Academic

Viscusi, Huber, and Bell on the Economics of Water Quality

By Lawrence Solum

W. Kip Viscusi , Joel C. Huber and Jason Bell (Vanderbilt University Law School , Duke University - Fuqua School of Business and Duke University - Fuqua School of Business) have posted The Economic Value of Water Quality (Environmental and Resource Economics, Forthcoming) on SSRN. Here is the abstract:

Stated preference values for water quality ratings based on the U.S. Environmental Protection Agency National Water Quality Inventory ratings provide an operational basis for benefit assessment. Iterative choice survey results for a very large, nationally representative, Web-based panel imply an average valuation of $32 for each percent increase in lakes and rivers in the region for which water quality is rated Good. Valuations are skewed, with the mean value more than double the median. Sources of heterogeneity in benefit values include differences in responses to average water quality information and the base level of water quality. Conjoint estimates are somewhat lower than the iterative choice values. The annual economic value of the decline in inland U.S. water quality from 1994 to 2000 is over $20 billion.

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Full post as published by Legal Theory Blog on January 18, 2008 (boomark / email).