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The Economic Damages of Groundwater Contamination in Small Rural Communities: An Application to Nitrates

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  • David R. Walker
  • John P. Hoehn

Abstract

Procedures are developed for estimating the economic damages imposed on small rural communities when groundwater becomes contaminated. Net economic damages are the sum of producer and consumer surplus. In the case of nitrate contamination, annual damages for communities typical of rural Michigan range from $40 to $330 per household. Damage levels within this range depend on nitrate level, average household income, community size, climatic characteristics, and the selected treatment alternative.

Suggested Citation

  • 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.
    • Handle: RePEc:oup:revage:v:12:y:1990:i:1:p:47-56.
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    File URL: http://hdl.handle.net/10.1093/aepp/12.1.47
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    Cited by:

    1. 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.
    2. Carriker, Gordon L., 1993. "Factor Input Demand Subject to Economic and Environmental Risk: The Case of Nitrogen Fertilizer in Corn Production," Staff Papers 118154, Kansas State University, Department of Agricultural Economics.
    3. Jordan, Jeffrey L., 1998. "Georgia Water Series -- Issue 6: Future Issues And Directions Facing Water Resources," Faculty Series 16637, University of Georgia, Department of Agricultural and Applied Economics.
    4. 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.

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