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Explaining Variation in the Value of Chesapeake Bay Water Quality Using Internal Meta-analysis

Author

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  • Heather Klemick
  • Charles Griffiths
  • Dennis Guignet
  • Patrick Walsh

Abstract

This study conducts a meta-analysis of the value of water quality in the Chesapeake Bay derived from separate hedonic property value estimates in 14 Maryland counties. The meta-analysis allows us to: 1) investigate heterogeneity of estimates of the value of water clarity across counties based on socioeconomic and ecological factors, 2) understand the implication of econometric specification choices made in the original hedonic equations for benefit estimates, and 3) transfer the benefits out-of-sample to Bayfront counties in Washington, DC, Delaware, Virginia, and four additional counties in Maryland. We also investigate the in-sample and out-of-sample predictive power of different transfer strategies and find that a simpler unit value transfer can outperform more complex function transfers. The results illustrate both the usefulness of meta-analysis and the challenges of benefit transfer even when estimates being transferred represent a common geographic area, environmental attribute, and policy instrument.

Suggested Citation

  • 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.
    • Handle: RePEc:nev:wpaper:wp201504
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    File URL: https://www.epa.gov/environmental-economics/working-paper-explaining-variation-value-chesapeake-bay-water-quality-using
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    Cited by:

    1. Okmyung Bin & Jeffrey Czajkowski & Jingyuan Li & Gabriele Villarini, 2017. "Housing Market Fluctuations and the Implicit Price of Water Quality: Empirical Evidence from a South Florida Housing Market," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 319-341, October.
    2. Wainger, L. & Loomis, J. & Johnston, R. & Hansen, L. & Carlisle, D. & Lawrence, D. & Gollehon, N. & Duriancik, L. & Schwartz, G. & Ribaudo, M. & Gala, C., 2017. "Ecosystem Service Benefits Generated by Improved Water Quality from Conservation Practices," C-FARE Reports 260679, Council on Food, Agricultural, and Resource Economics (C-FARE).

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    More about this item

    Keywords

    meta-analysis; benefit transfer; water quality; Chesapeake Bay; hedonic property value analysis;
    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

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