TY - JOUR
T1 - Estimating the benefits of phosphorus pollution reductions
T2 - An application in the Minnesota River
AU - Mathews, Leah Greden
AU - Homans, Frances R.
AU - Easter, K. William
PY - 2002/10
Y1 - 2002/10
N2 - In order to make economically efficient decisions about water quality improvements, data on both the costs and benefits of these improvements is needed. However, there has been little research on the benefits of reducing phosphorus pollution which implies that policy decisions are not able to make the comparison of costs and benefits that is essential for economic efficiency. This research attempts to ameliorate this situation by providing an estimate of the benefits of a 40 percent reduction in phosphorus pollution in the Minnesota River. A 1997 mail survey gathered information on Minnesota residents' use of a recreational site on the Minnesota River, the Minnesota Valley National Wildlife Refuge, and their willingness to pay for phosphorus reductions in the Minnesota River. The random effects probit model used in this research to investigate household willingness to pay for phosphorus pollution reductions in the Minnesota River incorporates recent innovations in nonmarket valuation methodology by using both revealed and stated preference data. This model estimated annual household willingness to pay for phosphorus reductions in the Minnesota River at $140. These results may be used in combination with cost estimates to determine the economic efficiency of phosphorus clean up.
AB - In order to make economically efficient decisions about water quality improvements, data on both the costs and benefits of these improvements is needed. However, there has been little research on the benefits of reducing phosphorus pollution which implies that policy decisions are not able to make the comparison of costs and benefits that is essential for economic efficiency. This research attempts to ameliorate this situation by providing an estimate of the benefits of a 40 percent reduction in phosphorus pollution in the Minnesota River. A 1997 mail survey gathered information on Minnesota residents' use of a recreational site on the Minnesota River, the Minnesota Valley National Wildlife Refuge, and their willingness to pay for phosphorus reductions in the Minnesota River. The random effects probit model used in this research to investigate household willingness to pay for phosphorus pollution reductions in the Minnesota River incorporates recent innovations in nonmarket valuation methodology by using both revealed and stated preference data. This model estimated annual household willingness to pay for phosphorus reductions in the Minnesota River at $140. These results may be used in combination with cost estimates to determine the economic efficiency of phosphorus clean up.
KW - Economics
KW - Nonpoint source pollution
KW - Water policy/regulation/decision making
KW - Water quality
UR - http://www.scopus.com/inward/record.url?scp=0036811290&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0036811290&partnerID=8YFLogxK
U2 - 10.1111/j.1752-1688.2002.tb04343.x
DO - 10.1111/j.1752-1688.2002.tb04343.x
M3 - Article
AN - SCOPUS:0036811290
SN - 1093-474X
VL - 38
SP - 1217
EP - 1223
JO - Journal of the American Water Resources Association
JF - Journal of the American Water Resources Association
IS - 5
ER -