Skip to main content
SpringerLink
Log in

Measuring the Benefits of Freshwater Quality Changes: Techniques and Empirical Findings

  • Chapter
The Economics and Management of Water and Drainage in Agriculture

  • 429 Accesses

Abstract

This chapter gives an overview of the techniques used to value the nonmarket benefits of water-related public goods and of the major empirical studies in this area. Travel cost, hedonic pricing, and contingent valuation are described; special emphasis is placed on the problems and limitations of implementing these methods to value changes in the quality and quantity of water-related amenities. Major empirical efforts to value National and regional water quality improvements, water-based recreation, ecosystem preservation, instream flows, ground-water protection, and water supply reliability are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Adelman, I. and Griliches, Z., 1961. On an Index of Quality Change, Journal of American Statistical Assn., 56, pp. 531–548.

    Google Scholar 

  • Bartik, T. J., 1987a. The Estimation of Demand Parameters in Hedonic Price Models, Journal of Political Economy, 95, pp. 81–88.

    Article  Google Scholar 

  • Bishop, R. C. and Boyle, K. J., 1985. The Economic Value of Illinois Beach State Nature Preserve. Report to the Illinois Department of Conservation, Heberlein and Baumgartner Research Services, Madison, WI.

    Google Scholar 

  • Bishop, R. C.; Brown, C. A.; Welsh, M. P.; and Boyle, K. J., 1990. Grand Canyon Recreation and Glen Canyon Dam Operations: Economic Evaluation. Draft Report.

    Google Scholar 

  • Blomquist, G. C., 1983. Measurement of the Benefits of Water Quality Improvement. In: Tolley, G.S.; Yaron, D.; and Blomquist, G. C. (Eds.), Environmental Policy: Water Quality, Ballinger, Cambridge.

    Google Scholar 

  • Bockstael, N. E. and McConnell, K. E., 1980. Calculating Equivalent and Compensating Variation for Natural Resource Facilities, Land Economics, 56, pp. 56–62.

    Article  Google Scholar 

  • Bockstael, N. E.; Hanemann, W. M.; and Strand, I. E., 1985. Measuring the Benefits of Water Quality Improvements Using Recreation Demand Models. Report to the Economic Analysis Division, U.S. Environmental Protection Agency.

    Google Scholar 

  • Bockstael, N. E.; McConnell, K. J.; and Strand, I. E., 1985. Recreation. In: Baden, J. and Kolstad, C. (Eds.), Measuring the Demand for Environmental Commodities, North Holland, Amsterdam.

    Google Scholar 

  • Bowes, M. D. and Loomis, J. B., 1980. A Note on the Use of Travel Cost Models with Unequal Zonal Populations, Land Economics, 56(4), pp. 465–470.

    Article  Google Scholar 

  • Brookshire, D. S.; Thayer, M. A; Schulze, W. D., and d’Arge, R. C, 1982. Valuing Public Goods: A Comparison of Survey and Hedonic Approaches, American Economic Review, 72, pp. 165–178.

    Google Scholar 

  • Brown, G. M., Jr. and Pollakowski, H. O., 1977. Economic Valuation of Shoreline, Review of Economics and Statistics, 59, pp. 272–278.

    Article  Google Scholar 

  • Brown, G. M., Jr. and Mendelsohn, R., 1984. The Hedonic Travel Cost Method, Review of Economics and Statistics, 66, pp. 427–433.

    Article  Google Scholar 

  • Brown, J. N. and Rosen, H. S., 1982. On the Estimation of Structural Hedonic Price Models, Econometrica, 50, pp. 765–768.

    Article  Google Scholar 

  • Burt, O. R. and Brewer, D., 1971. Estimation of Net Social Benefits from Outdoor Recreation, Econometrica, 39, pp. 813–828.

    Article  Google Scholar 

  • Cameron, T. A and James, M. D., 1987. Efficient Estimation Methods for Use with ‘Close-Ended’ Contingent Valuation Data, Review of Economics and Statistics, 69, pp. 269–276.

    Article  Google Scholar 

  • Carson, R. T., 1989a. The Value of Diamonds and Water: Water Supply Reliability in Southern California. Paper Presented at Association for Public Policy Analysis and Management, Washington, DC.

    Google Scholar 

  • Carson, R. T. and Mitchell, R. C., 1988. Value of Clean Water: The Public’s Willingness to Pay for Boatable, Fishable, and Swimmable Quality Water. Discussion Paper 88-13, Department of Economics, University of California, San Diego.

    Google Scholar 

  • Carson, R. T.; Hanemann, W. M.; and Wegge, T. C., 1989. A Nested Logit Model of Recreational Fishing Demand in Alaska. Paper Presented at the Annual Western Economic Association Conference, Lake Tahoe.

    Google Scholar 

  • Caulkins, P. P.; Bishop, R. C.; and Bowes, N. W., Sr., 1986. The Travel Cost Model for Lake Recreation: A Comparison of Two Methods of Incorporating Site Quality and Substitution Effects, American Journal of Agricultural Economics, 68(2), pp. 291–297.

    Article  Google Scholar 

  • Cicchetti, C. J.; Fisher, A. C.; and Smith, V. K., 1973. Economic Models and Planning for Outdoor Recreation, Operations Research, 21, pp. 1104–1113.

    Article  Google Scholar 

  • Clawson, M. and Knetsch, J., 1966. Economics of Outdoor Recreation. Resources for the Future, Johns Hopkins University Press, Baltimore, MD.

    Google Scholar 

  • Daubert, J. T. and Young, R. A., 1981. Recreational Demands for Maintaining Instream Flows: A Contingent Valuation Approach, American Journal of Agricultural Economics, 63(4), pp. 666–676.

    Article  Google Scholar 

  • Edwards, S. F., 1988. Option Prices for Groundwater Protection, Journal of Environmental Economics and Management, 15, pp. 475–487.

    Article  Google Scholar 

  • Epple, D., 1987. Hedonic Prices and Implicit Markets: Estimating Demand and Supply Functions for Differentiated Products, Journal of Political Economy, 95, pp. 59–80.

    Article  Google Scholar 

  • Freeman, AM., Ill, 1979, The Benefits of Environmental Improvement: Theory and Practice. John Hopkins University Press, Baltimore, MD.

    Google Scholar 

  • Freeman, A M., III, 1987. Assessing Damage to Marine Resources: PCBs in New Bedford Harbor. Prepared for Presentation at the Meetings of the Association of Environmental and Resource Economists and American Economic Association, Chicago, IL.

    Google Scholar 

  • Gramlich, F. W., 1977. The Demand for Clean Water: The Case of the Charles River, National Tax Journal, 30(2), pp. 183–194.

    Google Scholar 

  • Greenley, D. A; Walsh, R. G.; and Young, R. A., 1982. Economic Benefits of Improved Water Quality: Public Perceptions of Option and Preservation Values. Westview Press, Boulder, CO.

    Google Scholar 

  • Halvorsen, R. and Pollakowski, H. O., 1981. Choice of Functional Form for Hedonic Price Functions, Journal of Urban Economics, 10(1), pp. 37–49.

    Article  Google Scholar 

  • Hammack, J. and Brown, G. M., Jr., 1974. Waterfowl and Wetlands: Toward Bioeconomic Analysis. Johns Hopkins University Press, Baltimore, MD.

    Google Scholar 

  • Hanemann, W. M., 1978. A Methodological and Empirical Study of the Recreation Benefits from Water Quality Improvement. Ph.D. Dissertation, Harvard University, Cambridge, MA.

    Google Scholar 

  • Hanemann, W. M.; Kanninen, B.; and Loomis, J., 1990. Estimation Efficiency and Precision of Benefit Estimates From Use of Double Bounded Dichotomous Choice Contingent Valuation. Paper Presented at a Joint Meeting of the Western Regional Science Association and the W-133 Regional Research Project, Molokai, HI.

    Google Scholar 

  • Hanemann, W. M. Willingness to Pay and Willingness to Accept: How Much Can They Differ? American Economic Review. Forthcoming.

    Google Scholar 

  • Harrison, D. and Rubinfeld, D. L., 1978. The Distribution of Benefits from Improvements in Urban Air Quality, Journal of Environmental Economics and Management, 5, pp. 313–332.

    Article  Google Scholar 

  • Hay, M. J. and McConnell, K. E., 1979. An Analysis of Participation in Nonconsumptive Wildlife Recreation, Land Economics, 55, pp. 460–471.

    Article  Google Scholar 

  • Just, R. E.; Hueth, D. L.; and Schmitz, A., 1972. Applied Welfare Economics and Public Policy. Prentice Hall, Englewood Cliffs, NJ.

    Google Scholar 

  • Kling, C. L., 1988. Comparing Welfare Estimates of Environmental Quality Changes from Recreation Demand Models, Journal of Environmental Economics and Management, 15, pp. 331–340.

    Article  Google Scholar 

  • Krutilla, J. V. and Eckstein, O., 1958. Multiple Purpose River Development. Resources for the Future, John Hopkins University Press, Baltimore, MD.

    Google Scholar 

  • Loomis, J. B., 1987. An Economic Evaluation of the Public Trust Resources of Mono Lake. Institute of Ecology Report No. 30, College of Agriculture and Environmental Sciences, University of California, Davis.

    Google Scholar 

  • McConnell, K. E., 1977. Congestion and Willingness to Pay: A Study of Beach Use, Land Economics, 53, pp. 185–195.

    Article  Google Scholar 

  • McConnell, K. E. and Strand, I. E., 1981. Measuring the Cost of Time in Recreation Demand Analysis: An Application to Sport Fishing, American Journal of Agricultural Economics, 63, pp. 153–156.

    Article  Google Scholar 

  • McFadden, D., 1974. Conditional Logit Analysis of Qualitative Choice Behavior. In: Zarembka, P.(Ed.), Frontters in Econometrics, Academic Press, New York, NY.

    Google Scholar 

  • Mendelsohn, R., 1985. Identifying Structural Equations with Single Market Data, Review of Economics and Statistics, 67, pp. 525–529.

    Article  Google Scholar 

  • Miranowski, J. A. and Hammes, B. D., 1984. Implicit Prices of Soil Characteristics for Farmland in Iowa, American Journal of Agricultural Economics, 66, pp. 745–749.

    Article  Google Scholar 

  • Mitchell, R. C. and Carson, R. T., 1989a. Existence Values for Groundwater Protection. Draft Final Report to the U.S. Environmental Protection Agency by Resources for the Future.

    Google Scholar 

  • Mitchell, R. C. and Carson, R. T., 1989b. Using Surveys to Value Public Goods: The Contingent Valuation Method. Resources for the Future, Johns Hopkins University Press, Baltimore, MD.

    Google Scholar 

  • Palmquist, R. B., 1988. Welfare Measurement for Environmental Improvements Using the Hedonic Model: The Case of Nonparametric Marginal Prices, Journal of Environmental Economics and Management, 15, pp. 297–312.

    Article  Google Scholar 

  • Palmquist, R.B.,1989. Hedonic Methods. In: Baden, J. and Kolstad, C.(Eds.), Measuring the Demand for Environmental Commodities, North Holland, Amsterdam.

    Google Scholar 

  • Palmquist, R. B. and Danielson, L. E., 1989. A Hedonic Study of the Effects of Erosion Control and Drainage on Farmland Values, American Journal of Agricultural Economics, 71, pp. 55–62.

    Article  Google Scholar 

  • Ridker, R. G. and Henning, J. A., 1967. The Determinants of Residential Property Values with Special Reference to Air Pollution, Review of Economics and Statistics, 49, pp. 246–257.

    Article  Google Scholar 

  • Rosen, S., 1974. Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition, Journal of Political Economy, 82, pp. 34–55.

    Article  Google Scholar 

  • Sellar, C.; Stoll, J. R.; and Chavas, J. P., 1985. Validation of Empirical Measures of Welfare Changes: A Comparison of Nonmarket Techniques, Land Economics, 61, pp. 156–175.

    Article  Google Scholar 

  • Smith, V. K. and Desvousges, W. H., 1986. Measuring Water Quality Benefits. Kluwer-Nijhoff, Boston, MA.

    Book  Google Scholar 

  • Smith, V. K. and Kaoru, Y., 1986. Modeling Recreation Demand Within a Random Utility Framework, Economic Letters, 22, pp. 395–399.

    Article  Google Scholar 

  • Smith, V. K., 1989. Household Production Functions. In: Baden, J. and Kolstad, C. (Eds.), Measuring the Demand for Environmental Commodities, North Holland, Amsterdam. Forthcoming.

    Google Scholar 

  • Sutherland, R. J., 1982. A Regional Approach to Estimating Recreation Benefits of Improved Water Quality, Journal of Environmental Economics and Management, 9, pp. 229–247.

    Article  Google Scholar 

  • Sutherland, R. J. and Walsh, R. G., 1985. Effect of Distance on the Preservation Value of Water Quality, Land Economics, 61, pp. 281–291.

    Article  Google Scholar 

  • Thaler, R. H. and Rosen, S., 1976. The Value of Saving a Life, in Nestor E. Terleckyj, (Ed.), Household Production and Consumption. National Bureau of Economic Research, New York, NY.

    Google Scholar 

  • Vaughan, W. J. and Russell, C. S., 1982. Freshwater Recreational Fishing: The National Benefits of Water Pollution Control. Resources for the Future, Washington DC.

    Google Scholar 

  • Vaughan, W. J.; Russell, C. S.; and Hazilla, M, 1982. A Note on the Use of the Travel Cost Model with Unequal Zonal Populations: Comment, Land Economics, 58, pp. 400–440.

    Article  Google Scholar 

  • Walsh, R. G.; Sanders, L. D.; and Loomis, J. B., 1985. Wild and Scenic River Economics: Recreation Use and Reservation Values. Report to the American Wilderness Alliance, Department of Agriculture and Natural Resource Economics, Colorado State University.

    Google Scholar 

  • Walsh, R. G.; Johnson, D. M.; and McKean, J. R., 1988. Review of Outdoor Research Economic Demand Studies with Non-Market Benefit Estimates: 1968–1988. Technical Report No. 54, Colorado Water Resources Research Institute.

    Google Scholar 

  • Wilman, E. A., 1980. The Value of Time in Recreation Benefit Studies, Journal of Environmental Economics and Management, 7, pp. 272–286.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of California, San Diego, USA

    Richard T. Carson

  2. Harvard University, USA

    Kerry M. Martin

Authors
  1. Richard T. Carson
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kerry M. Martin
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Davis and USDA-ERS, University of California, USA

    Ariel Dinar

  2. University of California, Riverside, USA

    Ariel Dinar

  3. San Joaquin Valley Drainage Program, USA

    Ariel Dinar

  4. University of California, Berkeley, USA

    David Zilberman

Rights and permissions

Reprints and permissions

Copyright information

© 1991 Springer Science+Business Media New York

About this chapter

Cite this chapter

Carson, R.T., Martin, K.M. (1991). Measuring the Benefits of Freshwater Quality Changes: Techniques and Empirical Findings. In: Dinar, A., Zilberman, D. (eds) The Economics and Management of Water and Drainage in Agriculture. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-4028-1_20

Download citation

  • DOI: https://doi.org/10.1007/978-1-4615-4028-1_20

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-6801-4

  • Online ISBN: 978-1-4615-4028-1

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics

Search

Navigation