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The Value Of Improved Water Quality To Chesapeake Bay Boaters

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  • Lipton, Douglas W.

Abstract

As part of an economic survey of Maryland registered boat owners, an open ended contingent valuation question was posed regarding willingness to pay for an improvement in water quality in Chesapeake Bay. The boaters ranked their perception of water quality on a scale of one to five, and the payment was for an improvement of one unit. Boaters also indicated the type of concern poor water quality raised, ranging from no concern to concern about long term effects of exposure to toxic chemicals. Median willingness to pay for a one step improvement in water quality was $17.50 per year and the mean was $63, with 38% expressing a zero willingness-to-pay. A tobit model was estimated to determine what factors influenced willingness to pay amounts. Sailboaters and boats that were kept in the water rather than trailered were willing to pay more for water quality improvements. Additionally, the lower the individual ranked water quality and the greater concern for the health effects from water quality, the more the willingness to pay for a water quality improvement. In aggregate, Chesapeake Bay boaters in Maryland were willing to pay approximately $7.3 million per year to achieve the stated water quality improvement. The present value of this improvement, at a 5% discount rate is a $146 million.

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  • Lipton, Douglas W., 2003. "The Value Of Improved Water Quality To Chesapeake Bay Boaters," Working Papers 28603, University of Maryland, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:umdrwp:28603
    DOI: 10.22004/ag.econ.28603
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    1. Robert J. Johnston & Elena Y. Besedin & Benedict M. Holland, 2019. "Modeling Distance Decay Within Valuation Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(3), pages 657-690, March.
    2. Chris Moore & Dennis Guignet & Kelly B. Maguire & Chris Dockins & Nathalie B. Simon, 2015. "A Stated Preference Study of the Chesapeake Bay and Watershed Lakes," NCEE Working Paper Series 201506, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Nov 2015.
    3. Ge, Jiaqi & Kling, Catherine L. & Herriges, Joseph A., 2013. "How Much is Clean Water Worth? Valuing Water Quality Improvement Using A Meta Analysis," Staff General Research Papers Archive 36597, Iowa State University, Department of Economics.
    4. Nikola Jovanoski, 2015. "Estimating the Value of Preserving the Doubs," IRENE Working Papers 15-02, IRENE Institute of Economic Research.
    5. Turo Hjerppe & Elina Seppälä & Sari Väisänen & Mika Marttunen, 2017. "Monetary assessment of the recreational benefits of improved water quality – description of a new model and a case study," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(11), pages 1944-1966, November.
    6. Ghermandi, Andrea & Nunes, Paulo A.L.D., 2013. "A global map of coastal recreation values: Results from a spatially explicit meta-analysis," Ecological Economics, Elsevier, vol. 86(C), pages 1-15.
    7. Jerrod Penn & Wuyang Hu & Linda Cox & Lara Kozloff, 2016. "Values for Recreational Beach Quality in Oahu, Hawaii," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 47-62.
    8. Van Houtven, George & Powers, John & Pattanayak, Subhrendu K., 2007. "Valuing water quality improvements in the United States using meta-analysis: Is the glass half-full or half-empty for national policy analysis?," Resource and Energy Economics, Elsevier, vol. 29(3), pages 206-228, September.
    9. Halkos, George, 2012. "The use of contingent valuation in assessing marine and coastal ecosystems’ water quality: A review," MPRA Paper 42183, University Library of Munich, Germany.
    10. Marius Yapo & Jie He & Bruno Gagnon & Luc Savard & Roland Leduc, 2015. "La valeur économique pour l’amélioration de la qualité de l’eau: le cas de la rivière Magog et du lac Magog (Québec, Canada)," Cahiers de recherche 15-15, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    11. Baulcomb, Corinne & Böhnke-Henrichs, Anne, 2014. "A Review of the Marine Economic Valuation Literature 1975 – 2011: Classifying Existing Studies by Service Type, Value Type, and Valuation Methodology," Working Papers 190935, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    12. Robert J. Johnston & Elena Y. Besedin & Ryan Stapler, 2017. "Enhanced Geospatial Validity for Meta-analysis and Environmental Benefit Transfer: An Application to Water Quality Improvements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 343-375, October.
    13. Ge, Jiaqi, 2014. "Stepping into new territory: Three essays on agent-based computational economics and environmental economics," ISU General Staff Papers 201401010800004899, Iowa State University, Department of Economics.
    14. Breen, Benjamin & Curtis, John & Hynes, Stephen, 2017. "Recreational Use of Public Waterways and the Impact of Water Quality," Papers WP552, Economic and Social Research Institute (ESRI).
    15. Gibson, Fiona & Pannell, David & Boxall, Peter & Burton, Michael & Johnston, Robert & Kragt, Marit & Rogers, Abbie & Rolfe, John, 2016. "Non-market valuation in the economic analysis of natural hazards," Working Papers 236941, University of Western Australia, School of Agricultural and Resource Economics.
    16. Cropper, Maureen L. & Isaac, William, 2011. "The Benefits of Achieving the Chesapeake Bay TMDLs (Total Maximum Daily Loads): A Scoping Study," RFF Working Paper Series dp-11-31, Resources for the Future.

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