Water Resources Research · 1993 · 480 citations · 20 references
Natural ResourcesEnvironmental PolicyPublic PolicyEnvironmental EconomicsEnvironmental ValuationWater PolicyContingent ValuationWater EconomicsWater PollutionWater QualityWater Quality PolicyWillingness To PayAccess To Clean WaterBiasesLife-contingent Benefit ValuationNet Positive ImpactWater Pollution Control PolicyWater Quality Benefit-cost AnalysisWater Quality EconomicsWater Quality Incentives
The study aims to quantify national benefits of freshwater pollution control. Using a national contingent valuation survey, the authors estimate willingness to pay for water quality improvements as a function of income and other variables, and adjust the estimates for missing or invalid responses. The results show that benefits and costs of water pollution control are roughly equal, and many actions required to achieve swimmable water quality would have negative net benefits.
This paper presents the findings of a study designed to determine the national benefits of freshwater pollution control. By using data from a national contingent valuation survey, we estimate the aggregate benefits of meeting the goals of the Clean Water Act. A valuation function is estimated which depicts willingness to pay as a function of water quality, income, and other variables. Several validation checks and tests for specific biases are performed, and the benefit estimates are corrected for missing and invalid responses. The two major policy implications from our work are that the benefits and costs of water pollution control efforts are roughly equal and that many of the new policy actions necessary to ensure that all water bodies reach at least a swimmable quality level will not have positive net benefits.
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Nonlinear Methods in Econometrics.
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