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Recreational Swimming Benefits Of New Hampshire Lake Water Quality Policies: An Application Of A Repeated Discrete Choice Model

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  • Needelman, Michael S.
  • Kealy, Mary Jo

Abstract

Water pollution control policies generally direct sources (i.e., industry, agriculture) to reduce loadings of certain pollutants. Thus, evaluating the relative net recreation benefits of policies to improve water quality requires establishing a linkage between the sources, the resultant water quality degradation at the affected water bodies, and, ultimately, the effect on recreation behavior. This linkage is rarely present in the empirical literature which is, thus, deficient for water pollution control policy assessment purposes. In this paper, we estimate the relative recreational swimming benefits that may result from controlling point and nonpoint sources of pollution, respectively, in New Hampshire's lakes. We use a repeated discrete choice framework to model swimming behavior as a function of each lake's level of eutrophication, bacteria, and oil and grease. For each pollutant, at each affected lake, we identify which source is responsible for the pollution, and we conduct scenarios controlling each pollution source independently, and then, taken together. Seasonal benefit estimates are presented for each scenario. Coupled with information on the most cost effective means of generating the scenarios, these estimates provide a useful starting point for a quantitative assessment of the net recreation benefits of policies to improve the quality of New Hampshire lakes.

Suggested Citation

  • Needelman, Michael S. & Kealy, Mary Jo, 1995. "Recreational Swimming Benefits Of New Hampshire Lake Water Quality Policies: An Application Of A Repeated Discrete Choice Model," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), April.
  • Handle: RePEc:ags:arerjl:31464
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    File URL: http://purl.umn.edu/31464
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    References listed on IDEAS

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    1. Trudy Ann Cameron, 1988. "The Determinants of Value for a Marine Estuarine Sportfishery: The Effects of Water Quality in Texas Bays," UCLA Economics Working Papers 523, UCLA Department of Economics.
    2. George R. Parsons & Mary Jo Kealy, 1992. "Randomly Drawn Opportunity Sets in a Random Utility Model of Lake Recreation," Land Economics, University of Wisconsin Press, vol. 68(1), pages 93-106.
    3. George R. Parsons & Michael S. Needelman, 1992. "Site Aggregation in a Random Utility Model of Recreation," Land Economics, University of Wisconsin Press, vol. 68(4), pages 418-433.
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    Cited by:

    1. Spencer, Michael A. & Swallow, Stephen K. & Miller, Christopher J., 1998. "Valuing Water Quality Monitoring: A Contingent Valuation Experiment Involving Hypothetical and Real Payments," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(01), pages 28-42, April.
    2. 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).
    3. Therese C. Grijalva & Robert P. Berrens & Alok K. Bohara & Paul M. Jakus & W. Douglass Shaw, 2002. "Valuing the Loss of Rock Climbing Access in Wilderness Areas: A National-Level, Random-Utility Model," Land Economics, University of Wisconsin Press, vol. 78(1), pages 103-120.
    4. Tudor, Lynne G. & Besedin, Elena Y. & Fisher, Michael & Smith, Stuart, 1999. "Economic Analysis Of Environmental Regulations: Application Of The Random Utility Model To Recreational Benefit Assessment For The Mp&M Effluent Guideline," 1999 Annual meeting, August 8-11, Nashville, TN 21630, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Mkwara, Lena Asimenye & Marsh, Dan, 2011. "Valuing Trout Angling Benefits of Water Quality Improvements while Accounting for Unobserved Lake Characteristics: An Application to the Rotorua Lakes," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115514, New Zealand Agricultural and Resource Economics Society.
    6. Elizabeth Fadali & W. Douglass Shaw, 1998. "Can Recreation Values For A Lake Constitute A Market For Banked Agricultural Water?," Contemporary Economic Policy, Western Economic Association International, vol. 16(4), pages 433-441, October.
    7. John C. Whitehead, "undated". "A Demand Side Test for Avoiding Type I Error in Environmental Equity Analyses," Working Papers 9804, East Carolina University, Department of Economics.

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    Keywords

    Environmental Economics and Policy;

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