Haiyan Liu


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What is the future of water quality trading?
Haiyan Liu, Roy Brouwer
Contemporary Economic Policy, Volume 41, Issue 1

A comprehensive review of experiences with water quality trading (WQT) programs worldwide is presented, spanning altogether more than 4 decades. A new WQT database is built, extracting data and information from existing review papers, complemented with gray and published literature about individual trading programs. Key aspects that affect trading volumes and program continuation are identified and categorized. No single success or fail factor emerges from this review, typically a mix of factors play a role. There is potential for WQT to evolve further and serve as a cost-effective pollution control instrument, but this requires nudging political will to regulate nonpoint source.


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Incentivizing the future adoption of best management practices on agricultural land to protect water resources: The role of past participation and experiences
Haiyan Liu, Roy Brouwer
Ecological Economics, Volume 196

Best Management Practices (BMPs) incentive programs have been introduced to protect agricultural land and reduce nutrient runoff in watersheds. However, their voluntary nature has not led to the expected high participation rates. We examine influencing factors and underlying drivers that are associated with BMP adoption and farmer preferences for specific BMPs. Data are collected through an online survey in Ontario, Canada in 2019. A binary logit model is estimated to explain current participation in BMP schemes and a multinomial logit model to predict preferences for future BMP uptake. Results show that a mix of farmer and farm characteristics and environmental attitudes explain both current participation in BMP schemes and the likelihood of adopting a future BMP. Farmers tend to endorse a BMP if they currently implement that BMP. The findings furthermore suggest that increasing farmers' environmental awareness and sharing positive BMP experiences with other farmers may help expand future BMP adoption in Ontario. • We examine underlying drivers of farmer BMP adoption and preferences in Canada. • We inspect both current participation and future choices using logit models. • Farmers fairly concerned about water pollution are more likely to adopt BMPs. • Farmers tend to endorse a BMP if they currently implement that BMP. • Demographic characteristics are not significant predictors of future adoption.