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Nonmarket Valuation in the Environmental Protection Agency's Regulatory Process

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Listed:
  • Daniel R. Petrolia
  • Dennis Guignet
  • John C. Whitehead
  • Cannon Kent
  • Clay Caulder
  • Kelvin Amon

Abstract

This paper reviews the use of nonmarket valuation in environmental policy at the U.S. Environmental Protection Agency (EPA). We examine trends in the nonmarket valuation literature over the last four and a half decades, and compare those trends to an assessment of how often nonmarket benefits are monetized and which methods are used in 49 recent EPA Regulatory Impact Analyses. Considering shortcomings in the application of nonmarket valuation in policy, we review EPA awarded research grants and their focus. We conclude that the nonmarket valuation literature continues to grow but that many nonmarket benefits continue to go unquantified and unmonetized in policy analysis. The use of nonmarket value estimates is generally limited to a small and dated body of work, but it appears that research grants are targeted to help fill some gaps. Key Words:

Suggested Citation

  • Daniel R. Petrolia & Dennis Guignet & John C. Whitehead & Cannon Kent & Clay Caulder & Kelvin Amon, 2020. "Nonmarket Valuation in the Environmental Protection Agency's Regulatory Process," Working Papers 20-11, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:20-11
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    2. Ortiz, Cristhian A. & Avila-Santamaría, Jorge J. & Martinez-Cruz, Adan L., 2023. "Dairy farmers’ willingness to adopt cleaner production practices for water conservation: A discrete choice experiment in Mejia, Ecuador," Agricultural Water Management, Elsevier, vol. 278(C).
    3. Dennis Guignet & Matthew T. Heberling & Michael Papenfus & Olivia Griot, 2022. "Property Values, Water Quality, and Benefit Transfer: A Nationwide Meta-analysis," Land Economics, University of Wisconsin Press, vol. 98(2), pages 191-218.
    4. Dennis Guignet & Christoph Nolte, 2021. "Hazardous Waste and Home Values: An Analysis of Treatment and Disposal Sites in the U.S," Working Papers 21-07, Department of Economics, Appalachian State University.
    5. Petrolia, Daniel R. & Haner, Judy, 2024. "What is the Value of Ecosystem Services Provided by Recent Restoration Efforts on the Northern Gulf Coast?," Research Reports 347607, Mississippi State University, Department of Agricultural Economics.
    6. Christian A. Vossler & Timothy N. Cason & James J. Murphy & Paul J. Ferraro & Todd L. Cherry & George Loewenstein & Peter Martinsson & Jason F. Shogren & Leaf van Boven & Daan van Soest, 2024. "The impact of experiments on environmental policy and natural resource management," Working Papers 2024-05, University of Tennessee, Department of Economics.
    7. Guignet, Dennis & Jenkins, Robin R. & Nolte, Christoph & Belke, James, 2023. "The External Costs of Industrial Chemical Accidents: A Nationwide Property Value Study," Journal of Housing Economics, Elsevier, vol. 62(C).
    8. James Macaskill & Patrick Lloyd‐Smith, 2022. "Six decades of environmental resource valuation in Canada: A synthesis of the literature," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(1), pages 73-89, March.

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