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Do US Anglers Care about Harmful Algal Blooms? A discrete choice experiment of Lake Erie recreational anglers

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Abstract

Despite the growing awareness of harmful algal blooms (HABs) in the US and abroad, estimates of welfare losses due to their presence are missing from the literature. Using a mail survey of 767 Ohio Lake Erie recreational angler respondents and a choice experiment, this study provides the first empirical quantification of the economic impacts of HABs on US recreational anglers. Our results demonstrate a significant and substantial willingness to pay by anglers for reduction in HABs, beyond the benefits associated with conventional water quality measures such as catch rates and water clarity. For instance, we find that anglers are willing to pay $8-$10 more per trip for one less mile of boating through HABs enroute to a fishing site. This finding suggests that explicit measures of HABs need to be collected and considered when valuing water quality in nutrient-rich waterbodies. We evaluate the welfare improvements resulting from several nutrient reduction policies, and find that anglers are willing to pay on average $40-60 per trip for a policy that cuts upstream phosphorus loadings by 40%. The majority of welfare gains for anglers result from improving the non-catchable component of the fishing experience, notably water clarity and HAB reduction, as opposed to better chances of angler success. Keywords: Choice experiment, discrete choice, generalized multinomial logit model, harmful algal bloom, Lake Erie, non-market valuation, recreational angler, recreation demand, survey, water quality JEL Codes: Q51, Q53, Q57, Q15

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  • Wendong Zhang & Brent Sohngen, 2018. "Do US Anglers Care about Harmful Algal Blooms? A discrete choice experiment of Lake Erie recreational anglers," Center for Agricultural and Rural Development (CARD) Publications 17-wp573, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:17-wp573
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    Cited by:

    1. Shr, Yau-Huo (Jimmy) & Zhang, Wendong, 2024. "Omitted downstream attributes and the benefits of nutrient reductions: Implications for choice experiments," Ecological Economics, Elsevier, vol. 222(C).
    2. Hongxing Liu & Wendong Zhang & Elena Irwin & Jeffrey Kast & Noel Aloysius & Jay Martin & Margaret Kalcic, 2020. "Best Management Practices and Nutrient Reduction: An Integrated Economic-Hydrologic Model of the Western Lake Erie Basin," Land Economics, University of Wisconsin Press, vol. 96(4), pages 510-530.
    3. Jayash Paudel & Christine L. Crago, 2021. "Environmental Externalities from Agriculture: Evidence from Water Quality in the United States," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 185-210, January.
    4. Yau-Huo Shr & Wendong Zhang, 2021. "Does Omitting Downstream Water Quality Change the Economic Benefits of Nutrient Reduction? Evidence from a Discrete Choice Experiment," Center for Agricultural and Rural Development (CARD) Publications 21-wp620, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Chen, Wei & Wolf, David M. & Gopalakrishnan, Sathya & Haab, Timothy C. & Klaiber, Allen, 2018. "The Impact of HABs on Recreational Visits to Lake Erie," 2018 Annual Meeting, August 5-7, Washington, D.C. 274026, Agricultural and Applied Economics Association.
    6. John C. Whitehead & Alicia Louis Cornicelli & Gregory Howard, 2024. "Total Economic Valuation of Great Lakes Recreational Fisheries: Attribute Non-attendance, Hypothetical Bias and Insensitivity to Scope," Working Papers 24-10, Department of Economics, Appalachian State University.
    7. Zach Raff & Andrew Meyer, 2022. "CAFOs and Surface Water Quality: Evidence from Wisconsin," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 161-189, January.
    8. Boudreaux, Greg & Lupi, Frank & Sohngen, Brent & Xu, Alan, 2023. "Measuring beachgoer preferences for avoiding harmful algal blooms and bacterial warnings," Ecological Economics, Elsevier, vol. 204(PA).
    9. Walsh, Sharon & O'Shea, Eamon & Pierse, Tom & Kennelly, Brendan & Keogh, Fiona & Doherty, Edel, 2020. "Public preferences for home care services for people with dementia: A discrete choice experiment on personhood," Social Science & Medicine, Elsevier, vol. 245(C).
    10. Charles Towe & H. Allen Klaiber & Joe Maher & Will Georgic, 2021. "A Valuation of Restored Streams Using Repeat Sales and Instrumental Variables," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 199-219, October.
    11. Shr, Yau-Huo Jimmy & Zhang, Wendong, 2021. "Does Omitting Downstream Water Quality Change the Economic Benefits of Nutrient Reduction Programs: Evidence from a Discrete Choice Experiment," 2021 Annual Meeting, August 1-3, Austin, Texas 313927, Agricultural and Applied Economics Association.
    12. Melstrom, Richard T. & Malone, Trey, 2023. "Voter evaluations regarding the tradeoffs between agricultural production and water quality in Lake Erie," Agricultural Water Management, Elsevier, vol. 287(C).
    13. Lindley, Sarah & Albeke, Shannon & Viers, Joshua & Parsons, George & Johnston, Robert & Newbold, Stephen C., 2022. "Valuing Satellite Data for Harmful Algal Bloom Early Warning Systems," RFF Working Paper Series 22-23, Resources for the Future.
    14. David Wolf & Sathya Gopalakrishnan & H. Allen Klaiber, 2022. "Staying afloat: The effect of algae contamination on Lake Erie housing prices," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(5), pages 1701-1723, October.
    15. Liu, Yanan & Klaiber, Allen, 2022. "The Impact of Harmful Algal Blooms on Household Averting Expenditure," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322117, Agricultural and Applied Economics Association.
    16. repec:ags:aaea22:335687 is not listed on IDEAS
    17. Zhang, Jiarui & Phaneuf, Daniel J. & Schaeffer, Blake A., 2022. "Property values and cyanobacterial algal blooms: Evidence from satellite monitoring of Inland Lakes," Ecological Economics, Elsevier, vol. 199(C).
    18. Osseni, Abdel Fawaz & Bareille, Francois & Dupraz, Pierre, 2021. "Hedonic valuation of harmful algal bloom pollution: Why econometrics matters?," Land Use Policy, Elsevier, vol. 107(C).
    19. Yanan Liu & H. Allen Klaiber, 2023. "Don’t Drink the Water! The Impact of Harmful Algal Blooms on Household Averting Expenditure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(1), pages 29-55, October.
    20. Weng, Weizhe & Boyle, Kevin J. & Farrell, Kaitlin J. & Carey, Cayelan C. & Cobourn, Kelly M. & Dugan, Hilary A. & Hanson, Paul C. & Ward, Nicole K. & Weathers, Kathleen C., 2020. "Coupling Natural and Human Models in the Context of a Lake Ecosystem: Lake Mendota, Wisconsin, USA," Ecological Economics, Elsevier, vol. 169(C).
    21. Kroetz, Kailin & Kuwayama, Yusuke & Vexler, Caroline, 2019. "What is a Fish Out of Water? The Economics Behind the Joint Management of Water Resources and Aquatic Species in the United States," RFF Working Paper Series 19-09, Resources for the Future.

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    More about this item

    Keywords

    choice experiment; discrete choice; generalized multinomial logit model; harmful algal bloom; lake erie; non-market valuation; recreational angler; recreation demand; survey; water quality jel codes: q51; q53; q57; q15;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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