Voluntary internalization of nonpoint source pollution abatement in the Great Lakes in North America

Abstract

This thesis explores the effectiveness of reducing nonpoint source pollution in the Laurentian Great Lakes region in North America through internalization of voluntary measures. After suffering from degrading freshwater quality for several decades this trend appears to changing. Point source pollution reduction has witnessed great success while the nonpoint sources have proven extremely hard to reduce. This is attributed to their diffuse nature and the subsequent problems of pinpointing the origin and monitoring the amounts which are released. A theoretical framework is provided in order to give an evaluation of the effectiveness of voluntary nonpoint source pollution abatement as a regime. This framework takes use of a method of counterfactuals where the current situation is evaluated in relation to other possible outcomes. These outcomes are describes what would have happened in the absence of the regime (Noncooperative situation), compared to what would have happened in an optimal situation (Collective Optimum). The determination of the effectiveness of the regime in question is based on interviews conducted by the author of this thesis and a questionnaire which was sent out to the appropriate people working in the areas of freshwater issues and nature conservation in the region. The results of this research find that internalization of voluntary nonpoint source pollution abatement has been moderately successful. This is attributed to the obvious problems of persuading someone to voluntarily take the sometimes costly and demanding steps needed to improve freshwater quality. There are two main methods of observing compliance: Self Monitoring and External Monitoring. Self Monitoring scores low on effectiveness in this theoretical model mostly because it fails to confirm the accuracy of self reported data and prevent free-riding. External Monitoring has been attributed a moderate score of effectiveness as it is able to authenticate data reporting however, it has proven too expensive for actors to incorporate in their daily procedures. Nonpoint source pollution is considered to be the biggest freshwater quality problem facing the Great Lakes today because it is hard to enforce since one cannot pinpoint its origin. Consequently, internalization of voluntary nonpoint pollution abatement emerges as a viable method to reduce emissions. To achieve this substantial funding is needed, especially directed towards young audiences. If this is achieved it is likely to contribute to internalize the desired behaviours and improve the freshwater quality of the Great Lakes.