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Valuation of groundwater quality using a contingent valuation‐damage function approach
Author(s) -
Poe Gregory L.
Publication year - 1998
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/1999wr900010
Subject(s) - contingent valuation , valuation (finance) , groundwater , damages , nitrate , willingness to pay , environmental science , demographics , water quality , actuarial science , natural resource economics , business , economics , environmental economics , engineering , microeconomics , political science , finance , ecology , demography , sociology , law , geotechnical engineering , biology
Using contingent valuation, this paper estimates a damage function for nitrate (NO 3 ‐N) exposures based on actual water test results of individual wells. Damages, as measured by willingness to pay for protecting individual well supplies within a 10 mg/L NO 3 ‐N health standard, are estimated to be a concave function of nitrate exposure levels, rising rapidly at low to moderate exposures and then leveling off. It is argued that future groundwater contingent valuation research should be based on objective data such as nitrate levels and census demographics in order to provide more useful information for groundwater managers and policy makers.