A More Comprehensive Estimate of the Value of Water Quality
Coauthored by researchers at RFF, this article in the Journal of Public Economics estimates homeowners' willingness to pay for water quality improvements.
The estimated marginal cost of US water pollution control often exceeds its marginal benefit. We provide intuition, theory and empirical evidence suggesting that the hedonic property model—a common revealed-preference approach to valuing pollution control—may not capture water’s recreational benefits. Using the case of Tampa Bay, Florida, we estimate willingness to pay (WTP) for water quality improvements by combining a recreation demand model with a hedonic property model. Results indicate that homeowners have significant WTP for both local and regional recreational water quality improvements and suggest that prior hedonic studies may underestimate the benefits of water pollution control.
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Media Highlight — Nov 16, 2022
Nature: "Smarter Ways with Water"
An article in Nature Magazine about our relationship with water quotes RFF Fellow Hannah Druckenmiller and cites her work on the economic value of wetlands.
Resources Radio — Nov 1, 2022
Choking on Wildfire Smoke: Quantifying Its Effects on Air Pollution, with Marissa Childs
Marissa Childs discusses the prevalence and dangers of wildfire smoke in the United States, including how wildfire smoke reduces air quality.
Resources Radio — Oct 4, 2022
A Global Look at Urban Air Quality, with Pallavi Pant
Pallavi Pant discusses the health effects of air pollution, trends in urban air quality, and a new report on the air quality of over 7,000 cities.