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Water recreation benefits from reduced eutrophication in Finnish surface waters

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  • Vesterinen, Janne
  • Pouta, Eija

Abstract

Eutrophication has been commonly acknowledged as a typical problem of the Baltic Sea, but it is also emerging in Finnish inland waters. As municipal sources of nutrients have been addressed by enhancing waste water treatment, the pressure has focused to agriculture along with the adoption of the EU- Water Framework Directive, which aims to improve surface water quality to “good ecological status” by 2015. The implementation of the directive will likely affect water recreation behavior and benefits. In this study we modeled water recreation participation and water quality econometrically using a hurdle model for three activities: swimming, fishing and boating. In addition, we estimated the consumer surplus for a water recreation day using a travel cost approach. We found that close-to-home water quality affects swimming and fishing behavior positively, and that for a 1-meter improvement in water clarity, consumer surplus for swimmers would increase at a range between 32 to 97 million Euros, and for fishers by 43 to 130 million Euros. In comparison with previously estimated costs of decreasing agricultural nutrient flow to the Gulf of Finland, we found that net benefits may be positive.

Suggested Citation

  • Vesterinen, Janne & Pouta, Eija, 2008. "Water recreation benefits from reduced eutrophication in Finnish surface waters," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43848, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:43848
    DOI: 10.22004/ag.econ.43848
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    References listed on IDEAS

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    1. Koikkalainen, Kauko & Laukkanen, Marita & Helin, Janne, 2006. "Abatement costs for agricultural nitrogen and phosphorus loads: a case study of South-Western Finland," Discussion Papers 11867, MTT Agrifood Research Finland.
    2. Rodgers, Charles & Easter, K. William & Graham-Tomasi, Theodore, 1990. "The Off-Site Economic Benefits Of Soil Conservation: A Review And Discussion Of Recent Literature On The Recreational Demand For Water Quality Improvement," Staff Papers 13504, University of Minnesota, Department of Applied Economics.
    3. Tore Söderqvist, 1998. "Why Give up Money for the Baltic Sea? – Motives for People's Willingness (or Reluctance) to Pay," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(2), pages 249-254, September.
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