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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 organizational choices (i.e., grouping of municipalities within a water service) and 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, 2011. "The effect of forest land use on the cost of drinking water supply: A spatial econometric analysis," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 120385, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:120385
    DOI: 10.22004/ag.econ.120385
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    Cited by:

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    2. 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.
    3. 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, vol. 10(5), pages 1-18, April.
    4. 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.
    5. Stefano Pagiola & Gunars Platais & Marcos Sossai, 2019. "Protecting Natural Water Infrastructure in Espírito Santo, Brazil," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-24, October.
    6. 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.
    7. 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.
    8. Pan, Zehua & Brouwer, Roy & Emelko, Monica B., 2022. "Correlating forested green infrastructure to water rates and adverse water quality incidents: A spatial instrumental variable regression model," Forest Policy and Economics, Elsevier, vol. 140(C).
    9. 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.
    10. Liu, Zhaoyang & Huang, Heqing, 2022. "Valuing water purification services of forests: a production function approach using panel data from China's Sichuan province," Environment and Development Economics, Cambridge University Press, vol. 27(6), pages 491-510, December.
    11. Sholpan Saimova & Gulsim Makenova & Aizhan Skakova & Aitolkyn Moldagaliyeva & Ardak Beisembinova & Zhamilya Berdiyarova & Bagdagul Imanbekova, 2020. "Towards a Low-carbon Economic Sustainable Development: Scenarios and Policies for Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 638-646.
    12. 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.
    13. Chakravarty, Shourish & Wang, Yangyang & Zhou, Mo, 2021. "Assessing Impacts of Deforestation on Water Quality in Agricultural Landscape in Indiana," 2021 Annual Meeting, August 1-3, Austin, Texas 314014, Agricultural and Applied Economics Association.
    14. Basak Bayramoglu & Raja CHAKIR & Anna LUNGARSKA, 2016. "Land Use and Freshwater Ecosystems in France," EcoMod2016 9420, EcoMod.
    15. Jens Abildtrup & Anne Stenger, 2022. "Report on valuation methods," Working Papers hal-04068881, HAL.
    16. Margaret Walls & Yusuke Kuwayama, 2019. "Evaluating Payments for Watershed Services Programs in the United States," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-38, October.
    17. 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.
    18. Blachly, Ben & Sims, Charles & Warziniack, Travis, 2024. "Ecosystem complementarities: Evidence from over 700 U.S. watersheds," Ecological Economics, Elsevier, vol. 219(C).
    19. 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.
    20. 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, vol. 11(12), pages 1-22, June.
    21. 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.
    22. Yerema, Coulibaly Thierry & Wakamatsu, Mihoko & Islam, Moinul & Fukai, Hiroki & Managi, Shunsuke & Zhang, Bingqi, 2020. "Differences in Water Policy Efficacy across South African Water Management Areas," Ecological Economics, Elsevier, vol. 175(C).
    23. Westling, Nils & Stromberg, Per M. & Swain, Ranjula Bali, 2020. "Can upstream ecosystems ensure safe drinking water—Insights from Sweden," Ecological Economics, Elsevier, vol. 169(C).
    24. Léa Tardieu & Laetitia Tufféry, 2019. "From supply to demand factors : what are the determinants of attractiveness for outdoor recreation?," Post-Print hal-02883545, HAL.

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    More about this item

    Keywords

    Demand and Price Analysis; Land Economics/Use; Resource /Energy Economics and Policy;
    All these keywords.

    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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