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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Journal Article — Jun 27, 2022
Accounting for Ecosystem Service Values in Climate Policy
In a comment for Nature Climate Change, RFF Fellow Hannah Druckenmiller reflects on the need to incorporate the ecosystem impacts of climate change into the social cost of carbon.
Common Resources — Jun 8, 2022
Now’s the Time: How States Can Take Advantage of High Energy Prices
Prices of coal, oil, and natural gas are spiking. Although high energy costs hurt consumers, the situation offers an opportunity for energy-producing states to invest windfall tax revenues and make communities more economically resilient in the long term.