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How much is clean water worth? Valuing water quality improvement using a meta analysis

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  • Ge, Jiaqi
  • Kling, Catherine L.
  • Herriges, Joseph A.

Abstract

This paper has developed and estimated a valuation model for water quality improvement. After reviewing more than 100 studies, we set up a data set that has 332 valuations from 38 distinct studies. Based on the data set, we estimate a linear valuation model, which can then be used to predict the mean willingness to pay by households living in a given region for water quality improvement at a given site. For instance, the willingness to pay by a typical household living in the state of Iowa for a water quality increase from 40 to 50 (out of 100) at a one-square-mile aquatic site, like Iowa's Spirit Lake, is predicted to be $137.52. The valuation model developed in this paper is particularly convenient when we want to evaluate the benefit of a project that aims at improving water quality, but a primary study is too costly or time consuming.

Suggested Citation

  • Ge, Jiaqi & Kling, Catherine L. & Herriges, Joseph A., 2013. "How much is clean water worth? Valuing water quality improvement using a meta analysis," ISU General Staff Papers 201302250800001050, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201302250800001050
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    Cited by:

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    2. 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.
    3. Choi, Dong Soon & Ready, Richard, 2021. "Measuring benefits from spatially-explicit surface water quality improvements: The roles of distance, scope, scale, and size," Resource and Energy Economics, Elsevier, vol. 63(C).
    4. Hyun No Kim, 2021. "Economic Evaluation of Water Resource Management in South Korea Based on Benefit–Cost Analysis," SAGE Open, , vol. 11(2), pages 21582440211, April.
    5. Catherine L. Kling & Daniel J. Phaneuf, 2018. "How are Scope and Adding up Relevant for Benefits Transfer?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(3), pages 483-502, March.
    6. Heather Klemick & Charles Griffiths & Dennis Guignet & Patrick Walsh, 2018. "Improving Water Quality in an Iconic Estuary: An Internal Meta-analysis of Property Value Impacts Around the Chesapeake Bay," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 265-292, February.
    7. Heather Klemick & Charles Griffiths & Dennis Guignet & Patrick Walsh, 2015. "Explaining Variation in the Value of Chesapeake Bay Water Quality Using Internal Meta-analysis," NCEE Working Paper Series 201504, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Nov 2015.
    8. Francesco Jacopo Pintus, 2023. "Valuing drinking water quality after a PFAS contamination event: results from a meta-analysis benefit transfer," "Marco Fanno" Working Papers 0308, Dipartimento di Scienze Economiche "Marco Fanno".
    9. Hoque, Mohammad Mainul, 2015. "Essays on natural resources and labor economics," ISU General Staff Papers 201501010800005583, Iowa State University, Department of Economics.
    10. Wolf, David & Klaiber, H. Allen, 2017. "Bloom and bust: Toxic algae's impact on nearby property values," Ecological Economics, Elsevier, vol. 135(C), pages 209-221.
    11. Ureta, J. Carl & Motallebi, Marzieh & Vassalos, Michael & Seagle, Steven & Baldwin, Robert, 2022. "Estimating residents' WTP for ecosystem services improvement in a payments for ecosystem services (PES) program: A choice experiment approach," Ecological Economics, Elsevier, vol. 201(C).

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