A System Dynamics Approach to Changing Perceptions about Thermal Water Quality Trading Markets

Author(s):  
Asmeret Bier

Thermal water quality trading markets give point source thermal polluters the option to comply with effluent restrictions by paying nearby landowners to plant shade trees. The shade trees cool the water, offsetting thermal pollution emitted by the point source. Thermal trading has the potential to create greater environmental benefits at a lower cost than traditional regulation, however; only one such program has been implemented to date in the United States. In this regard, a shift in potential stakeholders’ perceptions of these markets could be useful in allowing the markets to spread. This paper explains why system dynamics modeling is a useful tool for creating such a shift in perception, and describes a method of teaching participants about thermal trading. The method begins with a classroom simulation exercise, uses lessons from that exercise to create a model of a thermal trading market, and uses that model to conduct policy design and uncertainty analyses.

Author(s):  
Asmeret Bier

Thermal water quality trading markets give point source thermal polluters the option to comply with effluent restrictions by paying nearby landowners to plant shade trees. The shade trees cool the water, offsetting thermal pollution emitted by the point source. Thermal trading has the potential to create greater environmental benefits at a lower cost than traditional regulation, however; only one such program has been implemented to date in the United States. In this regard, a shift in potential stakeholders’ perceptions of these markets could be useful in allowing the markets to spread. This paper explains why system dynamics modeling is a useful tool for creating such a shift in perception, and describes a method of teaching participants about thermal trading. The method begins with a classroom simulation exercise, uses lessons from that exercise to create a model of a thermal trading market, and uses that model to conduct policy design and uncertainty analyses.


Water Policy ◽  
2012 ◽  
Vol 14 (5) ◽  
pp. 758-765 ◽  
Author(s):  
Rebecca R. Gasper ◽  
Mindy Selman ◽  
Matthias Ruth

Water quality markets are gaining worldwide popularity as strategies to provide flexibility and cost savings to sources managing pollution. One prominent example is the establishment of water quality trading programs in the Chesapeake Bay watershed in the United States to manage nonpoint and point source pollution. Some of the agricultural land use practices that can be used to generate offsets in water quality markets in this region have other environmental benefits including greenhouse gas (GHG) sequestration. This study describes the structure of Maryland's water quality trading program, its climate co-benefits and its potential link with GHG markets. Results reveal that Maryland's agricultural sector could offset half of its GHG emissions by 2020 through projects primarily designed to improve water quality. The potential opportunity for agricultural sources to participate in multiple markets could provide incentives for the adoption of management practices that have climate co-benefits. The results of this study could guide the continued development of multiple markets in the Bay watershed and other regions of the world where ecosystem markets play a role in pollution management.


Water Policy ◽  
2007 ◽  
Vol 10 (1) ◽  
pp. 73-93 ◽  
Author(s):  
Cynthia Morgan ◽  
Ann Wolverton

This paper provides a systematic overview of water quality trading programs and one-time offset agreements in the USA. The primary source of information for this overview is a detailed database, collected and compiled by a team of researchers at Dartmouth College. Details discussed include: sources of the pollutant, types of pollutants traded, legal liability, main regulatory drivers, market structure, trading ratios, transaction and administrative costs and difficulties encountered in trading. We find that trading has often been explored as a way to meet more stringent discharge limits or watershed-wide caps. The most common type of trading program in the United States is between point sources and non-point sources. Point sources are usually held liable for non-point source reductions. The pollutants most commonly traded in the USA are nutrients such as phosphorus and nitrogen and almost all offset and trading programs focus on one pollutant only. However, market structures, trading ratios and other details of the trading framework vary widely among programs. No single characteristic appears to be a good predictor of a successful trading program.


2016 ◽  
Vol 2 (3) ◽  
pp. 104 ◽  
Author(s):  
Nurdin Rahmanto ◽  
Budi Hartono ◽  
Alva Edy Tontowi

Small Medium Enterprise (SME) plays a strategic role in developing countries economy. Each of SMEs has unique strategy of order fulfillment management. This is influenced by factor dynamics influencing the system. The system characteristic becomes the inspiration to be studied furthermore continues especially using system dynamics modeling approach. System dynamics modeling approach used because this method used to know and learn the system behavior. This paper represents of order fulfillment management analysis with case study at CV. Kurnia Jaya – Yogyakarta. The developed model has 4 sub models: customer order sub model, order fulfillment sub model, raw material management sub model and labor sub model. Next step is calibrating the developed model with boundary adequacy test, extreme conditions test and behavior reproduction test. After passing all these steps, the developed model to be ran with policy design (different scenario of order such as: constant order, step order, impulse order and actual order). Finally 3 alternative recommendations proposed for increasing the production rate so the order backlog and delivery delay decrease.


2021 ◽  
Vol 13 (20) ◽  
pp. 11377
Author(s):  
Camilo Llerena-Riascos ◽  
Sebastián Jaén ◽  
Jairo Rafael Montoya-Torres ◽  
Juan G. Villegas

The increase in the use of electrical and electronic devices worldwide has created a rapid growth of waste of electrical and electronic equipment (WEEE). The current paper presents an optimization-based simulation (OBS) approach that allows the design of sustainable WEEE management system policies. The proposed OBS approach integrates a system dynamics (SD) model and a mixed-integer nonlinear programming (MINLP) model to improve the representation and performance of the WEEE processes considering their operative and strategic interdependence. The SD component elicits the complexity of the WEEE generation process. Complementarily, the MINLP model periodically optimizes key variables of the WEEE management system. Computational results in a case study based on WEEE from Colombian mobile phones illustrates how an approach solely based on SD simulation is unable to capture the operative-strategic nature of the system and perform optimal parameter updates. By contrast, the OBS approach of this paper outperforms an exclusive SD analysis both in the economic and environmental performance of the system. It obtains 33% more profits and 65% more environmental benefits. Moreover, for this case study, the model suggests that the cornerstone of the WEEE management system for increasing its performance is the replacement rate.


2019 ◽  
Vol 6 (2) ◽  
pp. 74
Author(s):  
Paul Evangelista

This special issue of the Industrial and Systems Engineering Review once again showcases the top papers from the annual General Donald R. Keith memorial capstone conference at the United States Military Academy in West Point, NY.  After consideration of over 40 academic papers, the eight listed in this issue were selected for publication in this journal.  Topics addressed in the papers span a wide spectrum, however the distinguishing aspects of each paper included a common trend; each of these papers clearly implemented some aspect of systems or industrial engineering underpinned by thoughtful analysis.  The papers focus on three general bodies of knowledge:  systems engineering, modeling and simulation, and system dynamics modeling.Systems engineering topics included two unique contributions.  The work of Byers et. al examined the trades between weapon weight and weapon lethality.  Bares et. al. examined computing and storage needs of a simulation-intense analytical organization, considering the processing, storage, and growth that such an organization would need to consider as part of their IT solution. Three papers created unique contributions primarily through modeling and simulation studies.  Grubaugh et al. explored anomaly detection in categorical data, a notoriously difficult problem domain.  Bieger et al. used discrete event simulation to analyze rail yard operations in support of military deployments.  Kumar and Mittal analyzed the feasibility and benefits of alternative organizational structures to support cyber defense, primarily using a value modeling approach.       Lastly, applied system dynamics modeling and research produced several outstanding papers, primarily across social science problems.  Led by the extensive advising efforts of Jillian Wisniewski, three of her students contributed notably.  Ferrer and Wisniewski used system dynamics to understand the growth of Boko Haram over the course of the last decade.  Riedlinger and Wisniewski applied system dynamics to better understand the replication of mass killings across the United States.  Lastly, Provaznik and Wisniewski explored the diffusion of news and information using system dynamics, analyzing important social problems created by echo chambers for ideologies. Please join me in congratulating our authors, especially the young undergraduate scholars that provided the primary intellectual efforts that created the contents of this issue.COL Paul F. Evangelista, PhD, PE


Author(s):  
Deogratias Kibira ◽  
Guodong Shao

The production capacity of corn ethanol as a transportation fuel is experiencing rapid growth in the United States. The demand is driven by increased prices of gasoline, government mandates, incentives, desire for cleaner fuels, and the need to be more self-reliant in energy sources. Continued strong growth of the corn ethanol industry will depend on profitability by both suppliers and producers. This in turn will be influenced by several factors such as demand, government incentives, feedstock availability and prices, processing plant capacity, and efficient farm and ethanol processing technologies. How and to what extent will the projected growth of the corn ethanol industry in the United States be influenced by some or all of these factors? We use system dynamics modeling to construct a causal-loop structure of the corn ethanol industry and stock and flow diagrams to explore how possible changes in projected factors and growth indicators will affect the industry. Currently, planners and researchers explore various energy supply options by the year 2030. Using system dynamics modeling, this paper explores different possible growth scenarios of the industry for the next twenty years.


Water ◽  
2021 ◽  
Vol 13 (2) ◽  
pp. 185
Author(s):  
Todd K. BenDor ◽  
Jordan Branham ◽  
Dylan Timmerman ◽  
Becca Madsen

Water quality trading (WQT) programs aim to efficiently reduce pollution through market-based incentives. However, WQT performance is uneven; while several programs have found frequent use, many experience operational barriers and low trading activity. What factors are associated with WQT existence, prevalence, and operational stage? In this paper, we present and analyze the most complete database of WQT programs in the United States (147 programs/policies), detailing market designs, trading mechanisms, traded pollutants, and segmented geographies in 355 distinct markets. We use hurdle models (joint binary and count regressions) to evaluate markets in concert with demographic, political, and environmental covariates. We find that only one half of markets become operational, new market establishment has declined since 2013, and market existence and prevalence has nuanced relationships with local political ideology, urban infrastructure, waterway and waterbody extents, regulated environmental impacts, and historic waterway impairment. Our findings suggest opportunities for better projecting program need and targeting program funding.


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