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The Value of Sample Information for Water Quality Management

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  • Shortle, James S.
  • Sung, Hwansoo

Abstract

There is considerable interest in watershed-based pollution water quality protection but the approach can be highly information intensive (USEPA 2004, NRC 2000). This study examines the value of different types and levels of information for water quality management in the Conestoga watershed. For this estimation, a Monte Carlo procedure is used to construct the posterior expected value. Then, an Evolutionary Optimization Strategy with Covariance Matrix Adaptation (CMA-ES) is used to compute the expected value of optimized resources allocations given posterior information structures for specific sample sizes. This posterior optimization is nested within a second Monte Carlo simulation that computes the preposterior expectation (a nested Monte Carlo procedure). Thus, this paper provides some insight about the relative values of these alternative types of information for controlling water pollution from agriculture, and the gains from more intensive sampling.

Suggested Citation

  • Shortle, James S. & Sung, Hwansoo, 2005. "The Value of Sample Information for Water Quality Management," 2005 Annual meeting, July 24-27, Providence, RI 19139, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19139
    DOI: 10.22004/ag.econ.19139
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    File URL: https://ageconsearch.umn.edu/record/19139/files/sp05su01.pdf
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    References listed on IDEAS

    as
    1. James S. Shortle & Richard D. Horan, 2001. "The Economics of Nonpoint Pollution Control," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 255-289, July.
    2. Abler, David G. & Shortle, James S. & Carmichael, Jeffrey J. & Horan, Richard D., 2001. "Climate Change, Agriculture, And Water Quality In The Chesapeake Bay Region," 2001 Annual meeting, August 5-8, Chicago, IL 20504, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. repec:bla:jecsur:v:15:y:2001:i:3:p:255-89 is not listed on IDEAS
    4. Ribaudo, Marc & Horan, Richard D. & Smith, Mark E., 1999. "Economics of Water Quality Protection from Nonpoint Sources: Theory and Practice," Agricultural Economic Reports 33913, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Luhede, Amelie & Yaqine, Houda & Bahmanbijari, Reza & Römer, Michael & Upmann, Thorsten, 2024. "The value of information in water quality monitoring and management," Ecological Economics, Elsevier, vol. 219(C).
    2. Sung, Hwansoo & Shortle, James S., 2006. "The Expected Value of Sample Information Analysis for Nonpoint Water Quality Management," 2006 Annual meeting, July 23-26, Long Beach, CA 21296, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Amelie Luhede & Houda Yaqine & Reza Bahmanbijari & Michael Römer & Thorsten Upmann, 2023. "The Value of Information in Water Quality Monitoring and Management," CESifo Working Paper Series 10307, CESifo.
    4. James Shortle & Richard D. Horan, 2017. "Nutrient Pollution: A Wicked Challenge for Economic Instruments," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-39, April.

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