Balancing public trust resources of Mono Lake and Los Angeles' Water Right: An economic approach

Abstract

The contingent valuation method (CVM) is used to quantify the Public Trust values of Mono Lake at alternative lake levels. The dichotomous choice approach to contingent valuation is employed using a logit model. The economic benefit to California residents of preserving Mono Lake is estimated to be $1.5 billion. Purchase of replacement water and power would cost $26.2 million annually. On efficiency grounds, reallocation of water for maintenance of Public Trust values at Mono Lake is warranted. The CVM appears to be a useful methodology to evaluate the balancing and feasibility tests of the expanded Public Trust doctrine suggested by the California Supreme Court.