Soil erosion, poor water quality, and degraded ecosystems impose major cost burdens and challenges for stormwater managers. We present a stochastic hydro‐financial watershed modeling framework for designing an Environmental Impact Bond (EIB)—a new form of financing for comprehensive, watershed scale interventions. EIBs provide capital for interventions that is repaid over time with interest by stakeholders who experience reduced costs (savings). The EIB is also structured so stakeholders and investors share the reward of cost savings. The framework estimates cost savings from interventions and accounts for aleatory and epistemic uncertainty in costs, which in turn impacts the financial terms of the EIB. In particular, we show a method to reward investors for taking on the risk that interventions fail. The framework is applied to a transnational pollution and sedimentation problem on the U.S.‐Mexico border and has broad applicability for a wide range of environmental problems.

中文翻译：

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环境影响债券的随机水金融流域建模

水土流失，水质差和生态系统退化给雨水管理人员带来了巨大的成本负担和挑战。我们为设计环境影响债券（EIB）提供了一种随机的水-金融分水岭建模框架，这是一种用于综合，分水岭规模干预的新融资形式。欧洲投资银行为干预措施提供资本，这些利益干预者会随着时间的流逝而偿还利息，而利益相关者的成本会降低（节省）。欧洲投资银行也是结构合理的，因此利益相关者和投资者可以共享节省成本的收益。该框架估计了干预措施可节省的成本，并考虑了成本的偶然性和认识性不确定性，进而影响了欧洲投资银行的财务条款。特别是，我们展示了一种奖励投资者承担干预失败风险的方法。