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The Value of Water Quality for Coastal Recreation in New England, USA

Author

Listed:
  • Merrill, Nathaniel
  • Mazzotta, Marisa J.
  • Mulvaney, Kate K.
  • Sawyer, Joshua Paul

    (EPA)

  • Twichell, Julia
  • Atkinson, Sarina F.
  • Keith, Darryl
  • Erban, Laura

Abstract

Water recreation is valuable to people and its value can be affected by changes in water quality. This paper presents the results of a primary data collection effort using a revealed preference survey to elicit coastal New England, USA residents’ values for water recreation and water quality. We combined the survey responses with a comprehensive dataset of coastal attributes, including in-water and remotely sensed water quality metrics for the coast of New England. The results provide an updated willingness-to-pay for a coastal recreation trip of $26-$28 (USD). Using a travel cost model framework, we found water clarity and the bacterial conditions of coastal waters to be practical water quality inputs to economic analysis, available at appropriate scales and meaningful to people and their behavior. Changes in clarity and bacterial conditions affected trip values, with a $4-$5 change for a meter in clarity and $0.13 for a one-unit change, respectively. We demonstrate their utility and the large potential value of improving water quality through welfare analysis scenarios for Narragansett Bay, Rhode Island, and Cape Cod, Massachusetts, USA. The paper discusses generalizable lessons for improving the policy relevance and applicability of water quality valuation studies in the U.S. and worldwide through improved water quality data collection and aggregation combined with application of scalable analysis tools for valuation.

Suggested Citation

  • Merrill, Nathaniel & Mazzotta, Marisa J. & Mulvaney, Kate K. & Sawyer, Joshua Paul & Twichell, Julia & Atkinson, Sarina F. & Keith, Darryl & Erban, Laura, 2022. "The Value of Water Quality for Coastal Recreation in New England, USA," SocArXiv q2mg3, Center for Open Science.
    • Handle: RePEc:osf:socarx:q2mg3
    DOI: 10.31219/osf.io/q2mg3
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    References listed on IDEAS

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    1. Richard T. Melstrom & Deshamithra H. W. Jayasekera, 2017. "Two-Stage Estimation to Control for Unobservables in a Recreation Demand Model with Unvisited Sites," Land Economics, University of Wisconsin Press, vol. 93(2), pages 328-341.
    2. Frank Lupi & Daniel J. Phaneuf & Roger H. von Haefen, 2020. "Best Practices for Implementing Recreation Demand Models," Review of Environmental Economics and Policy, University of Chicago Press, vol. 14(2), pages 302-323.
    3. Kling, Catherine L. & Bockstael, Nancy & Hanemann, W. Michael, 1987. "Estimating the Value of Water Quality Improvements in a Recreational Demand Framework," Staff General Research Papers Archive 1594, Iowa State University, Department of Economics.
    4. Murdock, Jennifer, 2006. "Handling unobserved site characteristics in random utility models of recreation demand," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 1-25, January.
    5. George R. Parsons & GAndrew J. Plantinga & GKevin J. Boyle, 2000. "Narrow Choice Sets in a Random Utility Model of Recreation Demand," Land Economics, University of Wisconsin Press, vol. 76(1), pages 86-99.
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