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The Missing Benefits of Clean Water and the Role of Mismeasured Pollution

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  • David A. Keiser

Abstract

Although the United States spends billions of dollars a year controlling water pollution, there is little empirical evidence of comparable benefits. This study argues that measurement error in pollution data causes benefits to be underestimated. Using upstream concentrations as instrumental variables for local concentrations, the study finds substantial benefits from reducing nutrient pollution. Instrumental variable estimates of the effects of phosphorus on recreational use are an order of magnitude larger than conventional estimates. The study uses a long-term pollution data set from Iowa to show that this difference is consistent with estimates of measurement error in several US water pollution data sets.

Suggested Citation

  • David A. Keiser, 2019. "The Missing Benefits of Clean Water and the Role of Mismeasured Pollution," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(4), pages 669-707.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/703254
    DOI: 10.1086/703254
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    Cited by:

    1. Weizhe Weng & Kelly M. Cobourn & Armen R. Kemanian & Kevin J. Boyle & Yuning Shi & Jemma Stachelek & Charles White, 2024. "Quantifying co‐benefits of water quality policies: An integrated assessment model of land and nitrogen management," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 547-572, March.
    2. Hollingsworth, Alex J. & Konisky, David M. & Zirogiannis, Nikolaos, 2021. "The health consequences of excess emissions: Evidence from Texas," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    3. David Wolf & Sathya Gopalakrishnan & H. Allen Klaiber, 2022. "Staying afloat: The effect of algae contamination on Lake Erie housing prices," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(5), pages 1701-1723, October.
    4. Jayash Paudel & Christine L. Crago, 2021. "Environmental Externalities from Agriculture: Evidence from Water Quality in the United States," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 185-210, January.
    5. Fan Wei & Munazzam Jawad Shahid & Ghalia S. H. Alnusairi & Muhammad Afzal & Aziz Khan & Mohamed A. El-Esawi & Zohaib Abbas & Kunhua Wei & Ihsan Elahi Zaheer & Muhammad Rizwan & Shafaqat Ali, 2020. "Implementation of Floating Treatment Wetlands for Textile Wastewater Management: A Review," Sustainability, MDPI, vol. 12(14), pages 1-35, July.
    6. Moore, Michael R. & Doubek, Jonathan P. & Xu, Hui & Cardinale, Bradley J., 2020. "Hedonic Price Estimates of Lake Water Quality: Valued Attribute, Instrumental Variables, and Ecological-Economic Benefits," Ecological Economics, Elsevier, vol. 176(C).
    7. Zaveri,Esha Dilip & Russ,Jason Daniel & Desbureaux,Sebastien Gael & Damania,Richard & Rodella,Aude-Sophie & Ribeiro Paiva De Souza,Giovanna, 2020. "The Nitrogen Legacy : The Long-Term Effects of Water Pollution on Human Capital," Policy Research Working Paper Series 9143, The World Bank.
    8. Xu, Yuelu & Elbakidze, Levan & Yen, Haw & Arnold, Jeffrey G. & Gassman, Philip W. & Hubbart, Jason & Strager, Michael P., 2022. "Integrated assessment of nitrogen runoff to the Gulf of Mexico," Resource and Energy Economics, Elsevier, vol. 67(C).

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