IDEAS home Printed from https://ideas.repec.org/p/wop/eacaec/9705.html
   My bibliography  Save this paper

Methods for Valuing the Benefits of the Safe Drinking Water Act: Review and Assessment

Author

Listed:
  • John C. Whitehead
  • George Van Houtven

Abstract

In this paper we review the valuation methodologies that are capable of providing estimates of economic benefits for safe drinking water quality. The most commonly used are the averting behavior and contingent valuation methods. Reviews of the applied valuation literature reveals a wide range of willingness to pay estimates for protection of drinking water quality. We provide a brief assessment of this literature, including a discussion of the validity of the studies and the potential for transferring these estimates for use in policy analysis. In general, benefits transfer is feasible but questions remain regarding the accuracy of these transfers. Comparative research with revealed and stated preference approaches with benefit transfer applications is needed.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • John C. Whitehead & George Van Houtven, "undated". "Methods for Valuing the Benefits of the Safe Drinking Water Act: Review and Assessment," Working Papers 9705, East Carolina University, Department of Economics.
    • Handle: RePEc:wop:eacaec:9705
    as

    Download full text from publisher

    File URL: http://www.ecu.edu/econ/wp/97/ecu9705.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Milon, J. Walter, 1989. "Contingent valuation experiments for strategic behavior," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 293-308, November.
    2. Stevens, Thomas H. & Barrett, Christopher B. & Willis, Cleve E., 1997. "Conjoint Analysis Of Groundwater Protection Programs," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(2), pages 1-8, October.
    3. Shogren, Jason F. & Crocker, Thomas D. & Forster, Bruce A., 1991. "Valuing Potential Groundwater Protection Benefits," Staff General Research Papers Archive 335, Iowa State University, Department of Economics.
    4. Roe, Brian & Boyle, Kevin J. & Teisl, Mario F., 1996. "Using Conjoint Analysis to Derive Estimates of Compensating Variation," Journal of Environmental Economics and Management, Elsevier, vol. 31(2), pages 145-159, September.
    5. Timothy J. Bartik, 2008. "Evaluating the Benefits of Non-marginal Reductions in Pollution Using Information on Defensive Expenditures," Book chapters authored by Upjohn Institute researchers, in: Joseph Herriges & Catherine L. Kling (ed.),Revealed Preference Approaches to Environmental Valuation, volume 0, pages 459-475, W.E. Upjohn Institute for Employment Research.
    6. French, M.T. & Mauskopf, J.A., 1992. "A quality-of-life method for estimating the value of avoided morbidity," American Journal of Public Health, American Public Health Association, vol. 82(11), pages 1553-1555.
    7. Harrington, Winston & Krupnick, Alan J. & Spofford, Walter Jr., 1989. "The economic losses of a waterborne disease outbreak," Journal of Urban Economics, Elsevier, vol. 25(1), pages 116-137, January.
    8. Musser, Wesley N. & Musser, Lynn M. & Laughland, Andrew S. & Shortle, James S., 1992. "Contingent Valuation and Averting Costs Estimates of Benefits for Public Water Decisions in a Small Community," AE & RS Research Reports 257727, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.
    9. Palmquist, Raymond B, 1984. "Estimating the Demand for the Characteristics of Housing," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 394-404, August.
    10. Josephine A. Mauskopf & Michael T. French, 1991. "Estimating the Value of Avoiding Morbidity and Mortality from Foodborne Illnesses," Risk Analysis, John Wiley & Sons, vol. 11(4), pages 619-631, December.
    11. Jeffrey K. Lazo & William D. Schulze & Gary H. McClelland & James K. Doyle, 1992. "Can Contingent Valuation Measure Nonuse Values?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1126-1132.
    12. Edwards, Steven F., 1988. "Option prices for groundwater protection," Journal of Environmental Economics and Management, Elsevier, vol. 15(4), pages 475-487, December.
    13. Stevens, Thomas H. & Barrett, Christopher & Willis, Cleve E., 1997. "Conjoint Analysis of Groundwater Protection Programs," Agricultural and Resource Economics Review, Cambridge University Press, vol. 26(2), pages 229-236, October.
    14. Sun, Henglun & Bergstrom, John C. & Dorfman, Jeffrey H., 1992. "Estimating the Benefits of Groundwater Contamination Control," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(2), pages 63-71, December.
    15. David R. Walker & John P. Hoehn, 1990. "The Economic Damages of Groundwater Contamination in Small Rural Communities: An Application to Nitrates," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 12(1), pages 47-56.
    16. Whitehead John C. & Blomquist Glenn C. & Hoban Thomas J. & Clifford William B., 1995. "Assessing the Validity and Reliability of Contingent Values: A Comparison of On-Site Users, Off-Site Users, and Non-users," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 238-251, September.
    17. Charles W. Abdalla, 1994. "Groundwater Values from Avoidance Cost Studies: Implications for Policy and Future Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1062-1067.
    18. Seung-Jun Kwak & Clifford Russell, 1994. "Contingent valuation in Korean environmental planning: A pilot application to the protection of drinking water quality in Seoul," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(5), pages 511-526, October.
    19. Kevin J. Boyle & Gregory L. Poe & John C. Bergstrom, 1994. "What Do We Know About Groundwater Values? Preliminary Implications from a Meta Analysis of Contingent-Valuation Studies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1055-1061.
    20. Paul M. Jakus, 1994. "Averting Behavior in the Presence of Public Spillovers: Household Control of Nuisance Pests," Land Economics, University of Wisconsin Press, vol. 70(3), pages 273-285.
    21. Richard T. Carson & Nicholas E. Flores & Kerry M. Martin & Jennifer L. Wright, 1996. "Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods," Land Economics, University of Wisconsin Press, vol. 72(1), pages 80-99.
    22. Caudill, James D. & Hoehn, John P., 1992. "The Economic Valuation of Groundwater Pollution Policies: The Role of Subjective Risk Perceptions," Staff Paper Series 201145, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    23. Charles W. Abdalla & Brian A. Roach & Donald J. Epp, 1992. "Valuing Environmental Quality Changes Using Averting Expenditures: An Application to Groundwater Contamination," Land Economics, University of Wisconsin Press, vol. 68(2), pages 163-169.
    24. Kip Viscusi, W. & Magat, Wesley A. & Huber, Joel, 1991. "Pricing environmental health risks: survey assessments of risk-risk and risk-dollar trade-offs for chronic bronchitis," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 32-51, July.
    25. John R. Powell & David J. Allee & Charles McClintock, 1994. "Groundwater Protection Benefits and Local Community Planning: Impact of Contingent Valuation Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1068-1075.
    26. Poe, Gregory L. & Bishop, Richard C., 1993. "An Empirical Evaluation of Incremental Conditional Damages and Benefits," Working Papers 128089, Cornell University, Department of Applied Economics and Management.
    27. Whittington, Dale & Smith, V. Kerry & Okorafor, Apia & Okore, Augustine & Liu, Jin Long & McPhail, Alexander, 1992. "Giving respondents time to think in contingent valuation studies: A developing country application," Journal of Environmental Economics and Management, Elsevier, vol. 22(3), pages 205-225, May.
    28. Poe, Gregory L. & Bishop, Richard C., 1992. "Measuring the Benefits of Groundwater Protection from Agricultural Contamination: Results from a Two-Stage Contingent Valuation Study," Staff Papers 200549, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Iftikhar Ahmad & Miraj ul Haq & Abdul Sattar, 2010. "Factors Determining Public Demand for Safe Drinking Water (A Case Study of District Peshawar)," PIDE-Working Papers 2010:58, Pakistan Institute of Development Economics.
    2. Groothuis, Peter A. & Cockerill, Kristan & Mohr, Tanga McDaniel, 2015. "Water does not flow up hill: determinants of willingness to pay for water conservation measures in the mountains of western North Carolina," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 59(C), pages 88-95.
    3. Mirajul Haq & Usman Mustafa & Iftikhar Ahmad, 2007. "Household s Willingness to Pay for Safe Drinking Water: A Case Study of Abbottabad District," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 1137-1153.
    4. Mushtaq Ahmed Memon & Shunji Matsuoka, 2002. "Validity of contingent valuation estimates from developing countries: scope sensitivity analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 5(1), pages 39-61, March.
    5. Jason F. Shogren & Tommy Stamland, 2005. "Self-Protection and Value of Statistical Life Estimation," Land Economics, University of Wisconsin Press, vol. 81(1).
    6. Mushtaq Memon & Shunji Matsuoka, 2002. "Validity of contingent valuation estimates from developing countries: scope sensitivity analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 5(1), pages 39-61, March.
    7. Bernal García, Juan Jesús & Martínez Maria-Dolores, Soledad María & Sánchez García, Juan Francisco, 2006. "Study of the potentiality of the electronic commerce in the Region of Murcia by means of a model of logistic regression/Estudio de la Potencialidad del Comercio Electrónico en la Región de Murcia medi," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 24, pages 499-529, Abril.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John C. Whitehead & Thomas J. Hoban & George Van Houtven, 1999. "Averting Behavior and Drinking Water Quality," Working Papers 9905, East Carolina University, Department of Economics.
    2. Francesco Jacopo Pintus, 2023. "Valuing drinking water quality after a PFAS contamination event: results from a meta-analysis benefit transfer," "Marco Fanno" Working Papers 0308, Dipartimento di Scienze Economiche "Marco Fanno".
    3. Mukherjee, Sacchidananda, 2008. "Factors influencing farmers\u2019 willingness to protect groundwater from nonpoint source of pollution in the Lower Bhavani River Basin, Tamil Nadu," Conference Papers h041886, International Water Management Institute.
    4. Poe, Gregory, 1997. ""Maximizing the Environmental Benefits per Dollar Expended" An Economic Interpretation and Review of Agricultural Environmental Benefits and Costs," EB Series 186405, Cornell University, Department of Applied Economics and Management.
    5. Zhang, Fan & Fogarty, James, 2015. "Nonmarket Valuation of Water Sensitive Cities: Current Knowledge and Issues," Working Papers 207694, University of Western Australia, School of Agricultural and Resource Economics.
    6. Poe, Gregory L. & Boyle, Kevin J. & Bergstrom, John C., 2000. "A Meta Analysis Of Contingent Values For Groundwater Quality In The United States," 2000 Annual meeting, July 30-August 2, Tampa, FL 21871, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Olivier Beaumais & Anne Briand & Katrin Millock & Céline Nauges, 2010. "What are Households Willing to Pay for Better Tap Water Quality? A Cross-Country Valuation Study," Documents de travail du Centre d'Economie de la Sorbonne 10051, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    8. Bruno Lanz, 2015. "Avertive expenditures, endogenous quality perception, and the demand for public goods: An instrumental variable approach," CIES Research Paper series 36-2015, Centre for International Environmental Studies, The Graduate Institute.
    9. Cropper, Maureen L., 2000. "Has Economic Research Answered the Needs of Environmental Policy?," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 328-350, May.
    10. Jason F. Shogren & Tommy Stamland, 2005. "Self-Protection and Value of Statistical Life Estimation," Land Economics, University of Wisconsin Press, vol. 81(1).
    11. McConnell, Kenneth E. & Bockstael, Nancy E., 2006. "Valuing the Environment as a Factor of Production," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 14, pages 621-669, Elsevier.
    12. Peterson, Jeffrey M. & Boisvert, Richard N., 1998. "Optimal Voluntary "Green" Payment Programs To Limit Nitrate Contamination Under Price and Yield Risk," Research Bulletins 122687, Cornell University, Department of Applied Economics and Management.
    13. Easter, K. William & Konishi, Yoshifumi & Raggi, Meri & Viaggi, Davide, 2006. "What are the Economic Health Costs of Non-Action in Controlling Toxic Water Pollution?," Conference Papers 6656, University of Minnesota, Center for International Food and Agricultural Policy.
    14. repec:gii:ciesrp:cies_rp_36rev is not listed on IDEAS
    15. Lanz, Bruno & Provins, Allan, 2017. "Using averting expenditures to estimate the demand for public goods: Combining objective and perceived quality," Resource and Energy Economics, Elsevier, vol. 47(C), pages 20-35.
    16. Bockstael, Nancy E. & Freeman III, A. Myrick, 2006. "Welfare Theory and Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 12, pages 517-570, Elsevier.
    17. Leslie Richardson & John B. Loomis & Patricia A. Champ, 2013. "Valuing Morbidity from Wildfire Smoke Exposure: A Comparison of Revealed and Stated Preference Techniques," Land Economics, University of Wisconsin Press, vol. 89(1), pages 76-100.
    18. Gregory Poe & Richard Bishop, 1999. "Valuing the Incremental Benefits of Groundwater Protection when Exposure Levels are Known," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(3), pages 341-367, April.
    19. Chunhua Wang & Changdong Zhang & Yong Wang, 2020. "Environmental satisfaction among residents in Chinese cities," Empirical Economics, Springer, vol. 59(5), pages 2283-2301, November.
    20. Tenwalde, Tracy & Jones, Eugene & Hitzhusen, Frederick J., 2005. "An Economic Analysis of Consumer Expenditures for Safe Drinking Water: Addressing Nitrogen Risk with an Averting Cost Approach," 2005 Annual meeting, July 24-27, Providence, RI 19431, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wop:eacaec:9705. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Krichel (email available below). General contact details of provider: https://edirc.repec.org/data/deecuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.