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The effect of forest land use on the cost of drinking water supply: A spatial econometric analysis

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  • Abildtrup, Jens
  • Garcia, Serge
  • Stenger, Anne

Abstract

Forest land use is often associated with the protection of water resources from contamination and the reduced cost of drinking water supply. This study attempted to measure the value of the forest on the quality of water resources from a contingent market, namely drinking water supply, by estimating variations in drinking water costs as a function of variations in land uses. Spatial correlations were taken into account because of the use of different geographical scales (i.e., water service area and land uses) and the potential existence of organizational and technological spillovers between water services. We found a significant negative effect of forest land use on water costs. We found no evidence of spatial spillovers concerning the management regime but did find that factors related to the scarcity of resources in neighboring water services have an impact on water costs.

Suggested Citation

  • Abildtrup, Jens & Garcia, Serge & Stenger, Anne, 2013. "The effect of forest land use on the cost of drinking water supply: A spatial econometric analysis," Ecological Economics, Elsevier, vol. 92(C), pages 126-136.
  • Handle: RePEc:eee:ecolec:v:92:y:2013:i:c:p:126-136
    DOI: 10.1016/j.ecolecon.2013.01.004
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    Cited by:

    1. repec:ags:frrfes:281222 is not listed on IDEAS
    2. Xueting Zeng & Liang Cui & Qian Tan & Zhong Li & Guohe Huang, 2018. "A Sustainable Land Utilization Pattern for Confirming Integrity of Economic and Ecological Objectives under Uncertainties," Sustainability, MDPI, Open Access Journal, vol. 10(5), pages 1-18, April.
    3. James I. Price & Steven Renzetti & Diane Dupont & Wiktor Adamowicz & Monica B. Emelko, 2017. "Production Costs, Inefficiency, and Source Water Quality: A Stochastic Cost Frontier Analysis of Canadian Water Utilities," Land Economics, University of Wisconsin Press, vol. 93(1), pages 1-11.
    4. Bösch, Matthias & Elsasser, Peter & Franz, Kristin & Lorenz, Martin & Moning, Christoph & Olschewski, Roland & Rödl, Anne & Schneider, Heike & Schröppel, Bettina & Weller, Priska, 2018. "Forest ecosystem services in rural areas of Germany: Insights from the national TEEB study," Ecosystem Services, Elsevier, vol. 31(PA), pages 77-83.
    5. Ovando, Paola & Brouwer, Roy, 2019. "A review of economic approaches modeling the complex interactions between forest management and watershed services," Forest Policy and Economics, Elsevier, vol. 100(C), pages 164-176.
    6. repec:rae:jouraf:v:98:y:2017:i:3:p:145-148 is not listed on IDEAS
    7. Garcia, Serge & Mahieu, Pierre-Alexandre, 2017. "Selected papers from the 2015 Workshop on Non-market Valuation (WONV) in Nancy," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 98(3), December.
    8. Pierre-Alexandre Mahieu & Romain Craste & Bengt Kriström & Pere Riera, 2014. "Non-market valuation in France: An overview of the research activity," Working Papers hal-01087365, HAL.
    9. Richard Yao & David Palmer & Barbara Hock & Duncan Harrison & Tim Payn & Juan Monge, 2019. "Forest Investment Framework as a Support Tool for the Sustainable Management of Planted Forests," Sustainability, MDPI, Open Access Journal, vol. 11(12), pages 1-22, June.
    10. Das, Saudamini & Nepal, Mani & Rai, Rajesh K. & Bhatta, Laxmi D. & Khadayat, Madan S., 2019. "Valuing water provisioning service of Broadleaf and Chir Pine forests in the Himalayan region," Forest Policy and Economics, Elsevier, vol. 105(C), pages 40-51.
    11. Tardieu, Léa & Tuffery, Laëtitia, 2019. "From supply to demand factors: What are the determinants of attractiveness for outdoor recreation?," Ecological Economics, Elsevier, vol. 161(C), pages 163-175.
    12. Duncan Knowler & Ashley Page & Andrew Cooper & H. Andres Araujo, 2017. "Valuing a Logging Externality: Loss of the Water Purification Service of Temperate Coastal Rainforests," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-29, April.
    13. Travis Warziniack & Chi Ho Sham & Robert Morgan & Yasha Feferholtz, 2017. "Effect of Forest Cover on Water Treatment Costs," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1-19, October.
    14. Basak Bayramoglu & Raja CHAKIR & Anna LUNGARSKA, 2016. "Land Use and Freshwater Ecosystems in France," EcoMod2016 9420, EcoMod.
    15. Price, James I. & Heberling, Matthew T., 2018. "The Effects of Source Water Quality on Drinking Water Treatment Costs: A Review and Synthesis of Empirical Literature," Ecological Economics, Elsevier, vol. 151(C), pages 195-209.

    More about this item

    Keywords

    Water quality; Land uses; Forest; Water supply service; Spatial spillovers;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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