We report results from an economic experiment where two markets institutions for controlling water pollution are compared. In the status quo institution, permit trades between point and nonpoint sources are subject to a trading ratio. In the alternative, nonpoint abatements are converted into...

We examine policy instruments for ambient water quality protection. One objective is to illustrate the unique and complex informational challenges that must be addressed in constructing instruments that are effective and efficient for point and nonpoint sources. A second objective is to describe...