuming that the amount of pollution elimination in land use(non-point source pollution) is given by various scenarios. Cheongju city is selected for the case study because this city has well defined GIS data for the analysis.
The results of research show that Cheongju city will confront the shortage of land for urban usage if more than 20% of total pollution reduction are assigned to non-point pollution through land use change. This suggest that sustainable development of city can be achieved by considering the impact of land use change when we assign the amount of reduction of non-point pollution by TPLMS.
Chapter 6. Conclusion
The results of this study give us some policy implications from point of views such as water quality monitoring and data collection, impact on land use and regional economy etc. Related to TPLMS's successful implementation, policy suggestions and recommendations are categorized in three part as follows:
The first part is related to TPLMS itself for the more efficient performance.
Government needs to develop a uniform, consistent approach to ambient monitoring and data collection across water basins. A limited budgets make it difficult to monitoring all of waters. So, government should endorse statistical approaches to defining all waters, proper monitoring design, data analysis, and impairment assessment. Monitoring and data collection programs need to be coordinated with anticipated water quality and TPLMS modeling requirement. We need to foster experts related to TPLMS at the level of central and local government.
The second part of policy suggestions is based on the results of chapter 4 which
deal with economic impacts of TPLMS. The differentiation of standards of regulation based on industrial classification and scale of firms should be achieved avoiding evenly environmental regulation. If there are lots of administrative burden in carry out differentiated regulation, we need to promote to introduce pollution trading system.
We need to have more flexible system or adjust the time schedule of TPLMS implementation through the more comprehensive and quantified analysis of regional economic impact of TPLMS.
The third part of policy suggestions are related to land use change. While we establish a comprehensive TPLMS plan and implementing TPLMS plan, the burden of local government's budget, impact of industry, urban land use pattern etc. should be reviewed in advance.
None of the preceding studies have estimated the impact of regional economy and land use of TPLMS from regional macro economic models and land use simulation.
Therefore, the approaches taken in this study will contribute to the development of impact analysis of TPLMS on regional economy and land use change. The limits of this study do not have sufficient data owing to the lacks of statistic data related pollution investment. So, the results of this study may not be robust in the interpretation of econometric analysis. For more concrete analysis, we need to accumulate environmental related investment data such as stock and flow investment.
With the limit of data related land use and regulation policy, we do not suggest the most reasonable alternative, instead we suggest the various alternatives, which enable decision makers to choose the rational selection for sustainable development and environmental protection.
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